Concept of digital transformation, digital enterprises has been mentioned for many recent years, but there are few enterprises really paying attention to it. However, after recent upheavals, especially the economic crisis triggered by COVID-19 pandemic, enterprises came to realize the inevitable arrival of digital transformation, which helps them alter business models, processes in order to enhance competitiveness, to better adapt to new developmental state. This article will tackle one of the main components participating in the process of digital transformation: Business Process Management.
Business process management
Digital transformation and Business process management
According to Gartner, digital transformation is to use digital technologies to alter business models, to create opportunities, revenue and new values. Microsoft asserts that digital transformation is to re-think how to arrange, gather manpower, data, processes in order to create new values. Lately, in digital transformation plan, EVN oriented “Digital transformation is a complete process using digitalization and digital applications, but in a higher level, by adopting advanced technologies and application, such as Cloud computing, Big data, AI - Artificial Intelligence, ESB – Enterprise 5 Service Bus, IoT – Internet of Thing, Mobility … to bring alteration in awareness, value; to bring higher value and to change operational, managerial method of the enterprise”.
There are many ways to understand digital transformation, however, the ultimate result of digital transformation is to give an impulse to enterprises in order to create a new business model or to improve old business models to better adapt to new developmental state.
Business process management (BPM) is not a new concept. According to specialized website bpm.com, BPM is a discipline involving any combination of modeling, automation, execution, control, measurement and optimization of business activity flows, in support of enterprise key goals and results.
Steps in implementing BPM
Implementation of BPM on a shared platform will facilitate establishing, managing, standardizing business processes; to create harmonious cooperation between departments/divisions within enterprises. Processes will become complete, enhancing operational efficiency of enterprises.
During digital transformation of enterprises, digitalization and BPM are considered as key factors. If digitalization and BPM are the first and second step, digital transformation will be the tertiary step in the cause of enterprise breakthrough during 4.0 economics.
Following that, benefits brought by BPM will help enterprises achieve their targets of digital transformation in a methodical, sustainable manner through establishment of platforms, environments for the process of digital transformation with digitalization, integration and automation of processes…
How to understand BPM correctly?
According to surveys with small enterprises, simple processes (which require little cooperation among divisions/departments within these enterprises) or circulation of documents among simple divisions/departments can ben modelled with step-by-step processes which can be diagramed with drawing tools such as: Visio, Word or Excel.
However, for a large enterprise like EVNCPC, there are a huge number of users, processes from simplicity to complexity. Development of processes based on documents and drawings is no longer suitable. Issuing descriptions of business processes with thousand pages makes it harder, even daunting, for staff to read, understand and execute all processes. The more participants in a process, the higher risk of mistakes.
Therefore, it is indispensable to run the system which can process many requests, not only digitalization of processes but also management of business processes, control and assurance of execution of the processes in an accurate, unitary and transparent way.
Business process management in the process of digital transformation of EVNCPC
According to a brief survey, there are hundreds of processes being executed in EVNCPC’s headquarter daily. In the whole EVNCPC, the number can reach thousands of processes, varying from simplicity to complexity. Equivalent to the processes, the number of software, currently running in EVNCPC, is almost one hundred. Each software only serves certain divisions/departments or only processes temporary works.
Therefore, application of managerial solutions to business processes is expected to partly solve existing issues, which contributes to realization of EVNCPC digital transformation’s goals.
Firstly, it is about meeting the need for managing and digitalizing business processes. In reality, among business processes in EVNCPC (from EVNCPC’s headquarter to subsidiaries) , there are still many manual processes; some works have already digitalized but still operate singly and discretely; and handling tasks still requires several software. Application of managerial solutions to business processes will help solve the above-said situation; the foreseen benefit is not only about digitalization but also about management of all business processes on a shared, unitary flatform.
Moving to the next stage, based on digitalized business processes, BPM will not only create a harmonious cooperative environment among objects participating in business processes, but also increase data connectivity among implemented business software; users will not access too many discrete software.
That users react and handle business processes on a shared flatform will ensure consistency in executing processes, minimizing possible mistakes.
Digital transformation is a long journey with challenges, but it is inevitable so that EVNCPC can become a digital enterprise.
To successfully digitally transform, there needs to be a cooperation among components: technology, processes and human in order to create a cooperative environment within the whole enterprise. And at this moment, BPM will play a central role in connecting, coordinating, channeling, circulating information in order. Thanks to that, it will gradually and efficiently optimize business processes, contributing to collective success in the journey of digital transformation of EVNCPC.
Author: Dinh Vy – Van Minh