Business process management (BPM)

Business Process Management (BPM) is the concept of shepherding work items through a multi-step process. The items are identified and tracked as they move through each step, with either specified people or applications processing the information. The process flow is determined by process logic and the applications themselves play virtually no role in determining where the messages are sent.

Business process management attempts to improve processes continuously. It could therefore be described as a “process optimization process.” It is argued that BPM enables organizations to be more efficient, more effective and more capable of change than a functionally focused, traditional hierarchical management approach.

A business process is a series or network of value-added activities, performed by their relevant roles or collaborators, to purposefully achieve the common business goal.

As a managerial approach, (BPM) considers processes to be strategic assets of an organization that must be understood, managed, and improved to deliver value added products and services to clients. These processes are critical to any organization as they generate revenue and often represent a significant proportion of costs.

BPM goes a step further by stating that this approach can be supported, or enabled, through technology to ensure the viability of the managerial approach in times of stress and change. In fact, BPM is an approach to integrate a “change capability” to an organization – both human and technological.

Business Process Management Services transform, manage, and run key business processes, including customer relationship management, sourcing and procurement, and employee services, applying e-business technologies to achieve significant operational improvements.

BPM can be used to understand organizations through expanded views that would not otherwise be available to organize and present. These views include the relationships of processes to each other which, when included in the process model, provide for advanced reporting and analysis that would not otherwise be available. BPM is regarded by some as the backbone of enterprise content management.

Because BPM allows organizations to abstract business process from technology infrastructure, it goes far beyond automating business processes (software) or solving business problems (suite). BPM enables business to respond to changing consumer, market, and regulatory demands faster than competitors – creating competitive advantage.

Advantages of Business Process Management (BPM):
1)BPM Models: The activities of BPM are Modeling, Automating, Monitoring, Analyzing, and improving the business processes. BPM helps an organization to get good profits in less time.

This process models visualize the activities within the organization and business-to-business transactions. It flow models visualize the process flows within the organization and business-to-business transactions and the relationships between process flow. Its decomposition diagrams for business process modeling, process flow diagrams and data flow diagrams visualize the processes and activities in a detailed manner.

2)Workflow: Its workflow helps to define, create, execute, automate and manage processes within the organization and business-to-business-transactions to get more productivity.

3)Documentation: Business process management provides technical and non-technical persons to understand the different processes that occur in each departments of the organization, its performance and the outcome of each business processes.

4)Quality:Business process management increases quality and quantity of a product or a service provided by the organization.

5)Reports: Business process management reports can be very useful to the topmost executives of an organization and whoever needs it.

6)Resources:Business process management reduces the working hours of the employees.

7)Exceptions:Business process management reduces the errors and exceptions when compared to a manual process.

8)Regulations:Business process management helps an organization to abide by the regulations of the government.

9)Business-to-Business Transactions: Business process management is the core of transactions to gain leverage with vendors, customers, consumers, and suppliers.

10)Competition: BPM provides significant competitive advantage over competitors. Simulation techniques with different scenarios can be used on business processes to explore the effect of change.

Benefits of Business Process Management:

Business process management allows tremendous efficiency gains as the technology does much of the hard work. No longer an invoice be hidden in someone’s in-tray and no longer a staff expense claim is lost. There are three key advantages that BPM can bring to the table:

1. Transparency

Business process management makes a business process absolutely transparent, greatly improving visibility and efficiency. Bottlenecks can literally be seen, and removed. It can show where the most delays are occurring, and where is each transaction stuck as it passes from one stage to another.

2. Process refinement

The initial configuration and design exercise coupled with the data that emerges after running processes for some time can allow refinement.

3. Centralization of Data

Data about each and every transaction is logged and can be retrieved as and when required. Therefore, it is possible to analyze accurately what happened. Referencing is also easier as embedded searches allow for data to be picked up as required for study.

4. Financial Benefits
BPM Benefit Creates additional/new revenue, cost savings through tax avoidance, Enables cost avoidance, returns on investments, Increases cash flow, and profitability of existing products/services.

5. Organizational Benefits

BPM Benefit Builds company reputation, Creates new customer opportunities, Fosters company vision and mission, Improves market position relative to competitors, Improves the ability to serve customers.

6) Operational Benefits

BPM Benefit Decreases employee work loads for undesirable work, Eliminates non-value added activities, Improves employee morale / team spirit, internal communication between departments and group, use of workspace, Reduces external inputs to processes.

7) Information Technology Benefits

BPM Benefit Decreases maintenance/support costs, Enables service level agreement (SLA) obligation, Improves application/system performance, Improves application/system utilization rate, Increases efficiency of support activities, and productivity through automation, Maintains intellectual property investment, Preserves value of technology, Reduces application/system variation.

