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8 min read

What is a Business Process Manager and what is it for?

8 min read

What is a Business Process Manager and what is it for?

What is a Business Process Manager and what is it for?
17:37

Processes are the heart of any organization; they encompass all activities that enable a company to function, from manufacturing and product distribution to customer service and human resource management.

However, these processes often become inefficient, redundant, or even obsolete over time, leading to increased costs, production delays, or poor services. This is where BPM (Business Process Management) comes into play, providing organizations with a way to analyze, redesign, and continuously improve their operations to achieve optimal performance levels.

But why is effective process management so important? Firstly, well-managed business processes allow companies to operate with greater precision, which means fewer errors, faster delivery times, and better quality in the products or services offered. Secondly, BPM provides a key competitive advantage: the ability to quickly adapt to changes. In a globalized market, organizations need to respond swiftly to new regulations, technological innovations, demand fluctuations, or even changes in customer expectations. A BPM-based approach requires commitment from top management and a willingness to change mindsets and processes that may have been in place for years. At the same time, it involves all stakeholders within the company, from executives to frontline employees, ensuring that changes are implemented consistently and effectively.

In this blog, we will dive deeper into what BPM is, how it works, and most importantly, how it can benefit businesses. As organizations seek ways to optimize their operations and stay competitive in an increasingly complex world, BPM emerges as a key solution to address these challenges.



>> SARA Methodology must precede software to avoid failures <<




What is a business process manager (BPM)?

To understand what a Business Process Manager (BPM) is, it is essential to recognize that processes are the backbone of any organization. Business processes are a series of structured and repetitive activities or tasks aimed at achieving a specific outcome. These can include supply chain management, customer service, and financial management, to name a few. Without proper management of these processes, organizations may find themselves dealing with inefficiencies, repeated errors, and a lack of cohesion that impacts both operational performance and customer satisfaction.

 

>> What is Business Process Management (BPM), and What Is It Used For? <<

Although it is often associated with software, Business Process Management is actually a methodological approach that includes both business practices and technologies. It is a discipline that enables companies to model, analyze, optimize, automate, and monitor their processes with the goal of improving performance and aligning them with the organization’s strategic objectives. Simply put, BPM helps organizations ensure that their processes are running optimally and meeting business goals.

At an operational level, BPM is structured into several key stages:

  1. Modeling: In this phase, business processes are identified and designed using diagrams or flowcharts. This allows the organization to obtain a clear and precise view of how processes flow and who the key stakeholders are at each stage. Modeling not only provides a visual framework for processes but also helps detect inefficiencies or redundancies in daily activities.

  2. Design analysis: Once processes are clearly modeled, a thorough analysis is conducted to identify bottlenecks, recurring errors, or unnecessary steps that may be affecting efficiency. In this phase, data on execution times, associated costs, and the number of resources used become the focus. Analyzing this data helps make informed decisions about which aspects of the process need improvement or elimination.

  3. Optimization: Following the analysis, improvements or redesigns of existing processes are proposed. This may involve automating certain tasks, eliminating redundancies, or even integrating new technological approaches to enhance efficiency. The goal of this phase is to reduce costs, accelerate delivery times, and improve the overall quality of products or services.

  4. Automation: This is where technology plays a fundamental role. Optimized processes are automated through the implementation of technological solutions, such as BPM software, which enables activities to be executed without manual intervention. Automation reduces the likelihood of human error, improves consistency, and allows employees to focus on higher-value tasks.

  5. Monitoring and continuous improvement: Once processes have been optimized and automated, BPM allows for real-time monitoring of their performance. Continuous tracking is crucial to ensuring that processes remain efficient and to detecting potential areas for improvement as business circumstances evolve. BPM advocates for continuous improvement, meaning that processes are never "fully optimized" but are constantly being adjusted to adapt to new realities.


It is important to differentiate BPM from other process management methodologies. While approaches like Lean Management and Six Sigma also focus on process improvement, BPM takes a much more holistic view. While Lean and Six Sigma tend to focus on waste elimination and variability reduction, respectively, BPM emphasizes how processes interact with each other within the broader business ecosystem.


What is BPM used for?

