In: Operations Management
Explain briefly the main challenges of business process integration for a small business with example ?
Business Process Integration (BPI) is the synchronization of a company's internal operations with those of its other divisions and its trading partners by connecting disparate systems in real-time.
Challenges of a Successful Business Process Integration
· Process Identification: In order to implement BPI, processes must first be identified. A good way to do this is by using business process mapping (BPM) tools. These tools use words and visual layouts to demonstrate typical functions. Because more organizations are seeking ways to map business processes, a number of BPM tools have been created to make it easier and faster. The most popular tool is process mapping software, which provides a good indicator of the organization’s ability to document existing processes and prove that they are effective in achieving the goals of the business. BPM software can also provide process modeling, which offers real-time insight into how any proposed adjustments could affect existing processes and, hence, the overall business function. BPM software can also help automate existing processes and incorporate them across various parts of the business. Mapping tools can also help businesses comply with industry regulations such as ISO 9000, which often requires documentation of quality system processes.
· Documenting and Mapping: The first step in BPM is to document an organization's existing business processes. BPM tools provide the ability to create flow charts and other visual tools that show these existing processes and their relationships to one another. After processes have been documented, they can be evaluated and reviewed to make sure they sufficiently outline the real-time activities of the organization. Process mapping also makes it easier to pinpoint inefficiencies and areas for improvement within processes. Organizations also may use BPM tools to automate existing functions, increasing effectiveness and consistency across different departments within the business. Software can help the systems of different departments communicate with each other and share required information. Process automation often saves time and money and can help businesses implement uniform workflow processes across all areas of the company. This is especially true for companies that have regulatory requirements and are expected to document their processes and guarantee compliance.
· Planning Through Modeling: In the next step, resellers can help their clients create models of the processes that have been mapped out to illustrate the proposed changes to the system to be hypothetically implemented. This allows process owners to see the possible outcomes of a change and to be able to assess if it adequately zones in on the inefficiencies that may have been identified in the first steps. Process simulations allow proposed changes to be implemented in theory and their effects observed and assessed before actual changes are made.
· Design, Implementation, and Management: The design and implementation of BPI help eliminate the need to duplicate data in different systems and increase the comprehensive efficiency of the business’s operation. When designed and implemented properly, BPI can save companies time and money. An example of BPI could involve initiating a relationship between the sales and billing systems within a company. In some cases, the connection is reciprocal, meaning that specific data within the sales database can be accessed by the billing system and vice versa. This means that if the integration is established using the right protocols, a salesperson can access current billing period figures for a given client by going to that client’s profile in the sales database and generating a request. Simultaneously, a billing specialist could trigger an inquiry from the billing system to the sales database and then download knowledge regarding the newest contract rates available to a customer. In this case, BPI can ensure that customer orders are processed, executed, billed, and managed easily.
Example for the challenges faced by Business Process Automation
The advent of technology has brought about various benefits especially to businesses and soon it has come to be the basic business infrastructure. And, with time, the vast functionalities of technology are expanding, offering several new forums for the growth of businesses like the business automation software.
However, this is not all to the scenario as rapid technological development has also created a marketplace that is hyper-competitive. Without efficient utilization of resources and strategic planning, businesses hardly stand a chance in the cut-throat competition.
Need For Streamlining the Business Process
The tough business condition is also compelling for many businesses to go for the cost-cutting method, which necessarily not providing the intended impact. Cost-cutting is not always result-oriented as there are several other factors that influence a business. Businesses need to be more efficient to allow it to grow and put a stop to resource wastage, helping newer processes like business process automation to replace the older ones.
This also can be put as the necessity of the hour. As many will agree, “Necessity is the mother of invention”-this can be termed as a similar situation. The competitive business environment and the dire need of the efficient system, is making businesses turn towards automation solutions.
Manual input and human-driven data are identified as a major setback for businesses during its period of growth. This, business process automation has become a popular alternative that has no space for human error and can also carry out multiple business functions at the same time.
