BPM: Key Business Strategy

BPM – Key in its business strategy

In recent years we are talking a lot about the alignment of business and technology through the process and the advantages that this entails, from the perspective of customer focus, effectiveness, speed and cost savings. But what are the fundamental elements and factors to consider for implementation are?, Is technology necessary?, if so what it is the most optimal technology?. Clearly the answer is not unique and that in turn supports many other questions that flow from it, for example if there is a clear awareness of developing management based on customer-oriented processes and if they are approached from the perspective of efficiency and effectiveness. On these issues the strategy alignment, the processes, people and technology will try to reflect on this article.

To have success in an increasingly competitive global economy, companies must do more better way, which means continuously increasing the value they create for clients, Company persons, shareholders and society in general. Structuring organizations as sets of customer-oriented processes, implanting a Process Management as a first step towards Management by Processes, will the development of continuous change that companies need directing them to customers and making them both more efficient possible.

Management by process, It means that organizations develop their management based on their customer-oriented processes: external or internal. This approach does not replace the functional or departmental, but complements and it is a necessity for companies to create value for its customers, contributors, shareholders and society in general. A) Yes, continuous improvement will be made in concrete processes of the organization. This approach provides the dual perspective of effectiveness, because it points to the objectives and efficiency, by reducing or eliminating possible redundancies.

For example, to treat an insurance claim after an accident, an insurance company must implement various processes-from damage assessment to estimate the amount of compensation or payment settlement- before the client sees attended his claim. Similar processes occur in other everyday acts like hiring a mortgage, the application for unemployment benefit or simple activation of a new option in our phone contract.

What is common to all these processes?

Fundamentally, the involvement of different departments and complex decisions based on multiple sources of information. Y, first of all, the need to operate in real time, to respond quickly and effectively to any change. A) Yes, to increase productivity, reduce costs and increase customer satisfaction, companies must meet the requests and complaints as soon as possible, for which, knowledge, automating and streamlining processes is essential.

Implement a process approach, It requires design a "Strategy processes " suitable for customer-oriented company. This is an important step, but the decisive factor will implement it well, and that is where most businesses fail. The strategy is not implemented well and ends up staying on paper, even if the strategic objectives are well designed, how difficult is implementing them and transmit them to all levels of the organization.
A study conducted by Fortune magazine revealed that less than one 10% of well-formulated strategies are implemented effectively. Another of the same publication concludes that the reason for business failures is analyzed, in a 70% of the cases, in a bad implementation of strategies and not in the design of these.

What are the causes of these failures when implementing strategies processes, that leave relegated to mere exercises cabinet without real impact on companies?.

In my opinion the main reasons are:

  • The predominance of the departmental organizational form against process management, sometimes these departments becoming silos isolated from each other to act as true "fiefdoms".
  • The little time spent in meetings management teams to analyze the achievement of the strategy.
  • Failure to communicate strategic objectives through all levels of the company.
  • The lack of knowledge of the strategy by the people in the organization.
  • The inability to align the actions at the departmental and personal level with the strategic objectives.
  • The lack of mechanisms to measure continues the realization of the strategy.
  • The lack of incentives associated with the realization of the strategy.
  • Non linking budgets to strategy.

How could it be avoided?

The solution of the above problems is to:

  • The need to understand the company and its entire mission, vision and values, key skills and processes.
  • Design and implement a system of control and measurement (Dashboard or Indicator System) linked to processes.
  • Parallel design process map and link to it indicators. For example, relate the customer satisfaction indicator with the customer process. From there, operational indicators should be defined, deploying them through the process hierarchy and establishing relationships between indicators, as time resolution of a particular complaint.
  • Configure the organization based on the strategy, integrating roles, processes and technology.

How you could make?

