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Kasim, Tatic; Haracic, Mahir; Haracic, Merima

Article
The Improvement of Business Efficiency Through
Business Process Management

Economic Review: Journal of Economics and Business

Provided in Cooperation with:

Faculty of Economics, University of Tuzla

Suggested Citation: Kasim, Tatic; Haracic, Mahir; Haracic, Merima (2018) : The Improvement
of Business Efficiency Through Business Process Management, Economic Review: Journal of
Economics and Business, ISSN 1512-8962, University of Tuzla, Faculty of Economics, Tuzla,
Vol. 16, Iss. 1, pp. 31-43

This Version is available at:

http://hdl.handle.net/10419/193881

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 The improvement of business efficiency through
Call Business
for papersprocess management ///

THE IMPROVEMENT OF BUSINESS EFFICIENCY THROUGH

BUSINESS PROCESS MANAGEMENT
Tatić Kasim1, Mahir Haračić2, Merima Haračić3

ABSTRACT 1. INTRODUCTION

Business Process Management (BPM) represents
a constant process in which employees of the BPM
department, constantly analyze company’s business
processes and enhance the same, improve or change
them using Business Process Improvement (BPI)
and Business Process Reengineering (BPR). The
main goal of every company is the maximization
of investment. However, other stakeholders of the
company have also become increasingly important.
Because of this, increasing business efficiency does
not only mean cost reduction and profit increase
for investors or owners of the company. Under the
term increasing business efficiency, we mean the
overall increase in the performance of business
operations, including those elements that do not
have direct connection with company’s profit.
Besides costs reduction and profits increase,
increasing business efficiency includes the
increase in the utilization of company resources,
improvement of working conditions and customer
satisfaction, as well as reduction of the negative
impact of company’s business on the environment.
This study examines the possibility of increasing the
efficiency and effectiveness of domestic companies,
the improvement of business processes through
BPM, BPI, and BPR. The research results point to
the conclusion that domestic companies do not
have enough knowledge related to this field, that
companies do not devote enough attention to BPM,
BPI, and BPR, and that there is an opportunity to
increase the competitiveness of domestic companies
by improving business processes.
Keywords: Business Process Management,
Business Efficiency, BPM in BiH companies,
continuouslyimprove, Business Process
Reengineering, Business Process Improvement
JEL: M10
1
Tatić Kasim, School of Economics and Business, University of Sarajevo, e-mail: kasim.tatic@efsa.unsa.ba
2
Mahir Haračić, BH Telecom, Zmaja od Bosne 88, e-mail: mahir.haracic@bhtelecom.ba
3
Merima Haračić, Brand Buyer / Supplier Quality Assurance Assistant at Prevent, e-mail: merima.handzic@prevent.ba
Today’s ever more competitive and demanding
business environment urges all companies and
even non-profit organizations to improve their
business constantly. The key reasons which led
to an increase in demand and competitiveness
are primarily: the process of globalization,
the application of modern information and
telecommunication technology, a higher level of
education, access to a larger number of markets
(primarily online purchases/sales), and the
impact of bargaining power of users (Porter’s
Five Forces Model (Hanlon 2016)).
Inadequate management of business processes
and the lack of systematic approach create
unnecessary processes, increase inefficiency, and
reduce competitiveness, which ultimately affects
the company’s ability for successful operating,
both in the short and in the long-term. Some of
the most significant changes in the company’s
life-cycle are business process automation and
a shift from functional organizational structure
to process oriented organizational structure.
Business process automation represents an
indispensable phase in the life cycle of a company,
which in most cases means the introduction of
certain information systems (IS) or integration
of existing information systems. The automation
of inefficient business processes increases
business inefficiency. For these reasons, before
the introduction of IS or business process
automation, it is necessary for companies
to make an improvement or optimization of
business processes. Business processes allow
all the different parts of an organization to
efficiently and effectively work together toward
their common goal of serving customers better
(IBM 2018). Only 37% of organizations have
digitized their business processes and have

