Business Process Management

What it does:
An IT implementation that focuses on managing and improving processes within organizations.

Its other names:
BPM, Networked Supply Chain

Where it comes from:
General Electric, where Jack Welch invested heavily in process improvement, is widely held up as a BPM success story. Adidas, Boeing, Cisco and Wells Fargo have also been successful in implementing its strategies.

Summary:
BPM uses advanced computer applications to streamline larger processes. BPM can cut across divisions, personnel and even outside businesses. The goal is to think about larger company activities as virtual "production lines" that need to be made highly efficient to bring goods and services to consumers.

Example: Wells Fargo has lent $8.5 billion to 750,000 customers -- a monumental body of information to track. It was imperative to arrive at a new way of handling all that shifting information and eliminate paper, as much as possible, from record keeping. Essential on-paper documentation (original signed loan agreements and other documents) were scanned into the system and "bound" in the database to electronic data for each account that could be updated as needed. The result is a highly efficient process. It is no longer necessary for any Wells Fargo office to request paper files from another division - everything can be accessed from one computer within the system.

What else you need to know:
BPM is a hot concept that has caught on in many areas of business. Wherever it is important to streamline processes, or to understand how to streamline them, you will hear people talking about BPM. Example: At one big investment firm, salespeople tell potential customers about their firm's ultra-efficient customer services. From one company Website, customers can monitor their current investments and other accounts, apply for loans, and handle many other aspects of their financial activities. As processes combine for efficiency, everyone can benefit directly, even customers.