The business world is quickly changing and there’s no room to hesitation.
Competition is becoming fierce in every sector and the market is becoming less error tolerant. This is why business process management (BPM) is being adopted by more and more businesses worldwide.
BPM is a management system which aims to improve the overall performance of a organization by optimizing important business processes, managing them appropriately and maintaining the changes made.
Within each business, every team works with strategic resources such as information or materials, sometimes both. These data or materials are ingested and transformed. For example, data may be used by your team member to create your report.
These data or materials interact with either people, industrial machinery, or completely automated to produce result. This makes up a process.
In a nutshell, business process management is the way your company manages and improves business processes. It starts from process discovery using process mining and mapping your processes into diagrams. Once mapped, the processes are measured, analyzed for gaps and put through series of ways to improve and optimize them.
With business-buzzwords thrown around, it can sometimes be hard to keep up. BPM can be a bit confusing, so we’re here to shed some light on some of the benefits.
1. Business Process Management can help businesses reduce costs
More than 50 percent of participants recognized saving money as the key reason for embracing BPM in a RedHat survey 2018. Organizations need to concentrate on cost-cutting to remain efficient and reliable.
It’s important to note that management of business processes begins with understanding. In several cases this implies that each business process is known. You can then put those simple steps into practice and start seeing how they work in the wild.
Those processes are then written down in detail. These process maps provide great insights such as the length, necessary resources, frequency and associated costs. Such measures often have to be coordinated between different departments, because the most critical processes within an company often focus on one or more business areas.
When this phase of mapping is complete, it is much easier to determine where costs can be cut. This could be done by removing redundancies, recognizing problems related to quality assurance and exposing unnecessary materials and labor costs. Cost reduction is of course only one benefit of this operation.
The management of business processes can also help companies find processes that are simply not worth the time and effort. Even such processes can be removed. It may be outsourced in many situations. A multinational company, for example, may conclude that outsourcing localization tasks is easier.
2. Business Process Management can help businesses recognize and respond to new customer demands
Effective companies need to be sensitive. We need to be able to understand changing demands and desires of customers and respond quickly. This is another field where it can really help with a good BPM strategy. It causes decision-makers to look out.
Some of the more recent changes in how we view process management is that processes themselves are becoming more customer-focused and less productivity-centered. Rather than wondering how to develop processes to bring a product out quicker and more effectively, stakeholders are now trying to improve processes to better serve the needs of the consumers.
It impacts directly on metrics like customer loyalty and retention. Additionally, changing business processes so that they meet the needs of consumers also leads to other major changes leading to improved profitability and performance.
Business process management tools such as Zoadesk can be used as a tool for customer-centered modelling of new processes. Then in cases these can be applied. A good solution for managing business processes would allow businesses to evaluate improvements before implementing them in production conditions.
Business managers can recognise growing patterns in consumer expectations and desires by focusing on customer needs. Here are several other benefits of improving processes so that they are customer-centric:
- meeting customer needs also leads to increased efficiency indirectly.
- To better meet changing needs, processes become more flexible.
- It prefers a solution-based approach.
- Processes can be re-engineered with a new or additional purpose to enhance customer service.
- Innovation is spurred on.
- Through built-in quality controls, BPM software lets you make adjustments easily.
3. Companies are increasingly finding that their old business models are no longer effective
When your company has run according to an outdated business model, you’re not going to get very far. It’s time to make improvements now and not in the future at some point. You really can’t ignore the changes that are happening around you.
Technology, individuals, consumer preferences, changing socioeconomic conditions all lead to a world that is evolving rapidly. If you struggle to make the right adjustments at the right time, your competitors are practically guaranteed to outdo you on every turn.
Management of business processes helps you understand your current processes, and create new ones. In fact, a Gartner report outlines how BPM can help ensure successful business transformation occurs. One of the information in the study is that the businesses that make adjustments need to recognize new business trends.
