Implementation of Business Process Management: Research Findings

This report presents a research study on the implementation of Business Process Management (BPM) in Slovak enterprises. The research investigates the current state of BPM implementation, including the reasons for implementation, the level of process mapping, and the usage of BPM methods. It also identifies limitations and barriers to process management implementation. The study reviews literature on functional versus process-oriented management, highlighting the principles, core elements, and benefits of BPM. The research methodology, data analysis, and findings are discussed, emphasizing the importance of the process approach for improving business process efficiency and adapting to a changing environment. The report concludes with a summary of the main findings and implications for managers considering BPM implementation.

Procedia Economics and Finance 39 ( 2016 ) 197 – 205
Available online at www.sciencedirect.com
2212-5671 © 2016 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of the Organizing Committee of BEMTUR- 2015
doi: 10.1016/S2212-5671(16)30284-2
ScienceDirect
3rd GLOBAL CONFERENCE on BUSINESS, ECONOMICS, MANAGEMENT and TOURISM,
26-28 November 2015, Rome, Italy
The application of concepts and methods based on process approach
to increase business process efficiency
Andrea Gazovaa*, Zuzana Papulovaa, Jan Papulaa
aComenius University in Bratislava, Faculty of Management, Odbojarov 10, 820 05, Bratislava
Abstract
Business process management (BPM) as a systematic managerial approach enables organization's workflow to be more effective,
more efficient and more capable to adapt to an ever-changing environment. BPM attempts to improve processes continuously
with consideration of customer’s needs and requirements. The concept of BPM is not new, however many companies are still
struggling with the implementation of BPM and with application of concept and methods based on process approach. The article
presents findings of our research on current state of implementation and application of BPM in enterprises operating in Slovak
Republic. Our study was focused on several aspects related to BPM such as ex amination of the reasons why managers decide to
implement BPM in their businesses, the level of process mapping, the level of usage of concept and methods of BPM as well as
the detection of limitations and barriers of process management implementation and application.
© 2016 The Authors. Published by Elsevier B.V.
Selection and/ peer-review under responsibility of Academic World Research and Education Center.
Keywords: Business Process Management (BPM); Process Approach; Business Process Efficiency; Implementation of BPM
1. Introduction
As natural consequences of the competitiveness growth, of the impact of risi ng customer requirements and of the
increase of the number of companies offering comparable products, co mpanies are constantly trying to streamline
the operation of the entire organization and to enhance own productivity. As many practitioners and researches
pointed out, business process management in this regard helps to reduce costs, flow time and to improve quality,
productivity and efficiency of processes in organization (Repa, 2012; Weske, 2012). By placing business processes
* Andrea Gazova. Tel.: [phone]
E-mail address: [e-mail]
© 2016 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of the Organizing Committee of BEMTUR- 2015

