Importance of Business Process Management for Organizations

This article discusses the importance of Business Process Management (BPM) for organizations and the advantages it provides. It explains how BPM can help in continuous improvement of business processes, reducing execution time, ensuring compliance with SLA requirements, and improving the quality of corporate information. The article also highlights the significance of analyzing the business environment of an enterprise for effective process management.

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Business Process Management
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Business process management
Link: https://www.itweb.co.za/content/kYbe97Xxnye7AWpG
Introduction
This is an article review for an article called “take control of the processes to master the
digital’, written by James Francis. The article talks about the importance of Business process
management to a company, the advantages that BPM provides to an organization. Business
processes are talked about a lot and often mainly in connection with business automation.
Business process is a logical sequence of actions of a person (or several people) in a team. The
purpose of the description of the business process is the analysis and regulation of certain actions
in the team. The business process always happens with the participation of a person. If the
actions are performed by an automatic system or program, it is no longer a business, but a
process or specification. And then several other standards, methods of description and features of
implementation come into force. The author states how business process management has given
an edge to FlowCentric Technologies and a competitive advantage over its competitors.
Intention and content of the article
The article talks about the possibility of continuous improvement of business processes and,
accordingly, improvement of business goals achievement (increase in revenue, profit, business
value, market share, quality of products and services, customer satisfaction, etc.).1 Appears due
to:Identification and formalization of key business processes within a single repository of
descriptions;Tasks of key indicators of productivity and efficiency of business processes,
1 B Ananthan, H Appannaiah & P Reddy, Business Management, in , New Delhi, Himalaya Pub. House, 2010.

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automated collection and analysis of statistics on their implementation; Making corrective
changes to the implementation of business processes in the BPM solution and their immediate
acceptance into work; Continuous repetition of these steps within the framework of the classical
Deming cycle (Planning, Implementation, Control, Adjustment).
Reducing the execution time of processes due to their regulation and automation of
individual steps. All performers will know exactly who, what and in what order should do. If
something the machine can do, it will be done by the machine without the participation of a
person or with its minimum participation.2 Decrease in the share of erroneous operations due to
the fact that the business process is "directed" by the system. Accordingly, a decrease in the
share of marriage, improving the quality of products and services provided.
Ensuring compliance with SLA requirements. For each task of each process, time constraints can
be defined to match specific SLA indicators and the BPM system will automatically monitor
them, issue warnings when disrupting deadlines, and / or offer pre-defined corrective actions.
Significant increase in transparency of operating activities. For example, for each of the dozens,
hundreds or thousands of simultaneous sales orders, all interested persons will be able to see the
current stage of its execution, responsible persons and other related information. Descriptions of
business processes become "alive", and the organization is much more flexible.3 In order to make
adjustments to the business processes described on paper (in the form of schemes, regulations,
job descriptions), it takes days, weeks or months. Changes in the business processes performed
in the BPM-system can be made in a few minutes.
2 A Kumar, Business process management, in , New York, Routledge, 2018.
3 A Scheer, Agility by ARIS, in , New York, Springer, 2006.

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Improve the quality of corporate information. In the process of executing business
processes, information appears that should be reflected in various information systems used in
the organization. For example, in the accounting system, CRM-system, electronic document
management system, corporate portal, etc. BPM-solution provides integration of these systems at
the level of business processes and ensures that the required information will fall into the
required systems in the required form and at the required time, which is quite difficult to finish
by manually entering information into the system.
According to the author ,Modeling business processes help to solve two problems at the
same time: First, Study of business. Graphical representation in the form of schemes, i.e.
modeling of business processes allows you to quickly understand the features of the company's
work and identify possible "bottlenecks." Second, Providing visibility. As you know, "one
picture is worth a thousand words.4 That is why the schematic representation of the company's
work helps the manager and the business owner to understand the essence of the problem much
quicker and evaluate the proposed solutions. In the work of a business consultant (by the way, as
well as a specialist in the implementation of software products) it is very important that the client
understands all the advantages of the solution.
No less important is the feedback - the manager on the scheme will be able to see some
shortcomings even at the stage of the project discussion, and the implementation will do without
additional difficulties and making changes to the project "on the go. 5And the combination of
studying the history of the occurrence of the term with personal experience gives the following
4 R Wysocki, Project Management Process Improvement, in , Norwood, Artech House, 2004.
5 V Havinal, Management and entrepreneurship, in , New Delhi, New Age International (P) Ltd., Publishers, 2009.

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definition: Business processes are necessary to present complex information in a simple for
perception form for studying and making decisions.
The fact is that after the introduction of information systems, the complexity of
organizing people's work in organizations has increased many times. Also, machines do not
understand abstraction; they need a strict algorithm and a certain order of introduction and
processing of information. If before the beginning of automation, when information passed
directly from person to person, the problem of mutual understanding was at the level of human
communications, now it became necessary to strictly regulate it. As a result, it was necessary to
create descriptions of the work of not only people in the organization but also their interaction
with information systems.6 And here there were not enough text notations (instructions), where
all descriptions were in free text form, they were not relevant and inconvenient. There was a
need for standardization, in fact, in the creation of a special command language and an
unambiguous sequence of actions. And, unlike machine languages, these notations should have
become equally convenient for translation into machine code, and for human perception.
It is important to analyze business environment of ann enterprises as the basis for process
management, and a criteria assessment of the dependence of business environment factors is
proposed. The local environment (the environment of direct impact) is factors that directly affect
the operations of the organization and are directly affected by the operations of the organization.
The global environment (indirect impact environment) - the most common forces, events
and trends that are not directly related to the operational activities of the organization, but
6 S Mohapatra, Business process reengineering, in , [Place of publication not identified], Springer, 2015.

