The business world is rife with acronyms, jargon, and buzzwords. Anyone who has ever gotten "pushback on a TQM touchpoint" is familiar with how the business-speak of a particular company or industry can evolve into its own language. And, while some people might think that BPM falls into the category of "just another acronym," it is, in fact, a practical integration of technology and strategy that can help businesses operate more efficiently.
BPM stands for Business Process Management, as well as Business Performance Management, depending on whom you ask. Either way, BPM can be defined as a tactic that combines software and policies with the aim of streamlining process flow among departments in order to improve communication and efficiency.
Although there are several vendors like Tibco, Appian, and SRC that specialize in the space, BPM is more than a set of technology tools. It can be a way to bridge departmental boundaries and fill in information gaps that might be limiting a company's effectiveness.
New and Improved
The term "BPM" has been used for years in reference to activities that improve a company's business process, but has been at the forefront lately thanks to more software tools that help companies to implement better processes faster.
A decade ago, companies first began looking at dismantling and reorganizing their processes through "business process reengineering." Those efforts tended to focus on a one-time overhaul, similar to changing all the systems in a house and then forgetting about them until something breaks.
With BPM, there's a deeper sense of continuous change, acknowledging that communication is constantly evolving, and needs to be developed and tweaked regularly.
At a basic level, BPM identifies, documents, monitors, and automates activities within a company, which are usually connected to the development of a product or service. Processes might encompass procurement, distribution, or R&D procedures.
Unlike project management software, which tends to focus on scheduling tasks for each individual project, BPM examines the underlying processes inherent in an organization.
For example, if there's a glitch in how sales delivers information to the shipping department, BPM goes beyond streamlining the database used by both areas to optimize the processes used in communications.
Tech Talk
Because of its capacity to assist in managing business processes, some software programs have become increasingly focused on BPM functionality. There are several vendors that have folded BPM features into their packages, says Yankee Group analyst Sheryl Kingstone.
For example, she points out that Oracle has done an admirable job of pre-building process flows into its application and making those components work well with other features.
For companies that only want some BPM functionality, these mixed-feature applications can be a boon, she says. But for companies that want a deeper approach, a dedicated BPM vendor may be a better choice.
With either option, what BPM applications can do is assist companies in capturing existing business processes and developing simulations of new possibilities through graphic representations.
As the field evolves, more attention is being paid to workflow systems as well, to determine whether workgroups within a company are performing efficiently, and if responsibility is being assigned accurately.
A major component of BPM is accountability, in which specific tasks are assigned to each department and even each individual, so that performance can be tracked and monitored.
Business Helper
Although BPM systems have gotten more attention in the past few years, it would be a mistake to see the technology as a quick-fix for process issues, says Jeff Kristick, director of BPM products at Tibco.
"Software is involved with the systems, but one of the most common misperceptions is that you can just implement the technology and instantly you'll have better processes," he says. "If the process isn't working, the technology isn't going to solve the issue."
Instead, companies need to be realistic about where their information gaps exist, including workflow problems, communications issues, departmental insularity, and other glitches that might be creating bottlenecks.
One of the most important ways a BPM application or approach can help a company is simply to focus its attention in an area where it may have been lacking in the past. Lackluster sales, poor customer support, sluggish internal communications, and employee dissatisfaction with management policies are all potential signs that information is not being disseminated properly within an organization.
Championing the Process
Often, the integration of software with fresh management approaches can be the catalyst for positive change.
"There's a connection between budgeting, reporting, and true strategic forecasting," says Peri Pierone, vice president of vertical markets for Business Objects at SRC. "What you're looking for is vertical alignment." For instance, if the functions of a CFO are brought together with concerns voiced by the COO, the result is a stronger company foundation, Pierone notes.
Not every company is right for BPM, Kingstone says. There often has to be a champion for the process. And, some enterprises simply aren't at a stage where it's feasible to implement a strategy as potentially company-shaking as BPM, which can significantly change reporting procedures, workflow management, and project responsibilities.
But for enterprises that yearn for more operational efficiency, BPM can be an effective way to tackle the issue. "There's a reason more application vendors are looking at how to build BPM into their software," Kingstone notes. "As the market gets more sophisticated, so do the applications."
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