BUSINESS PROCESS MANAGEMENT IN E-COMMERCE SYSTEM: ADVANTAGES, PROBLEMS OF APPLICATION, IMPLEMENTATION FAILURES

ABSTRACT

This article to the issues of business process management in e-commerce system is devoted. The questions of advantages of BPM systems implementation, problems of their application and errors of implementation in enterprises are considered. As well as suggested ways of solving possible problems.

АННОТАЦИЯ

Данная статья посвящена вопросам управления бизнес-процессов в системе электронной коммерции. Рассмотрены вопросы преимущества внедрения BPM систем, проблемы их применения и ошибки внедрения на предприятиях. А так же предложены пути решения возможных проблем.

Keywords: automated business process management systems, business process, e-commerce, optimization, visibility, systematic, management.

Ключевые слова: автоматизированные системы управления бизнес- процессов, бизнес-процесс, электронная коммерция, оптимизация, прозрачность, системность, управление.

E-commerce business process management is a key aspect of successful operations in today's digital world. However, there are a number of challenges that companies face when managing their business processes in this area. Non-transparency of business processes is a problem for many organizations. The larger the organization, the more business processes it has and the more difficult it is to understand them. It is difficult to measure the results of a single business process, it is difficult to determine the cause (or causes) of its failure. All this leads to the fact that it becomes difficult to make effective management decisions in time. Bottlenecks appear, the costs of changing current and implementing new business processes due to changes in the external environment of the organization grow. Communication failures of employees within departments and departments of the organization among themselves begin to become regular and are accompanied not only by loss of information, duplication of functions, unnecessary costs, but also by loss of quality of products/services of the company, and this can lead to loss of customers! Business Process Management (BPM), an actively developing approach to business management, can help to solve these problems.

E-commerce business process management plays a key role in making an online business run efficiently. Here are some benefits, application challenges and pitfalls of implementing business process management in e-commerce system. The main benefits of BPM implementation are:

1. The ability to edit processes in real time, which allows for instant management actions on business processes.
2. The ability to see what processes are being performed, what status they are in and, based on this, to assess the situation in the company and take the necessary actions.
3. Automation of key decision making. Based on business rules embedded in the system, BPMS "prompts" the right decision in various situations. The final decision is made, of course, by a human, not by the system, but the system acts as an important "advisor" in decision-making.
4. Reduction of internal and overhead costs, maintenance costs and operating expenses through timely detection and elimination of problems, optimization of bottlenecks.
5. Increased productivity of business processes by improving their operation, adjusting to changes in the environment. Reduction of the production cycle due to operational coordination of work.
6. Improved customer service by establishing internal and external coordination.
7. Optimization of supply processes, improvement of relations with partners.
8. Improved forecasting accuracy. BPM allows you to make forecasts and take prompt action before a negative forecast materializes.
9. Increasing flexibility of processes, responsiveness to new business requirements. The main success criteria of BPM projects should be considered as a confirmed business result. This business result can be: reduction of total management costs, increase in output per employee, reduction of manager's time costs, reduction of internal and overhead costs, reduction of operating costs, increase in productivity of business processes, reduction of production cycle, improvement of customer service quality, reduction of time of process re-engineering for new business requirements, etc.

There are failures of BPM application in practice. Let's consider the main ones. One of the main failures is inventory management. Insufficient or excessive availability of goods can lead to loss of customers and losses for the company. Effective inventory management requires constant demand monitoring, data analysis and process optimization.

Shipping costs and efficiency also play an important role in e-commerce. High shipping costs can deter customers, and inefficient processes can lead to delays and customer dissatisfaction.

Order accuracy is another challenge companies face in e-commerce. Errors in order processing can lead to a negative customer experience and loss of brand trust.

Servicing during peak season is also a challenge for companies. Managing a high volume of orders and requests requires well-established processes and staff flexibility. Returns management is another aspect that you need to consider when managing your e-commerce business processes. It is necessary to have clear policies and procedures for handling returns to minimize losses and ensure customer satisfaction.

Scalability is another challenge companies face in e-commerce. Rapid business growth can put pressure on current processes and systems, requiring them to be updated and modernized.

Customer expectations also play an important role in e-commerce. Customers are increasingly demanding quality of service, speed of delivery and convenience of purchase, which poses new challenges for companies.

