Business process management (BPM) examples

Business
Process
Management
(BPM)
is
a
systematic
approach
to
managing
and

streamlining
business
processes.
BPM
is
intended
to
help
improve
the
efficiency
of
existing
processes,
with
the
goal
of
increasing
productivity
and
overall
business
performance.

BPM
is
often
confused
with
other
seemingly
similar
initiatives.
For
example,
BPM
is
smaller
in
scale
than

business
process
reengineering
(BPR),
which
radically
overhauls
or
replaces
processes.
Conversely,
it
has
a
larger
scope
than
task
management,
which
deals
with
individual
tasks,
and
project
management,
which
handles
one-time
initiatives.
And
while

enterprise
resource
planning
(ERP)
integrates
and
manages
all
aspects
of
a
business,
BPM
focuses
on
its
individual
functions—optimizing
the
organization’s
existing,
repeatable
processes
end-to-end.

An
effective
BPM
project
employs
structured
processes,
uses
appropriate
technologies
and
fosters
collaboration
among
team
members.
It
enables
organizations
to
streamline
project
workflows,
enhance
productivity
and
consistently
deliver
value
to
stakeholders.
Ultimately,
the
successful
implementation
of
BPM
tools
can
lead
to
increased
customer
satisfaction,
competitive
advantage
and
improved
business
outcomes.

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the
COO’s
Pocket
Guide
to
Enterprise-wide
Intelligent
Automation

3
main
types
of
business
process
management

Integration-centric
BPM
focuses
on
processes
that
don’t
require
much
human
involvement.
These
include
connecting
different
systems
and
software
to
streamline
processes
and
improve
data
flow
across
the
organization,
for
example

human
resource
management
(HRM)
or

customer
relationship
management
(CRM)

Human-centric
BPM
centers
around
human
involvement,
often
where
an
approval
process
is
required.
Human-centric
BPM
prioritizes
the
designing
of
intuitive
processes
with
drag
and
drop
features
that
are
easy
for
people
to
use
and
understand,
aiming
to
enhance
productivity
and
collaboration
among
employees.

Document-centric
BPM
is
for
efficiently
managing
documents
and
content—such
as
contracts—within
processes.
A
purchasing
agreement
between
a
client
and
vendor,
for
example,
needs
to
evolve
and
go
through
different
rounds
of
approval
and
be
organized,
accessible
and
compliant
with
regulations.

Business
process
management
examples

BPM
can
help
improve
overall
business
operations
by
optimizing
various
business
processes.
Here
are
some
BPM
examples
that
outline
the
use
cases
and
benefits
of
BPM
methodology:

Business
strategy

BPM
serves
as
a
strategic
tool
for
aligning
business
processes
with
organizational
goals
and
objectives.
By
connecting
workflow
management,
centralizing

data
management,
and
fostering
collaboration
and
communication,
BPM
enables
organizations
to
remain
competitive
by
providing
access
to
accurate
and
timely
data.
This
ensures
that
strategic
decisions
are
based
on
reliable
insights.

Through
BPM,
disparate
data
sources—including
spend
data,
internal
performance
metrics
and
external
market
research—can
be
connected.
This
can
uncover
internal
process
improvements,
strategic
partnership
opportunities
and
potential
cost-saving
initiatives.
BPM
also
provides
the
foundation
for
making
refinements
and
enhancements
that
lead
to
continuous
improvement.

Benefits:

• Enhanced
  decision-making
• Efficient
  optimization
• Continuous
  improvement

Claims
management

BPM
can
be
used
to
standardize
and
optimize
the
claims
process
from
start
to
finish.
BPM
software
can
automate
repetitive
tasks
such
as
claim
intake,
validation,
assessment,
and
payment
processing—using
technology
such
as

Robotic
Process
Automation
(RPA).
By
establishing
standardized
workflows
and
decision
rules,
BPM
streamlines
the
claims
process
by
reducing
processing
times
and
minimizing
errors.
BPM
can
also
provide
real-time
visibility
into
claim
status
and
performance
metrics.
This
enables
proactive
decision-making,
ensures
consistency
and
improves
operational
efficiency.

