What is BPMS for Your Business | Overview and Examples

This article was first published in February 2018 and was updated in November 2024.

BPMS, or “Business Process Management Software”, is a software tool used to improve an organization’s business processes through the definition, automation, and analysis of business processes. Often, this is referred to as “digital transformation” to signal a migration to digital, web-based tools.

BPMS facilitates the documentation, standardization, and automation of business processes, enabling organizations to enhance agility and efficiently manage processes across the entire organization. BPM Software Suites reduce manual processes and administrative tasks and help organizations achieve their goals more efficiently and efficiently. This can be done using task automation, automated tracking and reporting, and analytics. Additionally, BPM tools can help organizations increase visibility into their operations and create a more automated process for managing and tracking tasks.

We’ll break down each of these concepts below. By itself, BPM is a discipline organizations use to identify, document, and improve their business processes. BPM automation software is used to enable aspects of BPM.

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BPMS Elements in Detail

Definition

Before your business can create automated BPM workflow, processes must be documented, requiring planning, collaboration, and drag-and-drop tools to illustrate how complex processes look. Effective document management is crucial in this phase, as it streamlines document review, approval processes, and ensures efficient task management. Business process models can be created within BPMS in various ways and then reviewed by stakeholders to ensure an accurate depiction of the process. Process designs can be published in various ways or exported into different formats, commonly BPMN. Some process modelers also include simulation modes to test different process scenarios.

Business Process Automation

The primary aspect of process automation is offloading much of the rote work and task management involved in employees’ day-to-day functions to a BPM solution programmed with business rules and automated triggers with limited human interaction thanks to a workflow engine. Building this automation involves assembling tasks or actions and input mechanisms (e.g., forms or system inputs) using visual workflows to mimic the behavior of a business process. The same techniques are used to automate and manage specific projects and ongoing tasks.

Analytics

BPMS tools provide various historical and real-time reporting levels or integrate with reporting tools to provide analytics about process performance. Reports are tied to KPIs (key performance indicators) and provide data on the performance of individual actions, processes, process members, etc. Analytics can identify bottlenecks and provide opportunities for continuous process improvement. In addition, audits can be run on historical actions. In addition, data from a BPMS can be pushed into Business Intelligence (BI) tools for further analysis and reporting.

Benefits of Business Process Management Software (BPMS)

Business Process Management Software (BPMS) offers numerous benefits to organizations, including improved efficiency, reduced costs, and enhanced customer satisfaction. By automating and streamlining business processes, BPMS enables companies to respond quickly to changing market conditions, improve productivity, and increase competitiveness.

Advantages of BPMS

1. Improved Efficiency: BPMS automates repetitive tasks, reduces manual errors, and streamlines processes, resulting in increased productivity and efficiency. By leveraging process automation, businesses can ensure that tasks are completed faster and with greater accuracy, freeing up employees to focus on more strategic activities.

2. Cost Reduction: By automating processes, BPMS reduces labor costs, minimizes waste, and optimizes resource allocation, leading to significant cost savings. Organizations can cut down on the time and resources spent on manual processes, thereby reducing operational expenses and improving their bottom line.

3. Enhanced Customer Satisfaction: BPMS enables companies to respond quickly to customer inquiries, resolve issues efficiently, and provide personalized services, resulting in improved customer satisfaction. With streamlined processes, businesses can offer faster response times and more consistent service, enhancing the overall customer experience.

4. Increased Transparency: BPMS provides real-time visibility into business processes, enabling organizations to track performance, identify bottlenecks, and make data-driven decisions. This transparency helps in monitoring key performance indicators (KPIs) and ensures that processes are running smoothly and efficiently.

5. Improved Compliance: BPMS ensures that business processes are aligned with regulatory requirements, reducing the risk of non-compliance and associated penalties. By standardizing processes and maintaining detailed records, organizations can easily demonstrate compliance with industry regulations and standards.

How BPMS Works

BPMS is a comprehensive software solution that enables organizations to design, execute, and optimize business processes. The following sections outline the key components of BPMS and how it works.

Process Definition and Analysis

1. Process Modeling: BPMS allows organizations to create visual models of their business processes, identifying key activities, tasks, and decision points. These business process models help in understanding the flow of work and pinpointing areas that need improvement.

2. Process Analysis: BPMS analyzes business processes to identify inefficiencies, bottlenecks, and areas for improvement. By examining process models, organizations can uncover hidden issues and opportunities for optimization, ensuring that processes are as efficient as possible.

3. Process Optimization: BPMS optimizes business processes by streamlining workflows, eliminating unnecessary tasks, and improving process efficiency. Through continuous analysis and refinement, businesses can enhance their processes to achieve better performance and outcomes.

Process Design and Execution

1. Process Design: BPMS enables organizations to design and implement new business processes, or modify existing ones, to improve efficiency and effectiveness. This involves creating detailed process models and defining the steps required to achieve desired outcomes.

2. Process Execution: BPMS executes business processes, automating tasks, and assigning responsibilities to relevant stakeholders. By automating routine tasks and ensuring that each step is completed correctly, BPMS helps maintain consistency and accuracy in process execution.

