The hottest interpretation of why BPM is favored b

2022-08-24
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Interpreting the BPM trend: why is it favored by enterprises

in recent years, with the growth and maturity of management software manufacturers, ERP, CRM, KM and other software terms have become familiar. Since the second half of 2003, sap and or can adjust the position of the crossbeam by rising and falling, and Hyperion, which was rarely heard in the past, has brought a new Three Character Classic BPM (Enterprise Performance Management) to China's management software market

speaking of BPM, it is necessary to mention a series of financial scandals such as Enron and WorldCom in the past two years. It is those scandals that led to the introduction of the Sarbanes Oxley enterprise law, which requires "enterprises to provide overall operating data faster and accurately. Senior executives of enterprises must be partially or fully responsible for the actions of the company, and they must know their performance immediately at the end of the financial year". It can be said that BPM is the biggest beneficiary after these scandals

although BPM has never really been hyped like other enterprise management software, more and more experts believe that the rise of large-scale application of BPM in enterprises is inevitable in the next one to two years

anatomy BPM

the definition of enterprise performance management (BPM) refers to the collection of various enterprise management software, business processes and business success measurement methods (such as scales and main operation indicators) within an enterprise, and the organic integration through the small system built on it, so that every member of the organization can better understand the operation objectives and implement the operation planning, which positively affects the optimization process of enterprise operation

as a new business solution, Hyperion believes that BPM is a solution that transforms strategy into planning and monitoring the implementation process, so as to gain insight and improve performance. In other words, BPM translates the enterprise strategy into executable language, decomposes the strategy into the daily work of employees, implements the corresponding action plan, effectively monitors the implementation process, assists the enterprise in properly optimizing the strategy, helps managers effectively and timely grasp the complete information of the enterprise, and ensures that the performance results of the enterprise and its subsystems are consistent with the strategic objectives of the enterprise, Let managers better control the enterprise and promote the realization of the strategic objectives of the enterprise. Enterprises have a long-standing demand for strategy implementation and enterprise performance management. It is precisely because of the powerful function of BPM to improve enterprise performance that its emergence has immediately been highly valued by the business community

when talking about the relationship between BPM and business process software such as ERP, CRM and SCM, which have become popular in recent years, caojianjing, the managing director of Hyperion China, said that there are obvious differences in the construction process and management methods between BPM and business process software such as ERP, but there are also organic links of complementation and interaction. First of all, although BPM is defined as a complete suite connecting multiple systems, it is generally implemented from one field. Usually, as the starting point of enterprise operation, budget planning is the easiest to become the basis and logical starting point of BPM implementation. In other words, the implementation of BPM can set clear goals from the beginning, so as to gradually detect whether the whole organization has achieved these goals. While other process oriented software is often the overall consultation first, then the process reorganization, and then the rigidity and optimization of the whole new business process. On the contrary, the enterprise operation objectives need to be set in the later steps. Secondly, at the beginning, BPM focused on the headquarters and senior managers of enterprises. Of course, in the case of enterprises that have successfully implemented BPM, we can see that everyone, every department and even cross department collaborative commerce in the organization use BPM to measure the achievement of operational goals. It can be said that the key to the successful implementation of BPM is to give priority to key points and widely adopt them

why BPM is favored

what is the reason why enterprises favor BPM

"in the final analysis, it is the real demand for the implementation of strategic implementation requirements within the enterprise, which makes BPM the hottest field in the field of management software", Godfrey Sullivan, President of Hyperion, said

the survey report of meta group, a famous market research and consulting organization, confirms Godfrey Sullivan's view. The survey report believes that although the Sarbanes Oxley enterprise law is an influencing factor for many enterprises to implement BPM (19% of enterprises choose this reason), it is definitely not an important reason for enterprises to implement bpm. This report analyzes the five driving forces for enterprises to implement BPM, including:

1, facilitating better designated decisions (76%)

2, improving the efficiency of planning and reporting (66%)

3, better resource allocation (58%)

4, improving enterprise transparency, strengthening management (44%)

5, improving the predictability of operating costs or revenues (34%)

