Business process management
Business process management is a field of study which combines the techniques, methods, tools and data of information technology and uses it to effectively manage the day to day operations of a business concern. In the last decade a popular business management method called business process reengineering emerged. Business process management is similar, but business process reengineering is more or less a one time study and redesign of the business, while BPM is an ongoing process which can be periodically used to streamline and revise the entire business or selected areas of the business.
Process management in business is tied closely to information technology. Reviewing and refining business management practices is hardly new, but using software tools to simplify the process of gathering information about the methods of operating the business is new. Software programs known as business process management systems (BPM systems) have made the collection of information more efficient and less costly. BPM software scrutinizes the implementation of the business processes so that managers can examine and modify activities in answer to factual data, rather than just a hunch.
BPM systems software is grouped into three categories. First is the process of collecting the information needed to make appropriate analysis. Not only is it necessary to collect existing information, but the software must have the ability to simulate new methods and procedures in order to determine the impact on the business. In other words, use the existing data, change various factors and see a computer simulation of the results.
When using business software to automate a business process, there have been difficulties in the past with finding software that is capable of programming all the needed steps. Even a federated approach where part of the process is prepared on the computer and then human intervention is required to complete the balance of the activity is not effective. Today, new software has been developed which puts all the processes gathered into computer language. Using graphical representation software rather than text language makes programming simpler and speeds up the application.
The third major area of improvements to BPM systems is that of process monitoring. This software compares actual results of operations with expected results and makes appropriate changes as needed to fine tune the business process. The software is so sophisticated it can pull random samples out of the information in order to extrapolate whether the entire process can be considered successfully implemented.