Today’s dynamic business environment requires advanced capabilities to grow with global competition and achieve long-term success. One such integral business ability is to leverage and adapt new methodologies. Ever-changing customer needs are the key accelerators for identifying new upgraded solutions.
Evolving technologies highlight Business Process Management (BPM) methodology as an innovative approach for operational improvement and successful business transformation. This blog discusses the key concepts of BPM methodologies, their benefits, and their challenges. This write-up also shares information regarding the best practices to implement a well-suited BPM methodology to embrace business excellence in your organization. Let’s dive in!
What is BPM Methodology?
BPM methodology is a structured approach to managing an organization’s business processes to improve efficiency, reduce costs, and achieve other business goals. BPM methodology involves identifying, mapping, analyzing, redesigning, implementing, and monitoring business processes systematically and continuously.
Gartner estimated that the global BPM market would grow at a CAGR of 8.2% from 2020 to 2027, reaching USD 16.9 billion by 2027.
The goal is to optimize processes to ensure they are efficient, effective, and aligned with the organization’s overall strategy. BPM methodology often involves using specialized tools and technologies to support process management activities.
Embrace BPM for Market Growth: Knowing the Necessity
Currently, there is a growing demand for business process management methodologies to increase productivity and engagement, and allow teams to focus on business innovations. This trend is one of the primary factors positively influencing the market.
Additionally, BPM is being increasingly employed globally to enhance operational transparency by replacing manual processes with modern automation. This, coupled with the use of BPM to eliminate errors from repetitive tasks, is contributing to a favorable market outlook.
The BPM market size is estimated to rise to USD 14.4 billion by 2025 which was worth around 8.8 billion in 2020, says market statistics.
The market is also experiencing growth due to the rising demand for digitizing business processes to achieve goals, improve customer satisfaction, increase productivity, and boost scalability. Furthermore, the adoption of the BPM method to manage massive data sets for monitoring employee behavior, collecting customer information, and analyzing customer responses to services is driving the market growth.
A fact from a Gartner study says, 80% of companies admitted the competitive advantage with BPM is far higher than ERP, CRM, and SCM.
It is stated that almost 50% of business organizations utilize BPM to cut short their costs. Large enterprises are also utilizing BPM methods to modify business regulations directly, improving operations without changing infrastructure or IT models, further strengthening the market.
A Gartner study on 150 BPM implementations had a positive result in the undertaken projects with 95% success.
These figures make the heading direction clear for a successful business. Cloud-based workflow solutions are gaining traction due to their minimal impact on internal resources, low monthly subscription expenses, decreased overhead investment, and enhanced security maintenance.
Critical Elements of BPM Project Methodology
BPM can be implemented using various tools and techniques, including process modeling software, workflow management systems, and business process automation software. They demonstrate many common elements but understanding their difference is the key. Knowing the key elements of BPM methodology helps you understand how BPM works in your organization and who is responsible or whether you need a different approach to improve the methodology that is already in place. Here are a few critical elements in BPM that aid in the effective management of business processes and achieve business goals:
A process is a series of activities that are carried out to achieve a specific business goal.
2. Process Mapping:
Process mapping involves creating a visual representation of a process, including its inputs, activities, and outputs.
3. Process Improvement:
Process improvement involves identifying opportunities to streamline or optimize a process to improve its efficiency, effectiveness, or quality.
4. Process Automation:
Process automation involves using technology to automate repetitive or manual tasks in a process, to reduce errors, improve consistency, and increase efficiency.
5. Process Monitoring:
Process monitoring involves measuring and analyzing process performance to identify opportunities for improvement or to ensure compliance with standards or regulations.
6. BPM Lifecycle:
The agile BPM methodology lifecycle is a structured approach to managing processes that includes stages such as process discovery, process modeling, process analysis, process implementation, process monitoring, process redesign, and process transformation.