Economic Review – Journal of Economics and Business, Vol. XVI, Issue 1, May 2018 31 ///
/// K.Call forM.
Tatić, Haračić, M. Haračić
papers
seen significant benefits (Rtinsights 2017).
Unfortunately, a significant number of companies
enter the automation process without improving
or redesigning business processes, which is
primarily a consequence of the lack of systematic
approach to business process management.
2. LITERATURE REVIEW
Business process management as a discipline
for improving business results becomes a more
important focus of CEOs worldwide. In the 1990s,
companies were focused on business process
(BP) redesign projects (using information
technology and automating business processes)
at process level. However, as of, the 2010s
focus has shifted to strategy or enterprise level
(development of business process architecture,
process standardization for customers’
satisfaction, etc.), which means that managers
have become aware that without proper BPM,
BPI or BPR it is not possible to achieve business
goals. This has led to the creation of Business
Process Management Systems (BPMS) at the
implementation level, combining processes,
employee skills and IT system in one entity
(Batenburg & Ravesteyn 2010, p. 5-10). Business
Process Management (BPM) strives for the
improvement of how companies conduct cross-
functional work and ensures that company-
wide capabilities are available that enable the
effective management of the entire business
process life cycle (Kerpedzhiev, König, Röglinger,
& Rosemann 2017).
A business strategy, as the main business
guideline and road to success, should be carefully
devised. Every successful company devotes
great attention to setting an effective business
strategy and determining the main business
objectives and roles and how they should be
achieved. Unfortunately, many employees
are not familiar with either the company’s
vision and mission, or with the strategic and
operational objectives and strategy. Therefore,
it is very important when devising business
strategy (both in the long and short term), to
create appropriate communication channels
with lower levels, respectively, i.e. a mechanism
to inform all employees about the company’s
objectives and vision. It is well known that
employees involved in activities, accept tasks
/// 32 Economic Review – Journal of Economics and Business, Vol. XVI, Issue 1, May 2018
and objectives as “personal”, causing greater
involvement and engagement and therefore
accomplishing the goals. Strategy creators need
to create a measuring mechanism for monitoring
the strategy implementation, both in the short
and in the long run, in order to correct mistakes
and achieve the desired results.
Recent studies have shown that combining BPM
techniques with some of the IS proves to be an
effective solution. The reason is the basic need
of companies to perform their job effectively
and efficiently, company can only be as flexible,
efficient and agile as its business processes
interacting with each other (Rubens 2017). In
order to do that, companies need to determine
their business objectives, map their business
processes in alignment with business strategy, and
most importantly to execute their business plans in
a desired way. The most important business drivers
for adopting BPM and Enterprise Resource Planning
(ERP), as stated in the research, were the following:
Lack of innovation and outdated business processes
(45%); Improvement of quality and consistency of
products and services (41%); Simplification and
removal of risks from business processes (33%);
Maximization of return on assets (28%) (Castellina
2013, p. 5). BPM is a way to capture a model of how
an organisation works (the AS-IS). Once this is in
place, improvements can be modelled (the TO-BE
options) and once the best one is determined, the
improvements can be made (Harris 2017). The
three areas in which businesses anticipate BPM
and in which it could have the greatest impact are:
maximizing cost-efficiency (55.8%), optimizing
time-to-market (38.8%), and facilitating customer
self-service (29.7%) (Capgemini 2012). According
to BPM industry research, 94% of the firms
surveyed have already implemented BPM or
have plans to implement BPM initiatives within
the next three to five years. Only 6% of the firms
interviewed had neither implemented nor planned
to implement BPM initiatives (Thakral 2011, p. 4).
New information technology keeps on emerging
and new concepts and algorithms are developed to
work with process-related data. These will shape
the way how business processes are managed in
the future in a smarter way as we know it today
(Mendlinga, Baesens, Bernstein, & Fellmann 2012,
p. 9).
BPM becomes even more important for
companies in their day-to-day operations that
 companies for BPM, BPI, and BPR; Suggestions for imp
in domestic companies.
The hypotheses was postulated as follows: Companies in
The improvement of business efficiency through
Call Business
for papersprocess management ///
with BPM, BPI and BPR and a large number of compani
or employees that map the business processes and monit
require an unprecedented dynamism, where 4. order to change,
RESULTS improve or redesign business process, w
AND DISCUSSION
innovation must be continuous in order to be the companies.
competitive, where the analysis of information 4.1. Information about the respondent
is crucial, and where it is necessary to act with
agility and flexibility
companies for BPM,toBPI, meet andtheBPR;needs of On the
Suggestions for basis of the the
improving survey results, of
efficiency about 67%
operations
customers (Robledo 2018). of the
4.respondents
RESULTS AND
belonged
DISCUSSION
to the age group
in domestic companies.
from 26-35. This indicates that the respondents
The hypotheses was postulated as follows: Companies had enough inbusiness
BiH are
4.1.Information not sufficiently
experience
about the order familiar
in respondentto be
3. with
RESEARCH
BPM, BPI METHOD
and BPR and a large numberable of companies
to objectively in BiH do not havecomplete
and impartially departmentsthe
or employees that map the business processessurvey and monitor
questions. external and internal
The educational changesof in
structure
Theorder to change,
survey improveaccording
was created or redesign the theOn
to business the basis
process,
respondentswhich isofextremely
the survey
directly results,
affects
important toabout
efficiency
obtain67%
of of the resp
BPTrends survey (Harmon, P., 2016), modified in thefrom
the companies. 26-35.
objective This
data, indicates
because the that
fieldthe respondents
of the topic had enough
accordance with the subject of the research. The is able to objectively
narrowly specializedand andimpartially
relatively complete
new in the survey q
survey was conducted in the period from June, ourofregion. the respondents
The research is extremely important to obtain the obj
results demonstrated
1st to September 1st, 2016 and it included the thattopic aboutis80% of the respondents
narrowly specialized were and highly
relatively new in
4. RESULTS
respondents who filledAND DISCUSSION
the survey online. Out of educated, respectively, 47% of them had a
demonstrated that about 80% of the respondents were higmaster’s
the total of 500 distributed questionnaires, only degree. them had a master's degree.
90 of them were filled in full. The collected data
4.1.Information about the respondent
was then statistically analyzed in Excel by using 3% 0% 2% 0%
18 - 25 years old
basic statistical methods. The complexity and 18%
12% 26 - 35 years old
specificity of the of
On the basis survey primarily
the survey relates
results, to the
about 67% of the respondents belonged to the age group
36 - 45 years old 47%
field of research,
from 26-35. Thisunknown to a that
indicates largerthenumber of
respondents had enough business experience in order to be
respondents, as provedand
able to objectively in the caused the survey questions. The46educational
end, whichcomplete
impartially
- 55 years old
structure
a significant number ofis unfilled questionnaires. 67% more than 56 years old
of the respondents extremely important to obtain the objective data, because the field of the
Only 18%is ofnarrowly
topic the respondents
specializedcompleted the
and relatively new in our region. The research results
survey out of the total number of distributed
demonstrated that about 80% of the respondents were highly Chart
Chart 4.1.4.1: Age
Age ofrespectively,
respondents 47% of
of respondents
educated, Chart 4.
questionnaires (Handžić
them had a master's degree. 2016, p. 57-79). The
same or similar research results were presented Source: Authors’ analysis.
in the documents:
3% 0% “The State of Business Process 2% 0% 9% Primary School or less
Management 2014” by Harmon 18 - 25 years old
P. and Wolf C., Analyzing the position of the respondents in a company, w
18% Secondary School
12%
“The State of Business Process 26 - 35 years old
Management them were economists, engineers and lawyers. Their oper
Bachelor or Graduate
2016” and “The State 36 of - 45 years old Process
Business positions
47% of administrators, clerks, assistants, manag
42% Master study and others.
Management 2018” by Harmon P. 46 - 55 years old professors, accountants, directors,
67% more than 56 years old PhD Program
The goals of the research are given as follows:
Identification of the
Chart 4.1:impact
Age ofofrespondents
BPM, BPI, and BPR Chart 4.2:4.2.
Chart Educational
4.2.Information structure
about
Educational of the
the company
structure
on company’s business efficiency; The research respondents
of the respondents
onSource:
conversance of BPM,
Authors’ BPI and BPR’s basics
analysis.
among managers and employees; Identification Source: Most respondents
Authors’ analysis. belonged to the branch of services, foll
of Analyzing
the needs ofthedomestic
position companies
of the respondents
for BPM,in a company, we can
A significant conclude
number that the majority
of respondents of to large com
belonged
them
BPI, andwere
BPR;economists,
Suggestionsengineers and lawyers.
for improving Their operations
of research
the Analyzing on were
BPM, primarily
BPR and related
BPI.
the position of the respondents in a Theto the
research results s
positions
efficiency of administrators,
of operations in domesticclerks, assistants,
companies. company,managers,
stated that
we can marketing
theirconclude
company chiefs,
mapped
that lawyers,
the
the majority main
of business proc
professors, accountants, directors, and others. them of the
werecompany.
economists, These results and
engineers are alawyers.
positive example of
The hypotheses was postulated as follows: Their should be noted
operations werethatprimarily
most of the respondents
related to the were from t
Companies in BiH are not sufficiently familiar positions of administrators, clerks, assistants,
with BPM, BPI and BPR about
4.2.Information and a large number of managers, marketing chiefs, lawyers, professors,
the company
companies in BiH do not have departments or accountants, directors, and others.
employees that map the business processes
andMost respondents
monitor externalbelonged to the
and internal branchinof services,
changes followedabout
4.2. Information by production
the companyand education.
A significant
order to change, number
improveoforrespondents belonged to large companies, primarily due to the focus 4
redesign business
of research
process, whichon BPM,affects
directly BPR and BPI. The
efficiency research
of the Mostresults showedbelonged
respondents that 67%toof the
the respondents
branch of
companies.
stated that their company mapped the main business services, processes
followed by as production
well as theandsub-education.
processes
A significant number of respondents
of the company. These results are a positive example of company's operations. However, belonged to it
should be noted that most of the respondents were from the larger companies in BiH, which
Economic Review – Journal of Economics and Business, Vol. XVI, Issue 1, May 2018 33 ///
 /// K.Call forM.
Tatić, Haračić, M. Haračić
papers

