Business process management

Business process management (BPM) is the discipline in which people use various methods to discover,
model, analyze, measure, improve, optimize, and automate business processes.[1][2] Any combination of
methods used to manage a company's business processes is BPM.[3] Processes can be structured and
repeatable or unstructured and variable. Though not required, enabling technologies are often used with
BPM.[1]

As an approach, BPM sees processes as important assets of an organization that must be understood,
managed, and developed to announce and deliver value-added products and services to clients or
customers. This approach closely resembles other total quality management or continual improvement
process methodologies.

ISO 9000 promotes the process approach to managing an organization.

...promotes the adoption of a process approach when developing, implementing and improving
the effectiveness of a quality management system, to enhance customer satisfaction by meeting
customer requirements.[4]

BPM proponents also claim that this approach can be supported, or enabled, through technology.[5] As
such, many BPM articles and scholars frequently discuss BPM from one of two viewpoints: people and/or
technology.

BPM streamlines business processing by automating workflows; while RPA automates tasks by recording a
set of repetitive activities implemented by human. Organizations maximize their business automation
leveraging both technologies to achieve better results.

Definitions
The Workflow Management Coalition,[6] BPM.com[7] and several other sources[8] use the following
definition:

Business process management (BPM) is a discipline involving any combination of

modeling, automation, execution, control, measurement and optimization of business
activity flows, in support of enterprise goals, spanning systems, employees,
customers and partners within and beyond the enterprise boundaries.

The Association of Business Process Management Professionals[9] defines BPM as:

Business process management (BPM) is a disciplined approach to identify, design,

execute, document, measure, monitor, and control both automated and non-
automated business processes to achieve consistent, targeted results aligned with
an organization’s strategic goals. BPM involves the deliberate, collaborative and
increasingly technology-aided definition, improvement, innovation, and management
of end-to-end business processes that drive business results, create value, and
enable an organization to meet its business objectives with more agility. BPM
enables an enterprise to align its business processes to its business strategy,
 leading to effective overall company performance through improvements of specific
work activities either within a specific department, across the enterprise, or between
organizations.

Gartner defines business process management as:

"the discipline of managing processes (rather than tasks) as the means for improving
business performance outcomes and operational agility. Processes span
organizational boundaries, linking together people, information flows, systems, and
other assets to create and deliver value to customers and constituents."[10]

It is common to confuse BPM with a BPM suite (BPMS). BPM is a professional discipline done by people,
whereas a BPMS is a technological suite of tools designed to help the BPM professionals accomplish their
goals. BPM should also not be confused with an application or solution developed to support a particular
process. Suites and solutions represent ways of automating business processes, but automation is only one
aspect of BPM.

Comparison with program management

It can be differentiated from program management in that program management is concerned with
managing a group of inter-dependent projects. From another viewpoint, process management includes
program management. In project management, process management is the use of a repeatable process to
improve the outcome of the project.[11]

Comparison with project management

Key distinctions between process management and project management are repeatability and predictability.
If the structure and sequence of work is unique, then it is a project. In business process management, a
sequence of work can vary from instance to instance: there are gateways, conditions; business rules etc.
The key is predictability: no matter how many forks in the road, we know all of them in advance, and we
understand the conditions for the process to take one route or another. If this condition is met, we are
dealing with a process.

Changes
The concept of business process may be as traditional as concepts of tasks, department, production, and
outputs, arising from job shop scheduling problems in the early 20th century.[12] The management and
improvement approach as of 2010, with formal definitions and technical modeling, has been around since
the early 1990s (see business process modeling). Note that the term "business process" is sometimes used
by IT practitioners as synonymous with the management of middleware processes or with integrating
application software tasks.

