9 Benefits of Business Process Management (BPM) and Why You’ll Love It | Process Street | Checklist, Workflow and SOP Software (2022)

9 Benefits of Business Process Management (BPM) and Why You’ll Love It | Process Street | Checklist, Workflow and SOP Software (1)This is a guest post from Pauline Farris, a translator who speaks Portuguese, English, Spanish and Italian. She travelled the world to immerse herself in new cultures and learn languages. Today she is proud to be a voting member of the American Translators Association and an active participant of the Leadership Council of its Portuguese Language Division.

The world of business is changing fast and there’s no time for hesitation.

In every domain, competition is getting strong and the market is getting less tolerant of mistakes. This is why more and more companies worldwide are embracing Business Process Management (BPM).

BPM is a management system which aims at improving a company’s overall performance through optimization of important business processes, appropriate management, and maintaining those changes which have been made.

The BPM market is expected to grow to approximately USD $16 billion by 2023, with a 14% CAGR between 2017 and 2023 (Business Process Management Market Research Report).

9 Benefits of Business Process Management (BPM) and Why You’ll Love It | Process Street | Checklist, Workflow and SOP Software (2)

This shows that companies on a global level have recognized the need for improvement, development, and change.

Can business process management help your organization achieve its goals? It’s time to take a deeper look. Here is an exploration of the main benefits of adopting BPM and the reason why the BPM market is thriving worldwide.

This Process Street article will include:

  • A brief primer on Business Process Management (BPM)
  • The 9 benefits of BPM: How to boost your business
  • How you can get started and reap the benefits of BPM today!

A brief primer on Business Process Management (BPM)


9 Benefits of Business Process Management (BPM) and Why You’ll Love It | Process Street | Checklist, Workflow and SOP Software (3)Every business’s operations contain a set of processes that are repeated over and over again. These processes make up the core of that business.

Within each business, every business area either works with information or materials, sometimes both. That data or materials is transformed. For example, raw materials may be manufactured into a sellable good. Data may be transformed into a report. Every business area could possibly be responsible for a significant number of processes.

Business process management analyzes each of these processes.

It looks at them individually, and it involves analyzing how the different processes impact one another. The idea is to get good insights into the current state of these processes first. The next step is to identify where these processes can be improved.

The ultimate goal is to make the organization more efficient and effective.

It’s important to understand that business process management is not task management. Tasks are project related. Business processes relate to the core operations of a business.

However, projects are often the result of business process management. For example, business process management could identify redundancies in the order placing process at an online retailer. That could lead to a project that involves researching and selecting a new software package. That project would be divided into a series of tasks.

(Video) TouchStone Business Process Management Tutorial/Demo

The 9 benefits of BPM: How to boost your business!


9 Benefits of Business Process Management (BPM) and Why You’ll Love It | Process Street | Checklist, Workflow and SOP Software (4)

1. Business Process Management can help businesses reduce costs

In a 2018 survey by RedHat, more than 50 percent of participants recognized saving money as the main reason for adopting BPM. Companies need to focus on reducing costs in order to stay functional and steady.

You can reduce labor and operational costs by adopting business process outsourcing. The benefit of business process outsourcing is that it enables you to turn fixed labor costs into variable labor costs. You will be able to save because you only have to pay for the service that you need.

Other advantages of BPO include focused work, expertise, fewer equipment costs, and efficiency. Since you are hiring employees with a specific skill set to do specific tasks, the employees are focused on those tasks. If they have already been doing similar work for a while, then it means that they are already experts at their fields. Since you are outsourcing workers, you will be able to save on equipment costs because they will be using their own equipment. Since they are using their own equipment then they are already familiar with the hardware and software and will thus be more efficient at their jobs.

It’s important to remember that business process management begins with understanding. In many cases, that means identifying each business process. Then you can put those basic steps in action and begin to see how they operate in the wild.

Next, those processes are mapped in detail. These process maps provide great insights such as the duration, resources needed, frequency, and costs involved. These steps must often be coordinated between multiple teams, as an organization’s most important processes often touch one or more business area.

Once this mapping process is complete, it’s much easier to identify where costs can be reduced. This could be achieved by eliminating redundancies, identifying quality control issues, and highlighting excessive materials and labor costs. Of course, cost reduction is just one benefit of this process.