large companies, primarily due to the focus of some knowledge of Business Process Management
research on BPM, BPR and BPI. The research and limited practical experience of it (28.3%), I
results showed that 67% of the respondents stated know a lot about Business Process Management and
that their company mapped the main business have plenty of practical experience of it (31.9%),
processes as well as the sub- processes of the Do not know (4.4%).
company. These results are a positive example of
company’s operations. However, it should be noted Unfortunately, one fifth of the respondents
that most of the respondents were from the larger (authors’ survey) believe that none of the answers
companies in BiH, which have a certain number matches the description of BPM in their company.
of certificates, primarily ISO certificates, whose Similar results are found in other studies (Harmon
obtaining depends on the mapped and clearly & Wolf 2014, p. 11, Harmon 2016, p. 11): A
defined business processes. A detailed analysis top-down methodology designed to organize,
revealed that the companies with smaller number manage, and measure the organization based on
of employees mapped business processes partially the organization’s core processes (31% in 2013,
have or not at all.
a certain In other
number surveys, documenting
of certificates, primarily and 33% in 2015);
ISO certificates, A systematic
whose approach
obtaining dependsto analyzing,
on
mapping processes were reported at a low degree:
the mapped and clearly defined business processes. A detailed analysis revealed that thespecific
redesigning, improving, and managing a
Never with
companies (0%)smaller
- no data; Occasionally
number of employees (1-30%) - process
mapped (32%processes
business in 2013, 25% in 2015);
partially A setatof new
or not
52%; Frequently (31-60%) - 27%; Most Times software technologies that make it easier for IT
all. In other surveys, documenting and mapping processes were reported at a low degree:
(61-99%) - 18%; Always (100%) - 2% (Harmon to manage and measure the execution of process
Never (0%) - no data; Occasionally (1-30%) - 52%; Frequently (31-60%) - 27%; Most Times
2018, p. 19).The majority of the respondents workflow and process software applications (9%
(61-99%) - 18%; Always (100%) - 2% (Harmon 2018, p. 19).The majority of the respondents
answered positively to the question of knowing in 2013, 11% in 2015).
answered positively to the question of knowing the organizational structure of the company,
the organizational structure of the company, while
whilethe theinsignificant
insignificant number
number of the
of the respondents
respondents were were not familiar
A significant withofthe
number theorganizational
respondents stated
structure of the company.
not familiar with the organizational structure of that their company has an interest in BPM,
the company. primarily in the segment of core/key projects in
the company. Very few respondents stated that
4.3.Familiarity
4.3. Familiaritywith withthetheconcepts
concepts BPM is a strategic commitment of the executive
management, which should be the main
More than a half of the respondents did not know or promoter of BPM in the company. One fourth of
Moreonlythanpartially
a half of the the
knew respondents
meaning ofdid BPM notandknow
when or only partially knew
the respondents the that
stated meaning of BPM does
their company
and when it is used. In particular, a total of 12 respondents stated that they did
it is used. In particular, a total of 12 respondents not have interest in BPM, which is devastating. not know what
BPM stated
is, andthatwhen
theyitdidis used. A more
not know whatdetailed
BPM is,analysis
and The of respondents
negative responses established
had slightly that
less knowledge
one fourth of the respondents who did not know the meaning of BPM had
when it is used. A more detailed analysis of about BPI and its implementation, in relation to a master's degree,
whilenegative
one halfresponses
had a bachelor's
established orthat
graduate degree.
one fourth of Similar
the BPM results
concept.are found in other studies
(Capgemini 2012, p.who
the respondents 38):did
I do
notnot
knowhavethe much
meaning knowledge
of or practical experience of Business
ProcessBPM Management
had a master’s (15.9%),
degree,Iwhile
have onesome halfknowledge
had a The of Business
concepts Process
of BPM, Management
BPI and but BPR are
no practical
bachelor’sexperience
or graduate of it (19.5%),
degree. Similar resultsI haveare some knowledgeas ofadequate
interconnected, Businessmanagement
Process of
Management and studies
found in other limited(Capgemini
practical 2012,
experience
p. 38): Iof
do it business
(28.3%), processes
I know a islotdirectly
about Business
related to the
Processnot Management
have much knowledge and have or plenty
practicalofexperience
practical experience
improvement ofand
it (31.9%),
redesign ofDo not know
business processes.
(4.4%).of Business Process Management (15.9%), I have The survey results show that the concept of BPR
some knowledge of Business Process Management (39% yes, 26% no, 35% partially) and its use is much
Unfortunately, one fifth
but no practical of the respondents
experience of it (19.5%),(authors’
I have survey)
less knownbelieve
to thethat none of than
respondents the answers
the concepts of
matches the description of BPM in their company.
Top - down methodology designed to organize, manage and measure the
company on the basis of its core processes.
20% 21% Systemic approach to analyzing, redesigning, improving and managing specific
processes of the company.
Way of saving, focused on increasing the productivity of specific processes.
9%
The new set of software technologies that facilitate IT - to manage and measure
17% 33% the execution of business processes and process software application.
None of these

Chart 4.3: Which

Chart of
4.3.the following
Which best describes
of the following how how
best describes youryour
company sees
company seesBPM
BPM
Source: Authors’ analysis.
Source: Authors’ analysis.

Similar
///results
34 are found inEconomic
other studies
Review(Harmon
– Journal & Wolf 2014,
of Economics p.Business,
and 11, Harmon 2016,
Vol. XVI, p.1,11):
Issue May 2018
A top-down methodology designed to organize, manage, and measure the organization based
on the organization's core processes (31% in 2013, 33% in 2015); A systematic approach to
primarily in the segment of core/key projects in the company. Very few respondents stated
that BPM is a strategic commitment of the executive management, which should be the main
promoter of BPM in the company. One fourth of the respondents stated that their company
The improvement of business efficiency through
does not have interest in BPM, which is devastating.Call Business
for papersprocess management
The ///
respondents had slightly less
knowledge about BPI and its implementation, in relation to the BPM concept.
The main strategic commitment of the executive management.
8%
25% Significant commitment to a number of projects for the main processes of
the company.
Poor commitment to projects for specific subprocesses of the company.
39%
12% The company explores the possibilities of BPM.
16% The company has no interest for BPM.

Chart 4.4. How would you describe the current interest of your company for BPM
Chart 4.4: How would you describe the current interest of your company for BPM
Source: Authors’ analysis.

