The Relevance of Simulation in Today’s BPM World

The way most BPM solutions approach improving any process is by first understanding the process, then analyzing it; and this is generally followed by process simulation which allows the business to visualize possible effects of the change/s. This is followed by the process improvement stage and finally, the automation of the process in question. The question being, can BPM solutions do without the simulation stage?

Well, we do know that the BPM sphere has seen rapid growth since its inception, and changing trends are now becoming increasingly commonplace. Processes are definitely more automated now as compared to a couple of years ago, and the focus of such solutions is becoming more and more client based. However, with the focus shifting on the needs of individual clients, providing relevant solutions does raise the expense factor to a certain extent.

The Traditional View of Simulation in BPM:

A number of people still see simulation as an integral part of BPM solutions. The rationale is that since you have a BPM model in place, you have access to data that indicates exactly what happens within the given process, and this gives you the data for your simulation model. But for a complete understanding of this aspect, taking a step backward offers more insight.

The Process Analysis Stage:

Since this is the stage that precedes the simulation stage, let’s see how it fits into the scheme of things starting from here. Analyzing and optimizing a process is usually overlooked by the process leader and it is this role that looks to identify any problems as well as make any suggestions. This is done after having gone through the entire process, its performance, as well as all associated data; and the aim is to better the overall process performance.

Also, since a majority of the businesses looking at BPM solutions aren’t in a position to get more manpower, BPM solutions tend to offer tools that allow businesses to test various alternatives.

Process Simulation:

Since there is a need to test various alternatives, many BPM solutions do incorporate simulation tools which allow businesses to compare an assortment of scenarios. These tools essentially run using statistical analysis of factors like resource utilization, queue lengths, average task completion, durations, etc. and can be an effective method to test probable situations. However, a simulation tool is generally very complex in nature, with every statistical link requiring checking. This can lead to a lot of complexity within the process instead, which is against the most widely accepted philosophy of BPM – making processes simple and transparent.

The Process Improvement Stage:

Some BPM solutions come with optimization tools which allow a business to establish the best path towards the improvement of the process. This works in addressing the simulation stage’s natural glitches; wherein, as opposed to an analyst determining the areas that can be improved upon, the tool would actually give you feasible options.

Besides, comparing simulated scenarios isn’t always beneficial to business growth. This is simply because different business managers would look to measure different metrics/components in reaching to effective conclusions.

So while I’m not writing off the role of simulation completely, I am certainly of the opinion that more cost effectual and efficient BPM solutions can be offered without the use of simulation tools.

Process excellence in Manufacturing with BPM Technology

Manufacturing houses the world over have to deal with production and supply chain related issues, and this often calls for quick responses and timely intervention clubbed with innovative approaches. Not only does a manufacturing house have to deal with customers, but also with an array of distributors, suppliers, vendors, and its own workforce. While there have been various attempts in the past to streamline production processes through the use of various enterprise solutions, the results have been quite mixed. This is mainly because the focus doesn’t always remain on the business’ individual process requirements. Business units are broken down into smaller assembly units and each use stripped down process modeling with limited interaction. Manufacturing Execution Systems (MES) typically only support production routing, production processes, and instructions for the work to be done. Hence, MES systems are focused only on production and are unable to execute processes, integrate multivendor applications or play a role in the planning, designing and building phase of manufacturing.

BPM to the Rescue

Business Process Management tools cure this exact pain. It gives businesses the ability to fine tune processes while eliminating any shortcomings, while also automating production processes in order to minimize errors and maximize reliability. Through effective BPM implementation a production house can also utilize its assets to the fullest, thereby getting the most out of its existing manpower and equipment. Besides, in going the BPM way a production house would have the ability to extend its channels of revenue, and this would also give the business an opportunity to gather pertinent customer data from various points of sale.

Managing the Supply Chain:

Since this fast paced technological world that we now live in calls for quick fire and accurate decision making while also maintaining visibility, it is important that businesses and their respective supply chain collaborators work in tandem by quickly adapting to changing market needs and scenarios. Using a BPM solution to streamline a business’ entire supply chain network would help the business adapt to the latest trends, minimize wastage, and run on decreased operating costs.

Operations:

When it comes to the operational aspect of any manufacturing business, one of the most common complaints involves the lack of synchronized data. If the operations part of a manufacturing house is not adequately integrated, it could very well lead to inaccurate reporting of data, loss of man hours, unnecessary inventories, inappropriate planning and decision making, etc. With the help of an integrated BPM solution, one can expect to have access to all information in real time.

Apart from the positives mentioned above, here are some more reasons why a production house would benefit by employing a BPM strategy.

• Collaboration: In keeping common goals and running a unified platform a production house gives its ‘people’ network a place where they can interact and collaborate.
• Workflow: Integrating a business’ technological aspects with the processes and the people behind the processes keeps a due check on prioritization, thereby ensuring a smooth workflow.
• Transparency: Using a BPM solution would tell a business exactly where and how its resources are being used, and to what effect.

