Demystifying the Distinction: Business Process Management vs. Workflow Explained
Understanding the distinction between Business Process Management (BPM) and workflow is key for organizations aiming to scale repetitive and voluminous processes. While both concepts are interrelated, they serve different purposes and operate at different levels within an organization.
Business Process Management (BPM) is a comprehensive management discipline that treats business processes as valuable assets. It involves the definition, engineering, control, and continuous improvement of these processes to achieve organizational objectives. BPM addresses the end-to-end orchestration of activities across various business functions, ensuring that work is coordinated effectively to deliver value to customers. It encompasses both the logical and the physical design of business processes. BPM tools, such as HEFLO, provide automated support to understand, monitor, and improve processes in near-real-time.
On the other hand, workflow refers to the sequence of activities or tasks that are performed within a single business unit. These activities are grouped by the type of work needed and are executed in an order that promotes efficiency. Workflow models typically describe what must be done for processes to be completed and are more detailed than enterprise or business process models. They include the activities performed by positions, departments, and systems, and their relationships to other functions and processes.
While BPM looks at the broader picture of process management and improvement across the entire organization, workflow focuses on the detailed execution of tasks within a specific business unit. BPM integrates workflows from different units to create a cohesive process that spans the organization, ensuring that changes at the workflow level are evaluated for their impact on the overall process.
Key Components
Business Process Management (BPM)
Key components of BPM include:
- Process Design: This involves identifying and ordering the functions and activities in a business operation. It includes both logical design (what activities are performed) and physical design (how the activities are performed).
- Process Modeling: BPM uses various modeling tools to represent processes graphically. These models help in understanding the flow of activities and their relationships.
- Process Monitoring: Continuous tracking of process performance to ensure they meet predefined objectives. This often involves the use of performance measurement techniques like Six Sigma and Lean.
- Process Improvement: Ongoing efforts to enhance process efficiency and effectiveness. This includes identifying improvement opportunities and implementing changes.
- Integration: Ensuring that processes are integrated with other internal and external processes, technology platforms, and business applications.
Workflow
Workflow, as said before, focuses on the sequence of activities within a single business unit and the key components of it include:
- Task Sequencing: Defining the order in which tasks are performed to ensure efficiency. This involves mapping out activities and their relationships within the business unit.
- Activity Grouping: Grouping activities by the type of work needed to perform them. This helps in organizing tasks for better efficiency.
- Detail Level: Workflow models are detailed and include specific tasks, procedures, and the roles of different positions, departments, and systems.
- Task Steps: At the lowest level, workflow involves defining individual worker tasks and data requirements. This level of detail is important for designing application screens, reports, and decision-making processes.
- Efficiency Focus: Workflow is primarily concerned with optimizing the efficiency of activities within a business unit, rather than the end-to-end process.
Tools and Technologies
In Business Process Management (BPM) and Workflow Management, tools and technologies play a pivotal role in streamlining operations and enhancing efficiency. BPM is inherently process- and workflow-oriented, designed to manage and improve business processes at all levels. This is achieved through the integration of various tools that support process management and workflow activities.
One of the primary tools in BPM is the Business Process Management Suite (BPMS). BPMS tools provide automated support to understand processes and monitor activities in near-real-time. These tools enable managers to track progress, incorporate quality monitoring systems like Six Sigma, and manage costs effectively. Additionally, BPMS tools facilitate collaboration between Process Managers and Business Unit Managers, allowing them to simulate proposed changes and assess their impact on other business units.
Security is a critical feature of BPMS tools, ensuring controlled access to information. This is particularly important in scenarios where parts of the work are outsourced or performed in different geographical locations. The tools' information-delivery capabilities, such as models and rules, help managers understand how their work fits into the overall process and how their teams contribute to the end product or service.
BPMS tools also translate Process Management standards and policies into rules that govern work, decisions, governance, and reporting. These rules are linked to process and workflow activities, ensuring consistency and compliance across the organization.
In the video below you can find more feature for a BPMS used to automate business processes.
In summary, BPM and workflow are distinct yet complementary concepts. BPM provides a high-level view of process management across the organization, while workflow delves into the granular details of task execution within individual business units. Understanding this distinction is essential for effectively managing and improving business processes.