Analyzing the Business Process Management Technique - Essay Example

Introduction

Enterprises and business corporations continue to grapple with the suffocating challenges prevalent in today's business environment. The environment has become more demanding, competitive, and complex. The complexity is attributable to several pressures that have initiated rapid changes in business operations. The pressures include technological innovations, easy access to information, new customer expectations, globalization, and the emergence of new markets. The unstable environment has prompted many enterprises to have to develop suitable strategies that enhance optimality. However, many corporations fail to initiate a proper strategy for managing business processes. Additionally, business managers and top-level management do not adopt systematic approaches that are vital for business adaptability. This diminishes a company's competitive edge and leads to corporate inefficiency. To curb the misfortunes, the article will focus on the Business Process Management technique (BPM). It is a multifaceted technique that focuses on several inputs. The report will also highlight the implementation process and applicability of the technique by analyzing relevant literature concerning BPM. Finally, the article will also focus on how Microsoft has defined and integrated the management concept into its operations.

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Definition of Management Technique

Numerous scholars have examined the mystery behind BPM. They have coined different definitions and narrations concerning BPM. For instance, Lemanska-Majdzik and Okreglicka (2015) define BPM as a "management approach" that maximizes business processes in an enterprise. Business processes are a series of business activities that contain spell-out inputs and outputs. Business processes entail measures and structures that enable organizations to generate value and produce output for their customer base and market target. According to them, BPM entails any organizational activity or effort that enhances critical operations such as communications, marketing, and manufacturing. BPM uses several tools and software to control, design, analyze, and enact diverse company operations. In another perspective, Bibiano et al. (2007) view BPM as a "customer-focused approach" that empowers the organization's workforce and uses "cross-functional teamwork" to refine a company's business process. Ahmad and Looy (2020) define BPM as a set of tools and methods that discover, optimize, design, monitor, and automate business processes. To do this, the "BPM lifecycle" requires financial, technological, and human resources. The lifecycle encompasses "iterations" such as process identification, process discovery, process analysis and redesign, process implementation, and finally, monitoring and control (Ahmad & Looy, 2020). Tatic et al. (2018) term BPM as a "holistic discipline" that generates better outcomes for any organization. They introduce similar concepts that intertwine with BPM. They include Business Process Improvements (BPI) and Business Process Reengineering (BPR). They are used interchangeably. BPM enhances an organization's capabilities to refine effective and efficient management systems.

Suša Vugec et al., (2018) a conceptual framework derived from many scholarly journals that refine literature focusing on BPM. The framework encompasses three dimensions that incorporate different sub-concepts. They include process dimension, structure dimension, and content dimension. The process dimension concentrates primarily on business collaborations. It has five subconcepts, but Suša Vugec et al. (2018) only highlight four because of the research requirements. The subconcepts include (i) enhancing cooperation in the supply chain department, (ii) improving transaction-based relationships, (iii) integrating the company's operations, and (iv) facilitating collaboration with other enterprises. The structure dimension focuses on the cooperation of partners and the development of BPM systems. Bibiano et al. (2007) describe BPM systems as an amalgamation of "information systems" that effectively manage their external and internal processes. Additionally, the company can also partner with both internal and external partners. Internal partners include employees, top-level management, and IT specialists. On the other hand, external partners include suppliers, consultants, and customers. Finally, the content dimension analyzes the goals stipulated by BPM. The dimension incorporates nine subconcepts. First, benchmarking enables companies to foster a comparative assessment. Second, the implementation of essential software facilitates organizational goals and ensures that needs are met. Third, the redirection of corporate activities by adopting a process-based approach will enhance orientation. Fourth, ensuring that knowledge inputs are managed efficiently to improve organizational transparency. Fifth, simulation methods strengthen the identification of loopholes and faulty lines visible in the business process. Sixth, streamlining and amplifying the management process. Seventh, the training of employees and maintenance of the status quo is possible through designing the business process. Eighth, enhancing compliance with standards and rules stipulated by stakeholders and other relevant entities. Ninth, the creation of measures that improve the efficient management and coordination of duties and tasks within the organization promotes workflow.

