Business process management (BPM) helps organizations streamline and optimize processes for increased efficiency, productivity and agility.
BPM provides a systematic approach to continuously improve business processes through modeling, automation, execution, monitoring and optimization. Learn more about BPM software here.
Who is this article for?
- Organizations of all sizes and industries looking to improve efficiency and competitiveness
- Business leaders, managers and executives
- Process improvement teams
- IT departments
- Business analysts and consultants
Business process management is critical for any organization that wants to remain competitive by optimizing and continuously improving their key processes. The benefits span across the entire organization.
The Top Benefits of Business Process Management
Increased Productivity and Efficiency
One of the primary benefits of BPM is the ability to increase productivity and efficiency by streamlining and automating processes. By analyzing processes, identifying bottlenecks and inefficiencies, and re-engineering processes, organizations can significantly speed up process cycle times and reduce costs.
Fact
According to Gartner, even basic BPM initiatives can lead to a 12% productivity improvement on average. (Source)
Inefficient manual tasks and redundant steps can be automated or eliminated. Streamlined processes allow employees to focus on higher-value work. Škrinjar and Trkman (2013) found that organizations that implement critical BPM practices reach higher levels of process orientation maturity faster, leading to greater efficiency gains.
Improved Agility and Flexibility
Today’s fast-paced business environment requires organizations to be nimble and adapt quickly to change. BPM enables greater organizational agility by making processes more transparent and easier to change.
Well-documented and optimized processes provide a clear view of how the business operates. This makes it easier to identify areas that need to change and implement those changes faster.
Quote
It is not the strongest of the species that survives, nor the most intelligent; it is the one most adaptable to change.
– Charles Darwin
BPM also enables greater flexibility by making processes more modular. Different variations of a process can be quickly configured and deployed to adapt to different requirements or changing conditions.
Better Visibility and Insight into Operations
Another key benefit of BPM is the ability to monitor and measure process performance. Robust BPM systems provide real-time visibility into the status and metrics of processes.
Process analytics help identify potential issues and opportunities for improvement. Managers gain insight into how processes are actually being executed compared to how they were designed.
Tip
Establish KPIs and process metrics to continuously monitor the health and performance of your processes. Use this data to drive optimization efforts.
With Tallyfy, you can easily track processes in real-time to always know the status without having to chase people for updates. Powerful analytics help you identify bottlenecks and optimization opportunities.
Ensured Compliance and Reduced Risk
For many organizations, ensuring compliance with industry regulations and standards is critical. Failing to comply can lead to hefty penalties, reputational damage or even the inability to operate.
BPM helps ensure compliance by providing a systematic and documented approach to executing processes. Standardized processes make it easier to incorporate compliance requirements. Automated controls and audit trails help enforce rules and provide evidence of compliance.
van der Aalst (2013) notes that BPM can have significant managerial and technical ramifications that lead to not only productivity improvements and cost savings, but also risk mitigation.
Improved Customer Experience
Many customer-facing processes such as customer onboarding, order fulfillment and customer service are prime candidates for applying BPM. Optimizing and automating customer-facing processes leads to faster, more consistent service that improves the overall customer experience.
With Tallyfy, you can provide customer-facing forms and portals to digitize customer interactions and keep them informed on process status without any manual follow-up required. Automated routing and notifications keep processes moving efficiently.
Competitive Advantage
Ultimately, the cumulative impact of BPM provides a significant competitive advantage. More efficient and agile operations lead to lower costs, faster time to market, and better customer service compared to rivals.
Hung (2006) found that BPM concepts like process alignment and employee involvement were positively associated with organizational performance. Process alignment also positively influenced the relationship between employee involvement and performance. Organizations that develop BPM as a core competency are better positioned to adapt to disruption.
Quote
The essence of strategy is choosing what not to do.