9 Benefits of Business Process Management (BPM) and Why You’ll Love It | Process Street | Checklist, Workflow and SOP Software (5)Business process management can also help organizations to find processes that are simply not worth the time and investment. These processes can sometimes be eliminated. In other cases, they can be outsourced. For example, a multinational corporation might determine that it’s better to outsource localization tasks.

Dwight Mackey, an account manager at The Word Point, mentions this as a motivating factor in corporations hiring localization services. He says:

“In order for businesses to succeed, they must be able to react to changing economic times. That means identifying the processes that are mission critical, and that should stay in house. By outsourcing other processes, they remain lean and agile. It’s much less expensive in terms of direct costs and resources to contract work like this out to other vendors.”

2. Business Process Management can help businesses recognize and respond to new customer demands

Successful businesses must be responsive. They must be able to recognize changing customer demands and preferences and react quickly. This is another area where a successful BPM strategy can really help. It forces decision-makers to pay attention.

One of the more recent shifts in the way we view process management is that processes themselves are becoming more customer-focused and less centered around productivity. Rather than asking how to improve processes in order to get a product out quickly and more efficiently, stakeholders now want to improve processes to better meet the customer’s needs.

This has a direct impact on metrics such as customer satisfaction and retention. Further, modifying business processes so that they meet customers’ needs often leads to other important improvements that lead to better productivity and efficiency.

Business process management software like Process Street can be used as a tool for modeling new process ideas that are centered around the customer. These can then be implemented in situations. A good business process management solution will allow companies to test changes before implementing them in production situations.

9 Benefits of Business Process Management (BPM) and Why You’ll Love It | Process Street | Checklist, Workflow and SOP Software (6)

By focusing on the needs of the customers, business managers can identify changing trends in customer needs and preferences. Here are some other benefits to changing processes so that they are customer-centered:

(Video) Advanced Workflow Automation Webinar July 2019 - Process Street

  • Meeting customer needs often leads indirectly to improved productivity.
  • Processes become more flexible to help meet changing needs.
  • It encourages a solution-based approach.
  • Processes can be re-engineered with a new or additional goal of improving customer experiences.
  • Innovation is encouraged.
  • BPM software allows you to make changes quickly with built-in quality controls.

3. Companies are increasingly finding that their old business models are no longer effective

If your company has been working according to an outdated business model, you won’t get very far. It’s time to make changes today, not at some point in the future. You simply cannot ignore the changes happening around you.

Technology, people, customers’ habits, changing socioeconomic conditions all contribute to a rapidly changing landscape. If you fail to make the right changes at the right time, it’s virtually guaranteed that your competitors are going to outdo you at every turn.

Business process management helps you to understand your current processes, and create new ones. In fact, a report from Gartner details how BPM can help ensure that business transformation happens successfully. One of the details in the report is that businesses making changes must identify new business outcomes.

9 Benefits of Business Process Management (BPM) and Why You’ll Love It | Process Street | Checklist, Workflow and SOP Software (7)Here are some other important takeaways:

  • An effective BPM solution will help business owners identify the processes they need to include in order to get the outcomes they need.
  • It’s important to identify where a business is in terms of business process management, not just overall, but for each upcoming project. Whether or not a project succeeds can be dependent upon whether or not an effective BPM solution is already in place.
  • Weaknesses must be identified so that changes can be made to ensure that the organization has the capabilities it needs moving forward.

4. Business Process Management can lead to increased productivity

With rising competition and more demanding survival conditions, companies must work at their best.

BPM can help increase productivity, and enable companies to give customers more. One example of this is Adidas which went through a major process overhaul. This resulted in the realization of several organizational goals, one of which was improved productivity. Specifically, they were able to reduce the lag time between order placement, and visibility of orders in the system. This led to orders being filled faster and more efficiently.

All of this was thanks to the kind of objective analysis that good business process management brings about. Without business process management, the company likely wouldn’t have recognized that inefficiency.

5. Companies that use Business Process Management have a better chance at remaining competitive

9 Benefits of Business Process Management (BPM) and Why You’ll Love It | Process Street | Checklist, Workflow and SOP Software (8)If a company cannot keep up with their competitors, they will find themselves quickly brushed aside.

