BPM stands for Business Process Management. BPM is a Process-centric approach for improving business performance that combines information technology with governing bodies.
Three pillars of BPM:
All the three aspects have to work together to a BPM project to get success.
BPM Life Cycle:
Design Phase: Processes are carefully designed to make it simple and straight forward so that it can be completed as short as possible without making mistakes.
Modelling and Simulation Phase: The process is documented in the form of an activity model.
Execution Phase: Once the process is approved by management it is developed and deployed it occurs in this phase
Monitoring Phase: The project team will then monitor the performance of the business process to see if anything goes wrong.
Optimization phase: If any problem arise changes would be made and further optimized the process to take care of exceptions.
Business Process is a standardized way to convert a set of inputs in to a desired output that a customer would find valuable.
Input -> Business Process -> Output
Example for Business Process: Loan Application in a bank.
Input: Customer supplies an electronic application form in a bank website.
BusinessProcess: Includes credit check and other activities that make the bank to made a decision on loan application.
Output: Is a decision that is communicated to the customer. Output mainly defined in 2 forms:
Primary Output is what is needed by the customer. In this case it is money customer needed.
Secondary Output is an email notification sent to the customer.
Benefits of BPM:
Identify Bottle necks
Reduce in lead-times
Definition of roles