International shipping and regulations can also pose challenges for e-commerce companies. Differences in legislation and customs regulations can slow down the delivery process and increase logistics costs.

Inventory forecasting is another aspect to consider when managing e-commerce business processes. Insufficient demand forecasting can lead to overstocking or shortages of goods, which will affect the company's profitability.

Finally, stability is a key aspect of successful e-commerce business process management. Unforeseen failures in systems or processes can lead to loss of customers and damage to a company's reputation.

There are also failures of a technical kind, such as:

1. Insufficient automation: some business processes may be poorly automated, which slows down task completion.
2. Lack of integration: different systems may not be well integrated with each other, creating problems with data and information transfer.
3. Inadequate staff support: inadequate training and education of staff can lead to ineffective use of the business process management system.

The main mistakes of BPM implementation in organizations are:

1. BPM implementation realized as a single project. Management cannot be limited in time and resources, it is realized by a continuous PDCA cycle, so a series of projects is required to establish management.
2. Perception of BPM exclusively as a software tool. Without changes in the management methodology, BPMS implementation cannot bring positive results. To build an effective process management system, BPM implementation should be directly related to the strategic level of company management. The result of BPM implementation should not be presented to the business at the end of the implementation, but the whole implementation should be realized together with it. For this purpose, a spiral (incremental) model of BPM implementation should be used. This model easily accommodates the need to implement a series of projects for BPM implementation.
3. Perception of BPM as a software replicable tool that is easy to "turnkey". BPM is linked to an organization's working style, its strategic goals, and it is impossible to buy it off-the-shelf.
4. Untrained employees, lack of BPM culture.
5. Unreasonable change of business processes, introduction of unnecessary branching and exceptional situations. Some business processes do not have time to adjust to other business processes, which causes inconsistency of the system as a whole. To avoid this, it is important to define the business rules by which some business processes should interact with other business processes, departments among themselves, define interaction with partners and customers.
6. The tendency of some companies to first describe all business processes in detail and then start improving them. This approach takes a lot of time. It is better to describe the most business-critical processes, then improve them and so gradually move from the most critical business processes to non-critical business processes.
7. Insufficient needs analysis: failure to understand the requirements and needs of the business can lead to the wrong choice of a business process management system.
8. Lack of planning: lack of a clear plan for system implementation can lead to delays and unsuccessful results.
9. Poor vendor selection: choosing the wrong business process management system vendor can lead to support and maintenance problems.

To address the major pitfalls of BPM implementation in an organization, the following approach is proposed:

1. Planning and implementation of a series of projects: Business Process Management should be implemented as a continuous process, not as a separate project. It is necessary to develop a long-term strategy for BPM implementation and implement it step by step.
2. Integration of BPM with management methodology: BPM should be perceived as part of the company's management strategy and not just as a software tool. It is important to ensure that BPM interacts with the key strategic goals of the organization.
3. Individual approach to BPM implementation: it is necessary to take into account the specifics of the organization's work and customize the process management system for the company's specific needs.
4. Training and development of BPM-culture: it is necessary to train employees to work with the business process management system and create an atmosphere in the organization that promotes continuous improvement of processes.
5. Meaningful business process change: before implementation, analyze and define key business rules to avoid unnecessary branching and inconsistencies in the system.
6. Gradual improvement of business processes: start by optimizing the most business-critical processes, gradually extending improvements to other processes.
7. Needs analysis and planning: a thorough analysis of business requirements should be conducted before selecting a business process management system and developing an implementation plan.
8. Systematic planning: developing a clear plan for implementing a business process management system will help to avoid delays and unsuccessful results.
9. Careful vendor selection: before selecting a business process management system vendor, it is necessary to analyze the market and consider the company's needs. Compliance with these recommendations will help to minimize risks when implementing BPM and ensure successful functioning of the business process management system in the organization. In general, proper implementation and effective use of the business process management system in an e-commerce system can significantly improve the competitiveness and performance of an online business. BPM is a complex field of knowledge that includes many interrelated elements. The interrelated set of core elements that make up the BPM concept system includes: core and additional BPM knowledge areas, best practices and trends, methodologies, techniques and tools, individual concepts related to BPM knowledge areas, etc.

Overall, e-commerce business process management is a complex task that requires constant monitoring, analysis and optimization of processes to ensure efficient company operations and customer satisfaction.

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