Source:
BPM andAuthors’ analysis.
BPI. The majority of respondents (2/3) are not sufficiently positive. Thus, 60% of the
know the concepts related to the organizational respondents stated that their company does not
The concepts
structure, andofinBPM, BPI and
our region BPR areoriented
functionally interconnected, as adequaterelated
have departments management of business of
to the management
processes
business structure is dominant. However, with the business processes. A significant number The
is directly related to the improvement and redesign of business processes. of the
survey results show
computerization of that the concept
business process, offunctional
BPR (39%respondents
yes, 26% no,
were35% partially)
employed and its
in large use is
companies,
much less known
organizational to thetakes
structure respondents
a different than
form.the concepts of BPM and
and an interesting fact BPI.
is thatThe majority
about 10% ofofthe
respondents (2/3) know the concepts related to therespondents organizational structure,
answered that and
the in our region
BPM, BPI and
functionally
On the basis oriented
of thebusiness
researchstructure
results weis dominant.
can BPR However,
departmentswith
are athe
partcomputerization of
of the IT department,
business process, functional organizational structure takes a different form.
conclude that the majority of the respondents were 8% of the respondents answered that BPM,
familiar with the basic concepts which were the BPI and BPR are a part of the Quality Control
On the basis
subject of theof research.
the research resultsitwe
However, can conclude
is important that the majority
department, and 18% of the respondents
of the respondentsanswered
were
familiar with the basic concepts which were the subject of the research.
to note that only about one half of the respondents that the management, improvement and redesign However, it is
important to note
were familiar withthat
theonly
basicabout one halfThey
terminology. of theofrespondents were familiar
business processes are at the with the basic
executive level
terminology. They were
were mainly the respondents mainly the
who worked
unfortunately, respondents
are in larger
not who worked
department.
sufficiently in larger companies
positive. Thus, 60% of the respondentsin Bosnia stated that t
and Herzegovina
companies in Bosnia Federation
and (FBiH)
Herzegovina and who
Federation were highly educated, who
company does not have departments related to the management of business processe should be the
leaders
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were significantof number
highly educated,economy whoof inthethe
should future
If andwere
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respondents society in general.
someemployed
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inespecially
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be the leadersof theofbasic terminology
thefact
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economydue to the lack of commitment
is that about 10% of the respondents answered that the BPM, probably
and more successful ones, in
then the
we segment
will BPIofand BPR departm
the
in role and importance
the future and society of BPM,
in general.BPI and BPR
Insufficient in the education system,
are a part of the IT department, 8% of the respondents answered thatowners
get the data in which which
most unfortunately
managers and BPM, BPI and BPR
is not an exception inaother
knowledge of the basic areas
terminology such may as entrepreneurship,
be due believe which
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and skills
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processes BIH when
at the executive l
role and importance
universities have notofdepartment.
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motivated and BPR in theto we
students examinethe
recognize employees’ involvement
entrepreneurial in business
opportunities
education
(Zijad 2014,system,
p. 10) which unfortunately
and other is not an business
ways of improving process management and improvement,
operations through BPM, BPIwe andget
exception
BPR. The keyin other
question If we
areas suchanalyze
that arises some
as entrepreneurship,
is: companies,
whether the the especially
data
business theover
inphilosophy
which larger
70% andof more
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employees
to constantnever ones, then we
which require specific knowledge
probably get the anddataskills
in or
which occasionally
most
improvement is present in the companies in which the respondents were employed? managersparticipate
and in
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believeprocess
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that future managersones and wholeaders should have.
are the most valuable in the company. However, when wekey
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This could mean thatinvolvement
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aspectmanagement
of any successful andBPM project is thewe
improvement, active
get the data in w
not motivated their over students toof recognize
employeesthenever involvement of business users and stakeholders
4.4.The application in70%
entrepreneurial opportunities
the company or occasionally participate in business process managem
(Zijad 2014, p. 10)
improvement and redesign. A key aspect of any successful (Arsanjani,
throughout the length of the project BPM project is the ac
and other ways of improvinginvolvement business of operations
business users Bharade, and Borgenstrand, Schume, Wood
stakeholders throughout &
the length of the pro
through
The BPM, BPI
application and
of the BPR. Theprocess
business
(Arsanjani, key question
Bharade, management Zheltonogov
Borgenstrand, and 2015. Wood
p. 21). &philosophy,
improvement
Schume, Zheltonogov which
2015. p. 21).
that arisescompany's
determine is: whether business
the business philosophy are a part of the survey results, which,
performance,
committed to constant improvement is present 9% 1%
Never (0%)
in the companies in which the respondents were Occasionally (1-30%)
employed? 19% 37%
Frequently (31-60%)
Most times (61-99%)
4.4. The application in the company 34%
Always (100%)
6
The application of the business process
Chart 4.5: To what extent company's employees participate in BPM, BPI, and BPR
management and improvement philosophy, which Chart 4.5. To what extent company’s employees
determine company’sSource:
businessAuthors’
performance, are
analysis. participate in BPM, BPI, and BPR
a part of the survey results, which, unfortunately, Source: Authors’ analysis.
The largest companies in the world build their business on innovation and impro
products or services. At the same time, the most successful companies have "an army
highly
Economic Review – Journal educated employees,
of Economics and Business, whose
Vol. XVI,skills and
Issue 1, Mayabilities
2018 are used 35
for improving
/// operation
increase profitability as well as efficiency, which in recent times, especially in the condit
of globalization and extremely high competition, is not a luxury but the basic prerequisite
survival in the market (Haračić 2012, p. 28). On the basis of the data presented so far, we
/// K.Call forM.
Tatić, Haračić, M. Haračić
papers