– Michael Porter
Risks and Pitfalls to Avoid with BPM
While the benefits of BPM are significant, there are some common pitfalls to be aware of:
- Failing to align BPM efforts with organizational strategy
- Underestimating the organizational change management required
- Focusing too much on modeling and not enough on execution
- Over-engineering processes and sacrificing agility
- Neglecting to engage process participants in design and continuous improvement
To maximize the benefits of BPM, it’s important to take a holistic approach that addresses people, processes and technology. Initiatives should be aligned with strategic priorities and have clear objectives. BPM technology should balance structure with flexibility.
How Tallyfy Enables Successful BPM
Tallyfy offers a user-friendly and flexible platform to digitize and streamline processes across your organization.
Explain processes once and Tallyfy’s AI will generate the necessary documentation to ensure consistency and compliance. No more chasing down information in scattered documents.
Easily structure and digitize forms to capture data and requests to kick off processes. Automate the flow of information to the right people at the right time.
Use simple if-this-then-that rules to automatically route tasks, set deadlines and trigger actions based on specified conditions. Boost efficiency while reducing manual effort and errors.
Unlock the full benefits of BPM with Tallyfy – a user-friendly, no-code platform to streamline and optimize processes across your organization. See how Tallyfy can help you on your BPM journey.
What Are the Key Benefits of Business Process Management?
Business process management (BPM) has emerged as a powerful approach for organizations to improve their operational competitiveness and drive business value. By modeling, analyzing, and optimizing key processes, BPM enables companies to boost efficiency, cut costs, and enhance agility in a rapidly changing business environment.
One of the core benefits of BPM lies in its ability to provide end-to-end visibility into an organization’s processes. As Trkman (2010) highlights, BPM helps identify the critical success factors needed to align business processes with the overall business environment. This process-centric view empowers leaders to pinpoint bottlenecks, redundancies, and areas for improvement that may be holding the business back.
Beyond driving process efficiency, BPM also serves as a foundation for continuous improvement and innovation. Aalst (2013) notes that well-designed process models not only help configure information systems, but also provide a basis for ongoing process analysis and optimization. By institutionalizing a culture of continuous improvement, organizations can harness BPM to stay ahead of the competition.
Fact
Research has shown that as many as 60-80% of BPM initiatives are unsuccessful (Bai & Sarkis, 2013). Focusing on critical success factors is key to realizing value from BPM.
The benefits of BPM extend beyond just the “hard” elements of process optimization. As Zairi (1997) explains, establishing a BPM culture also requires focusing on the “soft” elements, such as cross-functional collaboration and change management. By involving people across the organization, BPM helps break down silos and enables a boundaryless approach to driving competitiveness.
How Will Emerging Technologies Shape the Future of BPM?
While BPM has already proven its worth, the rise of digital transformation is pushing the boundaries of what’s possible. Advances in areas like robotic process automation, artificial intelligence, and low-code platforms are poised to take BPM to new heights.
In particular, the convergence of BPM and AI holds significant promise. Intelligent process automation can help organizations not only streamline routine processes, but also tackle more complex, knowledge-based workflows. AI-powered process mining can provide even greater visibility by spotting patterns and improvement opportunities across vast datasets.
However, as Baiyere et al. (2020) caution, the shift to digital transformation will also require a rethinking of traditional BPM approaches. Rather than rigid, model-driven methods, the future will demand more flexible, agile practices that can keep pace with digital innovation. This will require what the authors call “light touch processes,” “infrastructural flexibility,” and “mindful actors” that can navigate a landscape of constant change.
Ultimately, the organizations that will thrive in the digital age will be those that can harness BPM not only to optimize current ways of working, but to completely reimagine their operating models. By combining the structure and discipline of BPM with the agility and innovation of digital transformation, companies can position themselves for success no matter what the future may hold.
Related Questions
What are the benefits of business management process?
Business process management (BPM) offers a range of benefits that can help organizations become more efficient, agile, and competitive. By streamlining and optimizing processes, BPM can lead to improved productivity, reduced costs, and enhanced customer satisfaction. It also enables better decision-making by providing real-time insights into process performance, allowing managers to identify bottlenecks and areas for improvement. Additionally, BPM can help ensure compliance with regulations and standards, reducing the risk of penalties and reputational damage.
What is BPM and its advantages?
