Business Process Management (BPM)
Abstract
The motive of this research will instigate the construct of a business strategy identified as Business Process Management (BPM). This strategy will then be recognized as the best practice management approach with the potential to aid businesses onwards maintaining and retaining a sustainable competitive advantage. Progressively, BPM will be championed by the motive of this research as a continual innovation responsible for meeting the demands of customers and opening the path for sustainable competitive advantage. In that, BPM will be instituted as a widely accepted management concept in both the manufacturing and service sectors. Point in case, the competitive advantage will be heightened as the power that elevates the organization above its competitors, resulting in long-term impact capable of sustaining the business’s survival. Therefore, the command of necessitating an inherent and seamless symbiotic interaction between an organization’s strategy and the intended sustainable competitive advantage will be explored by this construct of this paper.
Keywords
- Sustainable competitive advantage Dynamic capability theory
- Business process management Symbiotic interaction
- Organization’s strategy
Introduction
Why Is the Topic of Interest to Theory and Practice?
The corporate operational strategies towards the current business environment have attracted attention and the relevance of sustainable competitive advantage. Toha and Khan (2020) illustrated that the adoption of effective strategies is hardly a contributing factor, but a significant source of attracting and maintaining a successful and sustainable business operation. Nonetheless, making use of business strategies to obtain a competitive edge is contingent on effectuating the ability to effectively respond to the ever-increasing concerns of today’s corporate environment. In that, the current managerial model ought to be agile, integrative, and adaptable in respect of ensuring sustainability and improving the standard of business performance
The need for the managerial models to be innovative is deemed practical whilst considering the pivotal goal of businesses seeking competitive advantage. The competitive advantage is the force that holds the organization above other competitors, whence granting sustainable influence capable of maintaining the existence of the business for an extensive period of time. As a result, it encompasses an all-inclusive prospect of sustainable competitive advantage. Therefore, the command of necessitating an inherent and seamless symbiotic interaction between an organization’s operations and the intended sustainable competitive advantage can be heightened through Business Process re-engineering (BPR). The primary principle of business process re-engineering is to establish reforms for a business firm in order to prioritize the increase of comprehensive performance and sustainability, with a significant concentration on IT and a core focus on “breakthrough.”
Theoretically, researchers advised that TQM should accompany BPR to guarantee that any drastic external or internal elements that might inflict limitation to the organization will be fixed with an appropriate response, hence sustaining the venture during that particular encounter and after that negative occurrence (Lioliou & Willcocks, 2019). Additionally, in spite of the fact that BPM and QTR have been around for almost two decades, several studies have been conceptual; as a result of this, the indicated managerial systems are somewhat viewed as theoretical.
Brief Note Of The Current State Of The Literature, What Has Been Studied This Far?
The current literature presented by Nadarajah and Kadir (2021) championed BPM as a continual innovation responsible for meeting the demands of customers and opening the path for sustainable competitive advantage. BPM institute a widely accepted management concept in both the manufacturing and service sectors. Nadarajah and Kadir (2021) examined the phenomena of BPM extensively, resulting in many practitioners being interested in its exploration.
Systems theory, resource-based ideology of business, and market-based iseology of competitive advantage are all examples of literary assessments, thus presenting BPM as an organizational performance (Reed et al. 2000). It is discovered that tastiness and intricacy combined with leadership, education, commitment, culture, work departments, and training create organizational performance, proving that BPM has an influence on sustainable competitive advantage.
Furthermore, a 2016 research explored stakeholders’ perceptions of the link between corporate governance (BPM) and corporate sustainability, concluding that sustainability is critical for improved corporate performance in today’s highly competitive business environment. Before tying CG to sustainability, the study paper defines stakeholders as those groups of people who are likely to be impacted and affected by organizational operations and the attainment of business goals. The impact of corporate governance on sustainability is a crucial issue for shareholders because corporate governance protects all stakeholders’ rights by increasing financial and strategic performance, which in turn positively impacts stakeholders by satisfying their needs. The fundamental notion conveyed in this research study is that internal business stakeholders, such as workers, suppliers, investors, and management, believe that unambiguous sustainability and governance harmonization may boost corporate worth.
