Overview of Modern Business Process Management
Business Process Management (BPM) is generally a set of systematic methodologies for managing and executing organizational workflows. Workflows need to be managed and executed systematically to improve efficiency and effectiveness and to ensure workflows can be agile to changes. In other words, BPM ensures end-to-end activities are delivered, which eventually can contribute to ROI (Return on Investment).
In the modern BPM, workflow automation is necessary to ensure tasks are being delivered consistently—which eventually could help to enhance operational efficiency. Improvements may differ between organizations, according to their objective and situation. For instance, some organizations may reduce the manpower involved in completing a specific task through workflow automation. On the other hand, some organizations may reduce their delivery time or unnecessary costs to produce a specific product. This is when workflow automation is required in the modern BPM.
The Importance of Process Automation in BPM
Workflow Automation and BPM are interdependent. Interestingly, it has been practiced for a long time in the industry. About 200 years ago, for instance, the textile industry transformed into factory machinery to complete labor-intensive tasks such as weaving, stitching, and cotton spinning. In today’s organizational process, it can be seen how many organizations have been using sophisticated technology tools and applications to complete some repetitive tasks, such as data entry.
To provide a clearer context between BPM and workflow automation, just imagine the design of an architectural landmark. In this case, BPM acts as an architect who designs the building structure. When designing a landmark, an architect needs to ensure that it functions properly and complies with legal requirements. On the other hand, workflow automation acts as the construction workers that bring the design plan into realization so that it can function properly in the end.
From the above analogy, BPM can be defined as the framework that guides workflow automation in executing work tasks. In other words, BPM focuses more on the operational stages—including planning, execution, evaluation, and optimization. Meanwhile, workflow automation is more focused on using technology tools or platforms to support those stages to limit the use of manpower.
Advantages of Business Process Automation with Examples
In the modern workplace, automation in the business process is way beyond digitized knowledge documentation. It can help an organization to transform how they complete tasks in various business functions. Let’s walk through some advantages of automation in the business process.
Reduce Human Errors and Enhance Productivity
Automated business processes at the organizational level can help stakeholders to reduce errors caused by manual labor. It is because the system has been taught to comply with the rules that have been requested. This scenario often occurs on daily repetitive tasks.
A typical example can be found on employees’ leave requests. Without automation, it involves several manual stages before approval—such as manual follow-ups to the employees. In addition, team managers or human resources personnel should send out leave approval emails manually. This situation will create hassles and a higher potential for team managers or human resources personnel to miss out on several requests.
On the other hand, automation can help the entire process to deliver accurately on time. Team managers, for instance, are no longer required to send out manual approval emails to the employees’ request. Instead, workflow automation can support such a process by sending out automated notifications to the employees’ requests after approval. Furthermore, it will enhance higher productivity, since they do not need to spend much time sending multiple emails whenever employees request.
Improve Customer Experience
Interestingly, business process automation can lead to a higher level of customer satisfaction. It is possible for automation to assist with some repetitive tasks, which potentially can reduce customers’ waiting time.
Imagine a retail business handling high volumes of tickets requested by customers daily. Without automation, customer representatives need to check manually the tickets whether it is a purchase or complaints from customers. Especially during peak season, handling a high number of tickets will be overwhelming for the customer representatives. Automation can help businesses by automatically addressing the ticket according to a specific team. For instance, tickets for customer complaints can be addressed automatically to the customer resolution team. Moreover, automation can help the business generate accurate answers on FAQs (Frequently Ask Questions) to ensure faster resolutions. Eventually, it is possible to gain more trust from the customers.
Faster Decision-Making
One of the advantages of having an automated system in the business process is that it can provide users with real-time information anytime and anywhere. Automation can help users to collect and analyze data from multiple sources at any minute. In this case, users can make decision-making even faster because they no longer require spending much time.
A common example comes from the banking industry when they are handling a loan application from the applicants. Without automation, loan analysts are required to review solely the application form manually for typically 3-5 business days. In addition, decisions made longer, are subject to loan analyst judgment and application volume. It may take another few business days, or even weeks to inform the applicants of their loan application status.
Meanwhile, automated business processes can help the decision-making process way faster. In this case, automated rules can be made on the workflow such as by matching a specific criterion on the application submitted. For instance, loan applications will be rejected by the system if the applicant’s monthly income does not meet a minimum cap. Furthermore, applicants will receive faster information on their application status, whether approved or rejected.
Weaver BPM platform can transform your organization’s business process to more automated workflows. Using this feature allows flexibility to build workflow based on your organization’s needs. See more on how we can support you.
