What is BPM and why is it important?

To understand what BPM is and why it’s important, we need to understand its origins. To do this, 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 organized and carried 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 the analysis of tasks 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 highlighted the importance of process organization in achieving 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, integrating information systems, 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 truly distinct discipline with the emergence of specific standards, methodologies and technologies.

In concrete terms, what is BPM?

Business Process Management (BPM) is a management discipline that aims to improve the effectiveness and efficiency of an organization’s business processes. It consists of a set of methods, techniques and tools for designing, modeling, executing, monitoring and optimizing business processes.

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

The main BPM stages can be broken down as follows:

1. Design. This involves identifying and documenting existing processes, defining “ideal” future processes and establishing key performance indicators (KPIs).
2. Modeling. To achieve this, modeling tools are often used to visually represent these processes. This visual modeling of processes helps to better understand workflows and identify inefficiencies.
3. Execution. The idea here is to implement the modeled processes in a real environment. To do this, we use workflow management systems orBPM software.
4. Monitoring. Real-time monitoring of process performance is essential to ensure that processes function as originally intended during the design phase. This phase includes data collection and performance analysis.
5. Optimization. The final and most important stage, optimization involves analyzing the data collected to identify areas for improvement, and making changes to optimize processes.

As you might expect, BPM is a discipline designed to continuously improve the organization of processes. So why is it so important for companies?

The importance of Business Process Management for companies

Firstly, by streamlining and automating business processes, BPM reduces costs and the time needed to complete tasks. This is known as improving operational efficiency. This is achieved through more efficient use of resources and increased productivity.

This operational efficiency is often accompanied by another benefit:adaptability and agility. The life of a company is not linear, with new entrants, changing markets, etc., so organizations need to be able to adapt quickly to new conditions. The operational efficiency induced by BPM enables companies to be more flexible by making processes more modular and easier to modify.

Thanks to automation, BPM also enables processes to be standardized. This standardization is a real plus, as it guarantees that the products or services delivered will be consistent and in line with quality standards. This also applies 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 ofcontinuous improvement. By encouraging organizations to constantly monitor and evaluate their processes, BPM influences a culture of continuous improvement within the company. Very often, this leads to regular innovations and improvements, helping to maintain a competitive edge.

Last but not least, BPM is the perfect answer to an objective common to all companies: customer satisfaction. As we saw earlier, with more efficient, more agile, perfectly controlled and monitored processes, the whole chain benefits, contributing to faster service delivery or better, more reliable products. By improving the efficiency and quality of processes, BPM mechanically contributes to greater customer satisfaction.

As you can see, BPM is essential for companies that want to continue to grow and structure themselves. But to do so, they need to make the right choice of technology solution. To find out more, click here.

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 efficiency, guarantee quality, adapt rapidly to change and maintain continuous improvement. It proves to be an invaluable asset for guaranteeing customer satisfaction and boosting overall company performance.

Want to find out more about BMP? Discover how our BUSINESS SUITE platform has helped the Direction de la Pharmacie et du Médicament (DPM) modernize the pharmaceutical sector and improve management of the entire drug supply chain.