What Is Business Process Management? | Fundamentals Of Business Process Management | BPM|Simplilearn

hello everyone welcome to yet another exciting video by simply learn today we are going to discover the real mob business process management what it is and what are the steps included in its life cycle and what benefits does it have to offer for corporations if you are interested in the field of business or operations management and want to learn more about it then we urge you to stay tuned until the end of this video first of all let's understand what business process management is business process management or bpm is an organizational discipline in which a firm examines all of the operation processes collectively and individually through this assessment companies aim to identify areas of improvement to create a more efficient and effective business environment in simple terms business process management is all about optimizing and improving companies business processes that serve customers and eventually bring the pile of revenue bpm is vast discipline that by definition is dynamic given the continually changing organization roles regulations method corporate goals and other factors it contains bpm has evolved with time to accept a wide range of optimization approaches from six sigma and lean management to agile we'll discover these approaches in depth on some other day first let's dive deep into the details of bpm if we break down nuts and bolts of business process management you'll find out three key factors the first one is of course business processes the second one will be the set of inputs and the third one will be the output retrieved after processing presented inputs for example consider the bank loan application process here the customer will supply an electronic application form via the bank's website to receive the desired loan plan let's say a home loan in this case initially the input provided by the customer will go into the loan application process now the loan process is not one small process there are multiple operations and regulations involved in it such as credit checkups quality control loan management underwriting etc all these tasks are cumulatively considered as business processes as mentioned earlier all these processes will start once the customer provides some sort of input in this case it is an electronic application which will be forwarded to the salesperson by bank's itt by evaluating the submitted electronic application a sales person will formulate the list of loan products in order to present them to the customer but if a customer is interested in some specific banking product for instance home loan in such a case the sales person will provide customer details about home loan a home loan has certain eligibility criteria which customer will have to fulfill so salesperson will ask for set of documents such as id proof income source or salary sleep property documents etc this initial phase of loan application is also known as pre-qualification process in the next phase the administrative team will evaluate all the documents submitted by the customer and forward them to the credit analysis team at this point the credit department receives the application and the first step is to analyze it for accuracy genuineness and completeness if all the needed fields are not filled out the application will be returned to the borrower or credit analyst who will contact the borrower to get the missing information the credit team uses the loan origination system to determine a borrower's credit worthiness a good loss will help a lender bank set up workflows to process a loan it may automatically flag files that have missing needed fills return them to the borrower and tell the sales department that they need to be reworked to manage this take a new department of information and technology will also come into play this particular step of application evaluation is also known as underwriting process in the next phase the credit decisions are made if customer fulfills all required criteria the application will be approved or if the customer lacks somewhere the application will be rejected in the next phase quality assurance will be achieved because lending is highly regulated business banks rely heavily on the quality check stage of loan origination process the application is routed to the quality assurance team which compares crucial variables to internal and external standards and regulations this is the final step of loan procedure before it is submitted for funding now consider all these processes all together each process works on feedback of other process or some new input hence managing every input and process can increase the speed of business operation by removing internal miscommunications service delays customer complaints etc and bpm is the field of management that exactly works towards achieving that in short to define it in more simple terms i would say bpm is all about managing multiple input streams and inter-communication of business processes to generate desired business outcome within the least amount of time possible this bpm comprises of three main pillars people processes and technology all three aspects are required to work hand in hand for a bpm project to be successful the business process needs to be fit for purpose and actually satisfy the demand for all the stakeholders having said that let's discover the life cycle of business process management technology and management both are crucial factors for bpm so the life cycle commences the collaboration of both with five standard steps the first one is design then we have model implement monitor and finally optimize a large team of i.t and management experts is required to construct the bpm project the management team will study related set of business processes in great detail and then try to redesign it with the objective of optimizing it so that it becomes more purpose oriented all of this happens during the design phase of the project here all the processes are carefully designed to be as straightforward as possible by making use of standardization and it automation that is why this space can be completed in a shorter period of time next we have as a modeling phase during this page the process gets documented in the form of an activity model it allows experts to simulate the system's behavior and try out different scenarios through a what-if approach once the process is approved by higher management by looking at the modeling and simulation seat it is then executed and deployed over the information system this phase of business process management is known as implementation phase here if management finds out some discrepancy the corrections can be made by employing standard methods and automation the fourth page of bpm is monitoring in this phase the performance of business process is monitored to see if anything goes wrong if any problem occurs during the monitoring phase it will be further optimized in the next phase of business process management this phase is known as optimization often this phase remains continuously under the run since the good bpm always improves its business processes on an ongoing basis moving ahead let's talk about the benefits of business process management the first benefit is increased visibility of business processes a good bpm implementation will increase the visibility of banks activities making it easy to monitor and control the critical business processes of the bank bpm also provides management increased ability to identify bottlenecks in simple words a process bottleneck is a work stage that gets more work request than it can process at its maximum throughput capacity an example of a short-term bottleneck would be a skilled employee taking a few days off if this occurs planned operations will not be done on time leading to the drift in business performance the other type of bottleneck would be a long term bottleneck it occurs all the time and can significantly slow down production an example of long term bottleneck is when a machine is not efficient enough and as a result has a long queue bpm can help companies make improvements and reassign resources to meet customer demands by identifying these bottlenecks the next benefit of bpm is reduce lead time by controlling all business processes altogether and monitoring each process in a silo bpm increases the accuracy and speed of business operations for example the loan application process that could have taken months can now be finished within weeks because of control process handling by bpm this increase efficiency allows banks to convert leads into potential customers with no time so definitely this is the hottest benefit that bpm has to offer the next benefit is a clear definition of employee roles a good bpm ensures planning optimum roles and duties for the teams as well as employees since people resources is also the important factor bpm aims to manage the bpm system prevents unfortunate situations where a customer who phone to inquire about a loan application is transferred from one individual to the next and next with all of them saying sorry it's not my decision to make but let me transfer you to the person who deals with it bpm enables a cross-functional approach to avoid the scenario so the work is automatically moved from one desk to the another without any need for manual intervention the sixth benefit is unified systems and operations since in bpm no process remains in a silo by itself all processes come closer to each other making business a complete unified system the last benefit on our list is expanded growth potential as discussed earlier a successful bpm increases customer happiness and lead conversion which directly increases a company's revenue and market value that's all we have for today about business process management i hope this video is helpful to all of you guys for understanding what business process management is and i wish you all the very best for your learnings ahead thank you for 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Views: 72,290

Keywords: what is business process management, fundamentals of business process management, what is bpm, business process management, business process, process management, BPM, business process management case study, business process management for beginners, bpm tutorial for beginners, bpm lifecycle, lifecycle of bpm, bpm importance, bpm concept, bpm benefits, bpm explanation, bpm advantage, bpm methodology, bpm technology, simplilearn mba, simplilearn

Id: H8kdXXq-pGU

Length: 11min 26sec (686 seconds)

Published: Wed May 18 2022