Although BPM initially focused on the automation of business processes with the use of information
technology, it has since been extended to integrate human-driven processes in which human interaction
takes place in series or parallel with the use of technology. For example, workflow management systems
can assign individual steps requiring deploying human intuition or judgment to relevant humans and other
tasks in a workflow to a relevant automated system.[13]

More recent variations such as "human interaction management"[14][15] are concerned with the interaction
between human workers performing a task.
As of 2010, technology has allowed the coupling of BPM with other methodologies, such as Six
Sigma.[16] Some BPM tools such as SIPOCs, process flows, RACIs, CTQs and histograms allow users to:

visualize – functions and processes

measure – determine the appropriate measure to determine success
analyze – compare the various simulations to determine an optimal improvement
improve – select and implement the improvement
control – deploy this implementation and by use of user-defined dashboards monitor the
improvement in real time and feed the performance information back into the simulation
model in preparation for the next improvement iteration
re-engineer – revamp the processes from scratch for better results

This brings with it the benefit of being able to simulate changes to business processes based on real-world
data (not just on assumed knowledge). Also, the coupling of BPM to industry methodologies allows users
to continually streamline and optimize the process to ensure that it is tuned to its market need.[17]

As of 2012 research on BPM has paid increasing attention to the compliance of business processes.
Although a key aspect of business processes is flexibility, as business processes continuously need to adapt
to changes in the environment, compliance with business strategy, policies, and government regulations
should also be ensured.[18] The compliance aspect in BPM is highly important for governmental
organizations. As of 2010 BPM approaches in a governmental context largely focus on operational
processes and knowledge representation.[19] There have been many technical studies on operational
business processes in the public and private sectors, but researchers rarely take legal compliance activities
into account—for instance, the legal implementation processes in public-administration bodies.

Life-cycle
Business process management activities can be arbitrarily grouped into categories such as design, modeling,
execution, monitoring, and optimization.[20]

Design

Process design encompasses both the identification of existing processes and the
design of "to-be" processes. Areas of focus include representation of the process
flow, the factors within it, alerts and notifications, escalations, standard operating
procedures, service level agreements, and task hand-over mechanisms. Whether or
not existing processes are considered, the aim of this step is to ensure a correct and
efficient new design.

The proposed improvement could be in human-to-human, human-to-system or system-to-system

workflows, and might target regulatory, market, or competitive challenges faced by the businesses. Existing
processes and design of a new process for various applications must synchronize and not cause a major
outage or process interruption.

Modeling

Modeling takes the theoretical design and introduces combinations of variables (e.g., changes in rent or
materials costs, which determine how the process might operate under different circumstances).
It may also involve running "what-if analysis"(Conditions-when, if, else) on the processes: "What if I have
75% of resources to do the same task?" "What if I want to do the same job for 80% of the current cost?".

Execution

Business process execution is broadly about enacting a discovered and modeled business process.

Business process

Enacting a business process is done manually or automatically or with a combination of manual and
automated business tasks. Manual business processes are human-driven. Automated business processes are
software-driven. Business process automation encompasses methods and software deployed for automating
business processes.

Business process automation

Business process automation is performed and orchestrated at the business process layer[21] or the
consumer presentation layer[22] of SOA Reference Architecture. BPM software suites such as BPMS or
iBPMS or low-code platforms are positioned at the business process layer. While the emerging robotic
process automation software performs business process automation at the presentation layer, therefore is
considered non-invasive to and de-coupled from existing application systems.

One of the ways to automate processes is to develop or purchase an application that executes the required
steps of the process; however, in practice, these applications rarely execute all the steps of the process
accurately or completely. Another approach is to use a combination of software and human intervention;
however this approach is more complex, making the documentation process difficult.

In response to these problems, companies have developed software that defines the full business process (as
developed in the process design activity) in a computer language that a computer can directly execute.
Process models can be run through execution engines that automate the processes directly from the model
(e.g., calculating a repayment plan for a loan) or, when a step is too complex to automate, Business Process
Modeling Notation (BPMN) provides front-end capability for human input.[23] Compared to either of the
previous approaches, directly executing a process definition can be more straightforward and therefore
easier to improve. However, automating a process definition requires flexible and comprehensive
infrastructure, which typically rules out implementing these systems in a legacy IT environment.

Business rules

Business rules have been used by systems to provide definitions for governing behavior, and a business rule
engine can be used to drive process execution and resolution.

Monitoring

Monitoring encompasses the tracking of individual processes, so that information on their state can be
easily seen, and statistics on the performance of one or more processes can be provided. An example of this
tracking is being able to determine the state of a customer order (e.g. order arrived, awaiting delivery,
invoice paid) so that problems in its operation can be identified and corrected.
In addition, this information can be used to work with customers and suppliers to improve their connected
processes. Examples are the generation of measures on how quickly a customer order is processed or how
many orders were processed in the last month. These measures tend to fit into three categories: cycle time,
defect rate and productivity.

