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Business Process Management (BPM)

Business Process Management (BPM)

Business Process Management (BPM) as a specific science has been a relatively late domain into the world of Business Management. Management of specific business processes need specialized focus, skill sets and tools. Setting up in-house (Captive) Shared Service Centres or Outsourcing processes is one such area that is becoming rapidly widespread and yet nascent

Multiple terms have been used in BPM today. Many of the leaders confirm that ‘cutting the jargons out’ is critical to effective adoption of BPM by all kinds of organizations, be they global or local. Keep it simple is the key. At the same time, there is a need to rise above these ‘myriad’ terms, and describe the term ‘Business Process Management’ that can bring all elements of this concept together.

BPM is best used as an overarching umbrella term used to refer to any initiative in the business world leading to a change or an improvement in the processes for the betterment of the customer, shareholder, or employee. In this way, it becomes all encompassing, and becomes relevant to the aspect of BPM that is being embarked upon. Or else, BPM might not yield the desired benefits and value to the multiple stakeholders.

Based on the primary research, SSF has classified BPM into THREE dimensions:

  1. BPC – Business Process Consolidation of the business processes in one or more locations,
  2. BPT – Business Process Transformation referring to improving the way things are done. Incremental changes can be called improvements (BPI) and radical changes and fundamental rethinking or redesign be called reengineering (BPR).
  3. BPMS – Business Process Management Systems is a single or a group of software systems that automate or simplify the task of managing business processes, supplementing or complementing the ERPs.

BPM – A Holistic View

It is important to emphasize that these three dimensions can have an inter-play e.g. when setting up a shared services operations (BPC), a work flow solution (BPMS) can be implemented. Similarly, Process Re-engineering can happen (BPT) at the Shared Service Center (BPC), using automation (BPMS).

To get the full power of BPM and focus on the real end business objective of customer needs or wants, BPMS is best seen as a strong enabler, but never as the same!

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Continuing with its objective to seamlessly disseminate knowledge, Shared Services Forum released two publications on the 7th Global Shared Services Conclave 2017
7th GSS Conclave 2017 – CXO Interaction on the Imperatives for Reshaping the Transformation Strategy

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ONGC embarked upon realignment of its multi-faceted business activities through the powerful medium of IT. The IT mission was realigned ‘To develop an integrated, flexible and standardized Information Technology architecture to position ONGC towards fundamental competitive advantage’.

Key initiatives taken during BPM Implementation/ Automation: FileNet enabled, progressive payment life cycle reduction from 90 days to 53 days further reduced to 17 days in Jun’13 with >85% payment on time through VPOT (Vendor Payment on Time) program. Fully automated in-house tool was developed for revenue reporting by integration of the billing systems with the ERP Oracle R12.

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