Agile project management is becoming a popular practice, especially in IT development. It offers significant merit in splitting large missions into small sprints dynamically configurable across work teams. When applied creatively, agile approach may significantly improve business responsiveness to emerging challenges in dynamic economic environment.
Despite tempting benefits, agile management bears also significant business risks. Due to simplified decision making and direct informal communication agile approach may potentially dissolve centralized coordination and endanger strategic planning in higher level scope of the whole organization. For this reason, large corporations are typically very cautious on implementing agile practices and sustain from scaling them too widely.
How a company can combine all benefits of agile management and avoid associated risks? Key factor in achieving a balance is accurate business modeling. BPM technology brings necessary structuring and transparency lacked by agile techniques when used alone. Combination of BPM and agile ensures an ideal compound by optimally complementing rigid planning with competitive flexibility in task execution.
Role of business processes in a digital company is far more important than in a traditional organization because digital organization literally consists of the digital business processes it implements. Traditionally, most business processes are in possession of workers or groups of workers, in other words, process stakeholders. Every worker holds in memory, experience, notes or corporate regulations certain course of action to follow in every particular situation. This implicit or partially formalized set of rules comprises a business model of a company. The model is subject to change by mere verbal discussion and agreement between workers and management, happen business environment evolves or new challenges appear. Situation is entirely different in a digital organization. Digital systems do not have any implicit awareness on business aspects, just an explicit algorithm to do exact functions, for which they were designed. Therefore, a digital business system is a manifestation of a bu...
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