Business Process Management Report: Analysis of BPM Implementation

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This report delves into the realm of Business Process Management (BPM), defining it as a methodical workflow designed to ensure operational effectiveness and adaptability to market changes. It explores the categorization of business processes, emphasizing the significance of dividing tasks into manageable modules, and examines the role of BPM in reducing errors and mitigating risks. The report presents a case study of The Kroger Company, highlighting their adoption of 1WorldSync solutions for data accuracy and e-commerce implementation. Furthermore, it outlines the benefits of BPM, including improved customer service, enhanced innovation, and operational efficiency. The report also discusses the relationship between business rules and processes, and concludes by exploring BPM in the context of Six Sigma, Business Process Re-engineering (BPR), and Total Quality Management (TQM), illustrating its relevance in today's business environment.
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Running head: BUSINESS PROCESS MANAGEMENT
Business Process Management
Name of the Student
Name of the University
Author Note
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Table of Contents
1.0 Business Process........................................................................................................................2
1.1 Compare and contact of the business processes....................................................................2
1.2 Importance of categorization of business process.................................................................2
2.0 Business process management...................................................................................................3
3.0 Case where a company adopted BPM and motivation for BPM implementation.....................4
4.0 Benefits of Business Process Management...............................................................................5
5.0 Similarity in Business Rules and Business Processes...............................................................7
6.0 BPM today with theories and reason to pursue.........................................................................7
7.0 Reference List..........................................................................................................................10
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2BUSINESS PROCESS MANAGEMENT
1.0 Business Process
1.1 Compare and contact of the business processes
Becker et al. (2013) describes that business process is a method which is a collection
form of organizational structured activities and serve a particular goal. Each section can be
visualized as a pictorial representation of the sequence of activities with relevance rules based on
data. The business process can be categorized as core business, corporate law, management and
corporate governance. The core business process is selection of those business processes which
on accomplishing can provide a certain level of consistency in business outcomes. The business
process considers only the human resources and their rights, relations and conduct of persons
(Fleischmann et al., 2014). Unlike core business process, corporate law emphasizes on the
community and the environment of the business and how people interact with one another. The
business process of management focuses on business innovation, marketing, quality and
maintenance of management and information system. However, the corporate governance
process is the utilization of rules to manage BPM programs and initiatives and it emphasizes on
the board of directors, supervisory board, audit committee and advisory board (Rademakers,
2012). The difference with corporate governance and other selected business processes is that
corporate governance deals with policies, roles, responsibilities and processes and should be
aligned to a defined standard. On the other hand, the remaining business process should adhere
to all those rules for performing other business functions.
1.2 Importance of categorization of business process
The importance of categorization of process is important because it divide the entire task
into smaller modules that can be handled effectively. Jeston and Nelis (2014) stated that
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categorization of things not only make the accomplishment of the task effectively but also make
the process easy to evaluate at every department. Taken for instance, the core business can also
be sub-categorized into further parts like distribution and logistics, ICT services, engineering,
marketing, sales, administrative and management functions. Each of these functions are under
the supervision of a manager who furthermore assess the functionalities of several department
associated with each mentioned sub-categories (Becker et al., 2013). The manager is liable to
prepare report on each of the sub-categorized department’s performance. Additionally, in case of
management, resource management or human resource management can be taken into
consideration, which is liable to maintain the availability of resources and managing people, who
can work collaboratively to obtain the organizational objectives. However, in corporate
governance especially in the United States, there are regulations like American corporate
directors, U.S. Securities and Exchange Commission, National Association of Corporate
Directors and United States corporate law. These regulatory bodies set the rule for business and
that the leaders if the company has to aligned with their business process. Rosemann and vom
Brocke (2015) depicted that these job roles cannot be performed by a person, who is liable to
evaluate only human resources and thus division of business process is important.
2.0 Business process management
Dumas et al. (2013) stated that a business process management (BPM) is a methodical
workflow that ensures the operation functionalities of an organization will be accomplished
effectively and they will be able to adapt new changes as per as the changing demands of the
market and technological requirement. Roglinger et al. (2012) furthermore stated that BPM is
used by business experts in the time of crisis in order to assess whether or not their business tools
and approaches are effective enough to overcome the crisis. Moreover, some experts argued that
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BPM is a study of identifying change and assess business processes for ensuring the capability to
improve over time. A successful business involves focusing on final business outcome and
designs the entire business process in such a way in order to maintain the focus for attaining
greater profitability. It also become obligatory for a business to distribute the ownership so that
every process can be completed effectively and can make the existing process effectively BPM
also pays their role in easy understanding with the business processes, reducing errors and
mitigating risks. Thus, it can be said that BMP is a combination of planning, automating the
process, implementing and execution of the same for optimizing the business process.
