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BPM System
Gartner recently broadened the definition of BPM, recasting it as "a management practice that provides for governance of a business's process environment toward the goal of improving agility and operational performance."¹ This more holistic view offers a structured approach for optimizing processes and takes into account the software tools discussed above as well as an organization's methods, policies, metrics, and management practices.
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Gartner recently broadened the definition of BPM, recasting it as "a management practice that provides for governance of a business's process environment toward the goal of improving agility and operational performance."¹ This more holistic view offers a structured approach for optimizing processes and takes into account the software tools discussed above as well as an organization's methods, policies, metrics, and management practices.
A Management Practice
According to Gartner, BPM is about becoming a process-managed organization, which requires the following disciplines (in addition to Information Technology):
Because this approach to BPM allows organizations to abstract business process from technology infrastructure, it goes far beyond automating business processes (software) or solving business problems (suite) — it enables business to respond to changing consumer, market, and regulatory demands faster than competitors, thereby creating competitive advantage.
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¹ Gartner, Michael James Melenovsky, Jim Sinur, Janelle B. Hill, David W. McCoy, Business Process Management: Preparing for the Process-Managed Organization, June 2005.
According to Gartner, BPM is about becoming a process-managed organization, which requires the following disciplines (in addition to Information Technology):
- Expertise and Experience — focus on process-centric skills, training, education, certification, research, business acumen, and intellectual capital
- Organizational Disciplines — adoption of new or improved culture, structure, roles, responsibilities, policies, rules, incentives, and procedures
- Management and Control Activities — improvement of processes by defining, modeling, simulating, deploying, executing, monitoring, analyzing, and optimizing
- Partnership and Services — reliance on partners to provide services such as consulting, implementation, and business process outsourcing
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A process is simply a set of activities and transactions that an organization conducts on a regular basis in order to achieve its objectives. It can be simple (i.e. order fulfillment) or complex (i.e. new product development), short-running (i.e. employee on-boarding) or long-running (i.e. regulatory compliance), function-specific (i.e. proposal management) or industry-specific (i.e. energy procurement). It can exist within a single department (i.e. billing), run throughout the entire enterprise (i.e. strategic sourcing), or extend across the whole value chain (i.e. supply chain management).
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