Business Process Management (BPM) software suites enable automation of business processes within an organization to improve its overall efficiency. On the other hand, Blockchain can be thought of as a distributed database where encrypted transactions are recorded publicly and chronologically. When BPM is coupled with Blockchain, business processes can be coordinated across multiple organizations. In the context of multiple organizations, Blockchain technology guarantees that even a transaction that is recorded in the Blockchain outside of your organization’s boundary cannot be tampered with. Such tamper proof audit capabilities offered by Blockchain establishes authenticity of recorded transactions, and paves the way for collaboration between multiple parties across multiple organizations. Another aspect of Blockchain that makes it capable of managing inter-organizational processes is the ability to execute defined scripts as smart contracts. Smart contracts controls transactions between participants ensuring contractual conditions are met.
Let us consider an example of shipment tracking. The shipment tracking process involves sharing of multiple documents such as purchase order, invoice, letter of credit, shipment bill and insurance declaration generated from various related business processes carried out by multiple parties across organizations. BPM technologies can be used to orchestrate related business processes such as requisition approval, purchase order issuance, goods delivery, receipt notice, invoicing, and payments. Documents and transactions generated over the course of such related business processes across multiple parties can be recorded on the Blockchain thus providing transparency and trust to all relevant parties involved in tracking of shipments. Such a combination of BPM and Blockchain can enable managing business processes across multiple organizations.
In summary, BPM and Blockchain can be combined for interesting applications spanning multiple organizations. Should you be interested in learning more about how BPM and Blockchain can be coupled to manage business processes spanning multiple organizations, please contact us at [email protected].