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on the restrategizing of all relevant business process at all levels. This can
result in the modification or deletion of the process or creation of a new one.
22.2.2 Business Process Management (BPM)
Business Process Management (BPM) addresses the following two impor-
tant issues for an enterprise:
1. The strategic long-term positioning of the business with respect to the
current and envisaged customers, which will ensure that the enter-
prise would be competitively and financially successful, locally and
globally
2. The enterprise's capability/capacity that is the totality of all the internal
processes that dynamically realize this positioning of the business
Traditionally, positioning has been considered as an independent set of
functional tasks split within the marketing, finance, and strategic plan-
ning functions. Similarly, capability/capacity has usually been considered
the preserve of the individual operational departments that may have
mutually conflicting priorities and measures of performances (see book
“Implementing SAP CRM”, Chapter 2, Section “CRM System Reflects and
Mimics the Integrated Nature of an Enterprise”).
The problem for many enterprises lies in the fact that there is a funda-
mental flaw in the organizational structure—organizational structures are
hierarchical , while the transactions and workflows that deliver the solutions
(i.e., products and services) to the customers are horizontal . Quite simply, the
structure determines who the customer really is. The traditional manage-
ment structures condition managers to put functional needs above those
of the multifunctional processes to which their functions contribute. This
results in
• Various departments competing for resources
• Collective failure in meeting or exceeding the customers' expectations
• Inability to coordinate and collaborate on multifunctional customer-
centric processes that would truly provide the competitive differen-
tiation in future markets
The traditional mass marketing type of organization works well for
researching market opportunities, planning the offering, and schedul-
ing all of the steps required to produce and distribute the offering to the
marketplace (where it is selected or rejected by the customer). It takes a
very different kind of organization, namely, the customized marketing
type organization to build long-term relationships with customers so that
they call such organizations first when they have a need because they trust
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