Numeric measurement of business process optimization

Abstract

The paper describes a simple, straightforward method to measure progress of business process optimization (BPO). The aim is to derive measures of the degree of BPO attainment in order to identify future priority focus for ensuing exercises. These measures can help to identify components of business that should be improved towards full optimization of processes in business. In an ideal case of the business containing all the components, a large business scenario is assumed. However, flexibility is permissible when changes are experienced with either some business aspects missing or new ones added. A measure of BPO progress was eventually developed based on these circumstances. A BPO measurement is described for presentation as a percentage or proportion. Keywords: BPE, BPO, change management, measure, risk management, success factor. JEL Classification: C1, C3, C5, C6, O3