The largest companies in the world build companies point to the fact that managers do not
their business on innovation and improving devote enough attention to business processes,
products or services. At the same time, the most which means that there is much room for
successful companies have “an army” of highly improving the efficiency of business processes
educated employees, whose skills and abilities and company’s efficiency through greater
are used for improving operations to increase involvement of managers in BPM.
The research
profitability as well as efficiency, whichresultsin related to the responsibility of managers/chiefs in the s
recent times, especially inbusiness processes,
the conditions showresearch
of The that theresults most related
of the to respondents
the use ofstated that ma
globalization and extremelyresponsible only for certain
high competition, processes
performance within the
indicators in organization
the management (37%). The data pre
is not a luxury but the basicpoint to the fact for
prerequisite that the managers need
of processes are significant training andKey
extremely important. education in the a
responsibility, role and importance in the management and improvement o
survival in the market (Haračić 2012, p. 28). On performance indicators (KPI) denote how well
the basis of the data presented so far,inwe
processes, can to the
order company
realize that the is performing.
duties and tasks To actually
related improve
to BPM are a part of
conclude that the respondents who are highly the performance, it is necessary
and responsibilities. Also, the survey results related to the small to know what companies point
educated, have no or very thatlittlemanagers
active role in KPIs mean and how to use them (J.D. Associates
do not devote enough attention to business processes, which mean
management and improvement is muchofroom business 2017, p. 2).
for improving theOnly 19% of of
efficiency thebusiness
respondents stated and company's
processes
processes. that their managers
through greater involvement of managers in BPM. “Most times” and “Always”
use key performance indicators in managing
One of the most important The research
segmentsresults related toprocesses.
for business the use ofThere performance indicators in the mana
are numerous
operations improvement are processes are extremely
inter-functional important.
reasons for this: Key absence
performance of an indicators
adequate (KPI) denote ho
business processes, whichcompany is performing.
are particularly To actually
reporting system, improveabsencethe performance,
of performance it is necessary to
KPIsa mean
evident in large companies, with and how to
large number use them (J.D.
indicators, managers’ Associates denial2017, forp. 2). Only 19% of the r
certain
of employees and key businessstatedprocesses.
that theirFor business
managers "Mostprocesses,
times"confidence
and "Always" that they
use keyhaveperformance in
this reason, what is extremely
managing important
business is processes.
sufficient There
knowledge and experience
are numerous reasons to for
assess
this: absence of a
the concept of process managers, who would business performance without
reporting system, absence of performance indicators, managers’ denial for certa measurable
be functionally and hierarchically
processes, superior
confidenceparameters
that they have or companies
sufficient that do not and
knowledge manageexperience to asse
managers for the interconnected processes or business processes
performance without measurable parameters or companies and therefore do notthat
use do not manag
processes whose beginning depends on the key performance indicators.
completion of the previous process. Based on
the survey results, about 60% (58% -Yes, 14% 3%
Never (0%)
- No, 28% - Partially) of the respondents stated 16% 13%
Occasionally (1-30%)
they are familiar with the concept of process
Frequently (31-60%)
manager, but at the same time over 85% of 38%
30% Most times (61-99%)
them stated that the company did not have or
they did not know if the company had a process Always (100%)
manager responsible for BPM, processes and therefore
BPI, and BPR. Chart do not
4.6.use key performance
Do managers or Processindicators.
Manager of the
Business Process Manager lets your process company use performance data to manage their
owners and business users engage directly in processes.
the improvement of business processes (IBM
Chart 4.6: Do managers or Process Manager of the company use performance data
Source: Authors’ analysis.
2017). their processes.
A generally accepted fact is that what cannot be
The research results related Source: Authors’ analysis.
to the responsibility measured cannot be managed as well. It is crucial
of managers/chiefs in the segment of business for managers to understand that their business
processes, show that the mostAofgenerally accepted processes
the respondents fact is thatrepresent
what cannot be measured
company’s business cannot
and be managed a
crucial for managers to understand that
stated that managers are responsible only that business process improvement improves their business processes represent company
for certain processes within andthe thatorganization
business process improvementofimproves
the performance the companythe performance
as well. Ifof the company
(37%). The data presented may point to the managers do not use performance indicators, performanc
managers do not use performance indicators, especially contemporary
fact that the managers needthat are measured
significant training onespecially
a daily contemporary
and weekly basis, then they
performance cannot adequately m
indicators
and education in the area ofperformance of business
their responsibility, thatprocesses,
are measured nor can
on atheydailygetandadequate information about th
weekly basis,
role and importance in the management and then they cannot adequately measure on
the problems within the business or take corrective actions thetime. What is
importantinto
improvement of business processes, notetois that
order inadequate
performance management
of business of business
processes, nor canprocesses
they restrains
and improvements,
realize that the duties and tasks related to BPM creating an opportunity
get adequate information cost,
aboutwhich most managers
the causes of the are not eve
are a part of their duties and responsibilities. problems within the business or take corrective
The basic
Also, the survey results related to theconditions for highonquality
small actions time. What management and business
is particularly important improvement inc
role of management, professional and competent staff, as well as financial
Research results showed that about 65% of the respondents stated that they do not
/// 36 much
Economic the company
Review invests
– Journal of in BPM,
Economics BPI, and
and Business, BPR.
Vol. What1,isMay
XVI, Issue also alarming is the fa
2018
 On the basis of the presented results
Onforthefinancial
basis of resources,
the presented it isresults
possible
fortofinancial
raise theresources,
question it is possib
of whether and to what extent theofcompanies
whether andare toinvolved in management
what extent the companiesand improvement
are involved in managem
of businessTheprocesses?
improvementAround of business processes? Around a half of the company
a
of business half of
efficiency the respondents
through
Call Business
for papers believes
process that
management the respondents
/// believ
"Occasionally" performs business "Occasionally"
process improvement.
performs business process improvement.
to note is that inadequate management of
11% 2% 11% 2% Never (0%)
business processes restrains innovations and
Occasionally (1-30%)
improvements, creating
14% an opportunity cost, 14%
which most managers are not even
46% aware of. 46% Frequently (31-60%)
Most times (61-99%)
The basic conditions 27% for high quality 27%
Always (100%)
management and business improvement
include active role of management, professional
and competent Chart 4.7:as
staff, Does your
well ascompany
financialcontinuously
Chart improve
4.7:4.7.
Chart Does
Doesyour
business
yourcompany
processes?
continuously improve busines
company continuously
resources.
Source:Research
Authors’results showed that
analysis. about Authors’ analysis.
Source: improve business processes?
65% of the respondents stated that they do not Source: Authors’ analysis.
know Similar results
how much thepresented in the Similar
company invests documents
in BPM, results State of in
"Thepresented Business Process "The
the documents Management
State of Business
BPI, 2014" andWhat
and BPR. "TheisState of Business
also alarming Process
is 2014"
the Management
factandSimilar
"The State 2016"
resultsofpresented forinthe
Business thequestions
Process about
Management
documents “The the2016" for th
that frequency
15% of the of specific
respondents organizational
stated that activitiesofthat
the State
frequency ofsuggest
specific Business organizational maturity
Process Management
organizational activities thatin2014”
Processorganization
suggest
Improvement
company does not are:
investNever
in BPM, (11%,
BPI, 12%),
and BPR Occasionally
Improvement and “The
are: State(50%,
Never 54%),12%),
of (11%,
Business Frequently
Process (26%, 18%),
Management
Occasionally (50%, 54%), Fr
at all. In the
Most end,
times we can
(12%, 13%),conclude
Alwaysthat (1%, only
4%) 2016”
(Harmon for the
& questions
Wolf 2014, about
p.
Most times (12%, 13%), Always (1%, 4%) (Harmon & Wolf the
11, frequency
Harmon of
2016, p. 2014, p
20%11).of the respondents had information 11). as specific organizational activities that suggest
to whether and in what amount the company organizational maturity in Process Improvement
Theinkey
invests BPM, motives
BPI, andforBPR the(the
companies
surveyThedidtonot
improve
key are: business
motives Neverfor the processes,
(11%, 12%),according
companies to improve
Occasionallyto the surveyprocesses, a
business
(50%,
are:the
include to save money,toreduce
data related costsofand/or
the source funds). improve
54%), productivity.
Frequently The
(26%, previously
18%), Most
are: to save money, reduce costs and/or improve productivity. presented
times (12%, data The pre
and research results indicate thatand companies
researchrecognize
13%), Always the necessity
(1%,
results indicate 4%) for management
(Harmon
that companies & recognizeand
Wolf 2014, the necessity
On the basis of the
improvement presentedprocesses
of business resultsimprovement
for fi- p.
if they 11,ofHarmon
want tobusiness
survive2016, p. 11).
in the
processes market
if theyandwant
achieve other in the ma
to survive
nancial resources,
benefits. it is possible to raise the
benefits.
question of whether and to what extent the The key motives for the companies to improve
companiesTableare4.1: Business
involved in drivers causingTable
management organizations
and 4.1: Business
business to focus onaccording
drivers
processes, business
causing to process change.
organizations
the survey to focus on busine
are:
improvement of business processes? Around a to save money, reduce costs and/or improve
Authors’ 2017
half of the respondents believes that the com- productivity. The previously presented data
research
pany “Occasionally” performs business process and research 2013results2015indicate that companies2013 2015
improvement. recognize the necessity forresults for
management and
2016
Need to save money by reducing costsNeedand/or improving
to save money by reducing
54% 53% costs and/or improving 53%
55.6%
productivity 54% 53%
Table productivity
4.1. Business drivers causing organizations to focus on business process change.
Need to improve existing products, create
Neednew productsexisting
to improve or products,
34% 33%createAuthors’ 28%
new products or
45.6%
enter new lines of business to remain enter
competitive 34% 33%
new lines of business to remain competitive
research
One time event (merger or acquisition)One time event (merger 2013 2015
3%acquisition)
or 5% 1.1%for 2017 7% 3% 5%
results
Government or business risk management(Sarbanes-
Government or business13% 2016
risk management(Sarbanes-
17% 11.1% 21%
Oxley, ISO 9000) 13% 17%
Oxley,
Need to save money by reducing costs and/or ISO 9000)
Need to productivity
improve customer satisfactionNeed
to remain
to improve customer 54% 53%
satisfaction 55.6% 53%
42%
improving 37% 46% to remain
35.6% 37% 46%
competitive competitive
Need to improve existing products, create new products
Need new
to improve 34% 33% 45.6%
15.6% 28%
36%35%
or enter lines ofmanagement
business tocoordination
Need
remain toorimprove management
competitive 35% coordination
30% or 30%
One time event (merger or acquisition) 3% 5% 1.1% 7%
Government or business risk management 13% 17% 11.1% 21%
(Sarbanes-Oxley, ISO 9000)
Need to improve customer satisfaction to remain 37% 46% 35.6% 42%
competitive
9 9
Need to improve management coordination or 35% 30% 15.6% 36%
organizational responsiveness
Need to improve management of IT resources 18% 15% 5.6% 26%
(ERP applications)
Need to reduce cultural resistance to process change No data 17% No data 15%
Other, please specify 11% 12% 7.8% 8%
Source: Harmon & Wolf 2014, p. 13, Harmon 2016, p. 13, Harmon 2018, p. 11, Authors’ analysis

