Most companies are familiar with the theories of business process management (BPM). New tools are making it possible to automate process flow to maximize efficiency and increase outputs. However, business decision management (BDM) is not implemented as broadly. These two concepts are entirely separate yet complementary. Innovative organizations use both to revolutionize how business is done.
The Basics of Business Process Management
Every business has processes in place, from production line procedures to human resource transactions. However, some of these processes are more formal than others. For example, technical manuals might detail how and when to use customer relationship software. However, the basic production steps are shared by word of mouth.Business process management or BPM is the science of breaking each process down to its most basic steps and documenting the processes from start to finish. Through documentation and data examination, it is possible to locate areas that require modifications for greater efficiency. Organizations that adopt BPM software find opportunities for continual improvement. In many cases, you can automate transactional processes. This makes it possible for staff members to focus their efforts on activities that add significant value to business operations.The extent to which processes can be automated depends on the types of decisions that come up as the process is completed. Complex decisions often require input from staff members — particularly when there is no formal decision-making process framework in place. The more input necessary from employees, the less likely that the process can be automated in a significant way.
The Basics of Business Decision Management
Many leaders consider operational decision-making as much an art as it is a science. They evaluate relevant data and determine whether to move forward on projects. Such projects include new marketing campaigns, new product lines, and new human resource initiatives based on their knowledge and experience. Often, this method of decision-making runs throughout the business. Subjective criteria and personal opinions determine the path forward. Whether a change in suppliers is needed or there is an opportunity to update business processes, there are no established decision rules to guide decision-making. As a result, outcomes are inconsistent and unpredictable.Business decision management brings objectivity to decision-making by defining criteria objectively, standardizing each step, and automating the process. BDM encompasses all operational decision-making systems in a business. However, it primarily manages interactions with customers, suppliers, and employees.BDM requires compilation and careful analysis of historical data to guide future decisions. Additionally, it takes the guesswork and debate out of decision-making. This results in a streamlined, effective, automated selection process. The foundation of BDM is a business rules management system (): software capable of gathering and referencing the data needed to make appropriate consistent decisions.
