The key to efficiency in any business or organization is its processes. By processes, we mean the steps and actions that must occur for a particular outcome to be achieved. When those processes go wrong, occur too slowly, or simply don't work, the business or organization does not succeed.
Just as processes are the heart of every business or organization, business process management (BPM) is the heart of making those processes work efficiently. Understanding the basics of BPM is the first step in learning how the concept can transform your business.

What is a Business Process?
A business process is a series of specific, measured tasks performed by people and systems and designed to achieve a predetermined outcome. The processes have these important characteristics:
1. The processes have internal and external users.
2. They take place across or between organization’s departments or different organizations.
3. They are based on how work is done in the organization.

The business processes have three key elements - Entity, Object, and Task.
Entities: Where the process occurs.
Objects: The processes are results of handling objects. Objects could be physical or informational.
Tasks: Works done to handle the objects.


What is Business Process Management (BPM)?
BPM automates and streamlines the business processes which are crucial for the organization in order to improve productivity. From hiring a person to processing a purchase order, BPM helps restructuring, controlling and handling workflows involving people and systems to complete a process more efficiently.

To use BPM effectively, companies must focus on the outcome of the process and design workflows based on the expected result from the process. There should not be any difference between a task done by computer systems or people. BPM should be able to map the interaction among the entities, objects and tasks and bring them inline with the process workflow. Business rules used in the process also should be clearly defined. While trying to automate a business process you have to keep in mind that finding a process which should be streamlined is not that difficult! Problem occurs when you try to define which entities are involved and how the evolved method will distribute the previous roles among the new tasks owners.

Business process management is generally described in terms of three different levels of application: Software, Suite, System. Each level brings the concept of BPM to bear in a different way, expanding in depth and breadth of BPM as it spreads further and further throughout an organization. Let's take a look at each level in turn.

Software
This level uses software tools to improve business processes. It allows the business to automate processes, execute them more efficiently, and monitor progress toward the desired outcome. BPM software brought a dramatic shift to process management because for the first time, information could flow freely between applications as well as between applications and people.
BPM software is generally used for simple, uncomplicated processes within a single group or department. It automates manual processes and streamlines inefficient processes, while allowing comprehensive tracking and analysis of execution. This information can be used for audit purposes and as a driver for continuous process improvement.

Suite
This level allows a business to apply BPM practices across multiple departments or groups. Because most processes inevitably cross departmental lines at some point, BPM improves efficiency and performance by streamlining inter-departmental connections.
Through the use of a work portal, multiple users can contribute to the process by sharing knowledge, task management, documents and more.
A BPM suite is generally used to help a business build composite applications that quickly and easily allow all users to view a process from start to finish, regardless of where they touch or affect that process.

System
This is the highest level of BPM application, designed to apply process management concepts across all aspects of an organization. It is a management practice that allows a business to use BPM concepts as a way to focus expertise, improve business structures or culture, and manage activities in a comprehensive manner.
A BPM system takes a holistic view of the organization and helps to bring structure and consistency to process management. The focus is not just on software and IT applications, but also on the organization's overall practices, policies and methods of operation.


The benefits of BPM adoption are enormous:

Direct
• Update processes in real time
• Reduce overhead expenses
• Automate key decisions
• Reduce process maintenance cost
• Reduce operating cost
• Improve productivity

Indirect
• Improve process cycle time
• Improve forecasting
• Improve customer service
• Improve sourcing time cycle

Put simply, BPM solves business problems by improving business processes. This is done using a four step method:
• Map an existing process or design a new process
• Execute the process by making the most of people and applications
• Manage the process by managing information flow as well as specific actions and activities
• Analyze performance and metrics to feed continuous process improvement


Business process management allows a business or organization to improve and streamline processes to increase efficiency, improve performance, and boost profitability. It can be applied to a single process, to single or multiple processes that cross departmental lines, or to overall business management practices. The results can transform a business from just good enough to peak performance – all by paying attention to processes. Investment in BPM is the same as any other technology related investment. If you plan the project properly, set a clear goal, educate those people who have to change their mindset once the system is implemented and get necessary support from the management, you can count on a massive return on your investment.