198 Andrea Gazova et al. / Procedia Economics and Finance 39 ( 2016 ) 197 – 205
on center stage, companies can gain the capabilities they need to innovate, reenergize performance and deliver the
value current markets demand (Smith, Finglar, 2006). The company investigates all the details concerning the
analysis of their process attributes because every detail can mean an opportunity to improve a competitive advantage
and performance of the company. The process approach is seenas a key tool for continuous improvement of
business processes. The concept of BPM is not new, but still remains as one of the current trends in management
and not only in Slovakia. T he benefits and advantages of BPM are quite clear for many managers but on the other
hand, it is necessary also to mention the barriers and risks of process management implementation that are
discouraging managers from BPM implementation. The main challenge remains how to implement process
principles into an organization's operation (Skrinjar, Trkman, 2013).
Therefore, the main purpose of our study is to analyze the implementation of process management and the
attitudes and support of managers towards successful application of process management and its tools and methods.
The aim of our research is to assess how managers approach the implementation of process management, to identify
the main barriers and also to assess the usage of process tools and methods to support application of process
management.
The paper is organized as follows. After introduction, in the literature review, we discuss the principles, history
and various methods and tools of process management. We also point out differences between traditional functional
management and process management to understand the p rinciples of BPM. In addition we define the benefits and
the barriers in connection with the application of process m anagement and change management. In the next section
we describe the main goal, data and methodology of our research. T he results of research and analysis are presented
and summarized in the section Results. Last section summaries and concludes our main findings.
2. Literature Review
2.1. From functional orientation to processes orientation
The phrase by Peter Drucker "do the right things the right way" perfectly describes the principle of process
approach in management. Process management is not another form of automation or a fashionable new management
theory (Smith, Finglar, 2006). To gain better understanding, it is usefu l to start with short explanation of history and
of the classical approach to management based on functions. Process approach in management can be better
specified through its comparison with classical, traditional approach to management.
For many years, companies focused on efficient execution of individual functions, which has led to a local
optimization and perfection of functional areas (Becker, Kahn, 2003). These classical principles in management
were created by Taylor and Fayol and they formed the approach called a „functional management”. Fayol, as a
founder of classical theories in management, named the basic management functions as a planning, organizing,
commanding, coordinating and controlling. He also divided activities of the company into business functions such
as accounting, finance, production, distribution and others (Robbins, Coutler, 2013). Although in the theory and
praxis of management other identification of the basic business functions and activities of company can be found, in
general, there is application of the same principle that aim to break down the company into number of specialized
functions. The main principles of functional management include the fact that the work is organized according the
specialization and creation of functional units, and that correspond with formation of organizational structure and
organization design. Although the functional management was extensively used and its traditional wisdom is deeply
rooted, it was more effective in past in relatively stable environment. We can find many authors and researches who
declared the limits and restriction of functional management and who pointed out the n eed for fundamental change
(e.g. Hammer a Champy, 1993; Becker, Kahn 2003; Trunecek, 2003; Borovsky, 2005; Repa, 2012). However, the
idea of a process orientation design is not new. It has been increasing attention since the end of 80´s (Becker, Kahn,
2003). The process principles were firstly outlined by M. Hammer in USA (Hammer, Champy, 1993). Their
approach is known as re-engineering and it began to be applied progressiv ely in the U.S. companies from the early
80's of 20th century. Later in the 90's it began to appear in the U.S. under the name of BPM - Business Process
Management. Overall historical development of Process Management and comparison between continuous
improvement, re-engineering and the third wave of BPM is best expressed in Table 1, in particular with regard to its
development in the USA (Lusk et al., 2005; Papulova et al., 2014.) InSlovakia, process management became

199Andrea Gazova et al. / Procedia Economics and Finance 39 ( 2016 ) 197 – 205
popular at the beginning of 21 st century. As mentioned, process management has been developing gradually - the
first wave with the development of information technologies and quality management. Since 1960, the development
of technology started the first wave of process orientation. International (especially Japanese) companies were
becoming more competitive, especially due to their concentration on quality and problem-solving areas. U.S.
companies began to imitate the approach to quality. The combination of this investigation and technological
development has led companies to rethink the management approach and thus the process era began. Companies
were also oriented to TQM and ISO standards later on. The increased n eed to manage data meaningfully caused the
development of Statistical Process Control. Increasing use of computers in the seventies and eighties led to the
development of quantitative statistical software and the use of techniques of data collection that allowed
measurement, collection and interpretation of the results. The second wave of process management encouraged
companies to expand their business with process innovation, radical redesign and operational excellence. Finally,
the companies focused on continuous chang e with better adaptability and agility in early 2000. Market growth was
the accelerator for process effectiveness and performance measurement. In this time of hyper-competition,
organizations witness an accelerating pace of technological change - an acceleration of “clockspeed” in one industry
after another (Fine, 1998). There is an infusion of new technology even in traditional industries. Major vehicles for
that infusion are the role of software and information technology (IT) in determining product functionality and
facilitating logistics. The focus is on meeting customer needs through discovery that enables heightened
performance and new features – BPM methods, not increased reliability through con trol. This is especially the case
with getting new technologies to customers as quickly as possible as firms seek to create new markets and carve out
market leadership positions with potentially long-term positive consequences (Moore, 2000).
Table 1 Three waves of Process Management
Phase Period Focus on Management of
organization
Technology Tools/ methods
Industrial age 1750–
1960
Specialization
Productivity
performance
Cost reduction
Functional
Hierarchy
Line production
Orders/Controls
Mechanization
Standardization
Data Storage
Scientific
management
Financial Modeling
Information age
The first wave -
Process
improvement
1970–
1980
Quality Management
Continuous flow
Task efficiency
Diversification of
companies
Fusions and
acquisitions
Automation
Information
Technology
Management
TQM
Statistical process
control
Process
Improvement
Methods
The second wave
– Re-
engineering
90´s
Process Innovation
Best practices
Better, Faster
Business over the
internet
Flat organizations
Value Added for
customers
operational
excellence
Enterprise
Architecture
ERP
CRM
Supply Chain
Management
ABC
Six Sigma
Process redesign
Methods of
Reengineering
The third wave -
Process
Management
2000 +
Evaluation
Adaptability
Agility
Continuous Change
Network-centric
organizations
Hyper-competition
Market growth
Process
effectiveness before
efficiency
Enterprise Application
Integration
Architecture oriented
on services
Performance
Management Software
BPM Systems
BSC
BPM methods
Outsourcing

