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Processmap

Process mapping is a tool used to visualize and analyze business processes. It represents processes as a sequence of steps, and can identify inefficiencies, costs, responsibilities and other attributes. Process mapping enables organizations to streamline processes, improve customer satisfaction, plan new processes, and train employees. It is especially useful when processes involve multiple departments or high staff turnover. Business process management (BPM) builds on process mapping by continuously monitoring and optimizing processes. BPM uses analytics to understand processes and redesign them for greater efficiency and business agility. Integrating BPM, analytics and business intelligence can maximize benefits for organizations.

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Gopal Krishnan
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16 views3 pages

Processmap

Process mapping is a tool used to visualize and analyze business processes. It represents processes as a sequence of steps, and can identify inefficiencies, costs, responsibilities and other attributes. Process mapping enables organizations to streamline processes, improve customer satisfaction, plan new processes, and train employees. It is especially useful when processes involve multiple departments or high staff turnover. Business process management (BPM) builds on process mapping by continuously monitoring and optimizing processes. BPM uses analytics to understand processes and redesign them for greater efficiency and business agility. Integrating BPM, analytics and business intelligence can maximize benefits for organizations.

Uploaded by

Gopal Krishnan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Introduction:

Process mapping is a simple but valuable tool for improving and streamlining existing
business processes or designing and communicating new ones. It uses charts with symbols
and arrows to visualize an organization’s core processes and their attributes, such as
sequence, duration, costs, risks and responsibilities. Process maps can illustrate more clearly
than written procedures how a business is conducted, where value is added to a product or
service, and where inefficiencies might be occurring. Although the process-mapping
technique originated in industrial operations, it has many benefits for streamlining any
business, including those in the insurance sector.

The objective of a business process map is to find the one best way to do work. This is done
mainly to optimize the processes. Many different process-mapping methods have been
developed, over the years, with a variety of approaches, techniques and symbols based on
the learning gained from time and again.

What is a process map? A process map is a graphic representation of the tasks and
procedures (the processes) followed in the course of doing business.

A process is defined as any action that has an input at its starting point and an output at its
end. Processes consist of a sequence of single interrelated steps or tasks. They are described
by an active verb and a noun, for example ‘file claims form’ or ‘sign receipt’.

Example of a process overview:


Client Purchases Client suffers Client files claim Client receives
insurance loss/ damage indemnity

A process map presents a clear picture of what happens in a process; however, it is more
than a record of the sequence of process steps. It can answer important questions about the
business, such as:
 Where does the process start and where does it end?
 What are the inputs and outputs of the process?
 What are the individual steps involved in the process?
 Who executes which step?

For each process step:


 What happens in this step?
 Where does it fit into the sequence of process steps?
 Who carries it out and who (which position or department) is responsible for it?
 What are the inputs and outputs of each step?
 How long does it take?
 How much does it cost?
A process map can be a high-level map that shows only the broad outline of steps or it can
be a very detailed diagram. For example, the third step is ‘Client files claim’; this step might
easily be made into several more detailed steps, such as ‘Client obtains claims form’, ‘Client
fills out form’ and ‘Client sends form to insurer’.

The level of detail used in a process map typically depends on the purpose of the map.

Overview:
Why process mapping? A process map enables people to visualize complex sequences of
activities and tasks. And beyond simple visualization, a process map facilitates the careful
analysis needed to streamline and improve a process.

Why process mapping?


 To document how business is (or should be) done
 To understand and simplify a process
 To understand and minimize cost and time factors
 To understand and mitigate risks
 To understand and clarify responsibilities
 For training and/or communication (internal and external)
 To improve customer satisfaction
 To plan and introduce new processes

A process map can help an organization institutionalize the knowledge of how its business is
done. This is especially important for businesses where staff turnover is high and/or only a
few employees are knowledgeable about a given process.

Business Process Management

The BPM market is expected to grow at a rapid pace (12.2%) over the next few years with
emerging markets such as Asia Pacific and Middle East & Africa leading the way.

What is Business Process Management?


Business process management helps an organization to monitor and optimize their
processes continuously. While each company’s processes and needs are different, BPM
enables any organization to enhance its operational efficiencies on a continuous basis,
thereby providing a competitive advantage.

There are many ways to define BPM and generally the definition depends on the context.
For example, Gartner defines it as a “…management discipline that treats business
processes as assets that directly improve enterprise performance by driving operational
excellence and business agility.”

PC Magazine defines it as “A structured approach that models an enterprise’s human and


machine tasks and the interactions between them as processes.”
BPM can best be described as a set of activities carried out by organizations to optimize
their business processes and/or adopt their business processes to new organizational goals.
Here, a business process is defined as a series of coordinated actions, conducted by both
people and tools, resulting in the accomplishment of a specific organizational goal.

Business intelligence and analytics enable decision makers to gain a better understanding of
the current state and the desired state of their business processes.
Common analytics include:
 Historical Data Analytics looks at past to make it easy to understand
 Trend Analytics looks at current data to uncover trends which can help redesign a
process
 Predictive Analytics helps to determine future decisions based on predictions made
which enables the design of a new process for future use

Stand-alone implementations of BPM, business intelligence, and analytics can yield


numerous advantages. However, organizations can maximize benefits by leveraging
synergies between these areas. According to a recent survey, 65% of the respondents
indicated that business intelligence and analytics spurred the business process changes and
the need to implement BPM but only 41% indicated that they had actually integrated both
these disciplines. Organizations still need to take the next step forward to integrate BPM,
business intelligence, and analytics to ensure a new wave of benefits.

Why Use Business Process Management?


Business process management has helped financial services firms realize numerous benefits
related to operational efficiency and business innovation. Moreover, many firms claim that
they have achieved a more than 100% rate of return on their BPM implementations. While
the methods used to measure rate of return vary according to the firm, the most widely
used method among firms is ‘cost savings per transaction’.

Operational Efficiency:
 Enhance employee productivity - BPM helps automate manual tasks, freeing
employees to focus on higher value activities
 Speed-up processes - BPM enables faster decision-making and improves the
operation of all business processes
 Increase partner responsiveness - BPM tools allow partners to get on board and
respond faster
 Better manage inventory - BPM brings improvements in processes that result in
superior inventory management

Business Innovation:
 Enhance product capabilities - Using BPM results in agile product design and an
improved ability to implement new products
 Increase new business - BPM enables innovative ways to approach a business
problem and can help bypass traditional obstacles
 Raise customer service levels - BPM enables faster and more flexible responses to
customer needs and queries, and improves the accuracy and quality of customer
service.

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