Friday, December 4, 2009

The Future of Business Process Management Where is BPM heading?

Businesses are looking for a new way of using business process management (BPM) solutions. As they become more dynamic, businesses are demanding faster responses from their business templates. As a result, companies such as CommerceQuest, HandySoft, TIBCO, and Metastorm, are developing BPM suites that are compatible with application, integration, and content suites.

Understanding BPM

Approximately ten to fifteen years ago, organizations began assimilating their legacy systems in specific industries or divisions by integrating enterprise applications via data transformation and routing, event triggering, process automation, and adapters. Enterprise resource planning (ERP), customer relationship management (CRM), and supply chain management (SCM) vendors were flourishing at this time. They automated their transaction systems with ERP software while including information systems from CRM software. Five years later, business process integration (BPI) solutions, namely business process modeling, business-to-business (B2B) connectivity, and vertical industry process templates were built on top of these enterprise application integration (EAI) systems.

Today, the market offers BPM solutions that incorporate both the EAI and BPI functionality in addition to workflow, business activity monitoring, Web services, rule engines, and portal capability, etc.
BPM is a set of tools and services that support human and application interaction with business processes. BPM suites automate manual processes by routing tasks through departments and applications. These routings are rule- and action-based, and are defined in a set of formulas. Actions can be automatically triggered, without an underlying rule requiring additional information; therefore, the process can be continuous and manual processes can be avoided.

Organizations use BPM systems to improve the effectiveness of their core operations. BPM specifically coordinates interactions between systems, business processes, and human interaction. It automates the routing of activities and tasks to employees, taking away non-value adding activities, such as routine decisions, data, and form transfer etc., and instead, provides users with tailored lists of task. With today's tight integration of process definitions and underlying applications, changes in the definition can be deployed and communicated virtually immediately.

Additionally, BPM can also add value to a company requiring procedures to be created and published because it offers compliance management. Companies can use it to meet the US Sarbanes Oxley Act (SOX) and International Standards Organization (ISO) requirements. It can opening up a range of functions such as process (quantitative) analysis, and optimization. Thus, by implementing BPM, companies are able to orchestrate and leverage cross-functional business processes that are used over multiple systems, divisions, people, and partners.

Ultimately, the beneficiary of BPM systems is actually the customer because the customer will receive information sooner and products faster. This results in an improved level of customer satisfaction and translates into more revenue for the company. For more information, see Business Process Management: How to Orchestrate Your Business.

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