Businesses may achieve their corporate responsibility objectives with the help of sustainable management that addresses the concerns of manufacturers and other related stakeholders by allowing the company to assume a position as highly adaptive and responsive to economic, environmental, and social well-being in order to serve the community. Effective governance promotes long-term viability, which benefits consumers and serves the interests of internal business stakeholders (Jaimes-Valdez & Jacobo-Hernandez, 2021).
What Are The Drawbacks? (Any Inconsistencies in the Study, a Lack of Conceptual Clarity)
The research of BPM and organizational sustainability competitive advantage reveals that there is a natural link between the two. BPM-enabled businesses achieve greater degrees of sustainability than non-enabled businesses, according to the deduced study of Sohail and Hong (2004). However, according to another study, the causal link between BPM and organizational performance could not be clearly established. Attentively, the emergence of BPR has been suggested as a result of the mixed outcomes of TQM and the necessity for organizations to show short-term benefits on their sustainable activities. Therefore, inconsistency is heightened apt to the following; BPR and TQM as two independent projects were sighted not to be independent; in virtue of the researchers noting the aforementioned operational strategies located within the boundaries of sustainable competitive advantage ought to be executed simultaneously. Researchers that studied these phenomena came to the conclusion that BPR and TQM are mutually beneficial and can be effective. Consequentially, business process re-engineering as a paradigm is challenging to grasp and is frequently connected with retrenchment and computerization.
Additional findings, which has suggested that sustainable expenditures are becoming a frequent phenomenon in modern organizations and that sustainability is being leveraged as a strategic asses for competitive advantage by numerous firms, can be combined to refute the previous contradicting findings. The study included a sample of 497 manufacturing enterprises in Indonesia, which were studied using the linear analysis approach and their infinitives were connected to both monetary and non-monetary performance. Stakeholders consider this tactical decision to be lucrative, and it is thought that there is a strong connection between sustainability and profitability where the sustainability is substantially conditional on on the committee’s experience and the efficacy of corporate management (Honggowati, 2017).
The Specific Focus of the Topic- Provides A Title and A Research Problem.
The specific focus of this contextual study is to examine BPM dynamic capacity in accordance with the phenomena of sustainable competitive advantage. The dynamic capacity theory was postulated to be developed in the context of this research to assess the influence of BPM on long-term competitive advantage. BPM is viewed as the resurgence of optimization initiatives that do not rely on a single strategy because it provides an assortment of improvement tools for organizations, supporting them in preventing management fads.
The goal of BPM is to connect commercial processes with organizational strategic goals and clients’ demands, with the overarching goal of moving from an operational to a procedural perspective. Process improvement that is structured, customer-centric, cross-functional, and analytical is embodied as the primary strands of BPM. BPM comprises essential areas, including issue solving, performance management, and continuous enhancement, according to the article.
There are a number of essential BPR actions that must be carried out (Wulandari, 2019). First, the company’s activities must be specified in considerations of a formal set of business processes. This necessitates the creation of cross-functional business procedures. The next step is to analyze and assess the recorded business processes in order to find areas where changes can be made and then inspect the business procedures to assure compliance and practical application. Finally, keeping track of business process performance versus objectives is critical for maintaining control over process efficiency.
“Description of the Proposed Literature Review
BPR was aggressively promoted for more than 20 years with the aim of completing necessary adjustments in order to fulfill customer demands, laying the road for customer happiness. BPR evolved into a management concept that was extensively embraced by both the industrial and service sectors. BPR has been associated with the capacity to explicitly or implicitly boost an organization’s bottom line as it was considered as a facilitator of customer happiness. These two phenomena have been extensively investigated by scholars and are of specific importance to many professionals, leading to a substantial body of information on the issue.
The economic value of a product advantage, the property theory of the corporation, and systems psychology have all been used to examine the impact of BPR on organizational research. Leadership and devotion, training and certification, groups and customs, invisibility and complexity were identified to create firm productivity, validating the premise that BPR impacts organizational performance. Additionally, procedure and personnel orientation are seen as critical in the correct planning and effective execution of BPR, resulting in higher levels of firm success. Furthermore, process and people knowledge are seen as critical in guaranteeing optimal design and successful implementation, resulting in higher levels of operational productivity.