Many large, as well as small enterprises, have now implemented Business Process Automation (BPA) in its existing technology for the smooth functioning of operations and management.
The business automation software can proactively help businesses with its five major issues.
Let’s take a look at the problems and how BPA can help make businesses better,
Integration Problems with Newer Applications and Legacy Systems
One of the biggest benefits of business automation software is, it can integrate with both legacy systems and newer applications under one single interface of the enterprise. It is the one overreaching solution that every business needs for seamless operation.
Modern businesses usually have one complex environment where many disparate applications work. Along with the growth of the business, the complexities also grow. Mergers and acquisitions take place, new technologies are adopted to meet new challenges.
Business process automation is the simple way which makes critical applications work under the same roof without the slightest glitch. The business automation software works on all programs whether, new applications, legacy programs, cloud-based solutions or on premise.
Costly Human Errors in Manual System
Rectifications cost incurred by businesses for human error is much higher than anything else. The greater the rate of error more will be, the cost for rectification. However, human errors occur due to the manual input of data and it is also important to understand that humans are most likely to make mistakes.
On the other hand, there are so such issues with business automation software for they are programmed with no room for errors. So, certainly, business process automation makes human-oriented processes much smooth with greater results like increased speed, productivity, and efficiency. These benefits will also incur lower costs for the operations to run as a whole.
Time Consuming Manual Compilation and Reporting
In most of the companies, data transfer is still carried out manually in forms of files and documents from one department to another. As the volumes of data are usually high, compiling them in one single process is a tedious and lengthy process. Not to forget, since they are done manually, there is always scope for multiple human errors and miscalculations.
It goes without saying, the higher the rate of errors greater is the cost and time required to rectify it. There is no better process to replace this tedious one than the business automation software. The implementation of the software streamlines the ability of a business to automate reporting, filing and documenting tasks. This is not all, as business process automation is capable of managing documents, compile them and store in the required places. When required, it is available within a click of a button.
Some of the most advanced business automation software comes with in-built Document Management Systems. It helps is saving thousands of human hours and errors spent while compiling them manually.
Lack of Efficiency in Customer Service
Business growth and its reputation are almost synonymous with the happy customers it generates. It is a proven rule to keep your business going and growing. Customers often judge a company by the prompt customer care service it provides Receiving complaints from customers, the inadequacy of information or incapability of solving problems are some of the major factors that denote an inefficient process.
In most of the scenarios, customer care executives are busy with paper works and other files and documents compilation that they lack prompt and timely delivery of services to the customers.
This scenario calls for automation of the business process. The integration of the business automation software with the existing interface can prove to be beneficial for the customer care executives. The automated system will take off much load from the customer care team allowing them to work better and cater to the needs of the customers. Automation tools are becoming the basis of how a business process should function. It is enabling customer care executives to take the assistance of such tools with automated call and email options. Customer’s inquiries are now possible to carry out without the slightest glitch.
So, in case you forget to inform a customer about delivery or pick up, the system will do that for you. This is a great leap forward for companies to improve their customer retention and service.
Hindrance in the Company Growth
A company is expected to grow and so that growth rate will be rapid along with the number of tasks and its complexities. Managing a fast-growing company becomes difficult if the processes are not up-to-date. Unavailability of resources and inefficient staff members makes the situation worse. When managing a business growth becomes insufficient with the existing resources. When the existing resources are unable to manage the growth, business process automation can streamline the process by improving the efficiency. The tasks, which otherwise was time-consuming due to manual labor can be easily automated.
The company will be able to focus more on important things without worrying about documentation problems and incomplete tasks.
As a concluding factor, Business process automation is the next level streamlining of the workflow which subsequently affects the workforce with improved efficacy and no room for error. A company is able to focus on important propositions and agenda without worrying about the time-consuming tasks and documentation.