To get it, is important to understand that:

Understand processes is critical, automatizarlos is essential, gestionarlos It is vital "

To understand the processes it will be necessary:

  • establish a framework for company process-oriented.
  • define a specific model allowing expression, structuring and global vision of the company, from the point of view of the processes, technology and people, enhancing the knowledge and communication.
  • define the method that allows analyzing, normalize, command and control data, transforming them into useful information for the company.
  • define a systematic identification and / or acquisition suggestions to optimize processes, adapting to market needs.

to automate it will be necessary:

  • Count on tools process automation including the possibility of structuring the company policies through Terms of businessO, crear Dashboards or indicator systems, allowing the one hand, combining strategic levels, operating, human and technical and other strategy for communicating with people and technology enabling the measurement and improvement of the organization.
    If there is a lack of instruments like these, management may not even perceive that the organization misalignments are occurring at different levels, or between short deadlines, medium and long. This idea reflects the principle that "what is not measured is not known and is not improved”.

to manage them it will be necessary:

  • Take into account the need to analyze issues and perspectives not only financial, but also on the customers (the goal is to know what to do to get your satisfaction and loyalty), to the internal processes (how will deadlines, productivity, efficiency, provisioning, etc.) and the contributors (how they have to act in accordance with the objectives, the extent to know, what is their degree of satisfaction).
  • Eventually you have to go taking action assessment and improvement. The best benefit that provides management by process, "It is the improved business performance”. Managing an organization processes, It means first that has been named an "owner" for each, investments and budget are structured by processes, indicators that measure the performance and to be making improvements or redesigns are established.

Put into practice these strategic challenges supposed to systems must deliver solutions that take precedence automation, increase flexibility and facilitate auditing and transparency.

New standards of efficiency and effectiveness: BPM

In this quest for efficiency and effectiveness and therefore productivity, BPM (Business Process Management and Business Process Management) They constitute a useful element and I daresay essential.
What is BPM, and why is it important for my business?

The business process management or BPM, is the set of techniques and tools that enable organizations to model, automate, control, measure and optimize their business processes.
BPM is important for the company, as:
  • can control an agile and flexible business processes.
  • contributes to definitively identify opportunities for improvement, a reduce operating costs.
  • It allows transform into business opportunities, changes in the market.
But nevertheless, it should be noted that an initiative of BPM is not an initiative exclusively in the IT area, but must have the highest commitment to operational and business areas in the company.
What are the main benefits of implementing a BPM initiative?
Among the main benefits of running a BPM project we can mention:
  • Identification and documentation of key processes.
  • Improve understanding of the organization and identify opportunities for improvement.
  • Improve management, via metric definition, indicators and alerts.
If the initiative include process automation, You can be added the following objectives:
  • Costs reduction.
  • Flexible and streamline business processes.
  • Improving communication between IT and Business Areas.
Los BPM reduce response times to changes in the business environment in which business is conducted (government regulations, competitive pressure) y allow reuse of resources and cost minimization deployment of new applications.

The BPM seek the structuring and process orchestration. By automating processes that guide decisions, new standards unknown efficiency are achieved so far. For example, the routine processing of a claim to an insurance or a health care service is now solved in hours, not months. In banking online, customers can receive instant approval of an application for a loan or mortgage. And to activate new optional telephone services no operator assistance is no longer needed, but the process is automatic.

Consultants such as IDC have found that the trend toward automation experienced in the last three years is expected to accelerate in the coming years. Reducing costs and margins of error, as well as the acceleration of time of implementation of policies and related processes are the main challenges companies face today.

Structuring and automation of processes BPMS make the most accessible and sustainable processes by business staff.

How much time and money it cost to implement an initiative of this type?

BPM incorporate the organization is a way. For this reason the most important thing is to start as soon as possible. BPM initiative may simply involve the training of a team or automating a set of processes, possible alternatives through reengineering or process optimization. That's why there is a BPM initiative for every budget. Once the decision to implement BPM, selecting one or two processes are recommended to complete a project cycle controlled.
Overall this investment is to select a provider consulting and technology implementation, on a project lasting no more than 3 months can be about 15.000 a 50.000 euros.
From this perspective, we consider optimal technology for the implementation of a BPM product "APIA BPMS”.
Juan Emilio Alvarez
Managing Director
Albatian Consulting

Leave a Reply

Your email address will not be published. Required fields are marked *

Uso de cookies

Este sitio web utiliza cookies para que usted tenga la mejor experiencia de usuario. Si continúa navegando está dando su consentimiento para la aceptación de las mencionadas cookies y la aceptación de nuestra política de cookies, pinche el enlace para mayor información.plugin cookies

Cookie warning