Economic Review – Journal of Economics and Business, Vol. XVI, Issue 1, May 2018 37 ///
 /// K.Call forM.
Tatić, Haračić, M. Haračić
papers

improvement of business processes if they business processes and compatibility between

organizational
wantresponsiveness
to survive in the market and achieve other information systems and business processes, or
Need to (ERP
f IT resources improve
benefits.management of IT resources (ERP 26% 18% organizational structure of the26% company.
18% 15% 5.6% 15% 5.6%
applications)
No
The lack of systematic approach to managing 15% No According to the survey, 15% a fifth of the
Need tochange
ce to process reduce cultural resistance 17% No data
to process change 17% No data
and improving data business processes causes data respondents stated that there is no black–box
sporadic
Other, please specifyimprovements,
11% 12% depending 7.8% on 8% the 11% 12%in their
syndrome 7.8%companies.8% However, about
14, p. Source: decisions
Harmon
13, Harmon 2016, of
& p. managers.
Wolf13, 2014,
Harmon On
p. 13, the basis
Harmon
2018, of
p. 11, 2016,the
Authors’ 50% of the respondents stated
p. 13, Harmon 2018, p. 11, Authors’ that the black-
analysis research results we can conclude that about 74% box syndrome is present in their companies,
of the respondents stated that improvements which may indicate that companies have a lot of
are not made on the basis of identified ways for increasing the efficiency of operations,
roach The lackproblems
to managing of systematic
and and approach
improving
weaknesses to
business managing
in theprocesses
business.and In improving
causes including business processes
the segment of a causes
clear definition
nding sporadic improvements,
conclusion, we can state that companies have of business processes and research
on the decisions of depending
managers. On on
the the
basisdecisions
of the of managers.
research On the basis of the their procedures
about results
74% ofwe a can
the conclude
respondents
huge opportunitythat
statedabout 74%
thatbecause
cost, of they
the respondents
improvements not notandstated
do are that improvements
activities. This segmentare is not
not possible
made on
ed problems andthe basis
weaknessesof identified
in the problems
business. Inand weaknesses
conclusion, we in the business.
have systems and mechanisms for identifying without the adequate mapping of business In conclusion, we
e a hugecanopportunity
state bottlenecks.
that companies
cost, becausehavetheya huge
Consequently, opportunity
do they
not have
do not cost,
systems
haveandbecause theyasdowell
processes, not as
have systems and
appropriate management
mechanisms
g bottlenecks. for identifying
Consequently,
systematic bottlenecks.
they and
procedures do steps
not for
have Consequently,
systematicand they
eliminating do not have
improvement systematic
(provided that after the
minatingprocedures
them,them, and which
which steps for
certainly eliminatingtheirthem,
affectsaffects
certainly which
business
their certainly
capacity
business affects their
improvements, thebusiness
same arecapacity
documented and
ng run.both in the short and
capacity bothininthe
thelong run.
short and in the long run. mapped).