Business Activity Monitoring (BAM)

The degree of monitoring depends on what information the business wants to evaluate and analyze and
how the business wants it monitored, in real-time, near real-time or ad hoc. Here, business activity
monitoring (BAM) extends and expands the monitoring tools generally provided by BPMS.

Process mining

Process mining is a collection of methods and tools related to process monitoring. The aim of process
mining is to analyze event logs extracted through process monitoring and to compare them with an a priori
process model. Process mining allows process analysts to detect discrepancies between the actual process
execution and the a priori model as well as to analyze bottlenecks.

Predictive Business Process Monitoring

Predictive Business Process Monitoring concerns the application of data mining, machine learning, and
other forecasting techniques to predict what is going to happen with running instances of a business
process, allowing to make forecasts of future cycle time, compliance issues, etc. Techniques for predictive
business process monitoring include Support Vector Machines,[24] Deep Learning approaches, and
Random Forest.

Optimization

Process optimization includes retrieving process performance information from modeling or monitoring
phase; identifying the potential or actual bottlenecks and the potential opportunities for cost savings or other
improvements; and then, applying those enhancements in the design of the process. Process mining tools
are able to discover critical activities and bottlenecks, creating greater business value.[25]

Re-engineering

Business process re-engineering (BPR) is a business management

strategy originally pioneered in the early 1990s, focusing on the
analysis and design of workflows and business processes within an
organization. BPR aims to help organizations fundamentally rethink
how they do their work in order to improve customer service, cut
operational costs, and become world-class competitors.[26]

BPR seeks to help companies radically restructure their

organizations by focusing on the ground-up design of their business
processes. According to early BPR proponent Thomas H.
Davenport (1990), a business process is a set of logically related
tasks performed to achieve a defined business outcome. Re- Business Process Re-engineering
engineering emphasized a holistic focus on business objectives and (BPR/BPRE) in a succinct way.
how processes related to them, encouraging full-scale recreation of
processes, rather than iterative optimization of sub-processes.[26] BPR is influenced by technological
innovations as industry players replace old methods of business operations with cost-saving innovative
technologies such as automation that can radically transform business operations.[27]

Business process re-engineering is also known as business process redesign, business transformation, or
business process change management.

Suites
A market has developed for enterprise software leveraging the business process management concepts to
organize and automate processes. The recent convergence of this software from distinct pieces such as
business rules engine, business process modelling, business activity monitoring and Human Workflow has
given birth to integrated Business Process Management Suites. Forrester Research, Inc recognize the BPM
suite space through three different lenses:

Human-centric BPM
Integration-centric BPM (enterprise service bus)
Document-centric BPM (dynamic case management)

However, standalone integration-centric and document-centric offerings have matured into separate,
standalone markets.

Rapid application development using no-code/low-code principles is becoming an ever prevalent feature of
BPMS platforms. RAD enables businesses to deploy applications more quickly and more cost effectively,
while also offering improved change and version management. Gartner notes that as businesses embrace
these systems, their budgets rely less on the maintenance of existing systems and show more investment in
growing and transforming them.

Practice
While the steps can be viewed as a cycle,
economic or time constraints are likely to
limit the process to only a few iterations. This
is often the case when an organization uses
the approach for short to medium term
objectives rather than trying to transform the
organizational culture. True iterations are
only possible through the collaborative efforts
of process participants. In a majority of
organizations, complexity requires enabling
technology (see below) to support the process
participants in these daily process Example of Business Process Management (BPM) Service
management challenges. Pattern: This pattern shows how business process
management (BPM) tools can be used to implement
To date, many organizations often start a business processes through the orchestration of activities
BPM project or program with the objective of between people and systems.[28]
optimizing an area that has been identified as
an area for improvement.
Currently, the international standards for the task have limited BPM to the application in the IT sector, and
ISO/IEC 15944 covers the operational aspects of the business. However, some corporations with the
culture of best practices do use standard operating procedures to regulate their operational process.[29]
Other standards are currently being worked upon to assist in BPM implementation (BPMN, enterprise
architecture, Business Motivation Model).