200 Andrea Gazova et al. / Procedia Economics and Finance 39 ( 2016 ) 197 – 205
2.2. The principles and core elements of process management
Based on the definitions of domestic and foreign authors (Hammer, Champy, 1993; Lee, Dale 1998; Trunecek,
2004; Borovsky, 2005; Zavadsky 2005; Repa, 2012), we gathered certain definitions and content of process
management in several points:
1. Process management is the identification and management of a continuous flow of activities within the
organization and between organizations in achieving the chosen strategy of the company. Any meaningful
work shall be defined by processes.
2. Process management is built on the pillars definedby main attributes of processes, process owners and
responsibilities with complex binding to the attributes with a thorough orientation to the customer.
3. Process management is an approach that brings consistent methodology of process improvement and
prevention of errors at all company levels. Labor productivity across the enterprise is derived from the
productivity of individual processes. The process involves various activities that are described, measured and
evaluated. The basis of improvement is in the elimination of errors, shortening downtime, eliminating
redundant costs and activities that do not add value.
4. Process management is a system of resource management linked to business activities that bring an
organization to its suppliers and customers. All processes have some inputs from suppliers and outputs
leading to specific customers.
5. Process management is a systematic and structured approachto the analysis, improvement, control and
governance of processes with the target of product and service quality.
6. Process management is a group of tools and methods to improve the efficiency of business processes, and to
manage the implementation process within the rules (legislation, standards, and guidelines) which supports
the integration of applications and services in information system of organizations.
Recently, a number of models and core elements concerning holistic understanding of BPM have been identified
by many authors (Rosemann, Brocke, 2010). We summarize the six core elements in Table 2 which demonstrate the
linkage and relationship between these six core factors and capability areas.
Table 2 Six core elements of BPM
Strategic
Alignment
Governance Methods Information
Technology
People Culture
Process
Improvement
Planning
Process
Management
Decision Making
Process Design and
Modelling
Process Design and
Modelling
Process Skills and
Expertise
Responsiveness to
Process Change
Strategy and Process
Capability Linkage
Process Roles and
responsibilities
Process
Implementation and
Execution
Process
Implementation and
Execution
Process
Management
Knowledge
Process Values
and Beliefs
Enterprise Process
Architecture
Process Metrics and
Performance
Linkage
Process Monitoring
and Control
Process Monitoring
and Control
Process Education Process Attitudes
and Behaviours
Process Measures Process related
standards
Process
Improvement and
Innovation
Process Improvement
and Innovation
Process
Collaboration
Leadership
Attention to
Process
Process Customers
and Stakeholders
Process
Management
Compliance
Process Program and
Project Management
Process Program and
Project Management
Process
Management
Leaders
Process
Management
Social Networks

201Andrea Gazova et al. / Procedia Economics and Finance 39 ( 2016 ) 197 – 205
The six elements were created to represent key success factors for implementing BPM in practice. Some of the
elements are more technical in nature and need deep understanding of “hard” principles and some are business
oriented, some look more at the behavioral side of BPM while others focus on methodologies. This model of
elements helps to make the holistic view on the implementation of BPM and therefore it is useful to apply the model
before implementing any changes to organization.
2.3. Methods and concepts based on process management principles
Another component of process management consists of methods and concepts based on the process approach.
Methods and concepts were divided by Zavadsky (2005) into two groups:
1. Methods related to the overall process. The starting point for their application is the need to identify
individual activities, and the whole business process. Although the method ultimately can only refer to one
attribute of the process, it cannot be used without the knowledge of the overall process, because the
application of the method has an effect on the process as a whole.
2. Methods related to the process attribute or activity. This group is larger than the previous one; this includes
most used management techniques and approaches. The methods do not require the application process
approach because they do not need to know the process as a whole, the method can be applied to selected
process attribute or activity.
Implementation of BPM does not only require a basic understanding of the risks and limitations (Skrinjar,
Trkman, 2013), but also a deeper understanding of the possibilities o f using different tools and approaches (Weske,
2012). Selection of procedural methods should be connected with the organization's requirements and conceptions,
but also with the skills and abilities to use the tool. In our research, the application of these instruments was
examined and the extent to which managers use software support. Apart from the implementation of process
management there are other tools and methods that are related and linked to business process management
(Papulova et al., 2014, Aalst, 2013):
- ABC (Activity Based Costing)
- ABM (Activity Based Management)
- BPM (BPI - Business Process Improvement)
- BSC (Balanced Scorecard)
- SCM (Supply Chain Management)
- Quality Management Systems (ISO, EFQM, Six Sigma)
- CRM (Customer Relationship Management)
On today's market in Slovakia we can choose among multiple software tools which can model, analyze and
simulate processes. These tools usually use a graphical visualization and process description and real simulations of
processes designed. Some instruments are easy to manage, others offer comprehensive solutions. We could divide
these into three groups which were also discussed in the survey:
- Mapping Tools (e.g. Process Wizard, MS Visio)
- Modeling Tools (e.g. ARIS Toolset, System Architect)
- Modeling and Simulation Tools (ProVision, QPR Process Guide)
3. Methodology
3.1. Research Goal
Our study highlights the importance of BPM implementation and continuous improvement of business processes
and their attributes. The goal of our study is to analyze the implementation of process management and the attitudes
and support of managers towards successful application of process management and its tools and methods.