Benefits:

• Automated
  claim
  processing
• Reduced
  processing
  times
• Enhanced
  visibility

Compliance
and
risk
management

By
automating
routine
tasks
and
implementing
predefined
rules,
BPM
enables
timely
compliance
with
regulatory
requirements
and
internal
policies.
Processes
such
as
compliance
checks,
risk
evaluations
and
audit
trails
can
be
automated
by
using
business
process
management
software,
and
organizations
can
establish
standardized
workflows
for
identifying,
assessing,
and
mitigating
compliance
risks.
Also,
BPM
provides
real-time
insights
into
compliance
metrics
and
risk
exposure,
enabling
proactive

risk
management
and
regulatory
reporting.

Benefits:

• Automated
  compliance
  checks
• Real-time
  insights
  into
  risk
  exposure
• Enhanced
  regulatory
  compliance

Contract
management

Contract
turnaround
times
can
be
accelerated,
and
administrative
work
can
be
reduced
by
automating
tasks
such
as
document
routing,
approval
workflows
and
compliance
checks.
Processes
such
as
contract
drafting,
negotiation,
approval,
and
execution
can
also
be
digitized
and
automated.
Standardized
workflows
can
be
created
that
guide
contracts
through
each
stage
of
the
lifecycle.
This
ensures
consistency
and
reduces
inefficiency.
Real-time
visibility
into
contract
status
improves
overall
contract
management.

Benefits:

• Accelerated
  contract
  turnaround
  times
• Real-time
  visibility
  into
  contract
  status
• Strengthened
  business
  relationships

Customer
service

BPM
transforms

customer
service
operations
by
automating
service
request
handling,
tracking
customer
interactions,
and
facilitating
resolution
workflows.
Through
BPM,
organizations
can
streamline
customer
support
processes
across
multiple
channels,
including
phone,
email,
chat,
and
social
media.
With
BPM,
routine
tasks
such
as
ticket
routing
and
escalation
are
automated.
Notifications
can
be
generated
to
update
customers
about
the
status
of
their
requests.
This
reduces
response
times
and
improves

customer
experience
by
making
service
more
consistent.
BPM
also
provides
agents
with
access
to
a
centralized
knowledge
base
and
customer
history,
enabling
them
to
resolve
inquiries
more
efficiently
and
effectively.

Benefits:

• Streamlined
  service
  request
  handling
• Centralized
  knowledge
  base
  access
• Enhanced
  customer
  satisfaction
  and
  loyalty

Financial
management

BPM
is
used
to
streamline
financial
processes
such
as
budgeting,
forecasting,
expense
management,
and
financial
reporting.
It
ensures
consistency
and
accuracy
in
financial
processes
by
establishing
standardized
workflows
and
decision
rules,
reducing
the
risk
of
human
errors
and
improving
regulatory
compliance.
BPM
uses
workflow
automation
to
automate
repetitive
tasks
such
as
data
entry,
reconciliation
and
report
generation.
Real-time
visibility
into
financial
data
enables
organizations
to
respond
quickly
to
changing
market
conditions.

Benefits:

• Increased
  operational
  efficiency
• Instant
  insights
  for
  informed
  decision-making
• Enhanced
  compliance
  with
  regulations
  and
  policies

Human
resources

Using
BPM,
organizations
can
implement
standardized
HR
workflows
that
guide
employees
through
each
stage
of
their

employment
experience,
from
recruitment
to
retirement.
The
new
employee
onboarding
process
and
performance
evaluations
can
be
digitized,
which
reduces
administrative
work
and
allows
team
members
to
focus
on
strategic
initiatives
such
as

talent
development
and
workforce
planning.
Real-time
tracking
of
HR
metrics
provides
insights
into
employee
engagement,
retention
rates,
and
the
use
and
effectiveness
of
training.

