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Business Process Management in Organizations

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Business Process Management in Organizations

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Business Process Management in Organizations

LITERATURE REVIEW

Introduction

Business Process Management (BPM) offers a platform for the administration, measurement and enhancement of business processes. It has transformed over the years and effort has been made towards incorporating social elements into the BPM life-cycle, even though these discussions are still at their early stages and much should be performed to guarantee efficient and effective utilization of BPM in organizations (O'Leary 2004). Today, there is advancement in technology that has increased the penetration of information technology into the organizations. The adoption of information technology in basic organizational processes is becoming indissolubly interlinked in executing daily undertakings. Most organizations have recognized the significance of technology and the part it can play for enhancing the efficacy and quality of their business processes through effective business process management (Gersch, Hewing & Scholer 2011). The BPM assists organizations to incessantly develop their processes and controls the technological progressions that can be incorporated in the expansion of effective business processes that involves the implementation of Enterprise Resource Planning (ERP). Many empirical studies have found a constructive correlation amongst the management process and the victory of the organization.

Business Process Management and Enterprise Resource Planning

Today, the business applications frequently have inadequate suppleness and are detached through time, function, and the data they manage. They are secluded in a manner that they execute their duty at their individual pace using their personal kind of data. Although, they may function within their individual business unit they fail to make best use of the advantage of their input in end-to-end procedures. There should be no need for application growth in a company that uses Business Process Management since it offers a direct track from process design to a system for executing the process. The process as a dominant entity backs both top-down and bottom-up process modeling and across the value-chain, therefore easing teamwork with external stakeholders (Gyampah 2004).

The Enterprise Resource Planning failure occurs when the organization fail to identify the effect the system would have on business processes. The organizations should use a technique that focus on process change when executing Enterprise Resource Planning systems. Thus, this study examines the likelihoods of utilizing Business Process Management (BPM) when executing ERP systems. The emphasis lies on the stages and undertakings in the two concepts in addition to apparently influencing aspects such as project organization structure, manner of payment, and level of customization (Hung & Low 2007).

Research Gap

The studies that have been done on BPM, reveals that there is nonexistence of a particular group accountable for BPM initiatives in most organizations. Consequently, several IT managers are disorganized and potentially misled about the real state of business process efficiency in their organizations. The determination of the situation of these business processes has been complicated by hastening globalization trends, the growth of the mobile labor force, and the increasing significance of inter-corporate teamwork (Johansson 2012). It is demanding to envisage how most organizations have escaped altering their business processes considerably though few enterprises, have allocated particular resources to examining and managing these dynamic business processes. Again, a review of empirical literatures reveals that many organizations face challenges on the effective and efficient use of Business Process Management as a means for implementing Enterprise resource Planning. Very limited literature exists on issues concerning BPM and ERP globally. This lack of information stimulated the study on the challenges facing organizations in this area.

Business Process Management

Sometimes combining BPM and ERP implementation may be difficult owing to the distinction in organizational level they are carried out at. BPM seems to be a planned method whereas an ERP is intended to augment the operational functionality of a business. Nevertheless, by exploring the ideas in the form of stages, both notions can be found on a strategic level.

The particular happenings in every stage re-counts to tasks done on a daily basis, either through a process manager or participants in an execution project (Mahmoodzadeh, Yazdi & Jalalinia 2009). The choice to implement an ERP is supported by tactical thinking. Norling recognizes this when saying that it is generally individuals on a higher level making the choice, however, the real organization does not discover about the plans until the execution project commences. According to Kristoffersson, the ERP conclusions frequently are taken on a tactical level and the original phase of their approach is executed together with persons in management roles in the client company (McManus 2003).

The actual application of an ERP is then made on a strategic level and when it goes live it significantly influences the operational level of the organization. Its base in Material resource planning systems additional attests this, nonetheless with ERP’s it’s nearly every functional unit that becomes affected. In BPM, the real administration and monitoring of processes is on a strategic level where process proprietors can make changes to solve temporary hitches like temporary bottlenecks. BPM originally emphases on the discovery, design, deployment and implementation of one of organizations central operational features, its business processes. These processes are similar that is going to be influenced by the ERP system, hence making it likely to use BPM in an ERP execution (Gulledge & Sommer 2002).

There are BPM issues that are perceived by the experts against the typical organizational levels. They can be categorized in different levels as tactical level, strategic level, and operational level (McManus 2003). From the BPM viewpoint, the strategic level is at the top

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