202 Andrea Gazova et al. / Procedia Economics and Finance 39 ( 2016 ) 197 – 205
3.2. Data Collection and Analysis
Our survey was conducted from January to June in 2015 byquestionnaire and by structured interviews in
companies operating in Slovakia. We selected companies from various sectors in order to obtain broader overview
of manager’s attitudes to BPM. The number of companies in research was 178 and companies were divided into
several sectors:
- Industrial production: companies in the engineering, food processing, electronics and other industrial
sectors: almost 45% of surveyed companies,
- Services: companies providing logistics and marketing services, information and communication
technologies, financial institutions, consulting, trade and tourism: almost 55% of surveyed companies.
Concerning the size of companies, a significant percentage of companies (app. 36%: small and 32%: medium)
were small and medium-sized enterprises, micro and large companies built a small interviewed group.
4. Results
4.1. Level of BPM application
The level of application and implementation of process principles revealed significant findings in the area of
benefits, importance and limitations of this application.
The main benefits are seen in the improvement of:
ƒ
satisfaction of external customers (48%)
ƒ
continuous improvement of business processes (34%)
ƒ
reduction of overall costs by optimizing processes (22%)
These benefits dominated in answers of large and medium sized companies. In small companies, the benefit was
seen much more in supporting the company’s innovativeness and in costs reduction.
The main limitation and barriers of the BPM implementation:
ƒ
lack of qualification for implementing BPM (47%)
ƒ
resistance to change (no need to implement new systems) (42%)
ƒ
lack of specialists within the organizations to apply BPM principles (34%)
Other important limits were identified as not sufficient support from top management (23%), lack of financial
resources (19%) and negative attitudes of employees to overcome the change (12%). The summarization of the
BPM application level can be seen in the Table 3.
Table 3 The level of BPM application
Level of BPM implementation Overall Companies with highest % Sectors with highest %
No processes determination 15% Micro and small sized Services (Trade, Tourism)
Process descriptions (attributes) 28% Small and medium sized Industrial Production
Process descriptions, graphical process maps 17% Medium and large sized Services (Consulting)
Process measurement and evaluation of processes 19% Medium and large sized Services (Telecommunication)
Process management with help of BPM methods 12% Medium sized
Industrial Production (Engineering,
Automotive, Electronics)
BPM implemented, process innovations and strategic
goals optimizations 9% Large sized Industrial Production (Engineering)
Those companies, that indentified themselves at least at level 2 (process description or process measuring) were
asked also to indentify the procedures of describing andmapping these processes. The most common response
(62%) was showing that the description and depiction of processes are done with help of own systems and standards
– MS Word, MS Excel, Pohoda nadstandard and others. In the second most common answers, companies (app.35%)

