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Business Process Management

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Today companies are facing fast changing business environment, changing customer needs and expectations, fast changing technologies and product life cycles in globalization within this environment today’s managers has to ensure long term business for their company. And in growing market its now important respond to this by investing in innovative new product and marketing strategies, but they also have to concern about optimising cost, time scale, product recourses in order to increase efficiency. Processes acts as building blocks of an enterprise and it include all the employees and systems that exist within enterprise. Therefore every company has to manage their business processes. At this situation “Business Process Management (BPM)” theories comes in to action.
"BPM is a management practice that provides for governance of a business's process environment toward the goal of improving agility and operational performance. BPM is a structured approach employing methods, policies, metrics, management practices and software tools to manage and continuously optimize an organization's activities and processes." – David McCoy, Gartner Research Report
In this report I explain about how BPM benefits to enterprise using real world examples. I research about following enterprises/organizations which implement BPM.
Midwestern hospital Case Study.
Let’s take Midwestern Hospital case study. It’s one of the largest and Popular Cancer Hospitals in United States. In order to gain more and more success the Hospital decided to hand shake with new business process management rules.
They discuss mainly two new projects. The first one use top down approach and the second one use BPM as its new transferring tool. First approach was not success and 2nd approach - Process driven approach was successful. When implementing 2nd approach management made a questionnaire for its customers. To find out which customer was satisfy hospital service and products.
Based on survey results Management noticed people not happy with inflexibility, poor service performance, bureaucracy, lack of cross training and high cost.
After that management established cross-functional team to address customer inquiries. After that team identified 8 main processes which wants to change and divide in to 2 categories. Hospital got lots of benefits implementing BPM in system. Huq, Z., and T. Martin (2006)
“US”- utility services.
“Us” utility services is a strategic alliance between two parties in Australia and New Zealand. They are south east water and the Thiess service. These organisations are recognised leaders in their industry sectors. Our Alliance delivers a range of integrated and certified design, engineering, construction, operations and maintenance services to the water industry.
They normally deliver value to a single business or function but not across the business. They wanted to work across companies. They notice value of the company increases when work across companies.
They implemented BPM according to Center of Excellence (COE) Strategy-driven approach. They take programme view of organization instead project view. So company as benefits they gain the understanding and between processes integrate it into IT projects where appropriate and they gained cost reductions 25%. Interfacing.com (2009)

Swiss Bank Case Study.
“Credit Suisse” is a global bank operating over 60 countries; its headquarters is in Zurich. Zurich branch suffered from various shortcomings of business processes. Process cycle time was too long, Unique steps needed different tools and methods of communication and unsatisfactory guidance of employees through the process this simply means process participants could not identify stage of process properly.
To overcome this issues and provide better customer service the bank decided to apply BPM using Process driven approach, for more than 10 main processes. Direct finance, closing accounts, special orders and settlement of securities are some of them. As example for special orders process customer orders handled via database, the new process is only loosely structure, there is no given sequence of activities to be carried out.
The BPM results reduce cycle time, faster task completion, improve productivity, output per employee increased and employees provide better customer service. Kung and Hagen (2007)
Clear Channel Communications Radio.
Clear Channel Communications (CCC) is a leading radio advertising company broadcast client’s advertisements over the radio. Previously the one and only way to submit clients ads are hand it over to the clear channel office. After that set of processes followed. They are issue a receipt, confirm audio content, sent spot instructions until the advertisement broadcast.
But the company noticed inefficiency of processes and they are time consuming. They wanted to allow customers to upload audio advertisements on their internet for broadcast on stations and alignment of sales and back office operations.
They searching for a new BPM solution, In order to meet the new goals CCC decided to interface their business with world’s leading search engine providers. They transform existing system to a new system by process by process.
With the new combination of two companies CCC reached their goals easily. Sales processes became more efficient and more effective management implementation and better distribution of work. Interfacing.com (2008)

By researching about BPM case studies and going through them I identified common benefits which we can gain through Appling BPM to a specific organization. Our case study is about Metal stamping company. I think if we implement BPM solutions for this company it will help them to gain more success and increase profits. We Can consider previously mention organization and how they success using BPM. If we improve BPM in this company can benefits as follows, * We can re-arrange old processes with the new processes we can provide better service with faster responses. * Process quality will be automatically increase. * So company can deal with on- time delivery issues easily. * Company can gain customer satisfaction. More customers means more profits. * It reduces training and development costs as well as improves process efficiency and control.

* BPM systems ensure that every instance of the process gets executed exactly as defined that’s process standardization. * With the BPM solutions we can rebuild existing complex, inefficient metal stamping business processes in to a efficient effective manner.

* Using BPM we can measure each and every operational performance * It provides collection of process data such as resource costs, employee salary costs so analysing them we can take actions to reduce cost of the company.

* Eliminate manual data entry * Faster Regulatory Compliance. * Supporting New Business Models are few other benefits.

When implementing BPM organisations are not always successful, there are frustrations and failures too. These are some difficulties we have to face in BPM. * We must have to fully identify the processes and standardize them, but most of the time we have processes those can’t be automated, they have to simplify first.

* Sometimes there are some important processes customer wants to done by humans. We can’t automate them or overlooked.