The value of Business Process Management (BPM) lies in its ability to transform business operations, offering benefits that range from optimizing daily tasks to improving strategic decision-making. To better understand its impact, it is essential to explore the different areas where BPM can create tangible value for organizations.


Operational efficiency improvement

One of the primary goals of BPM is to enhance the efficiency of business processes. In many organizations, processes develop in a fragmented and disconnected manner, leading to duplicated efforts, bottlenecks, and wasted time and resources. BPM allows companies to identify these weaknesses and redesign processes to eliminate redundancies.

When processes are optimized, tasks that previously took hours or days can be completed in minutes. For example, in a manufacturing company, a purchase approval process that requires multiple signatures can be redesigned and automated, reducing approval time from weeks to just a few days. This level of efficiency not only lowers operational costs but also enables the company to respond more quickly to market and customer needs. Additionally, BPM helps standardize procedures, reducing variability in results and ensuring greater consistency in the quality of delivered products or services.

Greater visibility and control over processes

One of the challenges many companies face is the lack of visibility into their internal processes. Often, managers and executives do not have a clear view of how tasks are being executed within the organization. This makes decision-making difficult, as the information available may be incomplete or outdated.

BPM solves this issue by providing tools that enable real-time process monitoring. Through dashboards and automated reports, decision-makers can see exactly what is happening at each stage of a process, identify delays or issues, and make informed decisions to adjust operations accordingly. This visibility is also crucial for ensuring compliance with legal regulations or internal standards, especially in highly regulated industries such as banking or healthcare.


Error reduction and quality enhancement

When business processes rely heavily on manual intervention, the risk of errors increases. Human mistakes, whether in data entry or task execution, can lead to delays, additional costs, or even damage a company's reputation if they result in defective products or poor customer service.

BPM addresses this issue by automating processes. Repetitive tasks, such as form processing or report generation, can be automated to reduce the likelihood of errors. This not only improves the accuracy of results but also frees employees to focus on higher-value activities, such as innovation or direct customer engagement.

Automation through BPM also enables the implementation of quality controls at every stage of the process. If an error is detected, the system can halt the process and notify the appropriate personnel to take corrective action before the issue impacts subsequent stages or the final product. This is particularly useful in manufacturing environments, where an error in the production chain can have costly consequences.

 

Adaptation to rapid changes

Today, change is inevitable. Whether due to new government regulations, shifts in customer demand, or the introduction of new technologies, companies must be prepared to adapt quickly. Traditional business processes, which lack a flexible structure, are often slow and costly to modify when unexpected changes occur.

BPM offers a significant advantage in this regard, as it facilitates process reengineering without the need to redesign the entire system from scratch. Companies can adjust their processes according to new requirements, enabling agile and effective adaptation. For example, if a new law requires certain auditing standards for data management, BPM can incorporate these new requirements without disrupting daily operations.

Moreover, BPM fosters a culture of continuous improvement within the organization. Instead of waiting for a major problem to arise, companies adopt a proactive approach to constantly adjusting and improving their processes.


Impact on decision-making

Another major benefit of BPM is its ability to enhance decision-making within organizations. Business decisions rely on accurate and up-to-date data. With a well-implemented BPM system, companies can collect and analyze real-time data about their operations, allowing managers to make more informed and agile decisions.

For example, a BPM system can show an operations manager how many orders are currently being processed, how long each step takes, and where bottlenecks exist. This real-time information enables leaders to allocate resources more effectively or adjust strategies quickly to improve efficiency.

BPM also allows companies to create simulations or "what-if" scenarios to predict how process changes will impact the business. This is particularly useful for long-term strategic planning, as it enables organizations to assess the potential impact of key decisions before implementing them.

BPM as a Tool for Innovation and Digital Transformation

BPM has evolved from being a methodology focused on process improvement to becoming a catalyst for digital transformation. While process digitalization is not new, BPM provides a clear structure and framework to ensure that transformation is effective, coherent, and aligned with the organization’s strategic objectives. It is not just about converting manual processes into digital ones but about redesigning them to fully leverage new technological capabilities.

By modeling and analyzing each process stage, organizations can identify inefficiencies or slow areas and determine which processes could be automated or improved through digital technologies. This structured approach allows for a smoother transition to digital transformation, avoiding the chaos often caused by rapid technology implementation without a clear strategy.

