Frequently asked questions about business process management

BPM automates and streamlines the many processes that are the lifeblood of an organisation. From processing an online order to approving a home loan application, BPM provides an independent process layer that controls how people and technology interact, in order to achieve the objectives of the organisation.

According to research conducted by the Aberdeen Group in 2003, business process management systems (BPMS) provide the capability to design, deploy, execute, analyse and optimise end-to-end business processes. They coordinate the flow of tasks, access to resources and the exchange of information among employees, customers and partners. They capture information about the execution of the process to enable continuous process improvement.

Well-managed processes enhance speed, consistency, accuracy and pro-activity across the organisation, providing ease-of-access and a single point-of-contact for customers which provides them with a 'cradle-to-grave` service, as well as full audit trails and traceability. This also reduces errors, overcomes bottlenecks, and in general prevents the misunderstandings and delays that can damage an organisation`s business and brand.

Not only do they help control costs and ensure productivity of systems and people, but a well-managed process also help organisations prepare for and prosper in these times of rapid change.

Business process management automates and streamlines the many processes that are the lifeblood of an organisation. It takes a high-level view of the many actions that are necessary to the core operation of an organisation and builds a framework for their management.

So, while BPM may well have had its historical origins in workflow, there are actually two key differences:

* Workflow focuses mainly on document-based processes where people perform the process steps. BPM manages processes that encompass steps performed by both people and systems.

* Workflow automates processes that exist within an individual department. BPM addresses processes that can span the enterprise - that is, it has an enterprise-wide focus. BPM technology must therefore provide far higher degrees of scalability than workflow.

BPR focused on a very theoretical approach to process change, and was fashionable in business in the 1980s and early 1990s. Its objective was a 'big-bang` implementation, whereby all the processes in an organisation were redesigned from scratch, and then re-implemented in one go. This approach proved impractical, and became notorious for so-called 'analysis paralysis`. It took too long to complete and the business requirements changed too frequently. BPM, on the other hand, takes a pragmatic approach. By exploiting an independent process layer that complements existing systems, processes can be automated quickly and then changed incrementally over time to evolve in step with the business.

The adoption of BPM is growing strongly. BPM provides an independent process layer that complements existing applications such as CRM, ERP and legacy systems. It coordinates the activities performed by different applications with people-oriented tasks to deliver a more effective business process. BPM has therefore come to be regarded as a natural 'next step` following the deployment of these applications within an enterprise.

However, many organisations see the potential benefits of implementing an independent process layer immediately - prior to any CRM or ERP systems, for example. In these situations, these types of system implementations tend to be better established and work more effectively and successfully.

BPM is a technology that readily lends itself to all organisations, be they small, medium or large. Essentially, any organisation which takes its processes seriously - considering them to be key or even mission-critical to their successful continued operation - will adopt BPM technologies or solutions readily.

The key point here is understanding - businesses, no matter what their size, need to understand that they can use business process automation (BPA) and business process management (BPM) to automate and optimise their processes.

There are certain industry sectors that appear to be more advanced in their adoption of BPM - public sector, financial services and telecommunications for example.

The BPM market is now maturing fast, as organisations come to understand the wide range of different processes that can benefit from the establishment of an independent process layer. BPM is evolving from simply being a tool for solving tactical, departmental-level problems, to providing a crucial part of the enterprise IT infrastructure that supports the whole business. This evolution means that the ability to cope with a wide range of different and often complex processes, the need for high availability and increasing scalability, all become more pressing issues.

A second trend is that as the core BPM engines become established, we are also seeing the introduction of specific 'flavours` of BPM, that meet specific industry sector requirements. These 'framework` solutions provide not just a generic Independent Process Layer but 50%-80% of the definition of a specific process.

Examples include home loan application processing, insurance claims management, and complex order management in telecommunications. These process-specific BPM solutions will become a major trend in the software industry.

Web services (WS) technology undoubtedly makes integration between systems simple, quick and easy. However, no sensible organisation would consider deploying WS technology outside of the firewall unless it is part of a well-defined and managed process. BPM is therefore complementary to Web services technology, and in fact the adoption of Web services will only further fuel the need for BPM, as they will work synergistically to promote improved processes.