That can lead to a downfall.

When your processes are repetitive and inefficient they become filled with waste, which means you don’t have time to focus on research and development, or other steps that make your company better able to stave off the competition. This is because without streamlining your business processes, your focus will always be operational; that limits innovation and allows waste to accumulate, further slowing you down.

When business processes are reliable and efficient, your business will have more resources to dedicate to growth and development.

6. Business Process Management makes it easier to retain customers

It’s difficult enough to gain new customers. Retaining them can be even more of a challenge.

However, retaining customers has a much bigger ROI than converting new ones. It costs less to do so, and existing customers offer more profit over time.

When you improve metrics such as productivity and innovation, your customers are more likely to be satisfied with your business. This leads to improved retention. If you can align your use of BPM to create better customer experiences then you’ll reap the rewards.

This is important because 67% of customers state that poor experience is their key reason for dropping a product or service.

(Video) Process Street Webinar - Conditional Logic - Feb 2018

You can build on that even further by tying your customer support, success, and service provisions into the rest of your company activities via an integrated BPM approach.

For example, this is what a simple customer support process might look like:

But you can also double-tap these customers with a follow-up process like this upselling checklist:

By having a process for everything and recording the data from each, the reactive and proactive teams can work together to identify opportunities and learn from each others’ interactions with customers.

7. You can standardize your processes with BPM

It is important for a company to have a clear, strategic plan of how things are done. BPM helps you to standardize the processes within your company. When processes are not standardized, quality control among other things becomes difficult.

9 Benefits of Business Process Management (BPM) and Why You’ll Love It | Process Street | Checklist, Workflow and SOP Software (9)Here are some other benefits that you can realize by using process management to standardize the way things are done across your organization:

  • Once processes have been standardized, it becomes easier to improve them in the future. Processes are documented in the standardization process. You can also standardize processes, then take on business process improvement initiatives (BPI) in phases.
  • Standardized processes lead to better productivity and increased output. When you standardize, you identify the best methodologies to use. Then put that into place. That can then be propagated across the organization.
  • Onboarding is much easier with standardization. New hires can all be taught the same thing. Imagine employee transfers and other lateral moves as well. When operational processes are standardized, there’s significantly less need to retrain employees in new methods.
  • When you have standardized processes, you can begin to schedule those processes to run at the times you know they’ll be needed. Standardizing processes helps you understand and pre-empt the actions of your own business.

Check out this gif to see how you can schedule your process checklists in Process Street:9 Benefits of Business Process Management (BPM) and Why You’ll Love It | Process Street | Checklist, Workflow and SOP Software (10)

8. Business Process Management leads to cross-department collaboration

Everyone in a company needs to be on the same page, working together towards a common set of goals.

BPM helps improve cross-department collaboration which brings immense benefits to the company. Without business process management, different business areas may be entirely unaware of how their processes relate to or conflict with one another.

This happens in two ways.

First, during the process mapping and standardization phase, different business areas and teams must communicate with one another. They must identify processes that are shared, determine where redundancies exist, and learn where shared information and expertise may be beneficial.

Next, this collaboration is fostered moving forward as the strategies created through business process management continue to be implemented.

9. Business Process Management improves safety, security, and compliance

9 Benefits of Business Process Management (BPM) and Why You’ll Love It | Process Street | Checklist, Workflow and SOP Software (11)All too often, issues with safety, security, and compliance arise from a lack of transparency.

An important task controlled by one business area, for example, doesn’t get the oversight it should. Later, it’s revealed that the processes in place to complete that task are in violation of compliance standards, or perhaps unsafe. As a result, the company could find itself afoul of laws or standards set by various governmental organizations or licensing bodies.

By using a comprehensive BPM plan, these processes no longer remain in the dark.

(Video) How Salesforce uses Process Street for Client Success

Instead, stakeholders are made aware of compliance issues, are better able to stay up to date regarding any changes, and can ensure that all processes meet safety, compliance, and security standards both internal and external.

This can help to reduce liability and safety concerns significantly.

How you can get started and reap the benefits of BPM today!

The easiest way to get started with BPM is by using Process Street.