Here are some other important takeaways:
- An effective BPM solution will help business owners identify the processes they need to include in order to get the outcomes they need.
- It’s important to identify where a company is in terms of business process management, not just overall, but for each upcoming project. Whether a project is successful or not may rely on whether or not there is already an effective BPM solution in place.
- Weaknesses need to be addressed in order to make adjustments to ensure the company has the resources it requires to move forward.
4. Business Process Management can lead to increased productivity
With rising competition and more demanding conditions for survival, companies have to work at their best.
BPM will help improve efficiency and allow companies to deliver more to customers. One example of this is Adidas who underwent a massive redesign of the operation. This culminated in many corporate goals being achieved, one of which has been increased efficiency.
In particular, they were able to reduce the lag time between the placement of orders and the detection of the program orders. That led to faster and more efficient filling of orders.
All of this was due to the sort of critical analysis that effective business process management provides. Without control of business processes the organization would probably not have known this inefficiency.
5. Business Process Management makes it easier to retain customers
Gaining new customers is pretty difficult. Perhaps more of a challenge may be to keep them.
Retaining clients also has a much higher ROI than adding new ones. It costs less to do so, and over time, existing clients are offers more profit.
By improving metrics like efficiency and innovation, your clients are more likely to be happy with your company. Which leads to better retention. If you are able to match your BPM usage to build better customer interactions then you’ll reap the benefits.
It is important since 67% of consumers report that their key reason for dropping a product or service is bad experience.
6. You can standardize your processes with BPM
A organization needs to have a straightforward, comprehensive plan on how things are done. BPM assists you in standardizing processes within your company. When procedures are not structured, it is difficult to manage quality amongst other issues.
- Here are some other benefits you can realize by using process management to standardize how things are done throughout your organization: once processes are standardized, it becomes easier in the future to improve them. Processes are recorded in the process of standardisation. You may also standardize procedures, and then take steps to develop business processes (BPI) in phases.
- Standardized processes offer increased efficiency and production. When standardizing, you determine the most suitable methodologies to use. Set that in place then. That can be propagated in the organisation.
- Standardisation makes onboarding much easier. The same should be taught to all new employees. Imagine also transitions of workers and other lateral shifts. When operational processes are standardized, the need to retrain employees into new methods is significantly less.
- You can start scheduling those processes when you have structured processes to run at the time you know they’ll be required. Standardization processes help you grasp your own company decisions and pre-empt them.
7. Business Process Management leads to cross-department collaboration
People need to be on the same page in a organization, working together towards a common set of goals.
BPM aims to enhance communication across divisions, adding tremendous benefits to the business. Without the management of business processes, various business areas can be fully unaware of how their processes contribute to or interfere with each other.
This happens in two ways.
First, various business areas and teams need to connect with each other during the process mapping and standardisation phase. We will define common procedures, assess where there are redundancies and understand where common knowledge and experience can be helpful.
Next, this partnership is encouraged to move forward with the continued application of the solutions generated by business process management.
What is workflow management system?
A workflow management system is a type of software that helps companies to set up, execute, and track their workflows. They are the perfect tool for planning and conducting tests to calculate, evaluate, and boost the efficiency of your department or even your whole business.
One of the most important functions of a workflow management system is the coordination of tasks and activities that makes up the workflow of your business, also called orchestration. The role of directing a symphony can be compared to workflow orchestration. Every part of the workflow must play its part on time and in key.
Start creating and managing workflow today
Whether you need to close leads faster, streamline your processes, streamline your expenses, or ensure that new team members are engaged, workflow management software can be helpful. Workflows can make your business more agile and efficient, increase employee performance through collaboration and clear instructions and boost your bottom line, all while automating repetitive tasks and creating useful documentation for critical processes.
Zoadesk offers a process management tool that can be used to address issues in all business units. If you’re ready to deploy reliable, trouble-free workflow management software, sign up for our pilot programme.