Why Companies Need to Manage Their Business Processes: BPM Essay

This essay delves into the critical need for Business Process Management (BPM) within modern organizations. It defines BPM as a systematic approach to managing interconnected tasks to deliver products or services efficiently. The essay highlights the significance of BPM in achieving efficiency, improving business agility, increasing revenues, and reducing costs. It emphasizes how BPM enhances visibility, ensures compliance, and promotes safety and security. The discussion covers the various perspectives on BPM and its role in aligning technology, resources, and structures to achieve desired outcomes. The essay concludes that implementing BPM is essential for reducing costs, increasing growth and profit, improving risk management and customer satisfaction, increasing competitive advantage, and maintaining compliance, making it a vital component for any company's success.

Running head: BUSINESS PROCESS MANAGEMENT
Business Process Management
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Essay on ‘Why does a company need to manage their business processes?”
Introduction
Each and every organization in any industry must continuously innovate and improve its
business processes in order to be competitive and successful and to maintain that position.
Failing to do so will result in lower revenues, lower performance and productivity of the
employees and less satisfied customers. Hence, business process management is extremely
important in modern business world. To keep all the operations run systematically and in an
organized manner, all the companies must manage the business processes (Jeston and Nelis
2014). A business process can be defined as the collection of interconnected tasks, which all end
in the delivery of a product or service to the client or consumer. In other words, the business
process is a set of jobs and activities, which leads to the achievement of the organizational goal
once completed. These activities must be managed by a company to perform efficiently (Van
Der Aalst 2013).
Discussion
Business Process Management (BPM) is a very essential operation for a company to
manage all the tasks efficiently and increase the production. According to Hammer (2015),
Business Process Management represents a discipline, which improves the performance of an
enterprise by driving the business agility and operational excellence. In a company, the processes
play a very major role in pushing the company to achieve the business strategies and goals by
aligning the technology, resources and supporting structures towards the achievement of the
desired outcomes or promoting the competitive advantage. BPM is the management approach
and type of methodology to address the business strategies, which allows the businesses to grow

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or function in a cost effective manner, clubbed with desired flexibility, visibility and speed
(Rosemann and vom Brocke 2015).
The perspective to BPM differs from one person to the other. For some people, BPM is
technology only, which is the evolution of the application development and is a mean to achieve
the process automation. For the others, BPM is about optimization of the business processes.
Some people say that BPM is a way of communication about the operations and strategies of the
business and how to complete the jobs efficiently. Again, for some people, this is a method for
gaining visibility on how the things are actually working (Van Der Aalst 2013). Hence, these are
all different perspectives but contribute in the definition of the BPM.
Figure 1: Business Process Management
(Source: Espenson 2017)
There are few main reasons why does a company need to manage business process, i.e.,
need to apply the business process management. It helps to achieve efficiency, higher quality,

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improved process consistency, brand protection, simplified business operations, lower costs,
reduced risks and more product safety. The major reasons are explained below.
Improvement of efficiency: It is a huge challenge for the organizations that often the business
processes are inefficient. This leads to increase in the wastage of resources, mostly the time and
money. BPM helps in identifying the problem areas and how that can be solved step by step.
This way efficiency can be achieved (Espenson 2017).
Improvement of business agility: An efficient Business Process Management allows the business
owner to include pauses in the business process, make changes in the plans and implement those,
and re-execute the operation. Hence, this helps the business processes to become more flexible
and agile to react to any situation promptly (Fleischmann et al. 2014).
Increases revenues and reduces costs: If a proper BPM is implemented, it helps in trimming
down the costs and increasing the profits. Due to the systematic implementation of the BPM,
business processes become enhanced, operational costs are reduced, workforce becomes more
efficient and productive, production and delivery time is reduced. Thus, demand for products
will increase and the company could supply more, which helps in increasing the revenue of the
company and reduces costs (Chang 2016).
Improved visibility: BPM helps in process automation. This helps the company to keep a track of
the performances and the quality of the performances. The automation process is transparent and
this allows the company to have a better understanding of the processes. Hence, it becomes
easier for the company to modify the structures during the ongoing process.
Compliance, safety and security: BPM keeps track of the compliances also. It reminds the
company, which compliance needs to be followed and which should be renewed. It also

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promotes safety and security measures of the company due to systematic information
management (Hughes 2016).
Conclusion
It can be concluded that, BPM is highly beneficial for a company in any sector. It helps in
efficient and cost effective functioning of the business, through proper deployment, monitoring,
and measurement of company’s resources and efficiently aligning those. Implementation of BPM
enables a company to reduce cost, increase growth and profit, improve risk management and
customer satisfaction, increase competitive advantage, improve productivity and maintain
compliance. Hence, for the above reasons, a company must need to manage its business
processes.

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References
Chang, J.F., 2016. Business process management systems: strategy and implementation. CRC
Press.
Espenson, A., 2017. Why Every Company Needs Business Process Management. [online]
business.com. Available at: https://www.business.com/articles/why-every-company-needs-
business-process-management/ [Accessed 6 Oct. 2017].
Fleischmann, A., Schmidt, W., Stary, C., Obermeier, S. and Brger, E., 2014. Subject-oriented
business process management. Springer Publishing Company, Incorporated.
Hammer, M., 2015. What is business process management?. In Handbook on Business Process
Management 1 (pp. 3-16). Springer Berlin Heidelberg.
Hughes, B., 2016. How Business Process Management Will Change Your Small Business.
[online] HuffPost. Available at: http://www.huffingtonpost.com/brian-hughes/how-business-
process-mana_b_10875784.html [Accessed 6 Oct. 2017].
Jeston, J. and Nelis, J., 2014. Business process management. Routledge.
Rosemann, M. and vom Brocke, J., 2015. The six core elements of business process
management. In Handbook on business process management 1 (pp. 105-122). Springer Berlin
Heidelberg.
Van Der Aalst, W.M., 2013. Business process management: a comprehensive survey. ISRN
Software Engineering, 2013.