Difference between BPM and Total quality management, Business Process Reengineering, Enterprise Resource Planning, Customer Relations Management, and Six Sigma
Business process management (BPM) is a powerful strategy aimed at maximizing corporate performance through continuous optimization of different processes (Jeston & Nelis, 2008). The model makes it easier for organizations to become more effective and efficient. The BPM approach eventually results in increased revenues. The framework is implemented using 10 phases. Sustainable performance is used to improve the other nine phases in a continuous manner.
Total quality management (TQM) is another approach that focuses on the needs of targeted customers. In TQM, all players and workers are encouraged to participate in the long-term quality improvement process (Moller, Maack, & Tan, 2013). The stakeholders use their skills to present the best measures that can improve processes, services, and organizational culture.
While both TQM and BPM are used to improve the existing organizational processes, business process reengineering (BPR) is used to redesign the existing functions in a company. This initiative is implemented in order to improve customer satisfaction and productivity (Moller et al., 2013). During this process, companies begin with new initiatives in order to transform the existing processes.
The other powerful model used to improve business performance is known as enterprise resource planning (ERP). The ERP relies on the use of a software application that guides business organizations to use an integrated process to automate various functions. The targeted practices in the organization include services, human resources, and technology (Moller et al., 2013). The ERP approach makes it easier for companies to manage various processes and eventually realize the targeted business goals. This software application can be used to support the manufacturing, planning, and purchasing strategies of an organization. That being the case, ERP is different from BPM and TQM because it focuses on the use of modern technological processes.
Businesses can embrace the use of customer relationship management (CRM) to improve their relationships with existing customers. Similar to TQM and BPM, customer relationship management is associated with the best initiatives in an attempt to improve performance. However, CRM is mainly concerned with the business relationship with its clients or customers. Companies using the CRM model will consider specific technologies to monitor and analyze existing customer interactions. Evidence-based data is then used to improve the customer-business relationship (Jeston & Nelis, 2008). The practice eventually results in customer satisfaction, quality service delivery, and increased business performance. Corporations that want to emerge successfully should implement CRM as a long-term or continuous process.
The other powerful improvement model used by business organizations is known as Six Sigma. Unlike the BPM, Six Sigma is a data-driven model aimed at eliminating wastes or defects in various organizational processes such as production, manufacturing, marketing, and service delivery (Zehir, Ertosun, Zehir, & Muceldili, 2011). The waste elimination process is “driven towards six standard deviations between the identified mean and the targeted limit” (Harmon & Wolf, 2014, p. 16). Companies that use the six sigma approach find it easier to reduce specific malpractices that result in wastes. Consequently, the model results in increased profits, quality improvement, employee morale, and positive business performance (Harmon & Wolf, 2014). This model is similar to BPM because it focuses on the issue of continuous or sustainable performance. The above improvement processes focus on the best approaches that can be used to maximize productivity (Moller et al., 2013).
Analysis of the BPM Framework
Many companies planning to implement the BPM process must consider the ten phases of the framework. The first phase is known as the organization strategy or Foundations. During this phase, the leaders examine the existing aspects of the business. This knowledge will ensure the targeted strategies are identified (Moller et al., 2013). The next stage is known as Process Architecture or Enablement (Jeston & Nelis, 2008). This stage is used to consider and introduce specific variables that can be combined to improve the identified processes or strategies. The concerned players should ensure the proposed processes do not interrupt the existing ones.
Launch Pad is the third stage of the BPM. The phase focuses on the right skills, ideas, and personnel to support the targeted process. The right resources are identified and acquired in order to promote performance. Such materials and ideas should be able to drive performance and improve the processes in the organization. The success of the project depends on the strategies undertaken during the launch pad stage (Harmon & Wolf, 2014). The fourth stage is to Understand. During this stage, the unique aspects experienced in the organization should be clearly understood. The involved parties should be aware of the best approaches that can guide the BPM implementation strategy.
The next stage is to Develop. The purpose of this stage is to equip the existing players with the right resources and skill sets that can result in positive performance. The best models for the implementation of the proposed change should be considered during this stage. When the phase is implemented in a proper manner, the company will be on the frontline towards realizing the targeted goals. The sixth stage is the People. This stage is considered in harmony with the fifth one (Zehir et al., 2011). During the phase, the firm focuses on the skills possessed by the people. The gaps in their skill sets are monitored and addressed accordingly. The needs of the people in the organization should be fulfilled in an attempt to realize the targeted goals.
After these issues have been considered and put in place, the next stage is to Implement. During this phase, the right people, resources, and models are combined in order to support the business process management (BPM) initiative. The ninth stage is to Realize Value. When done in a professional manner, the BPM initiative will result in positive outcomes. This stage is considered in order to ensure the outlined improvement goals identified in stage one are realized (Moller et al., 2013). The value must be maximized and improved during this phase.
The final phase is known as Sustainable Performance. During this stage, the involved stakeholders focus on the effectiveness of the other phases. The best initiatives and resources are considered in order to improve the other stages. It is also notable that the major stages of the BPM process overlap with each other depending on the targeted goals. When such stages are monitored and improved, it becomes possible for an organization to realize its business objectives (Balaban, Belic, & Gudelj, 2011). The final phase is therefore considered in order to make continuous improvement a critical aspect of the BPM model.