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generally form the context of the business;The international environment (business environment
of multinational companies) - when the company goes beyond the country of origin and begins
to develop foreign markets, the factors of international business come into effect.However, to
study the relative competitive positions of the enterprise in the industry, key success factors are
used. The task of the enterprise environment analysis is to identify the key factors of the
enterprise's competitive position in the industry. 7They serve as a cornerstone in the planning of
business processes, but at the same time, they vary from industry to industry. It should be noted
the importance of analyzing the business environment of the enterprise, which is the basis for
modeling, which in turn determines the effectiveness of process management. Failure to analyze
can lead to unrealizable management decisions. According to the article Therefore, the most
important objects of analysis should be:Evaluation of the external environment of the business
regarding compliance of business processes with the situation on the market.
Assessment of regional factors of the basing of the enterprise; Evaluation of the internal
environment of the business in terms of the potential financial condition of the enterprise in the
case of an attractive business environment. With all the variety of existing methods of analyzing
the business environment of an enterprise, it is difficult to choose a method that would allow for
taking into account the specifics of the enterprise's activity, the scale of its activities, the features
of territorial basing and could become the basis
To determine the degree of influence of a factor on the business processes occurring at
the enterprise. In this regard, it becomes relevant to develop such a methodology for analyzing
the business environment, the results of which will facilitate the introduction of process
7 J Cogliandro, Intelligent innovation, in , Fort Lauderdale, Fla., J. Ross Pub., 2007.

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management in the enterprise, which in turn will allow modeling business processes based on the
business environment. One of the most important characteristics of the enterprise environment is
the interdependence of factors, in which a change in one factor leads to a change in the other.
Based on the study of theoretical and practical material on the investigated problem, we
developed a methodology for assessing the dependence of the activity of a machine-building
enterprise on environmental factors.
The fact that in a world where everything is constantly changing, the competitiveness of
an organization is largely determined by its ability to react quickly and effectively to the changes
that are taking place. Therefore, the management of business processes based on this approach is
one of the key principles of any organization that is striving not only to survive but to
successfully carry out its activities in the long term.8 The activity of the modern organization is
based on a complex system of interrelationships between projects and processes. A particular
project implemented in the organization is built into the structure of existing business processes
and uses them to achieve ultimate goals. In this regard, the ordering and optimization of existing
business processes are important, taking into account the requirements of the projects being
implemented and the influences of the external and internal environment.
Based on the fact that about 80-85% of business process operations are typically
repetitive, detailed rules of action are drawn up for them. Thus, the process of the main activity
can be set up as efficiently as possible, and the leader is included in the process only if there are
any unusual situations or problems. From this, one can speak of the systematization of the
company's activities, which manifests itself in the emergence of two main effects: due to the fact
8 J Cogliandro, Intelligent innovation, in , Fort Lauderdale, Fla., J. Ross Pub., 2007.

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that the management structure relies on the structure of business processes existing in the
organization, the number of levels of management and subordination decreases, and 2) the
effectiveness of management increases by increasing the manageability standards (an average of
2-3 times) as the manipulated variable in this case is aimed at coordinating the staff and involved
in the process only if any irregularities and deviations from the normal course of business.
Conclusion
The main emphasis in solving problems in an organization is that for the construction of a
network structure, a transition to process management is necessary (if this was not done before),
since the functional hierarchical principle can not organize the activity in the most efficient and
least expensive way. 9Business process management will solve most of the organizational issues,
as well as effectively organize the management by subdivisions due to a high degree of
independence in making model decisions on adaptation to the existing external environment. In
this case, in many cases, three tools are used together10. Adepartmental management model based
on a process approach and determining the measure of branch autonomy an adaptive and
environmentally appropriate optimal structure the normative documents and instructions that
regulate the work of the network units developed in the center.
9 J L. Sanders Jones & K Linderman, "Process management, innovation and efficiency performance", in Business
Process Management Journal, vol. 20, 2014, 335-358.
10 W Klussmann, Philosophy of leadership, in , Hamburg, Diplomica Verlag, 2009.

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References
Ananthan, B, H Appannaiah, & P Reddy, Business Management. in , New Delhi, Himalaya Pub.
House, 2010.
Cogliandro, J, Intelligent innovation. in , Fort Lauderdale, Fla., J. Ross Pub., 2007.
Eliot, G, The mill on the Floss. in , New York, Open Road Integrated Media, 2016.
Havinal, V, Management and entrepreneurship. in , New Delhi, New Age International (P) Ltd.,
Publishers, 2009.

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Klussmann, W, Philosophy of leadership. in , Hamburg, Diplomica Verlag, 2009.
Kumar, A, Business process management. in , New York, Routledge, 2018.
L. Sanders Jones, J, & K Linderman, "Process management, innovation and efficiency
performance.". in Business Process Management Journal, 20, 2014, 335-358.
Mohapatra, S, Business process reengineering. in , [Place of publication not identified],
Springer, 2015.
Scheer, A, Agility by ARIS. in , New York, Springer, 2006.
Wysocki, R, Project Management Process Improvement. in , Norwood, Artech House, 2004.