Understanding BPM and Phases Involved in Generic BPM Methodology:
The ultimate goal of BPM is to help organizations operate more efficiently, reduce costs, and increase customer satisfaction. The BPM process involves identifying and mapping out an organization’s business processes, analyzing them to identify inefficiencies or areas for improvement, and then redesigning and optimizing those processes to achieve better results. This can involve streamlining operations, eliminating redundant or unnecessary steps, and automating tasks wherever possible.
Generic BPM Methodology
BPM involves a set of tasks that align with business process improvement and involves a life cycle of phases. A life cycle of generic BPM methodology involves six phases:
Identifying the processes and tasks to be streamlined is the initial stage of any BPM. Knowing how the business works now will improve the business operations, be it a document-centric BPM human-centric BPM, or integration-centric BPM. This helps identify what methodology works fine and what is not.
Dynamic business culture involves varied workflows that require an intricate design of the BPM model to be implemented. The design phase highlights the possibilities to improve what could be the limitations and what is to be done to mitigate them. Potential identification of opportunities aids error reduction which contributes greatly to your business’s Standard Operating Procedure (SOP).
The phase of modeling helps to identify the process to be automated/digitized. Model a methodology that could embrace why the process is being done in a way and how the improvements benefit the organization. It also embarks on the systems and techniques to improve the design proactively.
The designed BPM model is deployed with suitable tools and standards. Execution in real-time can fetch new possible loopholes missed in prior phases. Various business process management methodologies and their scope of improvement can be predicted in this phase.
The BPM methodology is the continuous improvisation of business process management so it keeps track of performance KPIs of the implemented model and identifies potential loopholes.
The optimization phase of BPM methodology endures process transformation and helps eradicate the bottlenecks and improve business values.
Best-Known BPM Methodologies
When it comes to improving business processes, there are various business process methodologies to optimize your business processes. Some of the best-known BPM methodologies are Six Sigma, 5s methodology, kaizen, hammer and Rummler-Brache, lean, and BP-trends. Six Sigma and Lean are popularly used for enterprise process improvement. Critical processes involve great efforts for gathering data and specialized BPM methodologies like Six Sigma focus on improving the quality with such statistical data analysis.
Every BPM methodology has its own set of lifecycle phases with a specified purpose. The Six Sigma methodology relies on statistical data analysis to address the issues related to productivity, quality, or finance. DMEMEO methodology is based on the belief that by understanding how processes work, organizations can identify and eliminate any inefficiencies and make the process more productive. The DMEMEO methodology is made up of five core principles:
The Defining phase involves understanding the current business process, identifying any inefficiencies, and then creating an improvement plan.
The Modeling phase involves collecting data on the process, analyzing it, and using it to inform decisions about the process. Effective modeling helps organizations identify and eliminate any inefficiencies in their business processes.
DMEMEO methodology helps organizations prioritize their resources, allowing them to focus on areas that need improvement and allocate resources more effectively. Execution of the defined and modeled process identifies opportunities for cost savings, which can help the organizations be more profitable.
By understanding how processes work, organizations can identify any areas where the process could be improved, and then make the necessary changes to improve the process. Continuous monitoring aids process transformation.
The monitored processes are then enacted using effective tools and techniques that support operational excellence by optimizing the business process.
DMAIC BPM Methodology
The acronym DMAIC stands for Define, Measure, Analyze, Improve, and Control, and each step of the process helps to identify and optimize areas of improvement in any business process.
Establishing the scope of the project and gathering information is what makes the define phase. This step involves researching the current process and its goals, identifying stakeholders, and determining the desired outcome. It also involves setting measurable goals that can be used to evaluate the success of the project.
The step involves collecting data and measuring the performance of the current process. This data provides insight into the effectiveness of the current process and can be used to understand the areas of improvement. During this step, the data must be accurately collected, analyzed, and documented.
Evaluate the data collected in the Measure step and identify the root cause of any problems. This step requires data analysis skills, as well as the ability to identify patterns and correlations between the data. Through analysis of the data, the areas of improvement can be identified and the project objectives can be adjusted if needed.
Create solutions to the identified problems and optimize the process. This step requires creative thinking and problem-solving skills, as well as the ability to generate ideas and test them promptly.