3% 4% Never (0%) In addition toNever the(0%)black-box syndrome and

19% Occasionally (1-30%) bottlenecks in Occasionally
the company, (1-30%) one of the major
problems and inefficiency causes is the lack
45% Frequently (31-60%) Frequently (31-60%)
of clearly defined business process owners,
29% Most times (61-99%) especially in theMost times (61-99%)
segment of the cross-functional
Always (100%) business processes. According to the survey
Always (100%)
results, a significant number of the respondents
vementChart Chart
4.8: Are
programs 4.8. Are
process
in place process
improvement
to identify improvement
and improveprograms programs in
in placeand
problems tostated
identifythat their companies
and improve problems and have cross-
place to identify and improve
defects of business processes? defects problems and defects
of business processes?functional processes, which do not have clearly
of business processes? defined process owners – managers. This
Source: Authors’ analysis.
Source: Authors’ analysis. reflects on the company’s operations and creates
bottlenecks which ultimately contribute to the
dicatorsMetrics and
represent
Metricsperformance
one "living"
and indicators
system,
performance represent
which
indicators one "living"
is represent
necessary tolowersystem,
efficiencywhich is necessaryoftocompany’s
and effectiveness
nternalchange depending
and external on
changes. the Forinternal
this and
reason, external
it is of changes.
one “living” system, which is necessary to business. Due to the absence great For this reason, it is ofof great
clearly defined
importance
ocess data on the to
basiscollect
of and
clearly process
defined data on
parameters the basis
of of
businessclearly defined
change depending on the internal and external owners of cross-functional business processes, a parameters of business
performance,
e consistent with thewhich
changes. Forshould
company's be consistent
goals
this reason, and
it is of with
strategy.
great the research
The
importance company's goals and
significant timestrategy. The research
of company’s meetings is spent
results
t of the showed
respondents
to collect that
andthe
(43%) mostdata
stated
process of the
that on respondents
thethe company has
basis of clearly (43%)
onlyonstated
findingthatthethe company
causes of thehas only in order
problem,
mance "Frequently" fordefined
measuresdefined both theperformance
main of
parameters business measures
business processes for both
performance, and sub-thetomain
solve business
the problem processes and sub-
of managers’ competences
processes,
m stated that thewhich while
company 12%
should of
hasbenotthem stated that
defined performance
consistent the company
with the company’s has not defined performance measures
measuresand define which managers are responsible for
sses orforforthe
themain
goals business
sub-processes. processes
and strategy. TheThe or forresults
research
research the sub-processes.
results show
showed that atheThe research
problem. results
In this way, show that a is solved,
the problem
significantthat number
the mostof of the
the respondents
espondents believe that business processes are in line with
respondents believe
(43%) that
stated business
but not processes
its causes, are
whichin line
are with not even
often
m. The company's information
implementation
that of thesystem.
the company information
has only The implementation
system isdefined
“Frequently” a form of of
the information
recognized, system
because is aabsence
of the form ofof specific
requiresbusiness automation
performance
the mapping and it requires
measures
of business for the
processes both
andmapping
the mainof business
compatibility owners processes
for theseand compatibility business
cross–functional
businessbusiness
ms andbetween information
processes, processes
systems andand
or organizational sub-processes,
business of theprocesses.
while
processes,
structure or organizational structure of the
company.12% of them stated that the company has not
defined performance measures for the main Based on the presented data, a logical question
According
th of the to thestated
respondents
business survey,
thata there
processes fifth
or ofis the
forno respondents
black–box
the sub-processes. stated that
syndrome there
arises: Whatis no
areblack–box syndrome
the main obstacles that prevent
in their
er, about companies.
50%The of research However,
the respondents
results show aboutthat
stated 50%
that a theof black-box
the respondents
significant employeesstated to havethatan the
activeblack-box
role in improving
syndrome
companies, whichis present
number inthe
may ofindicate theirrespondents
companies,
that companies whichhavemay
believe lotindicate
athat that companies
ofthe operations which have they aperform?
lot of A part
ency of ways for business
increasing
operations, includingthe the
efficiency
processes are inof
segment of
lineoperations,
awith
clearcompany’sincluding
definition ofofthe
thesegment
answerofcan a clear definition
be found of research
in the
business processes and their procedures
procedures and activities. This segment is not possible without
information system. The and
implementation activities. of This segment
results, which is not
show possible
that the without
key obstacles are
the information system is a form of business the lack of motivation, complex organizational
automation and it requires the mapping of structure, and the lack of strategic commitment

/// 38 Economic Review – Journal of Economics and Business, Vol. XVI, Issue 1, May 2018
10 10
 The improvement of business efficiency through
Call Business
for papersprocess management ///

of the management board/managers of the and their gradual improvement within the
company. However, the survey results indicate departments/functions. However, the key
that a third of the respondents stated that obstacles refer to the fact that most companies
there are additional causes and barriers for do not have a systematic approach, do not
the employees to suggest improvements at perform continuous process improvement or
their workplace and company in general. The use BPM techniques. Hence, they are not aware
study did not include whether the process of the negative effects, such as bottlenecks,
methodology is incorporated into the corporate black box syndrome, the problem of inter-
culture of the company, but on the basis of the functional processes, and the lack of clearly
research results we can conclude that it is not defined process owners and responsibilities.
the case. The methodology of business process
improvement is not integrated into company’s The largest and most successful companies in
business and improvements rather occur the world have “bounty hunters” departments
sporadically in most cases. Most improvements or hire external companies, whose aim is to find
represent some major changes in the company, above-average employees whose creativity will
and very few companies perform constant “step be directed towards innovation and business
by step” improvement. The positive research improvement. Unfortunately, a significant
results (50% yes, 24% no, 26% partially) are number of companies in BiH does not use
in the field of implementation of some of the employees’ full potential, primarily as a result
business standards (or in the implementation of under-developed HR (human resources),
phase). Companies that export their products which is an 35,6 issue for another
36,7 kind of research.
must have standardized
40 business processes However, the majority of the respondents
as a pre-requisite of their business quality. 18,9 agree with the fact that innovation and
According to the 20 research results, most
5,6 of the business process improvement can contribute
3,3
respondents stated that their companies are to company’s differentiation and increase its
0
focused on their existing 1
business 2processes 3business efficiency.
4 5

(1 – very low, 5 – very high)

35,6 36,7
Chart 4.9: 40
To what extent do you believe innovation and improvement in business processes
18,9
can contribute to differentiation and increase business efficiency over the competition?
20 5,6
3,3
Source: Authors’ analysis.
0
Referring to the importance
1 2of the business
3 process
4 management
5 for the company's
performance, the presented results prove the fact that employees are aware of the role and
(1 – very low, 5 – very high)
importance
(1 – very low,of5 managing
– very high)business processes, their improvement and innovation. The results
Chart 4.9. To what extent do you believe innovation and improvement in business processes can contribute
of the research can be used by strategic decision-makers in companies in order to improve
Chart 4.9: toTodifferentiation
what extent and
do you believe
increase innovation
business and
efficiency improvement
over in business processes
the competition?
business,analysis.
primarily through the change of a corporate culture and the creation of a system of
can contribute to differentiation and increase business efficiency over the competition?
Source: Authors’
motivating employees and their active role in the process of proposing improvements and
their
Source:implementation.
Authors’ analysis.
Referring to the importance of the business process management for the company's
performance,
60 the presented results prove the fact that 37,8
employees 42,2
are aware of the role and
importance of managing business processes, their improvement and innovation. The results
40
of the research can be used by 4,4strategic decision-makers
13,3 in companies in order to improve
20 2,2
business, primarily through the change of a corporate culture and the creation of a system of
0
motivating employees and their active role in the process of proposing improvements and
1 2 3 4 5
their implementation.
(1 – very low, 5 – very high)
(1 – very low, 5 – very high)
Chart 4.10. To what extent do you believe the management of business processes is important for
Chart 4.10:60To what extent do you
successful believe
business the management
operations of your 37,8 of business
company? 42,2 processes is important
Source: Authors’ analysis.
40 for successful business operations of your company?
13,3
20 2,2 4,4
Source: Authors’ analysis.
0
Economic Review – Journal of Economics and Business, Vol. XVI, Issue 1, May 2018 39 ///
Improving the business1 system
2 should include
3 three
4 parallel 5processes: improving of
information systems in the company, changing the corporate culture of the company, and
increasing employees’
(1 – very low, awareness. Employees who daily perform a specific part of the
5 – very high)
 Improving the business system should include three parallel processes: improving of
information systems in the company, changing the corporate culture of the company, and
increasing employees’ awareness. Employees who daily perform a specific part of the
business
/// process
K.Call forM.
Tatić, are aware
Haračić,
papers of the ways of improving those operations and increasing
M. Haračić
company’s efficiency.

