Two Classic BPM Books for Enterprise Managers

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By Lou DiToro

Business Process Management: The Third Wave
Howard Smith and Peter Fingar. Meghan-Kiffer Press, 2006. 292 pages. US$39.95. Paperback.

The Real-Time Enterprise: Competing on Time with the Revolutionary Business SEx Machine
Peter Fingar and Joe Bellini. Meghan-Kiffer Press, 2004. 222 pages. US$34.95.

Business Process Management: The Third Wave and The Real-Time Enterprise: Competing on Time with the Revolutionary Business SEx Machine are must-reads for anyone involved in managing enterprises. Designed for business people, they aren't the typical dry technical tomes covering the topic. The books are well written, even enjoyable, books addressing the business side of BPM. Together, they describe what drives BPM, how it evolved, where it is going, and more importantly, the practical implications for enterprises.

The Third Wave is often called the manifesto of the BPM movement. Written by Howard Smith and Peter Fingar, the book is a concise, easy-to-read declaration of BPM's key principles, polices and objectives, as well as a summary of the philosophy behind the movement. As BPM's manifesto, the book presents an in-depth and insightful explanation of the reasons for, and the significance of, what many consider a major breakthrough in process thinking – a breakthrough that promises to reshape the way enterprises function.

BPM's third wave, say Smith and Fingar, follows closely on the heels of the two previous waves. The first wave occurred in the 1920s, when processes were implicit in work practices and not automated. In the second wave, which began in the 1990s, processes were manually re-engineered and "cast in concrete in the bowels of today's automated ERP and other packaged, off-the-shelf systems." While these waves marked key advances in process thinking and how businesses operated, they pale in comparison to what will occur in the third wave.

The Emergence of the Third Wave

In this new wave, automated processes are far more manageable and flexible than ever, as well as far more explicit and more significant. Processes are not only the central focus of today's executives and managers, but also the basic building blocks of all automation and business systems – the foundation of the enterprise. In short, processes are the straw that stirs the drink. Without automated business processes, say the authors, future enterprises will find it next to impossible to compete. The question is: Why are processes so important?

According to the authors, processes are important because change is the order of the day. Companies that do not embrace change will not be able to meet their customers' future needs. "Change," write the authors, "is the primary design goal because in the world of business process management, the ability to change is far more prized than the ability to create in the first place." BPM helps businesses adjust to change by letting business people monitor, improve, and optimize entire value chains.

This ability to manage value chains and adapt to new situations and emerging conditions will determine which organizations survive and which succumb in the future. Without the agility provided by BPM, businesses will wither and die.

Future Implications for Businesses

If The Third Wave is the manifesto of the BPM movement, then The Real-Time Enterprise is its "bible." With a foreword by Dr. Max Moore, futurist and director of content for Many Worlds, the book spells out BPM's implications for today's businesses managers. This book not only defines a real-time enterprise (RTE), it also explains why it is significant and why businesses must become one.

An RTE, say authors Peter Fingar and Joseph Bellini, is characterized by "the real-time provision and exchange of information with customers, employees, partners, and suppliers, as well as the existence of business processes bridging distinct enterprise boundaries, media, and information systems." Unlike many of today's businesses, full-fledged RTEs are adaptable, agile and aggressive, capable of turning on a dime to meet their customers' needs. Their processes are no longer encased in concrete like today's businesses, which often stumble over themselves in futile efforts to meet customers' demands.

RTEs, say the authors, are the future. But for now they exist only in embryonic form. Many businesses, however, are poised to move to the next stage in becoming RTEs, a stage in which they will focus almost exclusively on strategy execution. This stage is driven by the need for operational transformation taking place in many enterprises. Operational transformation, say the authors, is the next frontier. Companies that turn their operations into profitable, well-oiled machines will prosper. Those that do not will fail.

Focus on the Future

While the authors' insights on operational transformation are valuable, what makes The Real-Time Enterprise so meaningful is its vision for the future. The book is not about the importance of strategy execution. Nor is it about the benefit of the free flow of information between businesses, or about ways of creating new sources of competitive advantage, dealing with time-based competition and implementing process innovation. The book is about all these things – and more. In short, it is about thriving in the "now" economy and the radical changes today's enterprises must make to compete in the future.

Summary

While neither The Third Wave nor The Real-Time Enterprise is a call to arms, both are forceful arguments for implementing business process management at your enterprise. Together, they highlight why the BPM movement differs from many of the other fads that have come along in the past, like re-engineering, and why enterprises must embrace it if they want to survive. BPM, the authors make clear, is here to stay.

About the Author:

Lou DiToro is a freelance writer who specializes in writing about business processes and competitive strategy. He welcomes feedback on his articles for BPMEnterprise.com. Contact Lou DiToro at louditoro (at) hotmail.com.

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