BPM is closely linked to automation, but its relevance has grown even more with the emergence of technologies such as Robotic Process Automation (RPA) and Artificial Intelligence (AI). These technologies are transforming BPM, taking it to a new level where processes are not only optimized but also autonomously and, in some cases, predictively executed.

  • Robotic Process Automation (RPA): RPA is a technology that allows companies to automate repetitive and rule-based tasks that were previously performed by humans. By combining BPM with RPA, companies can elevate automation to a whole new level. Routine tasks such as data entry, report generation, or account reconciliation can be managed by software robots that operate with high speed and precision. This not only reduces costs but also boosts productivity and frees employees to focus on more strategic tasks.

  • Artificial Intelligence (AI): AI is also playing a crucial role in the evolution of BPM. When integrated with BPM, AI enables organizations to make their processes more intelligent. AI can analyze large volumes of data generated by processes and provide valuable insights for decision-making. For example, in a customer service process, AI can predict likely customer issues and suggest proactive solutions before problems escalate. Additionally, AI can learn and improve processes over time, making recommendations based on historical behavior and emerging trends.

The combination of BPM with these emerging technologies is changing how businesses operate. They are not just optimizing processes but also creating new opportunities to innovate, reduce costs, and deliver better customer service.

Beyond automation, BPM is also a facilitator of continuous innovation. Companies that adopt BPM cultivate a culture of ongoing improvement, where processes are not static but continuously evolve to adapt to market changes and customer needs. Instead of viewing digital transformation as a one-time event, BPM enables organizations to embark on a journey of permanent innovation. Every process can be adjusted, refined, and enhanced, ensuring that the company always operates at peak efficiency.

 

Use Cases Across Various Industries

Let’s explore some real-world examples of how different industries are using BPM as a key tool in their digital transformation efforts.

  • Finance: In the financial industry, digital transformation is essential for maintaining competitiveness. Banks and financial institutions use BPM to automate critical processes such as customer identity verification, credit risk assessment, and transaction management. Before BPM implementation, these processes were highly manual and prone to human error, leading to slower response times and increased fraud risks. With BPM, these institutions have digitized and optimized these processes, significantly reducing processing times and improving decision accuracy.

  • Healthcare: In the healthcare sector, digital transformation is improving patient care quality. Hospitals and clinics use BPM to manage processes such as appointment scheduling, medical record tracking, and billing. These processes were traditionally fragmented, with multiple disconnected systems and databases, leading to delays in patient treatment and administrative errors. By implementing BPM, healthcare organizations have integrated their systems, automated key processes, and enhanced the overall patient experience, ensuring they receive the right treatment at the right time.

  • Manufacturing: Factories are also experiencing a digital revolution thanks to BPM. In the manufacturing industry, automation and real-time process monitoring are essential for maintaining efficient, high-quality production. With BPM, companies can digitize and automate everything from supply chain management to quality control, ensuring that each production stage aligns with company standards and can be quickly adjusted in response to demand changes or technical issues.

These examples illustrate how BPM not only enhances existing processes but also enables companies to completely reinvent how they operate in the digital era.


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Throughout this blog, we have explored how BPM not only optimizes business processes but also plays a crucial role in digital transformation and continuous innovation. However, its importance goes far beyond merely improving operational efficiency. BPM is a methodology that enables organizations to redesign their processes, align them with strategic objectives, and adapt swiftly to constant market changes.  

Challenges such as automation, managing large volumes of data, shifting customer expectations, and new regulatory requirements demand that businesses be more flexible and ready to react quickly. BPM provides a structured approach that allows organizations to proactively address these challenges. By enabling process analysis, optimization, and automation, businesses can enhance the quality of their products and services, reduce costs, and improve the customer experience.  

One of the greatest benefits of BPM is its ability to foster continuous improvement. Instead of merely "fixing" flawed processes, BPM drives a culture of constant evaluation and adjustment. This means that processes are never considered fully optimized—there is always room for refinement and adaptation to new business realities. This mindset of continuous improvement is especially relevant in the digital era, where innovation is a key factor for success. Companies that embrace BPM not only optimize their current operations but also build a strong foundation for long-term growth and innovation.



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