Implementation Process

The identification and analysis of the business process are very vital for the implementation process. Lemanska-Majdzik and Okreglicka (2015), in their study, examine the business processes adopted by several organizations that vary in size and function. They develop four hypotheses that focus on several key issues, including using the bottom approach, knowledge of the management process, challenges experienced in the identification process, and process orientation. The authors recommend the increase and expansion of the level of management knowledge. The increase should occur in small organizations and enterprises due to several reasons such as small-scale range, lack of adequate specialists, and lack of significant resources. In another perspective, the study illustrated that companies use both bottom-up and top-down directions to define business processes. However, identifying business processes faced several challenges such as inadequate training resources, lack of ample knowledge inputs, and complications arising from the definition of activities, customers, and procedures.

Adesola and Baines (2005) stress the importance of identifying and developing an ideal methodology that facilitates and aids in implementing BPM. They identify three objectives that will improve the initiative, as mentioned above. First, practitioners should create an initially structured methodology that acts as a prototype. The development of the prototypes should reflect ongoing frameworks visible in the organization. Additionally, the study also identifies five phases after comparing the frameworks. They include diagnosis, process management, design, initiation, and implementation. The authors mapped the stages against the frameworks. This enabled them to develop a prototype methodology that incorporates seven steps. They include a readiness assessment, indicating the review process, efficient collection of data, creating a model that outlines the ongoing process, redesigning and reorganizing the process, process implementation, and finally, process review. Second, practitioners should embark on a process of validating suitable experts and specialists. The experts contribute vital inputs that accelerate the development of an efficient methodology. Third, practitioners have to assess the applicability and practicality of the methodology in an industrial setup. The authors identify critical questions that will help in the industrial assessment. The questions focus on using the methodology, the challenges arising from the use, and the impact of the results.

The design and development of methodologies should focus on the needs of the organization. In today's business environment, there are different methodologies. Rashid and Ahmad (2013) highlight several methods that are common in contemporary society. The main aim of this research is to alleviate any form of confusion and enhance awareness. First, the Six Sigma methodology enables practitioners to eliminate any defects or errors that affect the business process. This is done through the concentration and application of organizational outputs. Its senior pioneer engineer Motorola Bill Smith outlined five phases that make up the model. They include control, measure, analysis, define, and improvement. Some of its essential functions include interpreting the organization's modality by analyzing and measuring the business process. The model later improves the factors causing the defects. Organizations such as General Electric, Texas Instruments Incorporated, and Honeywell International Inc. have significantly benefitted from this model. Second, the Total Quality Management (TQM) model enhances levels of customer satisfaction. The model incorporates tools and techniques to train employees and equip them with relevant skills that will enable them to deliver quality services. The model also refines team building and improvement ownership within the organization. The model tries to reduce any errors that may affect customer satisfaction. Third, the benchmarking methodology enables organizations to conduct comparative assessments. They compare their products, inputs, services, processes, and strategies with successful enterprises. This allows them to adapt and transform their practices. The model has five distinct phases. They include analysis, planning, integration, maturity, and actions. The benchmarking model enables organizations to develop adequate capital planning, strategic planning, and budget planning. Additionally, the model also enhances cost savings by reducing expenditures incurred in business operations. Organizations such as Motorola, Ford, and Xerox have significantly benefitted from this model. Fourth, the model-based and integrated process improvement (MIPI) streamlines the effectiveness of BPM in organizations. Developed by Adesola and Baines (2005), the model improves business process reengineering. MIPI encompasses seven phases indicated earlier in this text. The model has a well-designed "hierarchical structure" that highlights the organization's human workforce, goals, techniques, tools, and outcomes. Fifth, the Kaizen methodology has had excellent success in Japan. Organizations such as Canon, Toyota, and Nestle use this model to amplify business output, alleviate challenges, and increase efficiency. It boosts the relationship between top-level management and employees by encouraging the participation of employees in corporate matters. The model focuses on improving business performance through a gradual and continuous process. It follows the same cycle used by the PDCA model. Sixth, the Plan-Do-Check-Act model (PDCA) emphasizes the importance of constant improvement. It is efficient in developing quality strategies and policies. Its simplicity enables practitioners all over the country to apply it and yield favorable outcomes. Companies such as Lockheed Martin Corporation use the model to develop proper planning strategies and feedback mechanisms. Seventh, the lean thinking approach enhances an organization's workflow by limiting waste and increasing performance. It is a modification of the traditional techniques of mass production. It advocates for the removal of redundant business activities that do not add value or promote efficiency.