Workflow software Process Street takes the confusing world of BPM and delivers an easy experience for your team.

How?

Process Street is superpowered checklists.

Like how LucidChart do mindmapping, Trello does Kanban, and Airtable does spreadsheets, Process Street does checklists.

Everyone knows what a checklist is! Most industries employ checklists all the time because they’re an effective way of making sure a task is carried out the same way every time.

Well, that’s the basic building block of business process management – so we’re putting checklists on steroids.

You can make templates which you run as checklists. You can then assign these checklists, or just specific tasks, to anyone in or outside your team. You can use conditional logic to have the checklist change depending on the information entered into it; following different paths based on different scenarios.

Or, you can hook up Process Street with over 1,000 other apps and webapps to automate actions in those products or have those products automate things inside Process Street. Business process management software with supercharged automation! The possibilities are endless.

Click here to sign up for a free Process Street account today to test it out!

Or check out how Process Street can be your standard operating procedure software or onboarding software.

Or check out some more of our resources and see what Process Street can do for you:

(Video) Digital Process Management / Neal Oswald, Wanilah Advisors / Intersection16

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  • Agile ISO: A Holistic Business Process Management Framework
  • What is ISO 9001 Certification? How to Get Certified (For Beginners)
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  • Processes, Policies and Procedures: Important Distinctions to Systemize Your Business
  • What is an ISO Audit? Free ISO 9000 Self-Audit Checklist (ISO 9004:2018)
  • How to Write an Actionable Policy and Procedure Template (ISO Compliant!)
  • 20 Free SOP Templates to Make Recording Processes Quick and Painless
  • ISO 26000 for Corporate Social Responsibility: How to Get Started

What’s your experience with business process management and the benefits of BPM? Let us know and give us your best stories in the comments below!

FAQs

What is the purpose of using a business process management BPM tool? ›

BPM allows organizations to pause business processes, implement changes, and re-execute them. Altering workflows, as well as reusing and customizing them, enables business processes to become more responsive and gives the organization deeper insights into the effects that process modifications have.

What is the biggest benefit of using BPM Suites? ›

A key feature of BPM software is that smooths the design processes that are flexible. This flexibility of making changes to a process can benefit your organization greatly, and gives you the opportunity to scale with any changes that you need to meet.

What is process management and why it is important? ›

Process Management refers to aligning processes with an organization's strategic goals, designing and implementing process architectures, establishing process measurement systems that align with organizational goals, and educating and organizing managers so that they will manage processes effectively.

What are the 5 benefits of implementing business process management? ›

Five Benefits from Implementing Business Process Management
  • Improved Business Agility. ...
  • Reduced Costs and Higher Revenues. ...
  • Higher Efficiency. ...
  • Better Visibility. ...
  • Compliance, Safety and Security.
4 Dec 2014

What are benefits of process? ›

Benefits of business process improvement
  • Productivity.
  • Employee satisfaction.
  • Reduced risk.
  • Compliance.
  • Customer satisfaction.
  • Agility.
  • Technology integration.
23 Apr 2018

What is BPM workflow? ›

BPM. Workflow refers to the steps within a single activity. BPM, by comparison, sequences steps across many activities within an organization as a means of improving business results and operational agility. Workflow is designed to ensure specific users perform particular tasks.

How BPM helps in improving business strategy? ›

BPM is essentially about streamlining business operations and optimizing the work-output-to-revenue cycle to its fullest efficient potential. Business Process Management enables businesses to respond to changing consumer, market and regulatory demands faster than competitors can, thus creating a competitive advantage.

What are the 5 stages in BPM life cycle? ›

A simplified version of the BPM life cycle features the following steps: modeling, implementation, execution, monitoring, and optimization.

What are the advantages of it BPM industry Class 9? ›

Answer: IT BPM helps the entire organization construct solid frameworks for all its processes. All important processes are documented, monitored, and optimized. When processes function at full swing with very few hiccups, process efficiency increases.

What are the advantages of BPM over ERP? ›

Benefits of Layering a BPM over an Existing ERP

Provides better standards for BPM than the ERP allows; Captures more process than in the ERP system; Drives continuous improvement; Communication and learning is made much simpler for all employees; and.

