Why is Process Management Necessary for an Organization?

September 8, 2015 – AURA (www.auraportal.com), a global provider of AuraPortal. Business Process Management (BPM) software, positioned at the Top of the “Visionaries” in Gartner’s “Magic Quadrant for iBPMS 2015“, has published a report on the differences between Functional Management (supported on ERP software) and Process Management (supported on BPM suites).

Functional Management requires a rigid hierarchical structure which is organized into areas, departments, sections, etc. as it is based on the control, analysis and optimization of the activities performed by each employee (or machine): billing, customer visits, the study and approval of proposals, etc., without taking into account the processes used for these activities.

This approach is based on the theory that “The optimization of all the functions will lead to the optimization of company management”. However, this is not true as it lacks essential coordination.

Process management is based on the optimization and continuous improvement of the processes, not the actions or functions.

In Process Management, when an event occurs it initiates a process; the functions and activities of the process are optimized, furthermore these process actions are also coordinated from beginning to end and they are aligned with the company’s culture and objectives.

This business process management approach is relatively new and is forever changing the way company operations are managed in all types of organizations throughout the world, resulting in a much greater effectiveness. This permits a comprehensive control of the information generated by the company as well as uniformity and cohesion.