Other benefits of using BPM solutions in production industries include the ability to run processes in accordance to specific business needs; reducing the possibility of delays in the supply of materials; using automatic notifications to correspond within various internal departments and with external sources like customers, vendors, and suppliers; as well as the ability to integrate one’s existing range of applications like SCM and ERP.

So do I see more manufacturing houses embrace this technology in the time to come? Of course!

Composite Applications in Today’s BPM World

The demand for enterprise applications is definitely on the rise, and a business, in this day and age, can easily find a software package to address almost any aspect of the business. Solutions for facets like CRM, ERP, SCM, MRP, etc. are quite easy to come by, with a plethora of vendors trying to fill the existent marketplace. However, just as businesses strive to create their place under the sun, the same also applies to vendors of business solutions, and this has given rise to the integration of these solutions under a single umbrella.

The idea behind running composite applications is to move the focus from individual application development, to integrating them into a single unit instead. These applications also work in addressing the gaps between existing applications and creating solutions specific to specific tasks, allowing the business process to follow the steps laid by the solution as opposed to having users work as mediators in between different processes.

The Changing Facade

Solutions created using Business Process Management platforms differ from the solutions developed not so long ago, as BPM solutions deliver ‘process’ models and metadata mapping instead of delivering database instantiations and database models, as in the case of conventional solutions. Service Oriented Architecture (SOA) components now run completely independently, and human interaction/decision making is now a part of the entire automation process as well. This gives the end user the ability to configure/assemble components as required while also streamlining them with one’s existing web based services. Besides, by uniting the human workflow aspect with automation process, the overall workflow can be managed in a more effective manner.

One very important aspect of composite applications is that they generally do not aim at 100% functionality. This is simply because they come with a range of executable components which can then be sequenced as per the end user’s preferences. Instead of complete functionality, such solutions aim at dynamic assembly, flexibility, integration, and extensibility.

What to Expect

With more and more businesses making the required infrastructural changes, one can expect the ability of a BPM solution to enable composite applications to be one of the key components in a BPM implementation. You should also know that composite applications go beyond the realm of SOA, and various large businesses have already gone ahead and deployed various service enabled applications aimed at leveraging SOA in different forms. This also makes it important for such solutions to look at incorporating the various services/components that are being clubbed together.

The benefits are manifold; BPM enabled solutions can help streamline the business process, it can help bridge the business/IT gap, the integration capabilities help leverage on existing IT investments, it can help reduce operational costs, it can diminish business risks, it would be easy to implement; it would be a hastened process, and it would also allow both vertical and horizontal scalability. As a customer, before any BPM implementation, I would definitely ask the question… Does this BPM platform help me create applications rapidly and integrate easily with existing systems?

And Just What is Business Process Management?

The financial slowdown notwithstanding, the BPM arena continues to grow. Various businesses are constantly looking for new ways that can help raise their performance levels as well as means to effectively address the ever changing market demands.

If you do intend to incorporate a BPM strategy in your business, it becomes important that you have your basics in place. This is essentially because businesses generally have various processes that need to be addressed while implementing an overall BPM strategy, and while your primary focus should always remain on delivering your products/services to your customers, it is also important that you remain in the know how when it comes to your business’ BPM strategy.

The History:

Do know that workflow automation is, by no means, a recent phenomenon. Office automation ideas were seen in the late 1970’s, and this led to the introduction of various workflow systems that helped automate different processes, requiring minimal human interference. Also, while the ERP (Enterprise Resource Planning) applications of the 1990’s did simplify matters further still, there still remained the problem of operating these across different workflow platforms. This was addressed through the use of EAI (Enterprise Application Integration) systems in the early part of this century. It is this very integration of EAI systems with ERP applications that gave rise to the modern day BPM solutions.

BPM is:

BPM is essentially a process of streamlining the functioning of your business using a set discipline through the use of one or more technology while also incorporating a framework of rapidly developed applications. In simple terms, you use technology to automate aspects of your business. By using an effective BPM strategy a business can quickly move from the idea stage to the implementation stage; and this is through the use of productivity tools which help develop, test, and implement process models, thereby helping increase productivity.

Can BPM Help Every Business?

The way I (and scores of other people from this field) see it, any business would benefit by understanding its primary business process, looking for areas that can be bettered, and then bettering them. There is no dearth of businesses which have used BPM strategies to help address complicated business related problems, and these include both big and small businesses.

While BPM solutions would work best with businesses that already have a technological mindset, looking at technology to simplify and streamline a business is always a good idea. Also remember that incorporating BPM solutions into your business sphere could call for some radical changes, and this makes it important for the management to be open to change.

The best part about looking at BPM solutions is that you would get solutions that would take your exact requirements into consideration. Therefore, as opposed to looking at ‘stock’ options for automation, businesses now have access to tailor made or configurable BPM Suites, which are agile, flexible and powerful.