Why is business process important? ›

Business processes are important because they are a step by step guide that describes how things are done the best possible way and makes it easier to focus on improving business processes. Business processes have a vital role to play in the efficient and effective functioning of the organisation and structure.

What is an example of process management? ›

Management processes

Similar to support processes, this type of process is not directly related to the value creation of a company. Examples of management processes would include, but are not limited to: Aligning the company strategically, defining the corporate mission statement or formulating corporate goals.

What is business process give an example? ›

Operational processes (core business processes) are those that bring direct value to customers and the company itself. They are the processes that directly create revenue. Examples include: product manufacturing, order to cash process, and delivering products to customers.

What is the objectives of process management? ›

Process management is a means of defining, visualizing, measuring, monitoring, and optimizing processes. Besides that, it enables all members of a company to know and understand the processes within their company and to implement them according to the goal to meet customer requirements profitably.

What are the benefits of BPM B How can organizations implement BPM cycles efficiently and effectively using information systems frameworks? ›

Benefits of BPM
  • Gain control over cumbersome processes.
  • Address problems in the abstract state.
  • Drive efficiency with digital transformation.
  • Align daily outcomes with long-term goals.
  • Gain visibility into the process life cycle.
  • Inform business improvement with insights.
  • Maximize process compliance and security.

What are the six 6 business process management phases? ›

The six phases of business process management, as identified in Villanova's Essentials of BPM course, are Assess, Design, Model, Implement, Monitor and Modify.

What is the 5 step business process? ›

These five steps are: Define, Measure, Analyze, Improve and Control.

What are the benefits of software process improvement? ›

Advantages on optimizing processes and workflows include the following:
  • Improved efficiency.
  • Improved process visibility/performance.
  • Cost management.
  • Quality management.
  • Reduced cycle times.
  • Regulatory compliance.
  • Effective resource management.

What are the benefits of process improvement? ›

The benefits of process improvement
  • Automate tedious, repetitive, or menial tasks for greater process efficiency.
  • Better allocate time, employees, or resources to save money.
  • Streamline or replace products to increase competitive advantage.

What is a business process workflow? ›

What is a Process Workflow? A process workflow is a series of sequential tasks that are carried out based on user-defined rules or conditions, to execute a business process. It is a collection of data, rules, and tasks that need to be completed to achieve a certain business outcome.

Is BPM and workflow the same? ›

Workflow focuses on the execution of single tasks whereas BPM focuses on the business process as a whole. BPM is geared towards report generation and analytics rather than individual goals. Workflow is a type of BPM but not vice versa.

What is BPM in software? ›

Business process management software (BPMS) is an enterprise-level software solution to automate repetitive tasks, manage fundamental processing, and handle process logics. BPM systems optimize and accelerate processes, increasing efficiency.

What are the 4 stages of the BPM? ›

Business Process Management is a systematic approach to understanding, improving, and managing an organization. It is generally accepted to have four phases: document, assess, improve, and manage. (See Figure 4-1.)

What are the 5 pillars of business process management? ›

As mentioned in the previous post, the Five Pillars of PLM are: Business Processes; Product Data; Information Systems; Organisational Change Management (OCM); and Project/Program Management.

What do you understand by BPM Class 9? ›

Answer: BPM stands for Business Process Management. It is a discipline in which people use various methods to discover, model, analyze, measure, improve, optimize, and automate business processes.

What is a BPM industry Class 9? ›

The IT BPM (Business Process Management) industry has been fueling India's growth. The growth of the IT BPM industry has provided India with a wide range of economic and social benefits which includes creating employment, raising income levels, and promoting exports.

What are the four main sub sectors of IT BPM industry Class 9? ›

IT-BPM Industry comprises of four sub sectors - IT Services, Business Process Management, Software Products, Engineering Research and Development.

How ERP and BPM work together? ›

ERP and BPM are often considered to be the same thing, but they are not. When a BPM system is integrated with an ERP system, the BPMS adds a layer of management and control for processes across the entire organisation. A BPM can tie together systems, separate business areas, applications and repositories.

Why is improving business processes important? ›

Business process improvement helps to evaluate which organizational procedures and regulations add value to the company and help to steer it in the right direction. Improving business processes helps to support the current strategy, mission, vision, and goals, and eliminate those that don't support company culture.