Generic Business Drivers
Whenever implementing a typical business process management (BPM) project, it is appropriate to consider a number of generic business drivers. The role of such business drivers is to ensure the major phases of the BPM project are executed successfully. To begin with, the program should be supported by a powerful implementation process. Specific concepts such as innovation and design should, therefore, be considered whenever implementing the program. The individuals in the organization should be ready to accept the process (Harmon & Wolf, 2014).
The second issue to consider is the people. The workers in the targeted organization should be empowered in order to ensure the process is implemented successfully (Jeston & Nelis, 2008). The company should have appropriate human aspects such as management structures and performance measurement initiatives. It is also necessary to ensure the process management is proactive and predictive (Moller et al., 2013). People can be equipped with powerful skills in order to drive performance. This practice will eventually make the targeted BPM program successful.
The next business driver for a typical BPM project is technology. This aspect refers to the major tools that have the potential to support the processes implemented in the organization. The targeted people should possess the most desirable technological skills in order to support the BPM project (Zehir et al., 2011). The firm should acquire the right tools and technologies that will ensure every goal is realized in a timely manner.
The other powerful component that can make a huge difference during the BPM implementation process is project management. This is “a powerful field used to initiate, plan, execute, control, and close a specific project” (Balaban et al., 2011, p. 4). When a BPM approach is implemented using a project management program, it becomes easier for companies to initiate new processes that have the potential to deliver the targeted goals. Project managers can be hired in order to ensure the goals of the organization are realized within the shortest time possible. In order to execute the project successfully, several issues should be considered by the leaders at the company. For instance, companies should ensure there are strategic intent and vision. The right people should be empowered to support the implemented BPM (Jeston & Nelis, 2008). The company’s culture and values should also be considered throughout the project management process.
The other important thing to consider is that some business events might trigger the commencement of business process management. For example, the occurrence of poor organizational practices or behaviors can result in ineffective performance. That being the case, companies can focus on this issue and implement a powerful BPM. When the final products marketed by a company are unattractive to the customers, it becomes necessary to consider new strategies that can result in effective business performance. The gaps existing in an organization should always be considered in order to ensure the best results are realized (Balaban et al., 2011). The workers and leaders should, therefore, present the most desirable resources to ensure the implemented BPM delivers positive results. Consequently, the process will ensure the targeted corporation realizes its business goals.
Business Project Management (BPM) Project Implementation
A BPM project should be implemented in a professional manner in an attempt to deliver positive results. Several ideas or guidelines can be considered throughout the BPM project implementation process. The first issue to consider is being aware of the best resources, software, and skill sets that can support the BPM project. These resources should be able to support the project and eventually deliver positive results. The second step is having a clear definition of the project, its objectives, and its scope (Balaban et al., 2011). By so doing, the organization will outline what should be achieved within a specified period of time. The objectives should be communicated to the right people. It is important to understand that the objectives and priorities might change throughout the course of the project. That being the case, the organization should be aware of the emerging issues in order to ensure the BPM project is implemented successfully.
The third stage is undertaking a feasibility study. The study will ensure the strengths and threats associated with the project are identified. Issues to do with expenses and costs should be considered during this phase. The feasibility study will examine and outline the best practices and precautions that must be considered throughout the process. The fourth stage is developing the best case for the targeted organization. For instance, business managers might consider some of the business processes embraced by different companies (Tsai, 2011). The use of case studies will ensure the best models and approaches are used to support the company’s goals.
The fifth phase of the implementation process is defining the project’s scope. During this phase, the individuals involved throughout the process and their roles are identified. The stakeholders should be informed about their roles and duties. A positive strategy should be used to ensure the individuals are aware of the targeted goals. The sixth stage is “implementing the project management initiative” (Tsai, 2011, p. 104). The secret towards having a successful BPM project is using clear expectations, initiatives, and objectives.
A project manager should be hired to support the program. The leader will offer meaningful ideas and concepts that can make a significant difference. The right resources should be acquired in a timely manner. Changes in the external and internal environments should be carefully monitored. This knowledge will ensure the right strategies and ideas are used throughout the project lifecycle (Jeston & Nelis, 2008). The issue of leadership must also be taken seriously. The role of the leader is to form teams capable of supporting the business process management (BPM) program. The best organizational culture should also be developed in the company.
Business firms that want to realize their potentials should consider the above steps during the BPM project implementation process. The right people, objectives, resources, and initiatives should be considered throughout the process. Positive leadership approaches and organizational culture should be used to support the program (Tsai, 2011). The strategy can play a positive role in making many business organizations profitable and successful.
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Harmon, P., & Wolf, C. (2014). The state of business process management 2014. A BPTrends Report, 1(1), 1-54.
Jeston, J., & Nelis, J. (2008). Business process management: Practical guidelines to successful implementation. New York, NY: Rutledge.
Moller, C., Maack, C., & Tan, R. (2013). What is business process management: A two stage literature of an emerging field. Web.
Tsai, Y. (2011). Relationship between organisational culture, leadership behavior and job satisfaction. BMC Health Services Research, 11(1), 98-108.
Zehir, C., Ertosun, O., Zehir, S., & Muceldili, B. (2011). The effects of leadership styles and organisational culture over firm performance: Multi-national companies in Istanbul. Procedia: Social and Behavioural Sciences, 24(1), 1460-1474.