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Process Management

Acronyms and Terms used in Business System Engineering

Posted on October 27, 2022 by Sara Kremsar
1853 | 27 Oct 2022
Acronyms and Terms used in Business System Engineering

Professionals in the field of business system engineering need to be familiar with the acronyms and terms used in this discipline. By understanding these acronyms and terms, you can effectively communicate with other professionals, make informed decisions about business system design and implementation, and improve your overall effectiveness and success in the field. This article provides definitions and distinctions for common business process acronyms to prevent confusion when reading about topics related to Business Systems Engineering.


Through this article, we will take a closer look at some of the common acronyms and terms used in business systems engineering. From BPM and BPA to BPO and RPA, there are many acronyms that are commonly used in discussions and documentation related to business system engineering projects. Understanding these acronyms and terms can help you better understand business system engineering concepts and processes and communicate more effectively with other professionals in the field. 

What does »BPE« stand for?

a) Business Process Engineering (BPE) uses a proven systematic approach based on the latest experience and research to drive significant improvements. The BPE process helps organizations rethink and redefine the business processes needed to achieve the organization's strategic goals by making the best use of available technologies and organizational strategies. Depending on whether a redesign or improvement approach is used, BPE efforts can lead to performance improvements in targeted business processes.

b) Business Process Engine (BPE) software is a software framework that enables the implementation and maintenance of work processes. It enables interaction between business processes and communication between different data sources and processes that are distributed across one or more applications and IT services. BPE automates the integration processes and their activities in the information environment of the enterprise. BPE is a business process management solution component used to control the technical architecture, integration, linking, and processing of business processes.

What does »BPM« stand for?

a) Business Process Management (BPM) is a concept that focuses on coordinating all organizational elements to improve operational efficiency. The BPM strategy is divided into holistic management approaches that are used to develop business efficiency and lead organizations towards more innovative, flexible and technologically integrated systems. The main goal of business process management (BPM) is continuous process improvement. Theoretically, BPM enables organizations to be more efficient and successful, with greater capacity and development than those that follow functionally oriented, conventional, and hierarchical management processes.

b) Business Process Modeling (BPM) is a key aspect of business process management. Process modeling involves creating representations of current business processes so that they can be analyzed and improved. Business process modeling is a graphical representation of organizational processes, activities and tasks to identify potential improvements. It is an analytical representation of activities that help the organization achieve long-term goals. Organizations use modeling methods to review the current situation and establish baselines for further process improvement.

What does »BPMS« stand for?

a) Business Process Management Suite / System (BPMS) is a set of software components that are the building blocks of processes. BPMS integrates multiple workflows (either human or systems) within an organization in a coordinated manner. It provides the perspective and context of BPM assets to help organizations understand which process aspects need to be changed. BPMS is a tool for implementing management methods to improve an organization's business processes through identification, modeling, automation, analysis, and performance measurement. A key benefit of BPMS is that it enables its customers to actively participate in improving business processes using simple and intuitive tools.

b) Business Process Management Software (BPMS) helps define, automate, and report on processes to help organizations achieve their goals. These tools are designed to help organizations streamline their processes and workflows and improve the overall efficiency of day-to-day functions. Business process management software is an automation platform that enables the organization of processes across multiple information systems using BPM task management and communication tools. The overall goal of BPMS is to ensure that organizational processes are digital and efficient.

What does »BPA« stand for?

a) Business Process Analysis (BPA) is a methodology used to understand processes and improve their efficiency and business performance. It is a discipline for identifying business requirements and providing solutions to business problems so that organizations can achieve their goals. BPA tools and techniques help capture process information, understand the current state of the process, and define the future state through mapping and analysis techniques. Organizations need to conduct business process analysis before introducing new changes to their processes.

b) Business Process Automation (BPA) is the use of technology to perform repetitive tasks or processes in an organization where manual effort can be replaced. The purpose of automation is to reduce costs, increase efficiency, and streamline processes. BPA increases productivity by automating key business processes using computer technology. Business process automation (BPA) should not be confused with business process management (BPM), a broader discipline that deals with managing complex organizational processes using various methods.

What does »BPO« stand for?

a) Business Process Optimization (BPO) is a targeted renovation of processes to promote efficiency and to align individual processes more closely with overall strategy and goals. While optimizing a single process or individual processes in a particular department can deliver real business improvement. Organizations that extend their efforts across the entire enterprise can achieve a significant competitive advantage, better customer service (internally and externally), and much more efficient operations. With the help of qualitative and quantitative analysis, process optimization is essential in driving business value. Business process optimization is a strategy that helps companies achieve higher productivity by optimizing operations. It is a subset of business process management (BPM) and is based on the understanding that optimized business goals can be achieved through lean business processes.

b) Business Process Outsourcing (BPO) is a form of outsourcing in which an independent service provider is responsible for implementing one or more business functions within the company. BPO is a method of outsourcing various business-related tasks to third-party providers. Throughout the company, some processes are not part of the company's core business. Such processes are called support processes, and their goal, of course, is to support the company's operations. Through BPO, many companies can gradually and significantly improve both the productivity of their employees and the quality of their operations.

