BPM (business process management) is the concept of organization process management that considers business processes as special resources of an enterprise that are continuously adapted to constant changes. The basic principles of this concept are clarity and transparency of business processes. This is achieved through their modeling using formal notations, the use of software for simulation, monitoring, modeling and analysis of business processes, the dynamic rebuilding of business process models by personnel and software systems.
BPM answers the following questions: what, where, when, why and how the work is done, who is responsible for its implementation.
Business process management is a way of managing an organization, in which activity is viewed as a set of interrelated processes aimed at creating a target result (product or service) that is valuable to the consumer and generates income for the organization as a whole. The main difference from other management methods is that the result of an activity is not assessed by the quality of performance of individual functions by each of the organization’s divisions, but by the aggregate result obtained during the execution of all functions throughout the value chain. This is achieved by reducing the costs of interaction between functional units due to the proper organization of processes. Thus, the main goal of BPM is to increase the effectiveness of the management system.
As a rule, the BPM system contains the following set of basic functional modules:
- The business processes repository – a single repository of business process descriptions, ensuring the joint work of all stakeholders
- The tool for modeling business processes – a visual utility that allows displaying business processes in conventional notation
- The business rules customization tool is a development environment that allows describing detailed rules for business processes. For example, algorithms for selecting performers for specific tasks, checking the correctness of the entered data, docking with external systems, etc. This environment can be oriented either to advanced users or developers (depending on the features of the BPM system)
- Means for the integration of information systems used in the company at the level of business processes executed in the BPM system. It is implemented through docking modules for loading/unloading information, initiating necessary actions (when performing specific business process tasks) in the company's external systems: the ERP system, the CRM system, etc.
- The work portal – an environment in which users involved in business processes receive and perform their tasks
- Means of analysis and reporting – the system of operational and analytical reporting, formed on the current status and business processes results.