BPM is a systematic approach to managing and optimizing an organization’s processes to achieve its goals more effectively. It involves analyzing, designing, implementing, monitoring, and continuously improving processes to align them with the company’s strategic objectives. The advantages of BPM include increased efficiency, reduced costs, improved quality, enhanced agility, and better customer experience. By eliminating redundant tasks, automating manual processes, and enabling real-time monitoring, BPM can help organizations become more responsive to change and better equipped to seize new opportunities.
What is business process management and why is it important?
Business process management is a disciplined approach to identifying, designing, executing, documenting, measuring, monitoring, and controlling both automated and non-automated processes to achieve consistent, targeted results aligned with an organization’s strategic goals. It is important because it helps organizations optimize their processes, reduce costs, improve efficiency, and enhance customer satisfaction. By providing a clear understanding of how processes work and how they can be improved, BPM enables organizations to adapt quickly to changing market conditions, regulatory requirements, and customer needs.
Which of the following are benefits of business process management to an organization?
Business process management offers several key benefits to organizations, including:
1. Increased efficiency and productivity by streamlining processes and eliminating redundant tasks.
2. Reduced costs by identifying and eliminating waste, optimizing resource allocation, and automating manual processes.
3. Improved quality and consistency by standardizing processes and ensuring compliance with regulations and best practices.
References and Editorial Perspectives
Aalst, W., M., P., v., d. (2003). Business Process Management. Lecture Notes in Computer Science, null, null – null. https://doi.org/10.1007/3-540-44895-0
Summary of this study
This paper provides an overview of key concepts and techniques in business process management (BPM), including workflow modeling languages, mining workflow models from event logs, evaluating workflow correctness, integrating business rules, and handling exceptions. It demonstrates the breadth of BPM as a field encompassing process modeling, execution, monitoring and optimization.
Editor perspectives
As a workflow automation platform, we at Tallyfy find this comprehensive survey of BPM techniques highly relevant and insightful. It reinforces our view that effective BPM requires a holistic approach spanning the entire process lifecycle from modeling to execution to continuous improvement. Many of the concepts covered, such as workflow composition, state-based business rules, and exception handling are core to Tallyfy’s own philosophy of making processes trackable and adaptable.
Aalst, W., M., P., v., d. (2013). Business Process Management: A Comprehensive Survey. ISRN Software Engineering, 2013, 1 – 37. https://doi.org/10.1155/2013/507984
Summary of this study
This survey paper provides a structured overview of the state-of-the-art in business process management (BPM). It highlights the fundamental concept of process models in BPM, which can be used to configure information systems, analyze and improve processes. The paper argues that BPM technology can enable significant productivity improvements, cost savings and flow-time reductions.
Editor perspectives
At Tallyfy, we strongly agree with this paper’s assertion that process models are the foundation of effective BPM. Our platform is built around the concept of creating easy-to-use process templates that can be instantly deployed to automate and track workflows. We’ve seen first-hand how this approach leads to the productivity and efficiency gains that the authors highlight. This survey is a great resource for anyone looking to understand the key aspects of BPM.
Bai, C., & Sarkis, J. (2013). A Grey-Based DEMATEL Model for Evaluating Business Process Management Critical Success Factors. International Journal of Production Economics, 146, 281 – 292. https://doi.org/10.1016/j.ijpe.2013.07.011
Summary of this study
This study identifies eight critical success factors (CSFs) for business process management (BPM) implementation based on a literature review. It then uses a novel grey-based DEMATEL approach and data from three Chinese manufacturers to evaluate the influence and causal relationships between these CSFs. The four most critical factors found are strategic alignment, top management support, project management and a collaborative environment.
Editor perspectives
Evaluating success factors is crucial for any organization embarking on a BPM initiative. At Tallyfy, we often advise our customers on best practices for BPM adoption. This study provides valuable data-driven insights that align with our own experiences. Factors like getting executive buy-in, aligning with strategic goals, and fostering collaboration are absolutely essential to BPM success. We appreciate how the authors use a structured methodology to quantify the impact and interrelationships of these factors.