The six terms and acronyms described below refer to how organizations use cutting-edge technology to improve their processes and reduce the time spent on daily, repetitive tasks. All terms refer to slightly different parts of a broader discipline whose goal is to get daily business tasks done as efficiently as possible.

1. Robotic Process Automation (RPA) is a software technology for automation that mimics customer interaction with computer applications and operates primarily at the level of a graphical interface. Robotic Process Automation (RPA) is a technology that uses predefined business logic, fixed rules, and structured data to automate business processes. Software robots built on RPA can capture and interpret programs to process transactions, manipulate data, trigger responses, and communicate with other digital systems. The main goal of robotic process automation is to replace repetitive and tedious tasks performed by humans with virtual and robotic workers.

2. Digital process automation (Digital Process Automation - DPA) is a concept that describes the automation of an organization's procedures and processes using the software. DPA is a generic concept and does not define specific technologies, although it does give particular importance to certain aspects of automation and the technology that can be used. Digital automation of processes can be achieved using BPM and RPA technologies and integration of external company systems through APIs (Application Programming Interface) and web services. DPA is suitable for automating structured processes with pre-definable logic, while DCM covers unstructured processes with unspecified endings, such as claims, requests, complaints, investigations, etc. Neither DPA nor DCM covers all possible scenarios, so combining both is often necessary.

3. Dynamic Case Management (DCM) is almost entirely different from the above terms because it is a case management methodology. Cases this time are defined as processes that do not follow a specific sequence and are often complex, chaotic and have an undetermined end. These situations require exceptional actions and are usually poorly structured (incidents, complaints, claims, long-term projects involving multiple departments, investigations, etc.). DCM is, therefore, also used to refer to the computer programs that help manage these dynamic cases. Horizontal case management software solutions are hard to find. Depending on the industry, vertical tools are more common. Although the main characteristics of cases are their randomness and complex monitoring and prediction, many parts of the case can be decomposed into smaller processes, as there are always sequences of actions that are prone to repetition.

4. Business Activity Monitoring (BAM) is a collection of tools that enable the management of associations, alerts and profiles to monitor relevant business metrics, called key performance indicators (KPIs). It provides insight into business processes and provides accurate information on the status and results of various operations, processes and transactions so that companies can address problem areas and resolve issues within their business. BAM uses automated processes, operational business intelligence and application integration technologies to continuously improve them based on feedback that comes directly from knowledge of operational events. Business Activity Monitoring (BAM) describes processes and technologies that increase situational awareness and enable an analysis of critical business performance indicators based on real-time data. BAM is used to improve the speed and efficiency of the business by tracking what is happening and quickly seeing problems. An important aspect of BAM systems is adding context to an event, which helps to understand why an exceptional event occurs and thus provides insight into how to respond to a particular alert.

5. Business Process Modeling Notation (BPMN 2.0) is a standardized graphical notation used worldwide for modeling business processes. It is open source, meaning the source code is available to anyone and can be modified before use. BPMN is a human-readable language that describes the structure and elements of a business process. As a data science, the process modeling protocol includes about 40 different elements with rules for their use. Creating a flowchart-like model with this language allows an organization to capture, analyze, understand, automate, and even optimize its processes. It is a technical map of an organization's processes and practices, represented in a standardized language, available to customers for improvement, sharing and tracking. It is designed to visualize rich process flow semantics within a process and communication between independent processes. BPMN 2.0 (Business Process Notation) is the current standard for specifying an organization's business processes. The Business Process Modeling and Documenting Standard 2.0 provides a way to represent business processes and translate them into process-based applications graphically. It is a popular and intuitive graphic that can be easily understood by all stakeholders, including business users, business analysts, software developers, and data architects.

6. Event-driven Process Chain (EPC) is a modeling language used to describe business processes, workflows, and the flow of processes. EPC is central to modeling with ARIS, which supports modeling EPCs with the Smart Modeling feature. Event-driven process chains are often used at the lowest level of the process hierarchy and can be used to plan resources and identify potential improvements to business processes.


By being familiar with these acronyms and terms, you can open up new career opportunities for yourself, such as taking on more challenging projects or moving into leadership roles within your organization. And by using these acronyms and terms effectively, you can design and implement business systems that improve the customer experience and increase customer satisfaction. Overall, having a good understanding of the acronyms and terms used in business system engineering can provide many benefits that can help you to be more effective and successful in your work.


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