Skip to content

Business Process Management (BPM): Types and Use Cases

Cost efficiency and speed of operations are the two main reasons companies continuously enlarge and upgrade their digital ecosystems with new solutions. While there are numerous enterprise-level software applications that can help with unit processes e.g. customer management, or stock tracking, they may often lack the overall process controlling system. That’s why many businesses include Business Process Management (BPM) practices in their work and add various BPM applications to their software stacks.

A solid BPM system can help companies of any size efficiently streamline their business processes, cut down on expenses, and not only that. In this article, we’ll have a more detailed look at BPM software and explain how companies use this helpful solution in practice.

What Is Business Process Management?

Business process management is a common practice company owners turn to when they strive to improve business operations across various departments in the company. Usually, these operations have a form of standardized repetitive workflows that can be identified, studied, modified for better functioning, and then monitored.

Performing effective monitoring of business processes, let alone modifying them is hard-to-impossible if done manually. Therefore, companies prefer to embed BPM tools into their digital environments. BPM software helps ensure that flow-of-work runs smoothly as well as provides companies with valuable insights on how to improve it.

Types of Business Process Management

BPM practice is a continuous process that helps consistently organize the existing operations in a company, eliminating any ad hoc workflow management. Companies can utilize one of the BPM approaches when organizing their business management strategies.

Types of Business Process Management

Integration-Centric BPM Approach

The main focus of this approach is the processes that involve minimum to no human intervention. BPMs of this type are often implemented when businesses create a service-oriented architecture that allows simply updating the company’s software and organizing quick mutual interaction between different applications. The processes in such systems largely rely on APIs and various mechanisms that integrate and share data across systems such as customer relationship management applications (CRMs), human resource management systems (HRM), and others.

Human-Centric BPM Approach

This approach is mainly oriented toward business management processes operated by people. It’s often implemented in systems that can’t be easily automated and where people’s approval is required. As a result, human-centric BPM tools will have carefully developed UI/UX with intuitive navigation, drag-and-drop features, role-based access, task assignment, and others. Human-centric systems are largely utilized for customer support, complaints handling, onboarding employees, filing expense reports, and other business cases.

Document-Centric BPM Approach

In this approach, the BPM focuses on document management processes. It’s used by companies that have to routinely process specific documents such as contracts, product purchase documents, and many others. The document-centric approach helps businesses significantly alleviate their document management by automating much of the data entry, sending, and receiving processes, and many others.

Business Process Management Lifecycle

Any BPM process involves several stages that help companies to better identify their areas of improvement and metrics that help track their progress. Let’s have a closer look at them.

Stage 1: Process Analysis

At this stage, business analysts gather data about existing business processes in the company. This involves interviewing various interested parties and discussing current business process outcomes with the company’s management. The main aim is to understand business rules in the company and if they align with the organizational goals.

Stage 2: Model

As the data of the current workflow is gathered and analyzed, managers create a new workflow model or improve the existing one. This usually includes timelines, descriptions of tasks, data exchange, and any other workflow-related aspects. At this step, companies embed business process management software as it helps build and visualize the newly modelled processes.

Stage 3: Execute

When all the business workflows are built and reviewed, it’s time to test the new system live. Often, companies conduct tests within a small group of employees first. After that, managers gather feedback and prepare the system for integration throughout the company.

Stage 4: Monitor

After rolling out the BMP system, companies get to the monitoring stage. Many of them establish KPIs to track the system’s performance. The KPIs can be created for stand-alone process segments and for an entire workflow in the company.

Stage 5: Optimize

This is the final step where some system adjustments can be performed for improving the overall business activity of the company. An effective reporting system in place is an important part of this stage. It’ll help companies precisely adjust business processes so that they’re more effective and smoothly streamlined.

When companies utilize BMP the right way, they improve their efficiency and cost savings as well as provide a better customer experience. Apart from that, they also better align their workflows with their strategic objectives and promote a culture of continuous improvement.

Benefits of Using BPM

Implementation of BPM systems encourages companies to undergo digital transformation faster, resulting in their stronger positions in the market. Here is how companies can benefit from implementing BPM in their business environments.

Benefits of Using BPM

Better Efficiency and Reduced Costs

With BPM software, companies can improve their process management as well as prevent and eradicate any bottlenecks and redundancies in the workflow, resulting in shorter lead times for selling products, quicker customer access to services and products, and, therefore, higher revenues. Above all, BPM systems help companies become more sustainable by reducing the waste of paper-based documents, and more.

Improved Employee Performance and Customer Experience

When utilizing BPM systems, companies can significantly automate much of repetitive work and efficiently facilitate routine tasks for employees. This way, employees can better focus on their direct responsibilities and customer service, resulting in better performance and enhanced customer satisfaction. Moreover, a clear understanding of a company’s workflows lowers the learning curve for employees, making them more productive and deeper engaged in the company’s processes.

Enhanced Business Agility

BPM systems help businesses become more flexible in quickly changing market conditions. By using BPM tools, companies can swiftly scale up/down or modify their processes in response to the current business requirements. This allows them to remain competitive in the home market or effectively expand to new ones.

Decreased Silos

Improved data transparency often works as a key factor for business success. BPM systems can help companies decrease silos between the inner company departments as well as among business partners in supply chains. Improved data exchange and visibility also increase communication among employees, resulting in their close collaboration and, again, i