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Business process management (BPM) is the practice of analyzing, redesigning, and monitoring the repeatable steps a business uses to complete tasks, like onboarding customers or fulfilling orders. BPM covers changes such as updating employee protocols, automating manual tasks, or adopting new technology to replace outdated methods.
The global BPM market was valued at $16 billion in 2025 and is projected to reach $34.7 billion by 2033, according to Grand View Research.
This guide explains what business process management involves, how it works, along with examples, software and tools used to implement it.
What is business process management?
Business process management (BPM) involves designing, executing, monitoring, and refining a business’s processes. It includes the repeatable steps used to complete tasks such as employee onboarding, product design, and customer retention.
A business process is any series of related tasks completed in a specific sequence to produce a consistent outcome, like fulfilling a customer order or resolving a support ticket. BPM systems help managers track a process through each of those stages.
While BPM can seem similar to project management or task management, it differs in scope. Project management oversees temporary initiatives with a defined start and end date, such as launching a new product line, while task management tracks individual action items, like assigning a shipment update to a specific employee. BPM, however, manages processes that repeat indefinitely, such as order fulfillment.
Benefits of business process management
Here’s how business process management affects day-to-day operations in a business:
Increased efficiency
Business process management software applies automation and machine learning to repetitive, manual tasks such as data entry, approval routing, and reporting. Employees who are proficient with AI tools across multiple use cases are 2.3 times more likely to produce high-quality work and 3.2 times more likely to drive process improvements, according to Gartner.
BPM tools also give managers a way to track projects alongside day-to-day processes, such as whether new initiatives meet internal requirements and industry regulations.
Cost reduction
Reviewing a business’s processes for waste or redundancy is one way to find cost-reduction opportunities. For instance, a review of inventory management processes can reveal excess stock and storage costs, and an assessment of supply chain processes can uncover shipping costs that run higher than necessary.
Improved inventory management
Tracking inventory levels, creating purchase orders and transfers, and forecasting demand using inventory and sales reports are all part of a business’s inventory management BPM. These are all made smoother with Shopify’s admin tools and built-in inventory management system.
This efficiency matters because inventory distortion, the combined cost of stockouts and overstocks, cost the global retail industry $1.73 trillion in 2025. Retailers using AI and machine learning for inventory management grew sales 2.3 times faster than retailers that didn’t, according to Greg Buzek, president of IHL Group.
Adaptability to market changes
Businesses use BPM systems to collect and organize data from processes such as sales, inventory, and customer service. That data feeds into predictive analytics, trend forecasting, and strategic decision-making.
Opportunities for business process automation
Using robotic process automation (RPA) and other BPM tools, businesses can apply consistent rules to processes such as regulatory reporting, pricing, and data security. The global RPA market is projected to grow from $9.91 billion in 2025 to $29.86 billion in 2030, at a compound annual growth rate (CAGR) of 24.7%, according to The Business Research Company.
In a 2025 Shopify survey of store owners, businesses earning more than $100,000 in revenue were more likely than lower-earning businesses to use AI for customer service, automation, and scaling with small teams.*
Improved customer experience
Customer experience is crucial to business success: 29% of consumers say they stopped using or buying from a brand due to a poor customer experience, either online or in person, according to PwC’s 2025 Customer Experience Survey.
Businesses can use BPM systems to standardize protocols across multiple stores or locations, applying the same processes regardless of where a transaction happens, and therefore improving the overall experience. Shopify POS helps this process by syncing orders and inventory across retail locations, the online store, and other sales channels from one admin.
Types of business process management
Business process management can fall into one of three types, differentiated by whether a process centers on people, system integrations, or documents:
Human-centric BPM
Human-centric BPM covers processes that require human interaction and decision-making, such as task management, workflow management, and coordination between teams. Examples include employee onboarding, complex customer service requests, and approval workflows.
Businesses use human-centric BPM to automate tasks that don’t require much human involvement, such as AI-powered chatbots that handle routine customer service interactions.
Integration-centric BPM
Integration-centric BPM connects systems, applications, and data sources within a business. For example, BPM project management software uses application programming interfaces (APIs) to enable interoperability between different software components.
