Business Process Management (BPM) - Meaning & Definition

Published in Information Technology & Systems by MBA Skool Team

What is Business Process Management (BPM)?

Business was previously considered as constituted of distinct elements of Process Modelling, Workflow, Simulation, EAI and finally business integration. However BPM is a holistic process of management of all these distinct units in a systematic manner through constant closed looping of all the feedbacks generated in order to deliver the desired value to the customer.


Business Process Management is the systematic approach to continuously improve the company’s business processes increase business effectiveness and efficiency while striving for innovation, flexibility and integration by alignment with strategic goals, operations and end-to-end processes that companies perform to create value for customers. BPM should not be confused with Business Process Reengineering which requires a complete redevelopment of processes in a company whereas BPM develops on existing processes and through constant feedback and refining results in better processes.


While practicing BPM, Business Process Initiative (BPI) methods can be employed for specific improvement. Hence, just the use of BPI methodologies does not mean that the organization is practicing BPM. The main steps followed in a BPM are illustrated in the following diagram:

After the Business Processes and strategy is laid out, the analysis yields various improvements in the existing processes and design of new process for betterment of the organization.

For example: BPM helps Customer Relationship Management personals to solve problems more efficiently as they are provided with most up to date information. The BPM solution integrates marketing, sales and support systems of the company and organizes and automates activities like new customer acquisition, service call management, complaint resolution, fraud assessment , credit approvals etc.


Hence, this concludes the definition of Business Process Management (BPM) along with its overview.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 1800 business concepts from 5 categories.

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