BPR and company culture are closely connected, according to research. And according to some studies, firms that implement BPR outperformed those that do not. Per another study, the causal relationship between BPR and business outcomes cannot be fully established. The inconsistency of TQM outcomes and the need for enterprises to demonstrate relatively short results on their projects have been identified as causes for the creation of BPR.
In principle, the variation betwixt BPR and TQM could not be simpler, but, in a practical sense, the distinction is far from evident. As per survey results, practitioners found just one example of TQM and BPR, whereas experts identified ten. Furthermore, the primary distinction between BPR and TQM is that TQM pays great attention on effectiveness, whilst BPR emphasizes on efficacy. As a result, Burdett (1994) suggests combining the two as a way of augmenting and decreasing the flaws of each technique. Among the fundamental contrasts between TQM and BPR, as per Choi and Chan (1997), is that BPR concentrates on a breakthrough for spectacular enhancements, whereas TQM promotes continual, progressive development. TQM and BPR, on the other hand, are both preoccupied with increasing efficiency (Choi and Chan, 1997).
Synthesis of existing literature
Business Process re-engineering (BPR)
The degree of process improvement has been used to analyze the quantity of BPM in businesses over time. Procedure businesses must have end-to-end project management concepts and the determination to implement them review and manage process outputs that focus on consumer goals rather than functional goals. When he intertie the concept of quality management roughly 25 years ago, Michael Porter emphasized the need for compatibility across consumer interaction points. With the Deming Flow Chart, W.E. Deming expanded on the notion of strategic planning. When multiple divisions are involved in a process, a system approach is vital for businesses because it allows them to break down functional or departmental boundaries, improve employee interactions, and decrease waste (Severe).
The platform approach allows organizations to function as a unified unit, which improves productivity in meeting customer requirements. Process analysis is cross-functional and unavoidable, focusing on business processes, professions and structures, control systems, and, eventually, attitudes and values. Initiatives to enhance processes firms utilize methods and tactics to correct flaws in their real quality while maintaining their competitive advantage. Organizational improvement initiatives include TQM, BPR, and comparison. To optimize supply, process monitoring, and upkeep, the nature of an application usually needs simplicity, refinement, re-engineering, or restructuring.
These four characteristics are a component of their specific skill. The capacity to employ the SWOT elements of power, vulnerability, possibility, and threat are characterized as value. Rarity refers to a company’s ability to differentiate itself from its competitors. The capacity to produce value that rivals find difficult to copy is referred to as incomparable value. The issue might be the result of a large upfront investment, difficulty, or a lack of understanding. Finally, no modifiability occurs when competitors are unable to replace skill with another resource of comparable value. Rivals who learn about a vendor’s expertise may attempt to mimic it. Competitors who learn about a competitor’s expertise may attempt to mimic it.
In today’s extremely dynamic and competitive business environment, a corporation’s competitive success is just as important as its strategic and financial performance. According to Dhirendra Kumar’s book, there is a positive relationship between efficient corporate governance (BPR) and a firm’s sustainability stance, and this relationship gives enterprises a competitive edge, especially if they operate in environmentally aware industries. It has been said in this book that stakeholders believe that sustainability is a competitive advantage that can be achieved via the appropriate application of corporate governance. Enterprise is another essential subject discussed in this book. Excellence philosophy is defined as a holistic strategy that may lead a business to maximal excellence while also assisting in the attainment of sustainable growth and, as a result, increased profitability and revenues. Sustainability is defined as a competitive advantage gained by effective BPR that shortens the business cycle time, lowers corporate risks, focuses on the requirements and wishes of corporate customers, manages vulnerabilities strategically, and focuses on satisfying customer needs. The book discusses many of the modern business landscape’s challenges and opportunities, revealing that competitive pressures are increasing with each passing year, and it’s becoming increasingly difficult to keep up with industry trends and competitive moves as competitive advantages become more easily imitated. However, with a durable position, a company might gain an incomparable competitive advantage that can serve as a source of distinction (Kumar, 2016).