A retail-focused BPM suite integrates a customer relationship management (CRM) system with an inventory management system to sync stock levels with sales activity.
Document-centric BPM
Document-centric BPM covers processes that involve creating, handling, and processing documents, such as contracts and invoices that move through multistep review and sign-off before approval and storage. This includes automating document creation, review, approval, and storage, as well as monitoring documents through each stage of a process and maintaining version control.
Business process management life cycle
The BPM life cycle consists of five stages:
1. Design
Process design begins with identifying and analyzing how a business process currently works, including its steps, inputs, outputs, roles, and responsibilities. Using that analysis, this stage creates a blueprint for how the process will work going forward.
2. Modeling
After the design stage, BPM practitioners create visual representations of the process using diagrams, flowcharts, or other tools. Modeling also includes testing the redesigned workflow under different conditions before it rolls out.
3. Execution
Process execution is the implementation of a process model. It includes manual tasks performed by employees, automated tasks using software systems, or a combination of both. The goal is to put the design into action.
This stage sometimes involves integrating multiple processes that work together, such as warehousing and shipping.
4. Monitoring
Businesses continuously monitor processes by gathering data on metrics such as cycle times, error rates, and resource usage. Monitoring identifies bottlenecks and deviations from the intended process.
5. Optimization
Using data collected during monitoring, businesses identify areas for improvement in existing processes. This type of optimization might include removing unnecessary steps, adding a new step to an existing workflow, or adjusting a process to match current business strategy and goals.
Business process management software and tools
Business process management software ranges from single-purpose automation tools to full platforms that coordinate processes across a business.
The difference between BPM tools and platforms comes down to scope. A BPM tool automates a single task or process, such as tagging orders or updating inventory. A BPM platform connects multiple tools and processes into one system, coordinating tasks across departments like sales, fulfillment, and customer service.
For example, a single Shopify Flow workflow that tags high-value orders is a BPM tool. A system that also triggers inventory transfers, updates a CRM, and routes approvals in response to the same order is a BPM platform.
Overall, BPM software applies automation, workflow rules, and monitoring to business processes without manual intervention at each step. Shopify Flow, for instance, lets businesses automate tasks and processes within their store and across connected apps using triggers, conditions, and actions.
A trigger starts a workflow, such as a new order being placed; a condition sets the rule the workflow checks, such as an order total over a set amount; and an action carries out the result, such as tagging the order or sending a notification.
This can be incredibly useful for smoothing out business operations. At Chris Cote’s Golf Shop, for instance, staff had to notify golf instructors manually every time a customer booked a clinic. Using Shopify Flow, the shop automated instructor notifications, which trigger automatically when a booking is made.
Businesses automate repetitive, rule-based tasks first, such as order tagging, inventory updates, or approval routing, since these tasks follow a consistent pattern regardless of who performs them.
Selection criteria for BPM software include:
- Compatibility with existing systems
- Complexity of the workflows a business needs to automate
- Whether the software requires coding knowledge to set up
- The number of team members who need access
BPM software deploys in a few ways. Native platform features, like Shopify Flow, run inside the business’s existing software with no separate installation required. Third-party apps connect through an API and add automation without replacing existing systems. Standalone BPM systems integrate with existing tools through custom development, and run on cloud-based, on-premise, or hybrid infrastructure.
Footwear brand Frankie4 used Shopify and Shopify POS to unify inventory visibility across its online store and retail locations. Since switching to Shopify, Frankie4 has seen a 170% increase in site visits and a 25% reduction in return rate over five years.
Business process management examples
Businesses apply BPM across a range of processes. Here are three examples:
Supply chain management
Supply chain management involves coordinating networks of suppliers, manufacturers, distributors, and retailers—including inventory management, demand forecasting, logistics, and coordination among stakeholders.
BPM applies to supply chain processes such as procurement, restocking, demand forecasting, and logistics. Businesses use BPM to build workflows that provide visibility across the supply chain, from supplier to retailer.
