What is BPM?

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:

         Technology

          People

          Processes

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:

Increase visibility

Identify Bottle necks

Optimization

Reduce in lead-times

Definition of roles

 

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