According to another book, not only shareholders but also workers, customers, investors, suppliers, and a variety of other stakeholders are likely to be impacted by a company’s competitive edge. It has been communicated that stakeholders are likely to believe that a company that develops sustainability as a competitive advantage will expand in the twenty-first century and that this competitive advantage is based on governance knowledge. Another intriguing and important concept has been shared: competitive advantage in the present day is based on strategic corporate social responsibility management and consideration of a business’s social and environmental implications. It is stated that the competitive advantage is derived from the implementation of social techniques and that the effective and successful action plan is highly reliant on corporate governance, which is comprised of guidelines, laws, processes, and mechanisms that cumulatively maintain a business adaptive and affiliated with societal expectations (Gajavelli, 2017).
Proposed Methodology
BPM may be linked back to total quality management (TQM) and restructuring, and it has grown in prominence as a tool for controlling company difficulties. Previous BPM research was mostly conceptual, with few case studies to back up theory development. The concept of BPR and its implications for strategy implementation was aggressively promoted with the purpose of making the necessary changes to fulfill consumer expectations, thereby paving the road for customer happiness. BPR evolved into a strategic concept that was extensively embraced by the industrial and service sectors alike.
BPR has been linked with the capacity to directly or indirectly boost an organization’s bottom line as a promoter of customer delight. Scholars have done a lot of study on these two instances. As a promoter of customer pleasure, BPR has been related to the ability to directly or indirectly increase an institution’s bottom line. Scholars have intensively examined these two occurrences, which are of great interest to many experts, resulting in a considerable amount of information on the subject. The impact of BPR on organizational performance has been investigated utilizing market-based competitiveness theory, company-based resource theory, and organizational theory. It was observed that management and devotion, skill training, groups, and culture intersected with intangibility and complexity to generate firm productivity, indicating that BPR affects company production.
Furthermore, system and people awareness are seen as critical in guaranteeing appropriate planning and efficient process management, resulting in higher levels of organizational productivity. In his work, Nair (2006) did a meta-analysis on the relative efficacy of applying BPR practices while also looking at the relationship between BPR practices and organizational performance. Surprisingly, his studies provided some understanding of the plethora of possible mediators between BPR and organizational success (Nair, 2006).
The Expected Contribution
BPR operations that incorporate strategy, increased efficiency, and information technology. TQM and business outcomes are closely connected, according to research. According to several studies, firms that implement BPR outperform those that do not. According to another study, however, the causal relationship between BPR and business outcomes cannot be fully established (Fuentes-Fuentes et al. 2004). The inconsistency of BPR results, as well as the need for firms to demonstrate short-term returns on their improvement efforts, have been identified as causes for the rise of BPR.
A study of a corporation’s annual reports found that BPR was successful in influencing organizational performance (Altinkemer et al.1998). Furthermore, BPR is a massive process that involves more than simply economic, IT, or individual efforts. A solid strategic planning method considers both analysis and intuition when making decisions. A review of the literature proves that organizations associated with knowledge leadership and market intelligence may combine analysis and intuition into their corporate objectives. Because of effective knowledge governance and competitive intelligence systems, a corporation has comprehensive access to knowledge and intelligence about its internal and external surroundings.
The synergistic and distinct application of information and intelligence gathered through knowledge management, and competitive intelligence can help in updating or formulating mission statements. For example, the right combination of performance management and market intelligence may help a firm determine which clients (a component of the vision and mission) it can service throughout the strategic management process. A company’s competitive intelligence can help it forecast new markets and customers when possibilities materialize
Conclusion
Only empirical testing can confirm the impact of BPM on SCA, which is based on dynamic capability theory. As a result, research targeting Malaysia’s top 1,000 enterprises has been conducted to assess the influence of BPM on SCA. The project is well underway, with data collecting and analysis nearing conclusion. The results will be recorded and reported. The importance of this study’s findings may be regarded from both a researcher and a practitioner’s standpoint. The apparent absence of a theoretical foundation to support the epistemology of BPM may be addressed from the researchers’ viewpoint, while from the practitioners’ perspective, this study will raise the current level of awareness and importance associated with successful process management. This would make it easier for practitioners to justify allocating money to enhance their organizational procedures, management, and overall success. Organizations would be better equipped to deal with the market’s turbulent, uncertainties, and dynamic environment in the long run. BPR assists in the improvement of organizational performance, using process management rather than re-engineering as the ultimate aim (Lok et al., 2005; Perrin, 1995). Small, steady fluctuations are the focus of entire system management.”
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