Baiyere, A., Salmela, H., & Tapanainen, T. (2020). Digital Transformation and the New Logics of Business Process Management. European Journal of Information Systems, 29, 238 – 259. https://doi.org/10.1080/0960085x.2020.1718007
Summary of this study
This paper examines how the dominant logics of BPM – modeling, infrastructural alignment, and procedural actor logics – need to be updated in the context of digital transformation. Based on an ethnographic study, the authors propose new logics of light touch processes, infrastructural flexibility, and mindful actors that are more applicable as organizations digitally transform. They highlight key differences between digital transformation and traditional IT-enabled transformation contexts.
Editor perspectives
As a modern cloud-based workflow platform, Tallyfy is at the forefront of enabling digital transformation through process automation. This paper resonates strongly with us, as we’ve seen how traditional BPM assumptions need to evolve. Processes need to be more agile, infrastructure more adaptable, and people more empowered. At Tallyfy, we strive to embody these new logics in our product and in the best practices we advocate. This paper is a must-read for understanding BPM in the digital age.
Brocke, J., v., Zelt, S., & Schmiedel, T. (2016). On the Role of Context in Business Process Management. International Journal of Information Management, 36, 486 – 495. https://doi.org/10.1016/j.ijinfomgt.2015.10.002
Summary of this study
This viewpoint article argues that business process management (BPM) needs to be contextual for projects to be most effective, rather than following a one-size-fits-all approach. The authors propose a framework for identifying relevant context dimensions in BPM, including factors related to goals, processes, organization, and environment. They call for more research on the role of context in BPM to help practitioners better tailor their initiatives.
Editor perspectives
At Tallyfy, we’ve always believed that understanding organizational context is key to successful workflow and process automation. Every company’s processes, goals, and culture are unique. That’s why our platform is designed to be highly adaptable to different contexts. We allow custom templates, business rules, and integrations to fit each customer’s environment. This paper highlights an important issue in BPM research and practice. One-size-fits-all approaches are likely to fall short. Context matters immensely.
Hung, R., Y. (2006). Business Process Management as Competitive Advantage: A Review and Empirical Study. Total Quality Management and Business Excellence/Total Quality Management & Business Excellence, 17, 21 – 40. https://doi.org/10.1080/14783360500249836
Summary of this study
This paper reviews key concepts of business process management (BPM) and empirically examines its effects on organizational performance. Through a survey study, the authors find that process alignment and people involvement, two critical elements of BPM, are positively associated with organizational performance. Process alignment is also found to be a mediator between people involvement and performance.
Editor perspectives
Tallyfy was founded on the belief that better processes drive better business outcomes. This study provides strong empirical support for that notion. At Tallyfy, we stress the importance of end-to-end process alignment and engaging all stakeholders in process improvement. It’s great to see research that validates these as drivers of real performance gains. The findings on the mediating role of alignment are especially intriguing. It suggests that people involvement matters, but involvement alone isn’t enough – processes must be actively aligned.
Škrinjar, R., & Trkman, P. (2013). Increasing Process Orientation with Business Process Management: Critical Practices’. International Journal of Information Management, 33, 48 – 60. https://doi.org/10.1016/j.ijinfomgt.2012.05.011
Summary of this study
This paper investigates how business process management (BPM) can increase an organization’s process orientation maturity. Using a case study and statistical analysis of 324 companies, the authors identify critical BPM practices at each maturity level. They suggest that organizations following these level-specific practices will advance in process orientation faster than those that do not.
Editor perspectives
At Tallyfy, we’re big proponents of the process orientation mindset. We believe organizations should view themselves not as a collection of functions, but as a system of end-to-end processes that create customer value. This study offers a practical roadmap for increasing process orientation maturity through targeted BPM practices. We find the notion of critical practices at each level very actionable. It aligns with our view that process improvement is a journey. With Tallyfy, we aim to support that journey by making the right BPM capabilities available at the right time.