Tips On How to Improve Customer Service

Customer service is at the heart of quality, of late, the perception as to what constitutes Quality has undergone a metamorphosis. Quality is regarding the performance of the product as per the commitment (written or unwritten) made by the producer to the consumer. It does indeed concern itself regarding the control of defectives in a manufacturing environment and or complaints in a service environment. However, the scope of quality as a concept has expanded beyond its conventional definition. Defining quality as only lack of non-conforming product /service would be taking a very limited view. The prevailing new paradigm for world class quality is Total Customer Satisfaction. The customers’ expectations are therefore, paramount. Customer service is at the heart of quality for physical products as well as services.

Customer Service from the Heart is service that is delivered with care, with empathy and yes, even with love. We know that this kind of service has positive effects on the bottom line of the companies that model, train and encourage their employees in service from the heart. Companies that truly care for their customers are generally more profitable than those that don’t.

Benefits of Customer service is at the heart of quality

1. Attracting new customers costs more than retaining existing customers
A satisfied customer stays with a company longer, spends more and may deepen the relationship. For example a happy credit card customer may enlist the company’s financial services and later take travel insurance.

This is an easy “sell”, compared with direct marketing campaigns, television advertisements and other sophisticated and expensive approaches to attract new customers.

2. Customer service costs real money

Real costs are associated with providing customer service and companies spend in line with a customer’s value. If you are a high value customer or have the potential of being high value, you will be serviced more carefully.

Companies reduce the cost of customer service by using telephone voice response systems, outsourcing call centres to cheaper locations, and self-servicing on the internet. However, companies risk alienating customers through providing an impersonal service.

Some internet banking companies are bucking the trend by charging customers to contact them. In exchange, customers receive better interest rates due to reduced overheads and are satisfied with that.

3. Understand your customers’ needs and meet them

How can you meet your customers’ needs, if you don’t know them? To understand your customer’s needs, just listen to the “voice of the customer” and take action accordingly.

Customer listening can be done in many ways, for example feedback forms, mystery shopping, and satisfaction surveys. Some companies involve senior employees in customer listening to ensure decisions benefit the customer as much as the company.

4. Good process and product design is important

Customer service is only one factor in meeting customer needs of Good quality.
Well designed products and processes will meet customers’ needs more often.
Quality movements, such as Six Sigma, consider the “cost of quality” resulting from broken processes or products. Is it better to service the customer well than to eradicate the reason for them to contact you in the first instance?

5. Customer service must be consistent

Customers expect consistent quality of customer service; with a similar, familiar look and feel whenever and however they contact the company.

Say you visit an expensive hairdressing salon and receive a friendly welcome, a drink and a great haircut. You are out of town and visit the same hairdressing chain and get no friendly welcome, no drink and a great hair-cut. Are you a satisfied customer who will use that chain again? Probably not, as you did not receive the same customer service – which is more than a good hair-cut.

6. Employees are customers too
The quality management movement brought the concept of internal and external customers. Traditionally the focus was on external customers with little thought given to how internal departments interacted. Improving relationships with internal customers and suppliers assists delivery of better customer service to external customers, through reduced lead-times, increased quality and better communication.

The “Service-Profit Chain” model developed by Harvard University emphasizes the circular relationship between employees, customers and shareholders. Under-staffed, under-trained employees will not deliver good quality customer service, driving customers away. Equal effort must be made in attracting, motivating and retaining employees as is made for customers, ultimately delivering improved shareholder returns. Better shareholder returns mean more money is available to invest in employees and so the circle continues.

7. Open all communications channels
The customer wants to contact you in many ways – face to face, by mail, phone, fax, and email – and will expect all of these communication channels to be open and easily inter-mingled.

This presents a technical challenge, as it requires an integrated, streamlined solution providing the employee with the information they need to effectively service the customer.

8. Every customer contact is a chance to shine
If a customer contact concerns a broken process, then empowered employees will be able to resolve the complaint swiftly, possibly enhancing the customer’s perception of the company. Feeding back this information allows corrective action to be made, stopping further occurrences of the error.

If you inform customers about new products or services when they contact you, you may make a valuable sale, turning your cost centre into a profit centre. This is only possible when you have a good relationship with your customer, where you understand their specific needs. A targeted sales pitch will have a good chance of success, as the customer is pre-sold on the company’s reputation.

9. People expect good customer service everywhere.

Think about an average day – you travel on a train, you buy coffee, you work. You expect your train to be on time, clean and be a reasonable cost. You expect your coffee to be hot and delivered quickly. You expect your work mates to work with you, enabling you to get the job done.

People become frustrated when their expectations are not met, and increasingly demand higher service quality in more areas of their lives.

Providing outstanding customer service at the right price is the holy grail of most companies. It is worth remembering that we all experience customer service every day. We can learn from these and apply them in our own line of work, whatever it may be. The quality of customer service will make you stand out from your competitors – make sure it’s for the right reasons!

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