Business process management (BPM) is the discipline in which people use various methods to discover, model, analyze, measure, improve, optimize, and automate business processes. Any combination of methods used to manage a company’s business processes is BPM.Processes can be structured and repeatable or unstructured and variable. Though not required, enabling technologies are often used with BPM.
BPM Institute defined Business process management as:
…the definition, improvement, and management of a firm’s end-to-end enterprise business processes in order to achieve three outcomes crucial to a performance-based, customer-driven firm: 1) clarity on strategic direction, 2) alignment of the firm’s resources, and 3) increased discipline in daily operations.
The Business Process Repository (BPR) is the highest level for Business Process Management. From a SAP Solution Manager perspective, and in general terms, it should be consider the “single source of truth” for a company’s SAP systems.
The Business Process Hierarchy (BPH) is how the Business Process Repository is organized using a folder structure. A well-designed process hierarchy is critical to ensuring good process management, solution documentation, and accurate process models. The BPH folder structure allows for all relevant documents
The Business Process Hierarchy (BPH) in SAP Solution Manager 7.2 is usually view by either business process types, either end-to-end, or modular or by the Business Process Library. Process hierarchy is the foundation for a common understanding of the business processes operated by your organization. It follows the from-abstract-to-concrete principle and provides information about the processes at different levels of granularity.
- Modular processesare processes that typically do not exceed the functional domain of an organization, there is always one organization that has the responsibility for the entire process. These processes should be grouped by functional domains that correspond to organizational structures.
- Modular processesare a functional decomposition of business processes, represented by a hierarchical structure of folders and – on the lowest level – a process diagram showing process steps.
- End-to-end processesdo not stop at the boundaries of a process area or an organization, typical use cases of such process documentation from a business perspective is to understand the value creation process within the company. From IT perspective it can focus on integration or regression tests for a complete scenario, you can also use these processes for documentation or to discuss business requirements with the business users.
- End-to-end processes are usually complex because they involve a relatively high number of process steps and embed also modular processes if necessary, they also deliver high value and represent the most critical business scenarios a company has to fulfill.