Business process management (BPM) refers to a way of improving the effectiveness and efficiency of business processes in order to adapt the business or organization to the volatile and ever-changing business environment of the modern business world (Jeston &Nelis, 2010). A business process refers to activity that achieves a certain goal or objective by eliminating errors and weaknesses that a business faces.
On the other hand, globalization refers to the expansion of businesses into international markets thus increasing interactions among players in various markets around the world. Globalization caused a demand for BPM because of the need for improved efficiency, effectiveness, and stability of business processes. Businesses were in need of a strategy that could help them to compete effectively in international markets and remain relevant.
Globalization introduced a new dimension of doing business. One of the challenges of globalization is increased competition among businesses. As a result of the high competition that emanated from globalization, there was need for businesses to improve the efficiency and effectiveness of their processes and operations. This was necessary in order to create competitive advantage and enable them to compete effectively with similar businesses on international markets.
A core goal of BPM is to analyze the current situation of a business and try to design and implement a better one (Jeston &Nelis, 2010). On the other hand, globalization introduced the need for introduction of technology and innovation in business processes. In order to adapt to technological changes, businesses embraced BPM (Weske, 2012).
The international business world is volatile and ever changing. Therefore, it is imperative for businesses to strive for flexibility and innovation in order to stay relevant. Globalization led to emergence of new companies that were based on innovation and technological advancements. As a result, existing companies had to develop strategies to fight competition from startups and remain relevant. This necessitated the use of a strategy that could enable them achieve their goals hence the rising demand for BPM (Weske, 2012).
After embracing BPM, businesses used the concept to improve their performance, effectiveness, and efficiency thus enabling them to adjust to the ever-changing business environment (Jeston &Nelis, 2010). Another reason for the surge in demand for BPM was the need for a business model that could enable businesses to accommodate different business shifts. For example, China is gradually dominating the production sector of the global economy. This has introduced many challenges such as competition and margin squeezes.
One of the most challenging aspects of globalization is the high rate of technological advancement. This creates the need for the incorporation of technology into business operations. Horizontal BPM frameworks deal mainly with technology with regard to the development and improvement of business processes (Weske, 2012). In order to use technology to improve operations, business embraced BPM. Technology has several benefits to businesses.
For example, it facilitates interactions between a business and its customers in different parts of the world. Globalization created the need for businesses to find a way to expand their scope in order to reach customers in different parts of the world (Weske, 2012). Companies such as Walmart have managed to stay relevant in international markets because of the incorporation of technology into their operations, which was made possible through application of BPM. The demand for BPM surged because businesses needed to take advantage of new technologies in order to compete effectively and remain relevant (Weske, 2012).
References
Jeston, J., & Nelis J 2010, Business Process Management, Routledge, New York.
Weske, M 2012, Business Process Management: Concepts, Languages, Architectures, Springer, New York.