Development Of BPM Capabilities With Process Improvement -Sample

Question: Discuss about the Development Of BPM Capabilities With Process Improvement. Answer: Introduction The paper from the proceedings by Martin Lehnert, Alexander Linhart, and Maximilian Rglinger, focuses on the balancing the development of BPM capabilities with process improvement. The authors use their paper to look at a number of aspects including the introduction, the theoretical background and requirements, the decision model, evaluation, and the conclusion. The authors used the stated sections to organize their paper in order to bring out a clear understanding of ways that managers in organizations can balance the development of BPM capabilities while using process improvement. In essence, the current paper sought to review the paper with the aim to understand the business process management. Therefore, to bring out a better understanding of the paper, this paper will follow the given outline. The first part focuses on the research method and the findings. The second part commends on the problems or issues that Lehnert, Linhart Rglinger (2014) highlight in their paper. The third part is a discussion of the conclusion of the paper and its relevancy to business processmanagement. Research Method and findings Lehnert, et al (2014) applied a grounded theory approach through a decision model. This strategy is mostly important for researchers that seek to predict and explain a behavior. Hence, their emphasis was to consider an organization that operates through several business processes and the output from each of the processes, must provide value to customers of a company. For example, in order to support their decision model, they provided the general settings and the basic assumptions of the model. Second, they differentiated two project archetypes and associated effects. The third process involved integration of a project and the manner in which it effects into the objective function. The general settings and basic assumptions were based on an organization that operates through multiple processes. Every single process must ensure that it provides value to a customer (Yousfi, Saidi Dey, 2016). Furthermore, the demand for the output achieved from every single process must ensure that it depends on both time and quality but not on the price. Furthermore, the assumption of such an organization is one that aims to achieve an optimal BPM roadmap. For instance, the roadmap must be able to make a higher contribution. Consequently, the selection of an optimal roadmap must depend on the relevant planning horizon for already predefined project candidates. This then explains the type of a project candidate to implement and in which order. Lehnert, et al (2014) differentiate process-level and BPM-level project archetypes. This makes it possible to deviate away from numerous projects likely to arise from a real-world environment. According to the authors, is that process-level projects play a key role in the development of operational capabilities in organization. They improve a given business process. While on the other hand, BPMlevel projects, target creation of BPM as specialized dynamic capability in order to show the capability to alter available processes. It is because of the effect toward the dynamic capability that the authors argue that BPM-level projects brings out two varying effects when it comes to operational capabilities of an organization. While on the other hand, Lehnert, et al (2014) considered process-level projects as businesses that have the capability to improve overall processes concerning operating outflows, quality, and time. Any business in this category is likely to increase its operational o utflows, reduce an average cycle time, and increase the overall quality through reduced frauds and errors. Hence, such organizations enhance their operational capabilities through improved simple processes. management The strengths of Lehnert, et al paper depends on how it gains support from Cao, Thompson Triche (2013) that focuses on a similar topic. Cao, et al illustrate that in terms BPM lifecycle stages, performance, improvement, control, and monitoring all play essential roles. They assist conduct assessment of how processes are performing and the effects to redesign new projects. For example, the study applied the Devils Quadrangle as the best framework that combines four dimensions of flexibility, quality, cost, and time. The author argues that in order to a company to improve one dimension, management must be willing to weaken the effect of at least one or two dimensions. This helps disclose trade-off that requires improvement. Two key requirements applied by Lehnert, et al (2014) in their paper involved the use of capability development and process performance measurement. Most specifically, capability development helped design the optimal BPM. They argue that every organization must dev elop projects that affect their operational capabilities. They can be in the form of processes that assist businesses develop their dynamic capability. While the second argument bases on the foundation that every company need to have projects likely to affect one process and others that affect several processes. While on the other hand, the paper relied on the BPM to examine projects found within BPM roadmap. Similar to the above arguments, the paper also developed to arguments. The first argument maintains that need to measure all performance processes based on performance dimensions. The second argument maintains organization can operate every dimension while using one or more performance indicators. The third aspect of the model as pointed out by the authors is the integration of the effects of the projects into the objective function. They did this in order to operationalize their objective function. For example, for every same period within the planning horizon, they determined operating outflows, investment outflows, time, and quality. This made it possible to come up with a function of four variables for both BPM-level and process-level projects. The authors discussed the characteristics against the requirements to assist them evaluate the decision model. Furthermore, they also created a prototype in order to demonstrate an example of a case study of a company that provides information technology services. However, they failed to provide their insights with the promise that they would do it in their future research. Nonetheless, the findings focuses on three process IT service companies. The first company operates as an incidentmanagement service that incorporates ticketing system. The operation involves consumers paying for a fixed service for every ticket. The authors identified the number of tickets as key drivers of operational outflows. The second type of a company operates on enterprise Resource Planning (ERP). Through the system, the customers pay for a fixed license fees in every three months. The system can only express quality service through timely delivery of services. The third service involves a backup service. In order to offer quality services, the company must ensure it provides a backup service periodically. The findings from analysis of all the scenarios (optimistic and pessimistic) shows that the net present value (NPV) for both optimal and BPM