Technology

BPM is now considered a critical component of operational intelligence (OI) solutions to deliver real-time,
actionable information. This real-time information can be acted upon in a variety of ways – alerts can be
sent or executive decisions can be made using real-time dashboards. OI solutions use real-time information
to take automated action based on pre-defined rules so that security measures and or exception management
processes can be initiated. Because "the size and complexity of daily tasks often requires the use of
technology to model efficiently" when resources in technology became increasingly widespread with
general availability to businesses to provide to their staff, "Many thought BPM as the bridge between
Information Technology (IT) and Business."[30]

There are four critical components of a BPM Suite:

Process engine – a robust platform for modeling and executing process-based applications,
including business rules
Business analytics – enable managers to identify business issues, trends, and opportunities
with reports and dashboards and react accordingly
Content management – provides a system for storing and securing electronic documents,
images, and other files
Collaboration tools – remove intra- and interdepartmental communication barriers through
discussion forums, dynamic workspaces, and message boards

BPM also addresses many of the critical IT issues underpinning these business drivers, including:

Managing end-to-end, customer-facing processes

Consolidating data and increasing visibility into and access to associated data and
information
Increasing the flexibility and functionality of current infrastructure and data
Integrating with existing systems and leveraging service oriented architecture (SOA)
Establishing a common language for business-IT alignment

Validation of BPMS is another technical issue that vendors and users must be aware of, if regulatory
compliance is mandatory.[31] The validation task could be performed either by an authenticated third party
or by the users themselves. Either way, validation documentation must be generated. The validation
document usually can either be published officially or retained by users.

Cloud computing BPM

Cloud computing business process management is the use of (BPM) tools that are delivered as software
services (SaaS) over a network. Cloud BPM business logic is deployed on an application server and the
business data resides in cloud storage.

Market

According to Gartner, 20% of all the "shadow business processes" are supported by BPM cloud platforms.
Gartner refers to all the hidden organizational processes that are supported by IT departments as part of
legacy business processes such as Excel spreadsheets, routing of emails using rules, phone calls routing,
etc. These can, of course also be replaced by other technologies such as workflow and smart form software.

Benefits

The benefits of using cloud BPM services include removing the need and cost of maintaining specialized
technical skill sets in-house and reducing distractions from an enterprise's main focus. It offers controlled IT
budgeting and enables geographical mobility.[32].

Internet of things

The emerging Internet of things poses a significant challenge to control and manage the flow of information
through large numbers of devices. To cope with this, a new direction known as BPM Everywhere shows
promise as a way of blending traditional process techniques, with additional capabilities to automate the
handling of all the independent devices.

See also
Application service provider
Business intelligence
Business object
Business-oriented architecture
Business process automation
Business process orientation
CIFMS
Comparison of business integration software
Enterprise planning systems
Human resource management system
Integrated business planning
International Conference on Business Process Management
ITIL
Managed services
Manufacturing process management
Process architecture
Social business process management
Total quality management