Additionally, the difference between BPM and BPM System illustrates that BPM refers
to the entire business process; while, BPM system ensures the smoothness of the workflow on a
day basis. Leading companies follows BPM system considers process agility for both process
creation and process execution, rule capabilities that defines the intelligence behind BPM,
performance and scalability, time- to- value and industry leadership (Fleischmann et al., 2014).
Taken for instance, a pharmacy utilizes a BPM system to align their existing business process
with the new healthcare law so that all their patient’s details can be safeguarded. On the other
hand, BPM refers to the planning for implementing BPM system for the betterment of the entire
pharmacy process.
3.0 Case where a company adopted BPM and motivation for BPM implementation
The organization that is taken into consideration is The Kroger company, an American
retailing company and is also the twenty-third largest company in the United States
(Thekrogerco, 2017). The concerned company is the first largest company in revenue in US and
they operate convenience store, supermarket store and other specialty supermarket. Recently,
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they faced a challenge related to evolving consumer expectations in area of e-commerce and
regulatory requirements. Chang (2016) depicted that implementing e-commerce need planning
for ecommerce business, effective technology selection, customer acquisition, customer
engagement, customer retention, optimizing key metrics, business analysis and customer
insights. However, the implementation also needs budget and adherence of several e-commerce
legislations to provide the right information at the right time. The organization also intends to
deliver quality product data and accountability for accurate and complete product information to
their customers.
In order to overcome their challenge the concerned organization implemented
1WorldSync’s industry solutions for data accuracy scorecard and product introduction
(1WorldSync, 2017). This solutions is facilitates efficient collaboration between data recipient
and suppliers. They have also implemented the process of Vendor Item Portal (VIP) along with
the Global Data Synchronization Network (GDSN™) and 1WorldSync’s Data Accuracy
Scorecard (DAS) (1WorldSync, 2017). All these technology supports Kroger’s operational
systems. The authority have taken this initiative for implementing e-commerce services so that
their customer can get products as per as their convenience. They have also considered Global
Product Classification (GPC) mapping, program management and community enablement to
ensure the all-around success of the initiative (1WorldSync, 2017).
4.0 Benefits of Business Process Management
According to business experts effective business process management allow an
organization to compete in global terms. An effective BPM can offer improve customer service,
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enhancement in business innovation and greater operational efficiency. Some of the listed
benefits of a business process management are:
• BPM allows managers to assess, control and respond to the business process and coordinate
these processes with the ability of the staffs for better productivity. Mangers can also
implemented IT solutions directly to the business for increasing the efficiency of the business.
• BPM can easily incorporate with Continuous Process Innovation (CPI) process like Six Sigma
and Lean along with BMP technology in order to optimize the business process. This
incorporation of BPM and lean and six sigma technology ensures the enhanced business
productivity and profitability with three business elements- agility, visibility and efficiency
(Gong & Janssen, 2012).
• BPM makes the existing business process flexible and thus, it s easy to implement any
technological or operational updates in the process. Thus, challenges faced by organization to
implement change can be minimized with an efficient BPM (Becker et al., 2013).
• This management also facilitates business automation with regular workflows. The functions
that can be handled through BPM are introduction of parallel processing, removal of bottleneck
and elimination of repeated steps. Since all the crucial functions are handled through business
automation, employee can also focus on other activities like business innovations (Stark, 2015).
• BPM can also help organization to save business resources and formulating better- designed
process. Thus, this management also enhances visibility through the business process and hence
reduces the risk of fraudulent as staffs can easily identify the adversity at the initial stages.
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• BPM is also known for eliminating red tape in organization that is employee do not have to
give their time on reparative work and can give their 100% time to their designated job roles and
responsibilities.
5.0 Similarity in Business Rules and Business Processes
Scheer (2012) stated that business rules and business process are the subparts of BPM.