* And normally customer expectation for the new system is much higher than reality. However we have to satisfy customer.

* In the company it is possible that some people don’t like new system, because they don’t understand what BPM really is. Finally they have also to consider that system developers are often constrained by time. Antunes and Mourao (2010). Because of that they can’t give the products on deadline.

* Most BPM systems, if not all, require that process activities be executed from the start to the end point without leaving any dead-locks or live-locks or activities never being triggered (van der Aalst, 2001)

Above mentioned difficulties act as barriers in BPM development. We have to avoid them. In order to overcome these difficulties I recommend, * First we have to give clear understand to the employees of organisation about what BPM is and how it operates. * We have to gain advice from BPM expertise.

* We can arrange training sessions for employees to get know about new system. * And also we have to well understand and document all the processes which are going to change before starting. * Identify correct process to be improved properly.

Looking at the above BPM successes it is obvious that Metal stamping company can win the challenges what other businesses experienced and gain benefits. You can surly reach the organisational goals as you expected. So with a BPM solution you will be able to serve all the customers with high quality products for a low cost. Apart from that the company will be able to deliver products in best possible time with good customer service.

References.
Antunes and Mourao (2010).Resilient Business Process Management: Framework and services. Expert systems with Applications. 38 (2), p1241-1256.
David McCoy, Gartner. "Business Process Management: Preparing for the Process-Managed
Organization

Huq, Z., and T,Martin. 2006. “The Recovery of BPR Implementation through an ERP Approach: A
Hospital Case Study.” Business Process Management Journal 12, no. 5, pp. 576–87.
Interfacing.com (2008). Interfacing Two Giants- BPM and SOA enables mega media transaction between Clear Channel Communications (CCC) and an internet search engine leader. Available: http://www.interfacing.com/uploads/File/clearchannel.pdf.Last accessed 15th October 2011.
Interfacing.com (2009). ‘us’ - Utility Services – An Alliance between South East Water Ltd, Thiess Services and Siemens, Australia, Pacific Rim. Available: http://interfacing.com/uploads/Case%20Studies/us%20Utility%20Services.pdf. Last accessed date 15th October 2011.
Kung, P, and C,Hagen. (2007). “The Fruits of Business Process Management: An Experience Report from a Swiss Bank.” Business Process Management Journal 13, no. 4, pp. 477–87. van der Aalst, W. (2001). Exterminating the Dynamic Change Bug: A Concrete Approach to Support Change. Information Systems Frontiers, 3,no 3, 297-317.

Bibliography.
Agata Filipowska, Monika Kaczmarek, Marek Kowalkiewicz, Xuan Zhou, Matthias Born, (2009) "Procedure and guidelines for evaluation of BPM methodologies", Business Process Management Journal, Vol. 15 Iss: 3, pp.336 – 357
Bandara, W., Gable, G. G., & Rosemann, M. (2005). “Factors and measures of business process modeling: Model building through a multiple case study”. European Journal of Information Systems,
14, 347-360.
Caverlee, J., Bae, J., Wu, Q., Liu, L., Pu, C. and Rouse, W.B. (2007), “Workflow management for enterprise transformation”, Information Knowledge Systems Management, Vol. 6, pp. 61-80.
Fisher, D.M. (2004), “The business process maturity model: a practical approach for identifying opportunities for optimization”, BPTrends, September, pp. 1-7.

Hofstede, G. (2005), Cultures and Organizations: Software of the Mind, McGraw-Hill,
New York, NY.

Hull,Richard and Mendling,J and Tai,S.(2010). Business Process Management:8th International Conference,Hoboken,NJ,USA,Sep 2010.
John,Jeston and Johan,Nelis (2008). guidelines to successful implementations. 2nd ed, Oxford : Butterworth-Heinemann

Lee, C., Lee, G. and Lin, H. (2007), “The role of organizational capabilities in successful e-business implementation”, Business Process Management Journal, Vol. 13 No. 5, pp. 677-93.
Olivier Françoise, Mario Bourgault, Robert Pellerin, (2009) "ERP implementation through critical success factors' management", Business Process Management Journal, Vol. 15 ,no 3, pp.371 – 394.
Pascal Ravesteyn, Ronald Batenburg, (2010) "Surveying the critical success factors of BPM-systems implementation", Business Process Management Journal, Vol. 16,no 3, pp.492 – 507.
Seppanen, M., S. Kumar, and C. Chandra. 2005. Process Analysis and Improvement: Tools and
Techniques. 1st ed. New York: Irwin/McGraw-Hill.
Terban,Efraim(2009). Information technology for management : transforming organizations in the digital economy.7th ed,Hoboken, John Wiley & Sons.
Us utility services.[online].http://www.usus.com.au/usutility/display.asp?entityid=3139.last accessed at 17th October 2011.
Wikipedia.com.2011.”Bibliography.”. http://en.wikipedia.org/wiki/Bibliography . Last accessed at 17th October 2011.

Appendix 1.
Need for improve existing system

Midwestern hospital Case Study

Questionnaire Prepared

Group of MBA students selected

Questionnaire filled by students

Analyse the Outcome

Identify prioritise process improvements

Implement BPM methodology in identified processes

Monitor process improvements

Get feedback

Appendix 2
Clear Channel Communications Radio .

(Transformed process using BPM)

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