In order to capitalize on the growing market opportunities and mitigate potential risks, businesses need to follow the rule of thumb – ‘Sound business processes are the backbone of a business’. This looks like a simple rule, but when brought into practice turns out to be a rather abstruse proposition owing to the fact that the very definition of a ‘sound business process’ keeps changing continuously. Change is the order of the day, and only processes that adapt and respond quickly to changing market requirements, deliver sustainable business advantages. This ability of a business to identify change and to respond quickly to it is termed as business agility.
Now that we understand the basic meaning of business agility, the challenge before us is to understand not only how to achieve the threshold business agility to rise above competition, but also how to maintain that competitive edge. The solution is obvious – incorporate business agility into the very nature of your business processes.
Dynamic processes, capable of reacting and adapting to an ever-changing business environment, can be achieved by underpinning business processes with an efficient Business Process Management (BPM) platform. BPM is essentially a strategic management discipline aimed at continuously improving processes spanning business functions, bringing about the much needed visibility, and agility to facilitate business innovation. Further, the Business Activity Monitoring (BAM) component of BPM enables better control over process output and extensive process performance reporting. To sum up, BPM combines technology with strategic management practices to address changes in real time with minimal IT efforts and thus drives business agility.