Explaining Bpm To Facilitate You Take Important Management Decision

By Author: Denis Butcher
Total Articles: 17
Comment this article

There can be three different reasons- why an organisation aims to implement Business Process Management solution. First- it is to implement new processes, second- it is to identify problems with an existing process and third- it is to look at progressive changes. Any one or all among these drive a business to adopt BPM technology.



To understand why process management has become call of the day you need to understand few more things - such as Business processes, Business models, importance of Business
Process Modeling and organizational views.


Here in this article we will describe each of these in brief:



A. Business processes –


These are the collection of related, organized activities that produce a particular result or satisfy a goal for business customers. In a company, business process is a chain of events – from inventory purchase to end-product supply, from order taking to sales and customer service etc.



There are three principle ...
... types of business processes.


Management processes - for example, corporate governance, strategic management.


Operational processes - that includes core businesses to manage main revenue models. For example, purchasing, manufacturing, marketing, and sales


Supporting processes - for example, technical support, training and workshops, recruitment, accounting, etc.


Business processes can also be explained from micro level i.e. sub processes. Each of these sub processes has their own attributes that collectively achieve goal of a business.


B. Business models –


This is a framework of business that represents core aspects of a business system. It describes -


• How an organisation delivers value to customers.


• What are the purposes and strategies of a business?


• How strong infrastructure, organizational structures are.


• What are the trading practices?


• What are the operational processes and policies?


Thus business model gives a complete picture of an organization from a high-level perspective. The objective is to reflect management hypothesis – what customers want, how they need it and how a company is prepared to meet those targets and make a profit at the end.


Following are the common examples of business models - Bricks and clicks business model, Cutting out the middleman model, Direct sales model, Franchise, Professional open-source model, All-in-one business model, Multi-level marketing business model, Premium business model and many more. Each business model has its own objectives and applications based on operational needs.



The current business model is based on Web 2.0. Most of the service industries want to make use of use of web 2.0 capabilities, such as collective intelligence, network effects, user-generated content and self-improvement systems.


C. Business Process Modeling –



This is an activity to represent and manage business processes of an organization. By applying Business Process Modeling tools business users can implement and execute business models (as described earlier), refine business models based on as-executed data and provide transparency to business processes.



Some of the popular Business Process Modeling techniques are - Business Process Modelling Notation (BPMN), Unified Modeling Language (UML), Extended Business Modelling Language (xBML) etc. There are two types of Business process modelling diagrams - Use case diagrams and Activity diagrams, both adopted by UML (Unified Modelling language).



However, to understand and execute all these BPM concepts you need to know the way an organization should be viewed.
There are two ways to look at.



First, from a functional point of view



Second, as a set of business processes



Functional view interprets traditional organization structure where business processes are categorized based on functional departments like accounts, sales and marketing, production, customer service, delivery, etc. Here each department develops specific expertise but are unaware of cross-functional interaction. This may help achieve functional goals but can’t satisfy organizational goals.



On the other hand, business process views concentrate on holistic approach. Here the focus is on the end goal of the process.



If you want to implement BPM technology in your organization, it is essential you go through all these basics before taking any decision.



About the author: Denis Butcher is a management expert and a reputed article writer. In this article he has explained about Business Process Management and Business Process Modelling. To know more you may visit Prime PMG – a Brisbane based BPM solution provider. Their official website is http://www.primepmg.com