What is Business Process Management?

Numerous companies use business process management (BPM) to improve their business processes.

Organisations with SAP systems often use SAP BPM for this purpose.

In addition, there are a number of other tools that are helpful for process analysis, design, control and optimisation. 

Business process management, or BPM for short, is a management discipline that deals with the design, execution, monitoring, measurement, and optimization of business processes.

BPM focuses on the individual processes that are carried out within a company in order to achieve business goals and create added value for customers and stakeholders. The processes can be automated or manual.

The goal of business process management is to sustainably improve the efficiency, quality, transparency, flexibility, and compliance of business processes. At the same time, it aims to ensure adaptability (agility) in response to changing market conditions.

Business process management is a systematic approach to identifying, analyzing, and structuring operational processes of any complexity. Approaches range from one-time optimization of individual processes to the establishment of a company-wide process culture that connects employees, technologies, and organization.

BPM is not a single methodology. Rather, it involves the interlocking of various sub-disciplines, such as process analysis, process architecture, process governance, process measurement, process optimization, and process automation.

BPM combines strategic issues with technical and organizational implementation. This means that numerous people are involved. In general, the following roles are distinguished in business process management:

Chief Process Officer: responsible for the entire BPM strategy, anchoring process thinking at the highest corporate level, controlling and monitoring all BPM activities
 

Process Owner: develops, optimizes, and monitors specific business processes, ensures alignment with corporate goals
 

Process Manager: plans, controls, and documents processes operationally, implements the specifications of the Process Owner in practice, and ensures coordination with other departments
 

Consultant: contributes technical expertise, supports the introduction, adaptation, and further development of BPM methods, and accompanies transformation processes in the company
 

Coach: trains and accompanies employees and teams in new processes, ensures acceptance and sustainable implementation through targeted support
 

Process Participant: executes processes in everyday work, implements defined specifications precisely, draws attention to practical obstacles
 

Process Controller: monitors the efficiency and goal achievement of processes, analyzes performance data, and derives opportunities for improvement
 

Process Auditor: independently checks whether processes comply with internal standards, external specifications, and legal regulations, and ensures compliance

Business process management consists of several interlinked steps that are repeated over and over again. The individual phases are described in more detail below:

1. Analysis and modeling

In this phase, existing business processes are identified, analyzed, and modeled. The goal is to obtain a complete picture of all relevant processes and their weak points. Companies use special methods such as process mining, interviews, and diagrams to reconstruct the processes. 

Modeling tools such as BPMN (details in the section “What is the BPMN method?”) make it possible to graphically capture the identified processes, which increases transparency and comprehensibility. The models created then serve both as documentation and as a basis for process optimization and subsequent automation.

2. Optimization

The optimization phase builds on the analyzed processes. Targeted changes—such as eliminating redundant steps, redistributing tasks, or making better use of existing resources—increase the efficiency and quality of the processes. 

The goal of process optimization is to conserve resources, reduce errors, and maximize process output. Improvements developed jointly are mapped in the process model and tested in the real environment. The extent to which this achieves the desired effect can be verified later using key performance indicators (KPIs) (see “4. Monitoring and control”).

3. Automation

Automation is a relatively new component of business process management, as the corresponding possibilities have only emerged in the course of digitalization. 

Here, processes that were previously carried out manually are partially or completely automated by software solutions. As a result, they run faster, generate fewer errors, and are also highly scalable.

Solutions such as SAP Workflow Management or other specialized BPMS (business process management systems) are used for technical implementation. Modern solutions of this type not only allow classic rule-based automation, but also the use of artificial intelligence. 

This makes the automation options increasingly diverse. For a BPMS to be effective, it must be connected to the existing system landscape, especially the existing ERP system. This integration is often achieved with tools such as SAP BPM and SAP Process Orchestration.

4. Monitoring and control

In the monitoring and control phase, active business processes are continuously monitored and evaluated. This naturally also includes the workflows that were optimized and automated in the previous phases. 

Business process management tools enable companies to monitor critical key figures, analyze throughput times, and check compliance with regulatory requirements.

A special SAP tool in this area is SAP Signavio Process Intelligence (formerly SAP Operational Process Intelligence). This solution gives managers insight into the performance of all processes, even across departments. Control mechanisms enable rapid intervention in the event of deviations and ensure that corporate goals are met.

