Definition of Business Process Management
Simply put, BPM can be defined as software that is provided to assist the organization in managing its business processes from design and automation (computerization), then execution, to monitoring stage. These stages are known as life cycle process. Cycle when using the BPM process is as follows Modeller, Process idea, Process Portal, Process Monitoring.
Companies are using Business Process Management
The Reason Companies Use Business Process Management (BPM)
Pertamina use Business Process management because the purpose of the business process is to improve the effectiveness and efficiency of the company. And of course, lead to increased competition and ended competitor increasing a company’s business.
As the development of competition in the business world, every company should be quick to respond. Both to competitors and customers.
This is certainly going to impact the business processes that will be increasingly complex and resource consuming. And to make the business design process alone could take months. It is very inefficient. While customers can not wait.
Function of Business Process Management
Business Process Management (BPM) is an approach to improve the effectiveness and efficiency through the development of process automation and agility to manage change. BPM helps companies to monitor and control all elements of the business process, such as employees, customers, suppliers, and workflow. BPM to improve the quality of business processes by providing a better feedback mechanism. Review of continuous and real-time will assist the company in identifying the problem and then solve it more quickly before they escalate into larger.
Each Business Process Management solutions (BPM) has four main components:
Users can define and design the structure of any business process graphically. The process manager can design a process and all its elements, rules, sub-process, parallel processing, exception handling, error handling, and workflow with ease without the need to have special programming skills and without requiring assistance from IT staff.
• integration of
BPM can connect each element in the process so that these elements can collaborate and exchange information to accomplish the goal. At the application level, this can be interpreted as the use of Application Programming Interface (API) and messaging. For users, this means the availability of a workspace on a computer or wireless device to do the work in accordance with its role in a business process.
Users can monitor and control the performance of the ongoing business processes and performance of any personnel involved in the business process. Users can also obtain information about the process that is underway, and which has been completed, along with the data in it.
Users can analyze and monitor a business process, see the inefficiency, and also allows users to take action quickly and transform these processes to improve efficiency.
Definition Enterprise Resource Planning (ERP)
is an information system intended for both manufacturing and service companies that serve to integrate and automate the business processes related to aspects of the operation, production and distribution on a company. ERP is the development of the Manufacturing Resource Planning (MRP) which secaramoledular can handle the manufacturing process, logistics, distribution, inventory (inventory), shipments, invoices and accounting firms. So that the system can control the business activities such as sales, shipments, production, inventory management, quality of the management and human resources. ERP is often referred to as Back Office System indicating that customers and the general public is not involved in this system.
Companies that use Enterprise Resource Planning
• Pindo Deli
• Semen Gresik Tbk
The Reason Most Companies Use Enterprise Resource Planning (ERP)
The main reason that makes ERP system is very important in the success of the company’s business is the percentage increase in efficiency. Factors that led to increased efficiency with ERP system implementation is a complex business process, manually workmanship that will lead to ballooning budget and a relatively longer time could be as small as possible. The solutions offered by the company’s ERP system makes getting business process automation which of course will affect the speed of the process and increasing the company’s profits.
Seen from the side of employees, ERP systems to easily work as an employee will be relieved of the tasks that can be handled by the system so that it can be focused into a job that is more complex and requires a more personalized treatment. Not only will increase the productivity of workers, but also the company will be able to reduce the operating budget as well as overhead.
Function of Enterprise Resource Planning (ERP)
ERP functionality can be divided into several types according to the modular. ERP is divided into :
a. Financial Accounting is intended to provide continuous measurement of the company’s profits, measuring the financial performance of the company
b. CO-Controlling to support operations
c. Investment Management was aimed at analyzing term investment policy fixed assets of the company
d. Enterprise Controlling intended to provide access to the Enterprise Controller.
e. Treasury aimed to integrate the cash management and cash forecasting by logistic activities and financial transactions.
2. Operations (Distribution and Manufacturing)
Logistics Execution, Sales and Distribution, Materials Management, General Logistics, Quality Management, Plant Maintenance, Customer Service, Production Planning and Control, Project System, Environment Management.
3. Human Resource Function for
a. facilitate implementing effective management and timely to payroll, benefits and HR-related companies.
b. Protect your data from external personnel
c. System, builds the recruitment and development of human resources through management eficient career.