What is BPM and why is it important?

To understand what BPM is and why it matters, you need to understand its origins. To do so, let’s start with a bit of history…

The industrial revolution of the 18th and 19th centuries marked a turning point in the way companies organize and carry out their work. With the introduction of machines and mass production methods, companies sought more efficient ways to manage and improve their production processes.

In the late 19th and early 20th centuries, Frederick Winslow Taylor introduced the principles of “scientific management”, also known as Taylorism. Taylor emphasized task analysis and work processes to improve efficiency and productivity, two of the fundamental pillars that form the foundations of BPM. Then it was Henry Ford’s turn to revolutionize manufacturing processes with the introduction of the assembly line for car production in the early 20th century. Faster and more efficient, this method highlights the importance of organizing processes to achieve efficiency gains.

Then, in the 20th century, with the concepts of total quality management (TQM) and business process reengineering (BPR), the true origins of Business Process Management took shape. Indeed, the evolution of information technologies, including information systems, enterprise resource planning (ERP) software and other workflow tools, enabled ever more effective automation and monitoring of processes.

BPM finally came into its own in the 2000s, becoming a true distinct discipline with the emergence of standards, methodologies and specific technologies.

Concretely, what is BPM?

If we had to give a definition, it would be this: “Made up of a set of methods, techniques and tools for designing, modeling, executing, monitoring and optimizing business processes, Business Process Management (BPM) is a management discipline that aims to improve the effectiveness and efficiency of an organization’s business processes.” Business Process Management BPM is therefore a methodological and systemic approach aimed at improving the efficiency and performance of business processes within an organization.

Among the different processes that BPM includes are business processes in particular. These are series of interconnected activities or tasks which, when carried out in a specific order, produce a result or a service intended for customers or stakeholders. In this case, BPM strives to standardize business processes, automate them where possible and optimize them, on a continuous basis.

The main steps of BPM can be broken down as follows:

1. Design. This involves identifying and documenting existing processes, defining the “ideal” future processes and establishing key performance indicators (KPIs).
2. Modeling of processes. For this, modeling tools are very often used to visually represent these processes. This visual modeling of processes makes it possible to better understand workflows and identify inefficiencies.
3. Execution. The idea here is to implement the modeled processes in a real environment. For this, workflow management systems or BPM software are used.
4. Monitoring. Tracking process performance in real time is essential to ensure they operate as desired at the start during the design phase. This phase notably includes data collection and performance analysis.
5. Optimization. The final and oh-so-important step, optimization consists of analyzing the collected data to identify areas requiring improvement and making changes to optimize the processes.

As we will have understood, BPM is a discipline that aims to continuously improve the organization of processes. But then why is it so important for companies?

Importance of Business Process Management for companies

First of all, by streamlining and automating business processes, BPM reduces the costs and time needed to accomplish tasks. This is referred to as improved operational efficiency. It is driven by more efficient use of resources and increased productivity.

This operational efficiency is often accompanied by another benefit: adaptability and agility. A company’s life is not linear: new entrants, changing markets, etc., organizations must be able to adapt quickly to new conditions. The operational efficiency brought by BPM allows companies to be more flexible by making processes more modular and easier to modify.

Also, thanks notably to automation, BPM makes it possible to standardize processes. This standardization is a real plus, because it guarantees that the products or services delivered will be delivered in a consistent manner and in line with quality standards. This is also true with regard to regulatory compliance. By documenting and monitoring processes, BPM ensures compliance with current standards over time.

Another advantage offered by Business Process Management is the notion of continuous improvement. By encouraging organizations to constantly monitor and evaluate their processes, BPM fosters a culture of continuous improvement within the company. Very often, this leads to innovations and regular improvements, making it possible to maintain a competitive advantage.

Finally, BPM perfectly meets an objective common to all companies: customer satisfaction. As seen above, with more efficient, more agile, perfectly controlled and monitored processes, the entire chain benefits and therefore contributes to providing faster services or better-quality and more reliable products. By improving the efficiency and quality of processes, BPM mechanically contributes to better customer satisfaction.

As we will have understood, BPM is essential for companies that want to continue their growth while continuing to structure themselves. But to do so, they must make the right choice regarding the technological solution to adopt. To learn more about this topic, here it is.

Conclusion

Business Process Management is an essential strategic approach for any organization seeking to optimize its operations. By focusing on the design, modeling, execution, monitoring and optimization of processes, BPM enables companies to improve their efficiency, guarantee quality, adapt quickly to change and maintain continuous improvement. It proves to be a valuable asset for ensuring customer satisfaction and strengthening the company’s overall performance.

Want to know more about BPM? Discover how our BUSINESS SUITE platform helped the Direction de la Pharmacie et du Médicament (DPM) modernize the pharmaceutical sector and improve the management of the entire medicines supply chain