33,3 31,1
40 24,4

20 8,9
2,2
0
1 2 3 4 5
(1 – very low, 5 – very high)
Chart 4.12. To what extent do you believe the improvement of information systems
and business processes (main and cross-functional) is necessary in your company, in order to
increase efficiency and effectiveness of the company?
Source: Authors’ analysis.

Referring to the importance of the business process 12

processes, or timely improvement, is the size of the
management for the company’s performance, the companies in BiH. This indicates that there is a very
presented results prove the fact that employees large number of small companies in BiH, whose
are aware of the role and importance of managing employees perform different tasks and functions,
business processes, their improvement and which do not have ways or time for systematic
innovation. The results of the research can be solutions in the context of improving and managing
used by strategic decision-makers in companies in business processes. However, based on the
order to improve business, primarily through the interviews with the respondents, it is evident that
change of a corporate culture and the creation of large companies with a higher number of employees
a system of motivating employees and their active (over 100) lack an adequate system for continuous
role in the process of proposing improvements improvement of business processes across all
and their implementation. departments and functions. The companies also do
not have developed corporate culture to implement
Improving the business system should innovations in their business processes as well as the
include three parallel processes: improving of systems in which employees can actively improve
information systems in the company, changing their business processes. Another problem is the
the corporate culture of the company, and economic and political situation in the country,
increasing employees’ awareness. Employees which is primarily the result of the war, and the
who daily perform a specific part of the business government organizational structure (state-owned
process are aware of the ways of improving those companies), which is not viable and efficient.
operations and increasing company’s efficiency.
The research results revealed that a significant
Based on the research results that are presented, number of the respondents possess specific
the majority of the respondents believe that it is knowledge related to business process
not necessary to redesign company’s business, management, improvement and redesign, but the
which involves changing the method of company’s knowledge they possess is not sufficient for the
operations. Business process redesign basically proper implementation in their companies.
happens when a company completely changes the
way it operates, during a rapid expansion, or when A significant number of the respondents stated that
it merges with other companies. Based on the the companies in which they are employed do not
results of the survey, almost 70% of the respondents have systematic solutions as a part of corporate
believe that continuous improvement is necessary culture (regarding business process management,
for the successful performance of the company and improvement and redesign) as well as the
the effective realization of business strategy. mechanisms that motivate employees to play an
active role in making proposals for the improvement
of business processes in the company.
5. DISCUSSION
The interviews with the respondents who work
One of the reasons why companies do not have in large companies revealed that the largest
developed management systems of business source of improvement is buying ready-made

/// 40 Economic Review – Journal of Economics and Business, Vol. XVI, Issue 1, May 2018
 The improvement of business efficiency through
solutions from other companies, mainly foreign,
and very few companies allow their employees to
actively participate in proposing improvements in
business processes, and in implementing changes.
A significant number of large companies have
complex and slow decision-making systems,
which ultimately prevent significant changes
and improvements at the operational level of
business (Haračić 2012, 84). A significant number
of employees at the operational level do not
have the authority or the incentive to carry out
improvements, while managers at higher levels, in
fact, do not have the information or knowledge on
how to perform the improvements.
Another problem is the inadequate communication
channel between operational and middle
management levels, which causes the appearance
of “communication errors” in the information flow,
resulting in the adoption of insufficiently effective
decisions about improving business processes
where the problem is observed. However, there are
some positive examples of the companies which
improve their business processes with the help of
their employees or with the assistance of external
experts, usually the academic community through
specific projects. It is also noted that employee’s
capacity in large companies is very little used, in
terms of employees’ level of education and active
participation, especially for those employees who
do not perform tasks related to business process
management and improvement.
The application of BPM, BPI, and BPR in
companies should be initiated through the
establishment of a system within the company,
primarily through higher management’s decisions,
which would incorporate managing and improving
business processes in the strategic part of company’s
business and create the basic prerequisites for their
implementation. Without the active management
role, implementation of BPM in domestic
companies is not possible, especially considering
the fact that most employees create “resistance”
to change, especially in large systems such as the
companies with a large number of employees and
state-owned companies, particularly those which
lost the monopoly positions.
Implementing BPM requires financial resources
which have to be included in company’s budget
and it requires a change of certain aspects
of company’s business and the parts of its
Economic Review – Journal of Economics and Business, Vol. XVI, Issue 1, May 2018
Call Business
for papersprocess management ///
organizational and hierarchical structure. For this
reason, companies can implement certain elements
that do not require any financial investment, but
the positive effects can be obtained only after the
complete implementation of BPM.
For successful business performance (depending
on market and business) companies need to
constantly improve their operations, finding new
ways, mostly through information technology, to
simplify and speed up business processes, and
to increase the quality of products/services with
the same or lower costs. In order to achieve the
aforementioned, companies need to have an
active role in the management and improvement
of business processes. That is why one of the
proposals is to analyze the existing business
processes, organizational structure and structure
of employees to create a plan of improvement of
company’s business. However, the improvement of
the company should not be based on sporadic one
time improvement. In order to achieve customer
satisfaction, shorter start-up times, cost savings,
satisfied staff, it is necessary to continuously
improve business processes and constantly fine-
tune IT and business operations (Nathe, 2017).
We believe that, based on the survey results,
theoretical aspects presented in the work, as
well as world trends, BPM is no longer a luxury
for companies, but rather a means of survival
in the market. The key role in implementing
and continuous monitoring of BPM is given to
managers who will have to accept their new roles
and tasks, if not due to internal changes, then
due to the external requirements. It is extremely
important to apply systematic solutions, which
enable continuous improvement and one of these
systematic approaches is BPM.
6. CONCLUSION
It has been clearly presented that business processes
create the business of the company. The goal of any
management is to achieve the planned values that
are defined and approved by the top management.
Due to constant internal and external changes, it is
necessary to view a company as a living organism
that is constantly changing. In order to control the
changes, and harmonize business processes with the
new situations, it is necessary to create a systematic
solution to improve business process management.
41 ///
/// K.Call forM.
Tatić, Haračić, M. Haračić
papers
BPM is an increasingly important trend in
the future. The question is whether this trend
will be recognized in educational institutions.
Increasing efficiency through the implementation
of BPM is not possible without adequate experts,
management support and financial resources.
For that reason, additional research is necessary
that would focus on monitoring the trend of
BPM implementation in domestic companies.
The results of the survey point to the fact that a
significant number of companies do not have
adequate KPIs and their analysis can be the subject
of future research. Improving business processes
will surely be necessary when implementing
information systems in domestic companies. The
only question is whether the improvement will be
sporadic or implemented through BPM.
Based on the presented research results, it can
be concluded that domestic companies have
plenty of room for improving the efficiency and
effectiveness of companies’ operations. The
question is whether the company managers will
recognize the opportunities presented in the paper
and whether they will define in the business
strategy the creation of a systematic approach to
managing and improving business processes.
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