203Andrea Gazova et al. / Procedia Economics and Finance 39 ( 2016 ) 197 – 205
reported capturing processes by describing them in the quality management systems (ISO standards). Very few
companies (2 - 5%) are on the other hand using specialized methods to map and model processes, such as IDEF
(Integrated Definition) - IDEF1X, IDEF14, IDEF12, BPMN (Business Process Modeling Notation) and EPC
(Event-driven Process Chains). To conclude we can say that the companies mostly developed and used own systems
and standards rather than standard or on the market available methods. The most frequently indicated software tools
were ARIS, ARIS Business Architect, QPR, Compass, Process Wizard, Nimbus, Arriba, SAP Wave and others.
4.2. Use of methods based on process approach
Up to 55% of companies stated that they do not implement methods of BPM yet. Companies usually are using
these methods BPI (21%), ABC (17%), BSC (15%), and SCM (15%). The other methods with fewer applications
are Six Sigma, Lean manufacturing and CPM. Again, as shown in the previous question, large companies had
highest percentage in the use of BPM methods. Financial institutions and trade enterprises apply methods like ABC,
BSC and BPI methods at the most. IT and other industries dominated with application of methods like SC M, CPM,
Lean Manufacturing and Six Sigma. The comparison of methods used by companies is showed in Table 4, as well as
the sectors most represented.
Table 4 Use of methods based on process approach
Process approach methods Overall Sectors dominated
ABC 17% Trade, industry, finance
BSC 15% Trade, consulting sector
BPI 21% Trade, finance, consulting sector
SCM 15% IT, trade sector
CPM 9% IT, trade sector
Lean Manufacturing 13% IT, industry sector
Six Sigma 12% IT, industry sector
4.3. Process performance measurement in companies
One of the most important, but frequently most challenging aspects of implementing business process
management in an organization is metrics. The necessity of having metrics at t he process level to enable process
owners and performing teams to monitor perf ormance, diagnose variation, and make effective course corrections is
indisputable. Once a business process has been created or redesigned, measurement of process performance is
critical. Ongoing measurement is the basis for continuous improvement.
In this research area we focused our attention on the attitudes of managers on process performance measurement.
We studied how they measure and evaluate the process performance and to w hich extent they support the process
performance. The results are presented in Table 5.
Table 5 Attitudes on process performance measurement
Statement: I agree I partially agree I do not agree No answer
Each process has an indicator for measurement and
evaluation 33% 46% 15% 6%
We have a given periodicity of recording the values of
indicators 19% 34% 31% 16%

204 Andrea Gazova et al. / Procedia Economics and Finance 39 ( 2016 ) 197 – 205
We have IT support for measurement and evaluation of
process performance 11% 27% 48% 14%
We determined corrective actions in case of exceeding the
indicators value 11% 29% 46% 14%
We have the data about the costs of processes 24% 31% 33% 12%
The process performance measurement serves as the basis
for process improvement 22% 42% 32% 4%
Almost 46% managers stated that they set the metrics and indicators to evaluate them. There is only little
difference in attitudes of managers with the periodicity of recording the values from the evaluation. The statements
about IT support for measurement and evaluation of data and taking corrective actions were answered negatively.
About 42% of managers partially agreed with the measurement of process efficiency which provides a rational basis
for selecting what business process improvements to make first.
5. Conclusion
Nowadays all companies require business effectiveness and efficiency while striving for innovation, flexibility,
and integration with technology. In comparison to traditional management approach oriented on business functions,
process management is oriented on processes and on processes with added value. The important task of
implementation of BPM is to understand the benefits that this approach brings if applied properly. On the other hand
it is also i mportant to understand the problems and the limits companies are still dealing when considering BPM
implementation and application. In the article we discussed our findings on current state of BPM implementation in
Slovakia. Business Process Management and its application is still reaching a considerable attention in Slovak
companies, not only from the business oriented perspective, but also from the perspective of information
technologies. Our survey was focused on both perspectives, on the core of the BPM implementation and on six core
elements of BPM. We also studied why managers are still not prepared for a change (from functional to process
approach).There are still many reasons and limits in the companies like negative attitude to change in various forms,
unwillingness to hand over competencies or lack of management support. The survey showed managers’ awareness
of major importance in the BPM application, to maximize the benefits for the customer, as well as minimize
unnecessary, redundant processes and costs.
To sum up we can resume the knowledge about the attitudes of managers of Slovak companies in several areas:
- The application of the process approach is perceived negatively, so m anagers have to contend with finding
support and overcoming resistance to change.
- Lack of specialists and skills in process management highlights the need for training and development of
employees and managers in this area and the need to use the services of consultancy companies.
- Corporate culture also plays an important role in applying process management. The components of the
corporate culture are actively involved in the attitudes towards change, which figures as a key factor in the
effective management of change management.
- The process performance measurement is still perceived as an optional method for process improvement and
not the basis.
Acknowledgements
This research was supported by a Comenius University Grant UK/513/2015.
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