Monitor the results and make any necessary adjustments in this phase. This step is important to ensure the desired outcomes are achieved and to make sure the process remains effective.
Lean methodology is a set of principles designed to help businesses optimize their operations and become more efficient. It is based on the idea of eliminating wasteful practices and focusing on delivering only what is necessary to satisfy customer needs.
Lean organizations focus on eliminating redundancies, reducing waste, and improving the flow of production to produce more with less. It is a continuous improvement process that focuses on the customer and their needs while cutting back on unnecessary activities.
The approach is based on the Toyota Production System (TPS), which is a set of principles developed by the Japanese automotive manufacturer. It includes the concepts of kaizen (continuous improvement), Jidoka (automation with human intelligence), and the 5S Method (sort, set in order, shine, standardize, and sustain). The goal is to eliminate waste and create a continuous flow of production.
Agile BPM Methodology:
Business processes though defined, BPM though well structured, don’t necessarily react in a predefined manner. This is where the agile BPM methodology comes in. Conventional BPM methodologies make effective outcomes out of your planned processes. It’s time to address those unplanned business processes or ad-hoc circumstances!
With a BPM agile methodology in place, you can make them align with your business bottom line too! All you need is the openness to adapt to an agile mindset. Yes, the agile BPM methodology helps your business deal better with unanticipated business processes.
Traditional BPM Vs Agile BPM
Traditional BPM works wonder where continuous improvement is required in continuously repeating tasks with foreseen outcomes. Agile BPM helps your business team with the most flexibility to handle unforeseen scenarios with techniques on the fly, without disrupting the internal process flow.
For example, Traditional BPM enacts well in a regulated environment of operations where consistency is the key. Whereas, areas like sales are unpredictable and agile methodology BPM can automate any kind of variables, a process/ project involves closing the sale deal.
In short, agile BPM methodology is the future BPM where faster business growth is the key factor addressed. Proven flexibility, and readiness to ad-hoc, keep BPM agile methodology state-of-the-art!
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Choosing the Best Fit Business Process Methodology:
The market trends reflect a surgical urge to improve business productivity and efficiency through technological advancements. Emerging technologies enhance business engagement by automating labor-intensive mundane tasks and improving BPM functionalities. Here are a few key factors to be considered while implementing a new BPM methodology or aiming to improve the already existing one. This gives a clear concise overview of what is needed and how to do it, proliferating a huge impact on BPM success methodology.
- What do you want to improve – a local business project improvement or the entire business process improvement?
- What are the process improvement phases involved and the techniques/ tools used?
- Does your enterprise already own a BPM project methodology? What are the quantitative and qualitative measures to be accounted for improvement?
- Whether the BPM implementation methodology cost-effective and what is the say on customer satisfaction?
- How are these processes managed who are the process managers and whom do they report to?
- How often are these processes analyzed and what are the metrics to determine the best?
- What are the primary goals and objectives? What are the primary outcomes? What is the primary BPM method enforced to achieve them? Why is it done that way?
- Is there a periodic review of BPM or is it initiated only when there is a dip? Is it automated?
- What level of authority do the process managers have to implement a change/improvement? How to train /educate others involved on the same?
- How organized are the management and leadership roles?
- Does the BPM implementation methodology align with your organization’s priorities and bottom line?
- What are the new processes to be improved and who defines them? What are the standards to monitor whether the new process performs?
- If modeling a new BPM methodology on your own, decide whether to build from scratch or incorporate features from other pre-built BPM to build a hybrid management methodology.
Booming technological trends are the key initiators of digital evolution and organizations believe adopting one will help them thrive and sustain the market. The surging demand for automation has urged companies to invest in BPM methodologies to witness strong growth. The growing necessity to reorganize the suitable business process management methodology is inevitable to witness an upward shift in digital transformation and deliver operational excellence.
Key market players are developing automated BPM solutions to increase the efficiency of BPM tools, gather real-time data, and gain profound insights into business operating models. Get ready to experience this business swag with Cflow! Thrive and flourish with operational excellence.
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