Benefits of Business Process Management

Many organisations start the ERP decision process without a strong BPM basis. They don't know where to begin when faced with the vast array of ERP systems available since they are unsure of whether technology will support their company processes or provide them a competitive edge.

It is obvious that business process management and its advantages are significant. Business process management, at its most fundamental level, aids in the definition of business needs that you can present to your long- or short-list of ERP vendors.

An edge over rivals

It is challenging to deliver customer value when procedures and strategy are out of alignment. The potential to build your processes to complement your digital strategy and competitive advantage is the first advantage of business process management. Organization-wide stakeholders are involved in business design workshops to encourage strategy alignment and identify ways to strengthen your competitive edge. By looking at processes from three different angles, you can minimise software customization and safeguard your competitive advantage. Invoice processing and procurement are examples of back-office tasks that typically benefit from pre-built software features. Industry differentiators are various procedures. Your choice of ERP software will be influenced by these as certain ERP systems may not enable specialised capabilities.

Buy-in from employees.

By outlining your company processes, you may spot organisational changes and inform staff members about them. Imagine informing staff that "change will be coming" without being able to specify which specific processes would change. There would be no buy-in for this. Understanding roles and duties as well as alterations to organisational structure are two more advantages of business process management. This knowledge makes it easier to carry out change management tasks since it lets you create a focused communication strategy. Participating in business design workshops with employees is another method to get their support. Employees will naturally support improvements made to their own processes when they are given a say in the matter and will persuade others to do the same.

Alignment of Organisations

When we claim that business process management can result in organisational alignment, we are referring to a certain method of BPM. Functional thinking is one strategy that is used to think about processes in terms of specialisation. The other strategy is based on end-to-end process thinking, which examines the complete value chain, taking into account both the hand-offs between functions and the intended goal of each activity. The latter strategy results in alignment inside the organisation. This strategy is also known as value chain mapping. How does it appear? It all comes down to dismantling functional silos and establishing end-to-end process visibility, understanding, and control. In order to boost efficiency across functional domains, not just within, you gather a variety of stakeholders.

Taking Away Workarounds

Business process management should eliminate 90% or more of the workarounds that your staff members utilise to finish jobs. When processes are inadequately defined, employees use workarounds. Sometimes even with current technology, efficient processes cannot be supported. Be mindful to distinguish between workarounds and true procedures when you map your business processes. Workarounds shouldn't be a part of the business requirements you provide to ERP suppliers because doing so could raise the price of installation. Workarounds can be eliminated by creating new procedures that do not require additional steps.

Constant Development

The ability to develop a centre of excellence that enables ongoing improvement is the sixth advantage of business process management. You can create key performance indicators (KPIs) during business design meetings to constantly monitor performance advancements and forecast cost reductions, such as lower turnover. Many benefits are realised over time, therefore you should continue to assess improvements years after go-live. Most organisations, however, only do so immediately after go-live. This is particularly true if you have a centre of excellence because your procedures will always be improved.

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Conclusion

Your company can profit from business process management by adopting an end-to-end process mentality. However, persuading executives of the value of end-to-end process thinking is the biggest difficulty organisations face.

For more details please contact Iconic Bizz, we can help you with the ERP implementations.