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Business process optimization is sometimes also known as business process improvement. The process is all about monitoring business processes and how these processes help in meeting objectives through the control and optimization of operations to strategically align them with the business objectives, besides ensuring proper allocation of resources, prioritization of work and selection of the best service providers for such services. Keep reading to get to know the various business process optimization techniques you can apply in your business.
1. Lean : This technique emerged from the manufacturing sector, specifically from Toyota. Nevertheless, lean technique is a combination of various process improvement methods developed by staff and leaders of Toyota in manufacturing. The logic behind lean strategy lies in the elimination of waste and particularly the elimination of activities that add neither value nor meaning since it does not contribute to customer value. Lean process is considered ideal if it offers seamless value to customers through a process with zero waste. How is this achieved? Well, this is usually accomplished through continued optimization of processes. Proponents of this method warn against its use as a short term means of eliminating waste, enhancing efficiency and getting rid of non value adding activities. They instead recommend its use as a transformational change which is continuous by nature. Even though it originated from manufacturing, it should go beyond this function to apply in all the areas of the organization.
2. Six Sigma : Just like lean, six sigma also originated from the manufacturing function, specifically from Motorola. It was developed as a means of improving the quality of products. This BPI technique strongly concentrates on measurement and statistical methods that could lead to extremely complex calculations. Six sigma actually means measurement of defects equivalent to a single defect in 3.4 million.
3. Customer experience management method : It is a method aimed at improving the existing business processes or even designing an entirely new business process to align the business with the customer needs. CEM method was developed by a group of people who were working together with Richard Branson (Virgin group) in the 1990’s. Since then, it has evolved as one of the most applicable and useful business process optimization techniques in recent years. It operates by focusing on every process on achieving a successful customer experience. Processes are actually designed from outside the organization and into the firm explaining why it is commonly termed as “outside-in.” Great customer alignment is usually achieved through constant assessment of the need for the existence of the various business processes.
Applying these BPO techniques might prove difficult for businesses especially when doing it for the first time. In this case, you may want to hire specialist compliance consultants to assist you in through the process.
Hi. I'm familiar with lean and six sigma, but not customer experience management method or CEM as you call it. CEM seems to be the optimal solution by looking at operations from the customers viewpoint and experience and then designing internal processes to optimize that experience. Interesting. Thanks for the article
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