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Further reading
Wil van der Aalst, Kees Max van Hee (2002). "Workflow Management: Models, Methods,
and Systems" ISBN 0262011891, 9780262011891
Wil van der Aalst and Christian Stahl (2011). "Modeling Business Processes"
ISBN 9780262015387
Wil van der Aalst (2011). "Process Mining: Discovery, Conformance and Enhancement of
Business Processes" ISBN 978-3-642-19345-3
Alan P. Brache. How Organizations Work: Taking a Holistic Approach to Enterprise Health.
ISBN 0-471-20033-6
Roger Burlton (2001). Business Process Management: Profiting From Process. ISBN 0-672-
32063-0
James F. Chang (2006). Business Process Management Systems. ISBN 0-8493-2310-X
Dirk Draheim (2005). Business Process Technology (https://www.springer.com/gp/book/978
3642015878). ISBN 978-3-642-01587-8
 Jay R. Galbraith (2005). Designing the Customer-Centric Organization: A Guide to Strategy,
Structure and Process. ISBN 0-7879-7919-8
Jean-Noël Gillot (2008). The complete guide to Business Process Management. ISBN 978-
2-9528-2662-4
Michael Hammer, James A. Champy. Reengineering the Corporation: A Manifesto for
Business Revolution. ISBN 0-06-662112-7
Paul Harmon (2007). Business Process Change: A Guide for Business Managers and BPM
and Six Sigma Professionals. ISBN 978-0-12-374152-3
Keith Harrison-Broninski (2005). Human Interactions: The Heart and Soul of Business
Process Management ISBN 0-929652-44-4
Arthur ter Hofstede, Wil van der Aalst, Michael Adams, Nick Russell (2010). Modern
Business Process Automation: YAWL and its Support Environment, ISBN 978-3-642-03121-
2
John Jeston and Johan Nelis (2008) Management by Process: A roadmap to sustainable
Business Process Management. ISBN 978-0-7506-8761-4 and Business Process
Management: Practical Guidelines to Successful Implementations (2006) ISBN 0-7506-
6921-7
John Jeston and Johan Nelis Business Process Management: Practical Guidelines to
Successful Implementations, ISBN 0-7506-6921-7
Ryan K. L. Ko, Stephen S. G. Lee, Eng Wah Lee (2009) Business Process Management
(BPM) Standards: A Survey (https://wayback.archive-it.org/all/20120917072604/http://ryank
o.files.wordpress.com/2008/03/bpm-journal-koleelee-bpms-survey.pdf). In: Business
Process Management Journal, Emerald Group Publishing Limited. Volume 15 Issue 5.
ISSN 1463-7154 (https://www.worldcat.org/search?fq=x0:jrnl&q=n2:1463-7154).
Christine Mckinty and Antoine Mottier (2016). "Designing Efficient BPM Applications – A
Process-Based Guide for Beginners" (O'Reilly) ISBN 978-1-491-92471-6
Martyn Ould (2005). Business Process Management: A Rigorous Approach. ISBN 1-902505-
60-3
Geary A. Rummler, Alan P. Brache. Improving Performance: How to Manage the White
Space in the Organization Chart. ISBN 0-7879-0090-7
Terry Schurter, Steve Towers. Customer Expectation Management: Success Without
Exception. ISBN 0-929652-07-X
Bruce Silver (2011). "BPMN Method and Style: With BPMN Implementer's Guide"
ISBN 1596931930, 9781596931930
Alec Sharp, Patrick McDermott (2008). "Workflow Modeling: Tools for Process Improvement
and Applications Development" ISBN 1596931930, 9781596931930
Howard Smith, Peter Fingar (2003). Business Process Management: The Third Wave.
Andrew Spanyi (2003). Business Process Management Is a Team Sport: Play It to Win!
ISBN 978-0-929652-02-3
Mathias Weske (2012). "Business Process Management: Concepts, Languages,
Architectures (Second Edition)" ISBN 978-3-642-28615-5
Howard Smith, Peter Fingar. Business Process Management: The Third Wave. ISBN 0-
929652-33-9
Kohlbacher, Markus (2010). "The effects of process orientation: A literature review".
Business Process Management Journal. 16 (1): 135–152. doi:10.1108/14637151011017985
(https://doi.org/10.1108%2F14637151011017985).

External links
ABPMP.org (http://www.abpmp.org) The Association of Business Process Management
 Professionals
The NIST Definition of Cloud Computing (http://csrc.nist.gov/publications/nistpubs/800-145/
SP800-145.pdf). Peter Mell and Timothy Grance, NIST Special Publication 800-145
(September 2011). National Institute of Standards and Technology, U.S. Department of
Commerce.
Cloud Computing Synopsis and Recommendations (http://csrc.nist.gov/publications/drafts/8
00-146/Draft-NIST-SP800-146.pdf). Peter Mell and Timothy Grance, NIST Special
Publication 800-146 (May 2011). National Institute of Standards and Technology, U.S.
Department of Commerce.
Platform-as-a-Service Private Cloud with Oracle Fusion Middleware (http://www.oracle.com/
us/technologies/cloud/036500.pdf). An Oracle White Paper (October 2009). Oracle.com
Process execution through application ontologies (https://www.youtube.com/watch?v=krL-D
_oZtqw). The movie demonstrates how semantic technologies can be applied as execution
engine.
Business Process Management is primarily an attitude (https://www.youtube.com/watch?v=n
OMWNzNnqTY). A YouTube movie on BPM approaches explaining the use case of BPM.

Media related to Business process management at Wikimedia Commons

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