Business processes are at the heart of every company. What does process automation mean and what does it involve?
What you can expect here - an overview
1. Process automation in a hierarchical sequence: BPM > BPA > RPA
2. Business process management: What is happening in my company and what can be done better?
3. Advantages and disadvantages of BPM
4. Business Process Automation: How can I customize specific workflows?
5. Advantages and disadvantages of BPA
6. What is the difference between BPM and BPA?
7. Robotic Process Automation: Who can take over time-consuming tasks faster?
8. Advantages and disadvantages of RPA
9. Process automation affects all levels of the company
So today we ask ourselves: What does BPA (Business Process Automation) involve, where is RPA (Robotic Process Automation) used and what role does BPM (Business Process Management) play? Process automation is the key to an efficient company. It is therefore important to understand the methods and technologies and to be able to differentiate between them.
Process automation in a hierarchical sequence: BPM > BPA > RPA
The overarching goal of all approaches is greater efficiency. Specifically, this means using automation to make internal processes run more intelligently, faster and error-free. This saves companies and employees time that is urgently needed for more abstract tasks.
With this vision in mind, BPM focuses on the company as a whole. The entire value chain is examined and optimized with each process. BPA starts at a lower level and looks at individual processes in order to make them more efficient in conjunction with adjacent and interlinked processes through digital optimization. RPA works even more specifically and focuses on the incremental components of a work step.
Figure 1: The hierarchy of process automation | isr.de
Business Process Management:
What is happening in my company and what can be done better?
In 1994, Hammer & Champs described business processes as a "bundle of activities for which one or more different inputs are required and which produces a result of value for the customer." You put something in and get something out. The magic in between is called a business process and has many faces with many points of friction.
BPM is a method for analyzing and optimizing business processes. It has a holistic approach: every phase of every process should be examined. The aim is to achieve sustainable and continuous improvements, which must therefore be precisely tailored to the company. BPM is therefore a strategic approach and a long-term orientation for the entire company, which requires an in-depth understanding of all activities.
The large area of BPM can be subdivided into several parts along the process:
- Where can time be saved?
- Which processes are redundant?
- Which areas could be linked to new ones, for example?
- How does the process relate to the overall picture of the company?
After an extensive analysis phase, the next step is to design new process models. What new options arise for the problem areas in a process? When modeling, not only are points of contact in the company taken into consideration, but all possible scenarios are also compiled and evaluated. The requirements in the company and the necessary investments are also taken into account. Special BPM software (e.g. Camunda) is available to support the decision-making process. It keeps planning and implementation clear and highlights important decision parameters. Previously defined goals can be set up here.
Advantages and disadvantages of BPM
BPM obviously strives above all to save time. The top priority of BPM is to achieve greater efficiency through simplification and automation. By examining the processes and continuous self-monitoring, errors are discovered and avoided in the future. This agile working environment enables new inputs to be implemented quickly and effectively. The company can adapt quickly to new external circumstances and remains competitive.
Software and automation still find their limits in people. Some processes cannot be substituted and require the intelligence and responsiveness of a real person.
In addition, investing in BPM is not cheap at first glance. In most cases, it is advisable to seek advice from experts in this field who can prepare the project and provide experience-based recommendations. Special software for modeling processes is also required for implementation, which must be purchased and implemented. However, the advantages mentioned quickly outweigh the investment.
Automation is not yet a prerequisite for BPM. It can also involve analogous changes that make a process structure more efficient. Automation is also quickly referred to as BPA.
Business Process Automation:
How can I optimize specific workflows?
BPA is the restructuring and automation of operational processes.
The specific aim is to avoid ad-hoc management and thus minimize human effort. Ad-hoc management here means the unstructured processing of tasks as they arise (or as the due date approaches dangerously close).
Automation is about replacing frequently occurring, similar activities with standardized workflows. This includes, for example, creating, submitting and acknowledging approval requests, expense reports or ordering processes.
Figure 2 shows where business processes are located in the company.
Figure 2: What are business processes? | isr.de
Advantages and disadvantages of BPA
Communication is also improved through a standardized exchange of information. Misunderstandings and errors are avoided or quickly identified. Error prevention also means that duplication of work is saved and incorrect information is stopped. The goal to be achieved and the decisive advantage, in addition to the convenience for employees, is the efficient saving of time and resources. BPA is a major step forward in the company's quest for efficiency. The constant further development and adaptation of the software ensures competitiveness.
With innovation always comes new challenges. As is so often the case with digitalization tasks, you need to start by gaining an overview of all business processes and related information. This is the basis for creating customized and efficient workflows.
Simple user interfaces (GUIs) and a planned transition to new technologies are important for the acceptance and know-how of employees. Supporting measures here include employee training and appropriate error reporting.
What is the difference between BPM and BPA?
The difference between the two methods lies largely in their dimensions.
BPM is a holistic, integrated approach to analyzing all of a company's processes end-to-end, i.e. from start to finish. The focus is also on the company as a whole, rather than on individual departments. The aim is to ensure the interaction of all processes for greater efficiency, transparency and flexibility. As a management position, BPM works continuously on improvement in order to achieve long-term goals.
With BPA, the focus is on specific, individual processes. Although a process is seen in conjunction with its environment, there is no claim to improving all of the company's processes. Therefore, the BPA can also stand for itself, decoupled from the BPM. If a BPM does exist, it will of course still work hand in hand. The BPM provides the strategy and the corridor in which the BPA can act and optimize independently.
Individual employee tasks are considered at an incremental level. RPA technologies are used here.
Robotic process automation: who can take on time-consuming tasks faster?
RPA means training software to behave like an employee. It imitates the operation of a user interface at high speed. If the bot is properly trained, its work also has a negligible error rate.
Examples include processes such as opening/closing accounts or handling claims. Other potential tasks include master data maintenance, receiving, checking and paying invoices as well as preparing and sending them. RPA bots can also be used to check and adjust tariffs. This is not only necessary for insurance companies, but above all in the energy industry (electricity tariffs, adjustment of advance payments). Bots can also be used in administration to check and process forms and applications.
Figure 3 shows how RPA checks an incoming document. First, it determines whether a form has been completed in full. If this is not the case, it is sent back to the sender. This saves employees a lot of time, as they only receive task packages that are complete and can therefore be completed directly. In this way, processing times are shortened, which in turn increases customer satisfaction.
Figure 3: Example workflow of an RPA solution | isr.de
Advantages and disadvantages of RPA
The robots reach their limits when they have to intelligently recognize what needs to be done. Training for all possible eventualities is therefore necessary. It must be clear in advance exactly how to react to which input. If this is not the case, an employee will need to intervene.
Process automation affects all levels of the company
Here you will find a summarized overview of the topics BPM, BPA and RPA as a free download.
Process optimization is often said, but rarely done
We don't think it's down to motivation or hostility to digitalization. Rather, the creation of a promising strategy for process optimization, as well as a structured and goal-oriented approach, seems to be the major challenge. In addition, the fear of rationalization characterizes the conversations among employees. Employees are not supposed to disappear - on the contrary: tedious work is being automated, freeing up more time for complex and fulfilling core tasks.
Do you need help with process automation?
Cihan Klingsporn
Senior Account & Marketing Managerin
Business Process Automation
cihan.klingsporn@isr.de
+49(0)151 422 05 471