At Angelus Direct, real-time sales data replaced manual inventory guesswork. “We know exactly what we need based on real sales data,” says Tyler Angelos, CEO, so the business avoids tying up cash in excess inventory or missing sales due to stockouts.
Omnichannel order fulfillment
Businesses operating across multiple channels—such as online, brick-and-mortar stores, and mobile apps—coordinate inventory, order processing, and fulfillment across each of those channels.
BPM applies to omnichannel order fulfillment by integrating systems like inventory management, point of sale, and ecommerce platforms into a single process. This includes workflows that manage order processing, inventory allocation, and order routing to the nearest or most suitable fulfillment center, such as a store or warehouse. Shopify Flow's order ready to fulfill trigger can automatically tag each order with its assigned fulfillment location, keeping routing consistent across channels.
At Chris Cote’s Golf Shop, staff previously manually updated the website’s inventory each time a product sold in-store, risking overselling. After switching to Shopify POS, inventory updates sync automatically between the business’s physical locations and its online store.
Customer service
Customer service departments handle complaints and inquiries across channels such as phone, email, chat, and social media.
Businesses use BPM to build structured workflows for handling customer complaints. They categorize them by type and severity, assign them to the appropriate personnel or teams, set escalation paths, and track resolution progress.
Shopify Inbox is a free app that lets businesses manage customer messages from the online store chat and the Shop app. Businesses turn on the Inbox agent to automatically answer customer questions about products, shipping, returns, sizing, and store policies.
AI may also be a useful tool for customer service—its adoption for this purpose rose from 46% in 2023 to 61% in 2025, with chatbots the most widely used capability, according to Deloitte Digital’s Customer Service Excellence 2025 study.
Challenges of business process management
Adopting business process management involves several challenges, spanning cost, technical complexity, security, and organizational readiness.
Adopting BPM software involves upfront costs for licenses, infrastructure upgrades, consulting services, and employee training. Integrating new systems with a business’s existing applications and databases requires technical customization and process redesign, according to The Business Research Company’s Robotic Process Automation (RPA) Market Report 2026.
Robotic process automation and other BPM tools work best for tasks that are structured, repetitive, and rule-based. Processes that involve unstructured data, complex decision-making, or human judgment need additional technologies (such as AI or advanced analytics) to support automation. Inconsistent data formats or poorly defined processes only add further complexity, according to the same RPA report.
What’s more, automated workflows access sensitive business and customer data, which raises data security, privacy, and regulatory compliance concerns, particularly in regulated industries such as finance and healthcare. A vulnerability in an automated workflow exposes confidential information or creates compliance risks, so businesses must add monitoring systems and governance frameworks to secure operations.
*Based on a 2025 survey of 500 Shopify merchants conducted in English across Australia, Canada, the United Kingdom, Ireland, New Zealand, and the United States. Respondents were established merchants with two or more years on the platform. Results reflect the experiences of this specific sample and may not be representative of all merchants.
Business process management FAQ
What is a BPM system?
A BPM system is software that models, automates, monitors, and manages business processes. Businesses use BPM systems to design workflows, automate repetitive tasks, and track how processes perform over time.
What are the 5 pillars of business process management?
The five pillars of business process management are design, modeling, execution, monitoring, and optimization. These stages guide a process from initial mapping through automation, and then through ongoing performance tracking and refinement.
What are the types of business process management?
The three types of business process management are human-centric BPM, integration-centric BPM, and document-centric BPM. Human-centric BPM focuses on tasks involving people and decision-making, integration-centric BPM connects systems and data sources, and document-centric BPM manages the flow of documents like contracts and invoices.
Why is business process management important?
Businesses use business process management to standardize how work gets done across areas such as inventory, customer service, and compliance. Global investment in related technology reflects this: the robotic process automation market is projected to grow from $9.91 billion in 2025 to $29.86 billion by 2030, according to The Business Research Company.
How does business process management help retail businesses?
Retailers use business process management to coordinate processes across inventory, order fulfillment, and customer service. Retailers using AI and machine learning for inventory management grew sales 2.3 times faster than retailers that didn’t, according to IHL Group.
