In the recent past, competition existing between firms operating in the same field has increased. This is linked to such aspects like improved customer service, reduced barriers of entry, improvement in the area of technology among others. Consequently, firms have been forced to adopt methods in which they can completely improve the level of service delivery, right from the suppliers to the final consumers. Some of the new methods which have been adopted in order to match with the changes taking place include EAI (Enterprise Application Integration), BPR (Business Process Reengineering) and BPM (Business Process Management) among other processes of automation. This way, a high level of customer satisfaction has been created, thus ensuring short and long term survival of the business. Based on the above arguments, this paper will examine the aspect of business process management (BPM) and business process re-engineering (BPR) and the way it has been applied in organizations operating in the Middle East Region.
Business Process Management (BPM) and Business Process Re-engineering (BPR)
To majority of people, BPM and BPR are often confusing and easily mistaken to be a substitute of one another. BPM is said as a full way of management, which attempts to arrange businesses processes in an organization with the needs and wants of the clients. BPM increases efficiency and effectiveness of a given firm, while at the same time striving to enhance innovation, flexibility and integration with emerging technology. Galbraith (2005) notes that, BPM aims to continuously improve processes, thus can be regarded as a way of improving process. He further argues that BPM enables businesses to be highly efficient as well as capable of any changes taking place in the business world, as compared to the traditional method of approach to management. In a studycarried outby Kohlbacher (2009), it was clear that BPM helps businesses to gethigher levels of product quality, customer satisfaction, improve time-to-market and delivery speed. It is also clear that, BPM enable businesses to mixing the internal resources making it easy to automatically link every department. Therefore, an enterprise becomes one united forces via single portal.
On the other, BPR is regarded as management strategy, which focuses on the design and analysis of processes and the way work is done within an organization. Galbraith (2005) note that, BPR is aimed at helping businesses to highly rethink on the ways in which they can effectively cut operational cost, improve customer service ad well as become world-class competitor. It is notable that, since the onset of the 21st century, approximately 60% of companies, which are in the Fortune 500, have gotthis level of success, as a result of the reengineering efforts (Bassam 2008). Generally, BPR attempts to aid companies to radically restructure their activities, through focusing on improvingdesign of their processes.
Advantages and disadvantages of Business Process Management (BPM)
As earlier said, there are various advantages, which can be associated to the implementation of Business Process Management (BPM). One of the advantages of BPM is increased efficiency. The main aim of process management is to raise theoutcomes from the company and reduce any possible waste as well as rework in production chains. One of the organizations, which has adopted and benefited from BPM is Abu Dhabi Commercial Bank, the third largest commercial bank in the United Arab Emirates. By adopting BPM, the bank has been able to implement account opening process, which is automated. Some of the processes include application of CRM (Customer Relationship Manager) for authorization process among other processes that improves efficiency in this sector.
The other benefits of BPM also results into creation of more enhanced association within an organizational, resulting to higher productivity, which enables meeting the customer demands. Besides the lack of evidence, which supports the benefits associated with process management, there are high chances that process management can be harmful to businesses. This process limits innovation as high class innovation is unlikely to take place in organizations, which employs BPM. For instance, firms which employ BPM are less likely to be successful in times of quickchange in comparison to organizations that do not employ this process.
Critical Success Factors of BPM
There are four notable critical components, which are associated with BPM. One of the components is business analytic. For instance, since BPM process was accepted, managers at Qatar Airways, one of the most growingairlines operating from the UAE to the rest of the globe, have been able to indentify issues, opportunities and developments. One of the businesses opportunities indentified includes improved CRM among other aspects. The other important part is that of process engine, a strong platform that enables modeling as well as executing applications, which are process-based. Other critical aspects include collaboration tools and content management as seen in Abu Dhabi Commercial Bank. Further, BPM tackles most of critical issues relating to IT and which underpins the above stated business drivers. This includes easy management ofcustomer facing processes, collection of data as well as raising the levels in which associated information and data is accessed. BPM also helps to mix the existing systems as well as making use ofSOAs (service oriented architecture).
Challenges to Successful Implementation of BPM
As seen in most organizations in the Middle East region, such as Etihad airways and Qatar Airways among others such as commercial banks, there has been the failure to first implement BPM like a business areaand then set it as a technology. This way, they have been unable to fully achieve the benefits arising from arranging process. To other organizations in this region, there has been the challenge of indentifying the appropriate processes, which are appropriate for BPM as well as shaping these processes towards the desired outcomes. Other challenges include identification of appropriate BPM software (“Business Management” 2012).
Importance of Change Management in the Success of BPM
Implementing change in an organization is usually not an easy task and this is also applies to those organizations, which aims to implement BPM. BPM results to process focusing business set ups and highly assumes that, these processes are important part of the selected organization. There is the need to ensure that employees, who are the most important part of any firm, are well placed through offering them the much needed training. Other changes/restrictions, which must be looked into include the organizational culture and employee’s resistance (Schooff 2012).
Process Automation by the use of Business Process Management
Process automation is one of the ways in which businesses can be mixing its activities. Schooff (2012) process automation is the arrangementof processes through existing machines and assets, therefore extending and complementing the current applications. Through process automation, it makes it possible for a firm to make use ofreusable process parts, therefore eliminating data entry repetition as well as shortening process cycle times. For instance, making end-to-endprocess automation, the possible business results include reduced cost of operations, reduced cycle time, improved management and efficiency.
For businesses to remain sustainable there is the need to adopt new ways that can enable them to remain competitive both in the short and long-run. BPM and BPR are critical in improving efficiency, thus enabling business to easily respond to the changing environment, improve multi-level escalation methods among other benefits resulting from process automation. As seen in firms such as Qatar airways and Abu Dhabi Commercial Bank among others, there is the need for organizations to adopt BPM to ensure their survival in the ever changing business environments.