What are the 4 basic functions of management? ›

They were initially identified as five functions by Henri Fayol in the early 1900s. Over the years, Fayol's functions were combined and reduced to the following four main functions of management: planning, organizing, leading, and controlling.

What are the 3 management processes? ›

The chart of “The Management Process,” begins with the three basic elements with which a manager deals: ideas, things, and people. Management of these three elements is directly related to conceptual thinking (of which planning is an essential part), administration, and leadership.

What are the different types of business process? ›

These include marketing, sales, production, distribution, and customer service. Those in this category tend to be some of the most structured processes in the organization.

What is the key goal of BPMN? ›

The primary goal of BPMN is to provide a notation that is readily understandable by all business users, from the business analysts that create the initial drafts of the processes, to the technical developers responsible for implementing the technology that will perform those processes, and finally, to the business ...

What is process management and its types? ›

Process management includes (1) process design or engineering, which is the invention of new processes; (2) process definition, which requires the description of existing processes; (3) process documentation; (4) process analysis and control; and (5) process improvement.

What are the advantages of BPM with cloud? ›

There are real benefits from cloud and BPM: Quick start, no IT hassle and focus on business value. Pay-as-you-go subscription model. High degree of collaboration such as collaborative modeling.

What are the advantages of BPM over ERP? ›

Benefits of Layering a BPM over an Existing ERP

Provides better standards for BPM than the ERP allows; Captures more process than in the ERP system; Drives continuous improvement; Communication and learning is made much simpler for all employees; and.

Is a benefit of business process automation? ›

Business process automation eliminates the bottlenecks that lead to lost time and revenue. The improvements in efficiency and control spread to every facet of the organization — from increased productivity and compliance to better customer experience and performance.

How BPM improve business strategy? ›

BPM is about improving efficiency and productivity by streamlining employee duties. It automates processes, reduces cycle times and helps mold team members into smarter and more efficient contributors.

Why is business process important? ›

Business processes are important because they are a step by step guide that describes how things are done the best possible way and makes it easier to focus on improving business processes. Business processes have a vital role to play in the efficient and effective functioning of the organisation and structure.

What are the advantages of it BPM industry Class 9? ›

Answer: IT BPM helps the entire organization construct solid frameworks for all its processes. All important processes are documented, monitored, and optimized. When processes function at full swing with very few hiccups, process efficiency increases.

What are the advantages of a business process perspective? ›

With leaner processes and increased productivity, employees are better able to focus on the customer. There will be an increased capacity to respond more quickly to proposals, build solutions faster and customize more quickly. BPM also brings people and technology together in a way that increases customer satisfaction.

What is BPM software? ›

Business process management software (BPMS) is an enterprise-level software solution to automate repetitive tasks, manage fundamental processing, and handle process logics. BPM systems optimize and accelerate processes, increasing efficiency.

How ERP and BPM work together? ›

ERP and BPM are often considered to be the same thing, but they are not. When a BPM system is integrated with an ERP system, the BPMS adds a layer of management and control for processes across the entire organisation. A BPM can tie together systems, separate business areas, applications and repositories.

What are the 5 stages in BPM life cycle? ›

A simplified version of the BPM life cycle features the following steps: modeling, implementation, execution, monitoring, and optimization.

What are the main benefits of automation? ›

Benefits of Automation
  • Lower operating costs. ...
  • Improved worker safety. ...
  • Reduced factory lead times. ...
  • Faster ROI. ...
  • Ability to be more competitive. ...
  • Increased production output. ...
  • Consistent and improved part production and quality. ...
  • Smaller environmental footprint.

What is the benefit of developing and automation strategy? ›

Developing an automation strategy can save your business time and money. By automating tasks that are repetitive or low-value, you can free up your employees to focus on more important work. Automation can also improve the accuracy of your data and help you to avoid human error.

What is the 5 step business process? ›

These five steps are: Define, Measure, Analyze, Improve and Control.

What is an example of BPM? ›

BPM is usually defined as a discipline or practice, but it is also an umbrella term to describe tools. Here's a fundamental example: BPM is usually defined as a discipline or practice – similar to DevOps, for example – rather than something you buy or otherwise simply implement and complete.

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