5. Continuous improvement

This phase ensures that BPM is not limited to a one-time initiative, but is anchored in the company as a permanent capability. Based on the results of the previous monitoring phase, processes are continuously monitored, reevaluated, adjusted, optimized, and automated. 

To this end, new technological possibilities are utilized and, if necessary, new key performance indicators are introduced.

The focus of continuous improvement is on sustainability, learning ability, and adaptability of the process landscape. Business process management (BPM) tools and appropriate governance ensure that this cycle actually takes place.

Business process management can be used in all areas of a company and have a beneficial effect. Some examples are:

• Customer experience: Standardized and automated processes relieve the burden on sales and service employees, giving them more time to provide quality customer service.
   
• Accounting: Automating invoicing and payment processes, for example through digital invoice workflows, increases compliance and minimizes errors.
   
• Human resources management: Optimizing employee processes such as hiring, onboarding, training, and appraisal through standardized procedures and digital workflows reduces administrative tasks and improves employee retention.
   
• Supply chain management: Targeted control of ordering, production, and shipping processes improves inventory management and enables on-time deliveries.
   
• Quality management: Optimized and automated inspection processes improve compliance with quality standards and enable errors to be detected more quickly.
   
• Compliance: Defined processes help ensure compliance with regulatory requirements and provide support through audit trails.
   

The BPMN method (Business Process Model and Notation) has established itself as the standard for modeling business processes. It provides a graphical tool for documenting processes in a clear manner, thereby creating a common understanding between specialist departments and IT. BPMN structures business processes using specific symbols that represent different aspects.

Typical components of a BPMN diagram are:

• Events: Start, intermediate, and end events that mark the beginning, interruption, or end of a process
• Activities: Individual tasks or process steps that must be performed
• Gateways: Decision points at which the flow is branched, merged, or controlled according to specified conditions
• Pools and lanes: Represent organizational units or roles
• Connections: Define logical dependencies and information flows

BPMN can also be used to create complex process models, as the symbols can be nested and combined as desired. Companies use the BPMN method in particular when it is important to clearly represent process flows, simplify explanations, and avoid misunderstandings. Last but not least, BPMN technology also supports subsequent automation, as it is compatible with business process management (BPM) tools and workflow systems.

Business Process Management (BPM) and Business Process Model and Notation (BPMN) are closely related, but describe different aspects of process management. BPM stands for the strategic approach to managing and optimizing business processes as a whole. BPMN, on the other hand, is a methodical tool for graphically representing these processes and making them comprehensible.

In other words, while BPMN is a notation used to visualize processes, BPM encompasses much more than pure modeling. It also includes control, optimization, automation, and monitoring.

The BPMN method remains firmly anchored in business process modeling and is now considered the de facto standard. Its openness, system independence, and broad availability are particularly compelling arguments for its use.

However, BPMN is not entirely without controversy. Critics complain about the increasing complexity of the notation and the associated training costs. Some new tools and methods offer alternatives for modeling simple processes more quickly or intuitively. Nevertheless, BPMN has retained its relevance in most companies and is continuously being maintained.

The development of BPMN technology—especially since the introduction of BPMN 2.0—has led to even greater flexibility and compatibility. For organizations that want future-proof process modeling, BPMN remains the most important method.

Incidentally, most modern business process management systems and BPM SAP solutions are based on BPMN conventions. So if you are looking for long-term consistency between modeling, automation, and monitoring, BPMN is still a good choice.

A BPM tool is a software solution that supports the various disciplines of business process management. Depending on the focus, there are special programs for the targeted optimization of individual processes or comprehensive BPMS (business process management systems) that cover all phases—from analysis to modeling and automation to monitoring.

Modern BPM tools make it possible to graphically represent processes, create automated workflows, manage documentation, monitor processes, and continuously optimize them. The software performs tasks such as designing BPMN diagrams, starting and stopping workflows, integrating with other IT systems, analyzing process data, and proactively preventing errors.

Another important feature is the ability to modify and test processes with just a few clicks and implement them directly in everyday operations. This feature ensures agility and enables continuous improvement.

Several tools are available for business process management in SAP environments. These have become extremely important, as they ensure that even complex business processes can be standardized, automated, and documented across the entire company.

