Every business house tries hard to save its unnecessary expenditures. Since its inception, it tries to work on a cost effective model by converting its saved pennies into profits. In these days of cut throat competition, it is vital to engineer ways to save money because every penny saved is every penny earned. Business Process Management (BPM) aims at providing plans which gives the best possible utilization of resources. It is a part of operations management which focuses on improvement of a company’s performance by putting its resources on optimum utilization. BPM optimizes and manages the business processes and practices adopted by an entity.
Every business process adopted by an entity is its asset as it works to generate revenue and ultimately profits. Every business wants to thrive and grow manifold but it is its policies and processes adopted by it, that hinders its growth. Business Process Management aims at removing those hindrances and opening doors to success. The primary objective of BPM is to analyze the business and working environment of entity and then planning out the best processes which can bear fruitful results. BPM closely resembles supply chain management but is a broader concept. It is also quite similar to Total Quality Management and Enterprise Resource Planning, all being part of operations management.
The Business Process Model comprises of certain steps which are to be taken in succession to get results. The process includes steps, namely,
• Design: This is the foremost step which requires understanding and analyzing the entity’s business and requirements.
• Modeling: It is the second step, which gives a model to the designing done in the previous step. It gives a shape to the analysis done in Step 1.
• Execution: This is an important step which requires implementation of the model prepared based on analysis of entity’s requirements.
• Monitoring: This requires constant supervision of the implemented model. It enables a person to objectively and practically find out shortcomings in the model.
• Optimization: This step works on the findings in the 4th step. This step makes changes in the BPM system according to the shortcomings found.
Monitoring and optimization is a regular process which works on trial and error method. Every time a problem is incurred, a solution is to be found to fix it. It is an ongoing process.
To implement BPM the management and employees of an entity have to be open minded. They need to welcome aboard changes that might help them generate more profits. BPM is an effective method if utilized adequately.