Friday, February 27, 2009

Story of Business process management:

Business process management (BPM) is a method of efficiently aligning an organization with the wants and needs of clients. This approach increases the effectiveness and efficiency of business. BPM attempts to continuously improve processes - the process to define, measure and improve your processes – a ‘process optimization' process. Organizations often start a BPM project or program with the objective to optimize an area which has been identified as an area for improvement. Business Process Management encompasses other process elements, such as Total Quality Management (TQM), Six Sigma, Performance Management, etc.Both of the concepts SOA and modeling go into the definition of Business Process Management. We can say that using software technology, BPM acts as the bridge between Information Technology (IT) and Business.
Business process management Cyclic Stages:
BPM have some certain stages in their life cycle which are listed below:
Design
Process Design encompasses both the identifying of existing processes (“As-is” and designing the "to-be" process). Areas of focus include:· representation of the process flow,· the actors within it,· alerts & notifications,· escalations,· Standard Operating Procedures,· Service Level Agreements,· And task hand-over mechanisms.Good design reduces the number of problems over the lifetime of the process. The aim of this step is to ensure that a correct and efficient theoretical design is prepared.
Modeling
By knowing the theoretical design, we implements it on the different variable to know how it respond under different circumstances.
Execution
As a response to these problems, software has been developed that enables the full business process (as developed in the process design activity) to be defined in a computer language which can be directly executed by the computer. The system will either use services in connected applications to perform business operations (e.g. calculating a repayment plan for a loan) or, when a step is too complex to automate, will message a human requesting input. Compared to either of the previous approaches, directly executing a process definition can be more straightforward and therefore easier to improve. However, automating a process definition requires flexible and comprehensive infrastructure which typically rules out implementing these systems in a legacy IT environment.Business rules have been used by systems to provide definitions for governing behavior, and a business rule engine can be used to drive process execution and resolution.
Monitoring
Monitoring encompasses the tracking of individual processes so that information on their state can be easily seen and statistics on the performance of one or more processes provided. An example of the tracking is being able to determine the state of a customer order (e.g. ordered arrived, awaiting delivery, invoice paid) so that problems in its operation can be identified and corrected. The degree of monitoring depends on what information the business wants to evaluate and analyze and how business wants it to be monitored, in real-time or ad-hoc.
Optimization
Process optimization includes retrieving process performance information from modeling or monitoring phase and identifying the potential or actual bottlenecks and potential rooms for cost savings or other improvements and then applying those enhancements in the design of the process thus continuing the value cycle of business process management.

1 comment:

  1. In some cases, the need to manage and allocate some resources of businesses to improve its process is to enhance its capabilities of growing in the economy. The need to manage the business process is one of the factors one businessman should know, and also with the use of some business process modeling together with the management is an appropriate additive specially to a starting businesses.

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