Rules under business jurisdiction are referred to as business rule; while business process is an
approach that follows all the legislations of the business jurisdiction in order to achieve their
business goals. Business rules defines workflow descriptions, tacit knowledge and decision
tables that managers considers for continuing the business process. This can also be said that
business rules serve to change the business process. However, Van Der Aalst (2013) argued that
both the business process and business rules designated decision points in the entire approach.
Thus, both the factors help in the betterment of the process that is to identify the recent
requirement and market demand and then implement the same in the business operational
functionalities.
6.0 BPM today with theories and reason to pursue
Business process management is a process to identify the need of an organization that
they have to change in order to meet new requirement of the customer and market. Six Sigma is
utilized in a business for enhance the profitability. Experts believed that profits can be increased
by making customer happy and that can be made achieved through upgrading the quality of the
products. However, Hilton and Sohal (2012) argued that sometime frequent variation and
consistency of the products make the customer unhappy and they started not preferring the brand
for further purchase. The process for reducing defects in business started from Six Sigma and
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then the managers decided whether or not the process needs automation for eliminating some
repetitive steps. The next process that the BPM follows is Business process re-engineering
(BPR). BPR comprises of four steps that are identifying the process of demand followed by
reviewing, updating and analyze the process (Ahmadi & Abadi, 2016). The process is then
followed by future design and test and implementing the developed product.
Image 1: Business process re-engineering (BPR)
(Source: Ahmadi & Abadi, 2016)
Ahmadi and Abadi (2016) stated that Business process re-engineering (BPR) is a
continuous improvement or TQM movement. TQM on the other hand describes the long term
success of an implemented process that can attain customer satisfaction. The total quality
management (TQM) emphasizes on improving processes, services and products along with the
culture that the organization is following (Dale, 2015).
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9BUSINESS PROCESS MANAGEMENT
Image 2: Business Process Management Hype
(Source: Dale, 2015)
Lastly, a concept known as BPM hype covers all these theories in one graph that allows
an organization to follow the demand of the customer by not compromising in the quality of the
products.
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7.0 Reference List
1WorldSync. (2017). The Kroger Company - 1WorldSync. [online] Available at:
http://www.1worldsync.com/customer-page/kroger/ [Accessed 27 Oct. 2017].
Ahmadi, A. A., & Abadi, S. H. F. (2016). Business Process Re—Engineering (BPR).
Becker, J., Kugeler, M., & Rosemann, M. (Eds.). (2013). Process management: a guide for the
design of business processes. Springer Science & Business Media.
Becker, J., Kugeler, M., & Rosemann, M. (Eds.). (2013). Process management: a guide for the
design of business processes. Springer Science & Business Media.
Chang, J. F. (2016). Business process management systems: strategy and implementation. CRC
Press.
Dale, B. (2015). Total quality management. John Wiley & Sons, Ltd.
Dumas, M., La Rosa, M., Mendling, J., & Reijers, H. A. (2013). Fundamentals of business
process management (Vol. 1, p. 2). Heidelberg: Springer.
Fleischmann, A., Schmidt, W., Stary, C., Obermeier, S., & Brger, E. (2014). Subject-oriented
business process management. Springer Publishing Company, Incorporated.
Gong, Y., & Janssen, M. (2012). From policy implementation to business process management:
Principles for creating flexibility and agility. Government Information Quarterly, 29,
S61-S71.
Hilton, R. J., & Sohal, A. (2012). A conceptual model for the successful deployment of Lean Six
Sigma. International Journal of Quality & Reliability Management, 29(1), 54-70.
Jeston, J., & Nelis, J. (2014). Business process management. Routledge.
Rademakers, T. (2012). Activiti in Action: Executable business processes in BPMN 2.0.
Manning Publications Co..
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Röglinger, M., Pöppelbuß, J., & Becker, J. (2012). Maturity models in business process
management. Business Process Management Journal, 18(2), 328-346.
Rosemann, M., & vom Brocke, J. (2015). The six core elements of business process management
(pp. 105-122). Springer Berlin Heidelberg.
Scheer, A. W. (2012). Business process engineering: reference models for industrial enterprises.
Springer Science & Business Media.
Stark, J. (2015). Product lifecycle management. In Product Lifecycle Management (Volume 1)
(pp. 1-29). Springer International Publishing.
Thekrogerco. (2017). The Kroger Company. [online] Available at:
https://www.thekrogerco.com/ [Accessed 27 Oct. 2017].
Van Der Aalst, W. M. (2013). Business process management: a comprehensive survey. ISRN
Software Engineering, 2013.
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