Trkman, P. (2010). The Critical Success Factors of Business Process Management. International Journal of Information Management, 30, 125 – 134. https://doi.org/10.1016/j.ijinfomgt.2009.07.003
Summary of this study
This paper proposes a theoretical framework for business process management (BPM) success factors, drawing on contingency, dynamic capabilities, and task-technology fit theories. The main premise is that BPM success requires a fit between business environment and processes, continuous improvement, and a fit between process tasks and information systems. The framework is used to identify critical success factors in a banking case study.
Editor perspectives
This paper’s multi-theoretic lens on BPM success factors is illuminating. At Tallyfy, our product and methodology incorporate many of these perspectives. Our process templates and business rules help achieve fit between processes and environment. Our analytics and improvement features support continuous optimization. And our integration capabilities ensure alignment between process tasks and supporting systems. We see this comprehensive approach as essential. BPM is not just about technology, but about a holistic system of process, people, and tools.
Weske, M., Aalst, W., M., P., v., d., & Verbeek, H., M., W. (2004). Advances in Business Process Management. Data & Knowledge Engineering, 50, 1 – 8. https://doi.org/10.1016/j.datak.2004.01.001
Summary of this study
This editorial introduces a special issue on advances in business process management (BPM), with a focus on applying formal methods to process-aware information systems. The authors provide an overview of scientific and practical issues in BPM systems and summarize the four selected papers, which cover topics such as workflow composition, process mining, dynamic workflow changes, and integrating business rules.
Editor perspectives
Formal methods and rigorous computer science principles have a lot to offer the BPM field. At Tallyfy, while we aim to keep the user experience simple, under the hood we leverage advanced techniques to ensure the correctness, reliability, and adaptability of the workflows our platform enables. This special issue highlights several areas where formalization can benefit BPM, such as ensuring proper workflow termination, handling dynamic changes, and integrating declarative business rules. We see significant potential for future BPM systems to incorporate more of these advanced capabilities while maintaining usability.
Zairi, M. (1997). Business Process Management: A Boundaryless Approach to Modern Competitiveness. Business Process Management Journal, 3, 64 – 80. https://doi.org/10.1108/14637159710161585
Summary of this study
This paper discusses business process management (BPM) as an approach that relies on cross-functional contributions to organizational performance. It argues that both “hard” and “soft” elements are required for effective competitiveness. While the term “process management” is increasingly used, the author suggests practical experience is still limited. Key BPM elements are presented with examples, and methodological approaches for creating a BPM culture are discussed.
Editor perspectives
This paper, though published over two decades ago, presents a perspective on BPM that remains highly relevant today. At Tallyfy, we firmly believe that processes should be managed end-to-end across functional boundaries. We also agree that BPM requires a balance of hard (technical) and soft (cultural) factors. Our platform provides the “hard” infrastructure for process automation and monitoring. But we also stress the importance of the “soft” side – getting people bought in and actively engaged in process improvement. Organizational change and a process-oriented mindset are key to realizing BPM’s full potential.
Glossary of terms
Business Process Management (BPM)
A discipline involving any combination of modeling, automation, execution, control, measurement and optimization of business activity flows, in support of enterprise goals, spanning systems, employees, customers and partners within and beyond the enterprise boundaries.
Process Orientation
An organizational mindset that emphasizes end-to-end processes over functional hierarchies as the primary way to coordinate work and create customer value. Increasing process orientation is often a key goal of BPM initiatives.
Process Modeling
The activity of representing processes of an enterprise, so that the current process may be analyzed, improved, and automated. Process modeling is a core aspect of BPM and is the starting point for many BPM initiatives.
Workflow
The automation of a business process, in whole or part, during which documents, information or tasks are passed from one participant to another for action, according to a set of procedural rules. Workflow technology is a key enabler of BPM.
Process Mining
A technique to analyze business processes based on event logs. Process mining aims to turn event data into insights and actions. It is an important aspect of BPM, especially for process discovery, conformance checking, and enhancement.
4. Enhanced agility and responsiveness by enabling real-time monitoring and rapid adaptation to changing conditions.
5. Better customer experience by improving service delivery, reducing response times, and increasing transparency.
