Sunday, July 6, 2008

Why Business Process Management?

If you thought Business Process Management (BPM) was a pretty good excuse for consultants to engage in, I suggest to re-think. BPM implementation enables management visibility, saves time, money, staff. More importantly, saves paper.

Accounting package or ERP system is able to provide an accurate view of historical business performance. However, it doesn't show what’s really going on behind the scenes ... before? after? or even right now? Having said that, by the time you realize it, you can't do anything as it's too late.

Briefly, BPM is a technique that involves mapping business functions and breaking them down into distinct processes, then automating and integrating those processes where needed so that each process runs smoothly in compliance with business policies and/or rules.

BPM plan begins with readiness programme which is designed to set out business goals and objectives, and assesses where a company's current situation. Precisely illustrating the gap between where the business is, and where it wants to be.

Hence, measurement should be in the area for both tangible costs e.g. system and people costs. Intangibles comprise lost goodwill, customer satisfaction etc. The ‘beef’ of a BPM plan comes in the next two phases - process improvement and if applicable, process outsourcing.

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