The challenging economic situation of the last few years has forced companies to constantly re-evaluate their marketing strategies and business processes in order to increase their competitiveness. These efforts are part of an ongoing quest for excellence—and operational excellence is the key to helping companies reduce costs and improve productivity.
Challenges to achieving operational excellence
In order to achieve operational excellence, companies must overcome numerous challenges including those related to new technologies. Today’s managers are solicited from all sides to adapt to using social networks and the Internet as effectively as possible and to meet demands related to mobility. They seek to identify technologies that are relevant to their needs and determine how to use them as strategic tools likely to provide a competitive edge.
Responses must be prompt, targeted and…justified, since the return on investment (ROI) of IT projects—given the failure to understand how they contribute to competitiveness—can often be difficult to demonstrate. At the same time, in a world that runs 24/7, 365 days a year, IT outages can result in considerable losses for businesses, both at a monetary level and in terms of credibility. But there are solutions.
Business Process Management (BPM) as a solution
Business Process Management (BPM) is an effective approach to the challenges and complexities that arise from the use of technological solutions. It involves segmenting the business functions of a company and analyzing them sequentially. Through this process, anomalies can be better detected and their impacts better evaluated. Impacts such as delays, wait times, double or triple entering of information, etc. can generate unjustified costs, negative impacts on customer experience and lower profits. Over time, the BPM enables businesses to make the changes required to correct the causes of these anomalies.
The BPM is an effective way to understand a company’s overall functioning and can therefore significantly help meet several objectives:
- Improvement of customer service
- Precise determination of ROI
- Cost minimization
- Or even a reduction in the product development cycle
Going further with Business Process Management (BPM)
BPM is much more than a simple mapping of company activities. It enables a company to capture, analyze, measure, share and improve its fundamental operational knowledge. It provides a common thread for integrating governance and managing change in different business processes. This enables managers to make enlightened decisions for improving operational processes based on relevant analyses. As such, it becomes much easier and justifiable to deploy new technologies and reap the intended benefits.
To learn more about this topic, join me during the course entitled Understanding Enterprise Resource Planning (ERP) during which we will address what is involved in selecting and implementing an ERP—which consists most notably of reviewing business processes in order to determine and choose the best system for the company’s needs.
© Jean Pinsonneault, All rights reserved.
Jean Pinsonneault is specialized in implementing ERP (Enterprise Resource Planning) and CRM (Customer Relationship Management) systems. While maintaining a completely neutral stance with regards to software providers, Mr. Pinsonneault and his team have helped over a hundred SMEs make intelligent technological choices and have guided them through implementing their projects.