? Caojianjing talked about the secret. Enterprise performance management transforms the strategy into executable language, decomposes the strategy into the daily work of employees, implements the corresponding action plan, effectively monitors the implementation process, and assists the enterprise to properly optimize the strategy. There are six links in the specific implementation, including setting goals, modeling and prediction, planning and budgeting, monitoring, analysis and evaluation, and reporting. The six links are linked, and the whole process of strategy implementation is comprehensively monitored by using a series of interrelated tools such as balanced scorecard, strategic map, key performance indicators, management cockpit, etc. Managers can view the efficiency and effect of strategy implementation such as finance, customers, internal processes and employees through the management cockpit, quickly analyze the weak links in management by using the strategy map, and find solutions to various problems according to the relationship in the strategy map. BPM mines the data hidden in ERP and other application systems in the past, and feeds it back to other decision-making and management links in a transparent way in real time, so that the implementation of enterprise strategy can be effectively controlled

someone jokingly said: with BPM, the process of strategic control is like playing a computer game. Although this statement is too ideal, BPM allows people with power to get information, and allows people with information to assume corresponding and enjoy corresponding power, which can indeed make the implementation of strategy more smooth and the enterprise report more transparent. No wonder foreign analysts always associate BPM with Section 404 of Sarbanes Oxley enterprise law! Because BPM brings hope for the strategic landing and effective monitoring of enterprises! According to the meta group's survey of American enterprises in October 2003, although many enterprises do not fully understand BPM and related solution providers, 85% of enterprises said they would implement BPM in the next 18 months. Meta group also investigated the reasons for the sudden rise of BPM, among which the three most important internal reasons are to optimize decision-making, provide the efficiency of financial planning and reporting, and allocate resources more effectively

when talking about the factors that affect the rise of BPM in China, Cao Jianjing pointed out that although there is no immediate impact of Sarbanes Oxley Enterprise Law on BPM in China, since China's accession to the WTO, the competitive pressure of domestic enterprises has been increasing, listed companies are facing more strict supervision, enterprises are facing increased strategic uncertainties, and they pay attention to strategic implementation Modern enterprise management culture that pays attention to performance appraisal is being popularized in more and more enterprises. The original management means based on basic operation management have been difficult to meet the needs of management for real-time control of enterprises. The emergence of BPM solves the problems of strategy implementation and performance appraisal

bpm is promoted by CFO

behind the upsurge of BPM implementation, we can also see a group role that rarely appears in the field of enterprise informatization ----- CFO (chief financial officer)

Cao Jianjing believes that convenient user operation applications are: "In today's rapidly changing environment, CFOs and financial managers must enable enterprises to quickly and flexibly understand business and adjust strategies in time to ensure the success of enterprises. In order to achieve the best performance and catch up with competitors, the key is to be able to transform the financial function of enterprises from bookkeepers to business partners, and implement and deploy world-class enterprise performance management systems. At present, the global business administration industry The consensus of the industry is that although many enterprises already have core accounting systems, they still expect to provide extended functions for users at the operational and strategic levels outside the financial department. These extended functions include that traditional biomedical materials have been difficult to meet clinical requirements: budget, planning, prediction, report consolidation, comprehensive scoring and business modeling. "

as early as August 1, 2002, CFO magazine of the United States published a survey result, saying that in the past five years, 1/6 CFOs in large American companies were forced to issue false financial reports under pressure from their superiors. The survey results also showed that 18% of the financial managers did not follow the general accounting standards (GAAP) when preparing the estimated accounts. Estimated accounts are traditionally used in acquisition activities. If the transaction is unsuccessful, it can facilitate financial analysis. Critics believe that since the 1990s, the concept of estimated accounts has been confused, and companies use it to cover up expenditures and exaggerate profits. In addition, 27% of the CFOs surveyed said that all liabilities were not reflected in the company's balance sheet. This survey not only added a footnote to a series of Wall Street financial fraud scandals, but also foreshadowed CFOs' enthusiasm to promote the implementation of BPM. Although the survey was conducted anonymously, CFO magazine still believes that the proportion of CFOs who have tried false accounting disclosure is still underestimated, and the actual number should be much higher than the survey results

in fact, domestic enterprises have also begun to see the trend of using CFOs to promote BPM implementation, Jin Xiang, manager of the Finance Department of Zhejiang electric power company, who has successfully implemented Hyperion BPM, pointed out: "On the basis of the increasing accumulation of system information, the powerful data collection and analysis ability of BPM platform provides strong help for the pre control and post analysis of budget. Based on this, the financial system can provide timely and accurate analysis reports for managers at all levels, and provide necessary data and system support for Managers to enhance their risk prevention awareness and decision-making and analysis ability." (end)

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