3. Process Monitoring: BPMS monitors business processes in real-time, providing visibility into process performance, and enabling organizations to identify areas for improvement. With real-time data and analytics, businesses can quickly address issues and make informed decisions to optimize their processes.

By understanding how BPMS works, organizations can harness its power to optimize their business processes, improve efficiency, and drive growth.

Video: What is Business Process Management?

Business Process KPIs and Metrics

Like any business effort, measurement with BPM automation is critical. The most important thing to avoid when deciding what to measure is taking an unscripted approach that catalogs a wish list of KPIs from departmental managers since this approach may result in too long a list of KPIs to manage, KPIs that provide low business value, KPIs that are not aligned with high-level business goals, and KPIs that are actually at crossed purposes.

Using SMART Metrics to Measure Business Process Performance

The well-worn concept of SMART metrics applies when measuring the performance of process improvement efforts.

• Specific:  Metrics should be specific and tied to business goals. 

• Measurable:  Metrics should be meaningful and measurable. The underlying data elements must be captured accurately and completely, and the calculation must be correct.

• Attainable:  The target values for your metric must be realistically achievable. Do the right people have the ability and authority to drive the metric toward the target value?

• Relevant: Metrics should be realistic, relevant, and results-oriented. Are there identified actions that can drive the metric toward its target value?

• Time-Bound:  Metrics must be timely, especially if they are leading indicator metrics. Can reports be generated, or dashboards be updated in time to allow appropriate interventions to drive the metric toward its goal?

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The BPMS Market

The vast BPMS market includes vendors that provide complete all-in-one solutions or “BPM Suites” and smaller players that provide individual aspects for definition, automation, and analytics, as well as form building, collaboration, and BPM project management. Cloud-based BPM Workflow Software Suites can be used for massive, organization-wide BPM initiatives with large teams and long, complex projects. Workflow and BPM automation software can tackle smaller, specific projects that may not require process simulation or organization-wide process modeling collaboration.

BPMS software vendors include:

• Appian

• AuraPortal

• Bizagi

• Genpact (PNMsoft)

• IBM

• Nutrient Workflow

• K2

• Pegasystems

Find out more about our BPM Software and how it can help your organization drastically improve your business process management.

Finding the Right BPM Software for Your Business

Choosing the right BPM software vendor is a crucial decision for any business. Before deciding, businesses should research the available vendors, such as those that provide complete all-in-one solutions or “BPM Suites,” and individual aspects, such as form building, collaboration, and BPM project management. Additionally, businesses should consider the size and complexity of their project and if they need process simulation or organization-wide process modeling collaboration.

When selecting a BPM software vendor, businesses should assess the vendor’s capabilities, such as automating workflows, streamlining processes, and optimizing business operations. Additionally, businesses should evaluate the vendor’s customer service, pricing, and scalability to ensure they select the right BPM software solution. Finally, it is crucial to consider the vendor’s ability to provide training and support to ensure the business can make the most out of its BPM software.

For instance, Nutrient Workflow provides new customers with a hands-on Customer Success team to ensure you get up and running with an intelligent process strategy and usable workflows within just a few weeks in most cases. Other vendors might provide a login and a link to their Help site.

Quick Reference: Choosing a BPMS Vendor

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Factor

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Consideration

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Integration

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Is there a need to integrate with a single system, multiple systems, or a homegrown solution?

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Implementation

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How long does a typical implementation take, and will it be led by the vendor or an internal team?

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Ease of Use

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Can business users administer and update the system, or is development/IT needed?

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Platforms

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Is the system available in the cloud, on-premise, or self-managed?

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Flexibility

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How flexible is the solution for customization, for instance, using additional code, changing the configuration, or getting “under the hood?”

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Pricing/Licensing

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Is the pricing based on users, processes, transactions, fixed, or concurrency?

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Scope

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Is this a solution for one department, multiple departments, or organization-wide?

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Task Management

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Does the system provide robust tools for users when viewing and managing tasks or tracking progress?

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File/Document Handling

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Can the system include files and documents as part of the process and store them securely?

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Number of Processes

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Will there be a few complex processes, many simple processes, or a combination of these?

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Number if Subprocesses

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Will processes require multiple subprocesses (“Child Processes”) to meet requirements?

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Use of Business Rules

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Will the processes and any associated forms require simple or complex business rules?

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FAQ

1. What is BPMS used for?

BPMS is used to streamline, automate, and analyze business processes, helping organizations improve efficiency and reduce costs.

2. How does BPMS improve business performance?

By automating repetitive tasks and providing real-time analytics, BPMS helps businesses optimize workflows, increase productivity, and enhance customer satisfaction.

3. Can BPMS be used by small businesses?

Yes, BPMS can be scaled for businesses of all sizes, offering both small-scale and large-scale automation and process management solutions.

4. What are some key benefits of using BPMS?

BPMS helps organizations improve efficiency, reduce costs, enhance customer satisfaction, and ensure compliance by automating and optimizing business processes.

5. How do I choose the right BPMS software for my business?

When selecting BPMS software, consider factors like ease of use, integration capabilities, cost, scalability, and the vendor’s support and training services.