Enterprise Process Management

Enterprise Process Management should be considered as superset of Business Process Management. In current scenario whenever we talk about BPM we always think of business organization. But in real world every organization is not business organization. There are various organizations which have interests beyond business e.g. government organizations, non-government organizations (NGO), philanthropic organizations, etc. So the term BPM is not sufficient to cater their needs. I propose Enterprise Process Management (EPM) because Enterprise covers not only business organization but also lot of other non-business organizations.

Keeping EPM into sight, what is process?

“A process is a coordinated thread of sequential and parallel activities needed to deliver value to stakeholders.”

So what is EPM?

“Enterprise Process Management is assuming controlling position on processes from inception/idea to its delivery, from very first activity to last, and analysis of each and every activity for continuous and step improvement.”

From definition it is very clear that EPM can be visualized from three view points:

1. Inventive viewpoint
2. Execution viewpoint
3. Improvement viewpoint

1. Inventive viewpoint: This viewpoint is affected by strategic and tactical decisions of any enterprise. Strategic and tactical success of any enterprise demands effective and efficient processes with continuous improvement build in. As environment is dynamic and most of the time beyond the control of enterprise, processes must be adaptive in nature and if possible self-aware.



2. Execution viewpoint: This viewpoint focuses on execution part of processes’ lifecycle. Once process is released in any enterprise for execution purposes this viewpoint takes over. In any successful process this viewpoint has longest duration with numerous small changes but insignificant number of step changes.



3. Improvement viewpoint: In this viewpoint focus is on improvement related aspects of process. This viewpoint gets feed from execution and gives to inventive viewpoint. The improvements may be minor chunks (part of continuous improvement) or quantum leap.

Classification of Enterprises Processes

On the basis of complexity, enterprise processes can be divided into three categories:

1. Material Processes
2. Information Processes
3. Human Interaction Processes

1. Material Processes: MPs are primarily concerned to “THINGS”. The purpose of these processes is transforming the material and consume resources. These processes rely heavily on Industrial engineering concepts. These processes are found in primarily in manufacturing, assembly, process industrial environment. Generally speaking these processes are so matured over time period across the industries that they more or less resemble procedure or long running procedures. This means the input and output of these processes can be defined objectively.

2. Information Processes: IPs are primarily concerned to “DATA”. These processes transform data into information or information into more abstract information. These processes rely on Computer science, Software engineering and Information science concepts. These processes are prevalent in service and non-service industrial environment. Again due to tremendous progress in computer science, information science and software engineering these processes resemble to procedures.

3. Human Interaction Processes: HIPs are primarily focus on human cognitive aspects. HIPs are articulation of subjective issues and getting agreement among various stakeholders. HIPs are based on structure of human communication and coordination, which are prevalent in natural languages and cultures. HIPs are highly affected by cognitive abilities of participating actors and surrounding environment. Most of the time HIPs are highly subjective so their automation is a big challenge.

In real life settings, most of the enterprise processes are combination of MP, IP and HIP.

For simplicity let us consider a simple process: Opening a checking bank account by a new customer.

So to open checking bank account, customer has to submit a form to branch where he wishes to have account. The account opening form also need some supporting document like identity card of the prospect along with letter from an existing account holder. Upon submission of completed form and supporting document, a clerk at branch verifies the documents at preliminary level and sends to regional office for detailed verification. If verification result is OK, account is opened, base branch & customer are informed and checkbook, ATM card are dispatched to customer. If verification result is NOT OK, base branch & customer are informed.

In the first glance the process seems to be well structured and simple enough for automation. This process seems to fall in Material and Information Process category. So automation looks easy and within reach. Now let Human aspect enter into the process.

Mr. Clerk who accepts documents from prospective account holders has friendship with Mr. Tony. One fine day Mr. Tony reaches to branch where Mr. Clerk is stationed and submit Account opening form. Mr. Tony does not was not carrying supporting documents, so he talks to Mr. Clerk and makes promise to submit supporting documents on next Monday and asks Mr. Clerk to hold his docs till then. So human relations start tearing a well-structured process.

Since human interactions and communication is unstructured and asymmetric, so automation of such aspects is very difficult.