Business Process Management as it Is. Why BPMSs Do not Work
There are two pieces of news on business process management.
The primary goal of BPM is not possible to achieve outside the task of managing an enterprise as a whole effectively.
The second piece of news is good.
1. What is the primary goal of business process management as a systematic approach?
To structure a company’s business processes in order to maximize its profit.
It is this formulation of the objective in our opinion is in shareholders" best interests which, in turn, any conscientious competent management should be guided by, and, on the other hand, is the definition of the company’s business process optimal configuration.
Let us deepen the understanding of the formulation.
2. The question arises immediately:
If such a business process configuration possible to achieve within the application of BPM methods per se no matter whether you maintain any BPMS yourself and/or pay staff members/external consultants responsible for the implementation of BPMS.
Is it possible that on the one hand effective optimization of business processes is being carried out (by certified experts and powerful BPMSs) while at the same time the enterprise itself follows its established way of life?
It certainly is, provided that the optimization is exclusively carried out in consultants" reports to management and remains a dead letter.
That is what the implementation of a BPM suite (as well as any other ABC system) comes down to in the great majority of practical cases.
For that reason, business process management approaches and methods, which are by themselves correct, largely remain pious wishes.
3. Thus, the only viable system solution, which makes it possible to achieve the BPM objective, is achieving the optimal configuration of the whole company, which is the subject of the study of IEM Paradigm cybernetics the first-ever mathematical business theory of a competitive market.
A universal IEM-solution to the issue of the optimal configuration of the company is described in the IEM Enterprise model.
In IEM Enterprise an arbitrary organization is redefined as a knot of value chains, which, in turn, are parts of global value chains.
According to the IEM System Сybernetically Optimal Management theorem, IEM management system makes it possible to ensure the optimal configuration of the company, and therefore its business processes.
The primary goal of BPM is achieved.
4. Bearing in mind the fact that the terms business process and value chain are synonymous (at least for practical purposes) we reach a twofold conclusion: the IEM System on the one hand
- embodies the BPM methods in the most effective manner of those theoretically possible, and on the other hand
- is the only theoretically operational BPM system at all.
P.S. All the foregoing is a particular case of the general phenomenon of the limited utility of monofunctional ABC systems which was previously illustrated by CRM-system and ERP modular automation paradigm case studies.