roadmaps are different from one another. For instance, the optimistic scenarios that had a long planning horizon achieve a 25% more than the NPV of a worst BPM roadmap. Such a findings integrates with the proposition that a group of projects and temporal interactions used through the sequence of implementation affects the output value. The strength in Lehnert, et al (2014) study also gains support from one of the recent study conducted by Gabryelczyk (2016) on project portfolio selection. In his paper for example, the author explain that PPP required selecting a portfolio from a number of proposals likely to satisfy the stated objectives in the most desirable manner in a way that can occur without necessarily exceeding limited resources or violating constraints. Ammar (2017) outlines that PPP process covers five steps; pre-screening, analysis of individual project, screening, selection of an optimal portfolio, and adjustment of a portfolio. Besides, Lehnert, et al acknowledges that while it might me challenging to consider an interaction among projects, it is important that management make reasonable PPS. The above background provided Lehnert, et al with the basis to formulate the requirement for selection of a project portfolio. Nonetheless, they made three key arguments when considering optimal BPM roadmaps. For example, the first argument requires consideration of those projects that affects BPM capabilities or processes in order to design appropriate corporate strategy. The second argument focuses on the premise that a roadmap must assist in evaluation of stand-alone project before selecting any project. While the third condition requires that management considers an interaction among the projects. In addition to the occurring differences within the planning horizon, the findings show similarities in optimal BMP roadmap implementation sequence within every scenario. Based on three scenarios, the first project covered projects 1, 2, and 3 in MBP-level projects. A similar argumentation is positive for a long planning horizon. In terms of the pessimistic case, projects 1 and 3 were also found to have caused some indirect effects. While on the other hand, the findings reveals that optimistic scenario yielded strong effect in terms of quality and operating outflows within the backup. Most importantly, customer demand for the backup service was found to be very sensitive in improvement of quality. These environments make it possible for a company to design and implement an economic perspective in order to carry out project 5 in two periods early enough than the pessimistic the case with worse effects. The study conducted by Lahajnar RoÃ… ¾anec (2016) supports above explanation conce rning BPM and process performance measurement. MBP relates to development of capabilities in every organization. Lahajnar RoÃ… ¾anec maintain that BPM builds two theories both dynamic capability and resource-based view. According to the latter, businesses use capabilities to form their abilities in a way that can make them perform a coordinated sets of responsibilities in order to achieve positive results. While when considered in terms of the former perspective, capabilities incorporate both dynamic and operational capabilities. As indicated in the fourth requirement, Lehnert, et al (2014) considered the contribution of BPM roadmap as supported by the value-based management. According to Mller, et al. (2016), is a substantiation and an extension to shareholder value that helps in maximization of a long-term and a company sustainable value. Every company must establish future cash flows. Just as Smith (2007) argues in his paper, is that implementation of a value-based management requires that management align all organizational activities and decisions. This therefore, shows that companies must quantify their values on the aggregate values as well as the contributions they make within their individual activities. Value-based management offers objective functions when it comes to making functions. For example, in a case of certain scenarios, management can then use NPV to make decisive decisions in order to determine the future cash flow. Besides, in decision makers experience neutral risks, they can as well u se NPV to still make decisions (Mendling, et al. 2017). While on the other hand, in case decisions makers become risk-averse, then decision makers can go ahead to rely on either risk-adjusted interest rates or certainty equivalent methods in order to evaluate decision alternatives. In overall, therefore, complying with value-based management would require that decision makers rely on incorporated time as a value of money, consider risks, and cash flows. Conclusion The purpose of this paper was to review of the article by Lehnert, et al (2014) to understand the method and their findings in light of understanding business process management. After reviewing the paper, it is apparent that Lehnert, et al applied grounded theory approach in order to model their decision model. Most importantly, the paper developed the requirements after reviewing a number of literature on development of capability, BPM, selection of a project portfolio, and value-based management. Besides, the paper gains its strength from the support of other articles that focuses on a similar topic of BPM. Irrespective of size and area of operation, it is evidence that BPM offer managers with the best opportunity to oversee performance of work within an organization to ensure that there is a consistent outcome while at the same time, try to work on available opportunities to improve performance. References Ammar, S 2017, 'Enterprise systems, business process management and UK-management accounting practices', Qualitative Research in Accounting Management, vol. 14, no. 3, pp. 230-281. Cao, Q, Thompson, MA, Triche, J 2013, 'Investigating the role of business processes and knowledge management systems on performance: A multi-case study approach', International Journal of Production Research, vol. 51, no. 18, pp. 5565-5575. Gabryelczyk, R 2016, 'Does Grade Level Matter for the Assessment of Business Process Management Maturity?', Our Economy (Nase Gospodarstvo), vol. 62, no. 2, pp. 3-11 Lahajnar, S, RoÃ… ¾anec, A 2016, 'the evaluation framework for business process management methodologies', Management: Journal of Contemporary Management Issues, vol. 21, no. 1, pp. 47-69. Lehnert, M., Linhart, A., Roglinger, M 2014. Chopping Down Trees vs. Sharpening the Axe Balancing the Development of BPM Capabilities with Process Improvement. In Israel, H, Business process management. Springer Mendling, J, Baesens, B, Bernstein, A, Fellmann, M 2017, 'Challenges of smart business process management: An introduction to the special issue', Decision Support Systems, vol. 100, pp. 1-5 Mller, O, Schmiedel, T, Gorbacheva, E, vom Brocke, J 2016, 'Towards a typology of business process management professionals: identifying patterns of competences through latent semantic analysis', Enterprise Information Systems, vol. 10, no. 1, pp. 50-80. Smith, RF 2007, Business Process Management and the Balanced Scorecard: Using Processes As Strategic Drivers, Wiley, Hoboken, N.J. Yousfi, A, Saidi, R, Dey, A 2016, 'Variability patterns for business processes in BPMN', Information Systems e-Business Management, vol. 14, no. 3, pp. 443-467