Benefits:

• Reduced
  administrative
  work
• Real-time
  tracking
  of
  HR
  metrics
• Enhanced
  employee
  experience

Logistics
management

BPM
optimizes
logistics
management
by
automating
processes
such
as
inventory
management,
order
fulfillment,
and
shipment
tracking,
including
those
within
the
supply
chain.
Workflows
can
be
established
that
govern
the
movement
of
goods
from
supplier
to
customer.
Automating
specific
tasks
such
as
order
processing,
picking,
packing
and
shipping
reduces
cycle
times
and
improves
order
accuracy.
BPM
can
also
provide
real-time
data
for
inventory
levels
and
shipment
status,
which
enables
proactive
decision-making
and
exception
management.

Benefits:

• Streamlined
  order
  processing
  and
  fulfillment
• Real-time
  visibility
  into
  inventory
  and
  shipments
• Enhanced
  customer
  satisfaction
  and
  cost
  savings

Order
management

BPM
streamlines
processes
such
as
order
processing,
tracking,
and
fulfillment.
BPM
facilitates

business
process
automation—the
automation
of
routine
tasks
such
as
order
entry,
inventory
management,
and
shipping,
reducing
processing
times
and
improving
order
accuracy.
By
establishing
standardized
workflows
and
rules,
BPM
ensures
consistency
and
efficiency
throughout
the
order
lifecycle.
Increased
visibility
of
order
status
and
inventory
levels
enables
proactive
decision-making
and
exception
management.

Benefits:

• Automated
  order
  processing
• Real-time
  visibility
  into
  order
  status
• Improved
  customer
  satisfaction

Procurement
management

BPM
revolutionizes

procurement
management
through
the

digital
transformation
and
automation
of
processes
such
as
vendor
selection,
purchase
requisition,
contract
management,
and
pricing
negotiations.
Workflows
can
be
established
that
govern
each
stage
of
the
procurement
lifecycle,
from
sourcing
to
payment.
By
automating
tasks
such
as
supplier
qualification,
RFx
management,
and
purchase
order
processing,
BPM
reduces
cycle
times
and
improves
efficiency.
Also,
with
real-time
metrics
such
as
spend
analysis,
supplier
performance,
and
contract
compliance,
BPM
enables
business
process
improvement
by
providing
insights
into
areas
suitable
for
optimization.

Benefits:

• Standardized
  procurement
  workflows
• Real-time
  insights
  into
  procurement
  metrics
• Cost
  savings
  and
  improved
  supplier
  relationships

Product
lifecycle
management

BPM
revolutionizes

product
lifecycle
management
by
digitizing
and
automating
processes
such
as
product
design,
development,
launch,
and
maintenance.
Workflows
that
govern
each
stage
of
the
product
lifecycle,
from
ideation
to
retirement
can
be
standardized.
Requirements
gathering,
design
reviews,
and

change
management,
can
be
automated.
This
accelerates
time-to-market
and
reduces
development
costs.
BPM
can
also
encourage
cross-functional
collaboration
among
product
development
teams,
which
ensures
alignment
and
transparency
throughout
the
process.

Benefits:

• Accelerated
  time-to-market
• Reduced
  development
  costs
• Enhanced
  cross-functional
  collaboration

Project
management

In
the
beginning
of
this
page,
we
noted
that
BPM
is
larger
in
scale
than
project
management.
In
fact,
BPM
can
be
used
to
improve
the
project
management
process.
Business
process
management
tools
can
assign
tasks,
track
progress,
identify
bottlenecks
and
allocate
resources.
Business
process
modeling
helps
in
visualizing
and
designing
new
workflows
to
guide
projects
through
each
stage
of
the
BPM
lifecycle.
This
ensures
consistency
and
alignment
with
project
objectives.
Tasks
assignments,
scheduling,
and
progress
monitoring
can
be
automated,
which
reduces
administrative
burden
and
improves
efficiency.
Also,
resource
utilization
and
project
performance
can
be
monitored
in
real
time
to
make
sure
resources
are
being
used
efficiently
and
effectively.

Benefits:

• Streamlined
  project
  workflows
• Real-time
  insights
  into
  project
  performance
• Enhanced
  stakeholder
  satisfaction

Quality
assurance
management

BPM
facilitates
the
automation
of
processes
such
as
quality
control,
testing,
and
defect
tracking,
while
also
providing
insights
into
KPIs
such
as
defect
rates
and
customer
satisfaction
scores.