The best-known solutions from the SAP environment are SAP Business Process Management (SAP BPM), SAP Signavio, LeanIX, and SAP Process Orchestration (SAP PO). The most important solutions are described in more detail below.

SAP BPM is a software suite from SAP for modeling, configuring, executing, and monitoring business processes on the NetWeaver platform. As a modern alternative to SAP Business Workflow, SAP BPM enables flexible mapping and control of complex processes, taking into account both technical and business requirements.

The platform connects different process models and allows rapid adaptation to new business conditions. With SAP Signavio, part of the SAP BPM portfolio, SAP also offers cloud-based tools for process analysis, optimization, and AI-supported automation.

SAP Signavio is a cloud-based suite that combines all relevant functions for process modeling, analysis, and automation. With this solution, business processes can be modeled and analyzed using BPMN and rolled out directly as digital workflows.

Close integration with SAP systems creates end-to-end process management that extends to IT implementation. With SAP Signavio, process owners can identify weaknesses, simulate optimizations, monitor KPIs, and automate workflows. Another special feature is its collaborative approach: multiple participants can work together on process models, add comments, and track changes.

In addition to classic modeling, SAP Signavio enables live process monitoring and simulations. This shortens feedback loops and supports agile process optimization.

LeanIX is another powerful BPM tool for SAP environments. While traditional solutions often only document processes, LeanIX provides a central overview of the entire IT landscape and its processes.

The goal is to break down silos, integrate IT and business departments more closely, and create continuous transparency. In addition, LeanIX is particularly well suited for analyzing business processes related to IT architectures, applications, and dependencies.

An important target group for the solution is the SAP Enterprise Architect. IT experts of this type are responsible for planning and further developing a company's SAP system landscape. They are responsible for bridging the gap between business goals and technology.

LeanIX bundles all information on applications, interfaces, and processes in a central platform. The graphical representation of dependencies allows companies to quickly identify where processes are inefficient or where redundancies occur. This facilitates the targeted modernization of IT and process landscapes.

LeanIX relies on openly accessible data models and tightly defined interfaces to SAP applications. Dashboards, comprehensive evaluations, and flexible search functions give decision-makers a constant overview. LeanIX also makes it possible to simulate changes to IT architectures without risk, identify weaknesses, and analyze the impact of process changes.

In short, LeanIX enables process management, IT strategy, and operational processes to be closely linked—a decisive advantage in complex SAP landscapes. 

In addition to SAP Signavio and LeanIX, there are several other solutions for business process management in SAP. These include SAP Workflow Management and SAP Process Orchestration.

SAP Workflow Management enables the automation of individual workflows and processes through a modular structure. The SAP Process Orchestration solution serves as a platform for integrating and automating end-to-end processes. It can access existing SAP and non-SAP systems alike.

Not to be forgotten is SAP Operational Process Intelligence—an innovative system that enables the monitoring and control of ongoing processes and analyzes performance in real time.

A business process manager is responsible for planning, controlling, and continuously improving business processes within a company.

They analyze processes, identify weaknesses, and develop optimization measures. They also coordinate the implementation of new processes across departments and ensure that they are documented and comply with company objectives.

The remuneration of a business process manager depends on various factors:

• Company size
• Industry
• Experience
• Location

According to career portals such as Stepstone and Indeed, the average gross salary ranges between approximately $65,000 and $87,000 per year, although higher salaries are possible, particularly in large corporations and with the relevant professional experience. Senior positions can even reach six-figure sums.

In addition to their base salary, business process managers sometimes benefit from bonus payments, variable components, or additional benefits. The profession is evolving: with the growing digitalization and importance of business process management systems, the requirements and level of responsibility are also increasing—which usually has a positive effect on salary.

A business process manager performs numerous tasks in business process management. The focus is on analyzing, modeling, and optimizing business processes. This includes critically questioning existing processes, submitting suggestions for improvement, and actively supporting their implementation. Other tasks include:

• Planning and controlling process optimization projects
• Selecting and introducing business process management (BPM) tools and BPMS (business process management systems)
• Communication with IT and specialist departments
• Training and supporting colleagues in process changes
• Monitoring adherence to standards and compliance
• Developing strategies for continuous improvement

Process management is an interdisciplinary field that combines a deep understanding of business processes, organization, and IT. Anyone who wants to work as a business process manager should therefore have expertise in all three areas.