Quality
assurance
(QA)
process
steps
are
guided
by
using
standardized
workflows
to
ensure
consistency
and
compliance
with
quality
standards.
Metrics
and
process
performance
can
be
tracked
in
real
time
to
enable
proactive
quality
management.
Process-mapping
tools
can
also
help
identify
inefficiencies,
thereby
fostering
continuous
improvement
and
QA
process
optimization.

Benefits:

• Automated
  quality
  control
  processes
• Real-time
  visibility
  into
  quality
  metrics
• Improved
  customer
  satisfaction

Business
process
management
examples:
Case
studies

Improving
procure-to-pay
in
state
government

In
2020,
one
of
America’s
largest
state
governments
found
itself

in
search
of
a
new
process
analysis
solution.
The
state
had
integrated
a
second
management
system
into
its
procurement
process,
which
required
the
two
systems,
SAP
SRM
and
SAP
ECC,
to
exchange
data
in
real
time.
With
no
way
to
analyze
the
collected
data,
the
state
couldn’t
monitor
the
impact
of
its
newly
integrated
SAP
SRM
system,
nor
detect
deviations
during
the
procurement
process.
This
created
an
expensive
problem.

The
state
used

IBM
Process
Mining
to
map
out
its
current
workflow
and
track
the
progress
of
the
SAP
SRM
system
integration.
Using
the
software’s
discovery
tool,
data
from
both
management
systems
was
optimized
to
create
a
single,
comprehensive
process
model.
With
the
end-to-end
process
mapped
out,
the
state
was
able
to
monitor
all
its
process
activities
and
review
the
performance
of
specific
agencies.

Streamlining
HR
at
Anheuser-Busch

AB
InBev
wanted
to
streamline
its
complicated
HR
landscape
by
implementing
a
singular
global
solution
to
support
employees
and
improve
their
experience,
and
it
selected
workday
as
its

human
capital
management
(HCM)
software.
Working
with
a
team
from IBM®
Workday
consulting
services, part
of
IBM
Consulting™,

AB
InBev
worked
with
IBM
to
remediate
the
integration
between
the
legacy
HR
apps
and
the
HCM
software.

What
was
once
a
multi-system
tool
with
unorganized
data
has
become
a
single
source
of
truth,
enabling
AB
InBev
to
run
analytics
for
initiatives
like
examining
employee
turnover
at
a
local
scale.
Workday
provides
AB
InBev
with
a
streamlined
path
for
managing
and
analyzing
data,
ultimately
helping
the
company
improve
HR
processes
and
reach
business
goals.

Business
process
management
and
IBM

Effective
business
process
management
(BPM)
is
crucial
for
organizations
to
achieve
more
streamlined
operations
and
enhance
efficiency.
By
optimizing
processes,
businesses
can
drive
growth,
stay
competitive
and
realize
sustainable
success.

IBM
Consulting
offers
a
range
of
solutions
to
make
your
process
transformation
journey
predictable
and
rewarding.

• Traditional
  AI
  and
  generative
  AI-enabled
  
  Process
  Excellence
  practice
  uses
  the
  leading
  process
  mining
  tools
  across
  the
  IBM
  ecosystem
  and
  partners.

• Our
  patented
  
  IBM
  PEX
  Value
  Triangle
  includes
  industry
  standards,
  benchmarks,
  and
  KPIs
  and
  is
  used
  to
  quickly
  identify
  process
  performance
  issues
  and
  assess
  where
  and
  how
  our
  clients
  can
  optimize
  and
  automate
  everywhere
  possible.

Key
improvements
might
include
60-70%
faster
procurement,
faster
loan
booking,
and
reduced
finance
rework
rate,
along
with
risk
avoidance,
and
increased
customer
and
employee
satisfaction.

With
principles
grounded
in
open
innovation,
collaboration
and
trust,
IBM
Consulting
doesn’t
just
advise
clients.
We
work
side
by
side
to
design,
build,
and
operate
high-performing
businesses—together
with
our
clients
and
partners.

Contact
an
IBM
representative
about
BPM
solutions