Business Process Management The Third Wave

The book argues that BPM is a radical breakthrough in how businesses operate, obliterating the divide between business and IT by treating business processes as the primary focus instead of data or applications.
Smith and Fingar present the history of BPM throughout the 20th century and use it as a backdrop to predict the future evolution of the discipline over the next 50 years. They describe BPM as the next step forward in both business operations and information technology. This so-called "third wave" of BPM emphasizes three key elements: explicit process modeling, automation, and continuous improvement. Together, these features create the agility and efficiency necessary for companies to stay competitive in today’s rapidly changing business landscape.
But what exactly is this "third wave"? In their view, it’s a direct response to the challenges that earlier management theories-most notably business reengineering-failed to resolve. They argue that while reengineering, particularly the work of Michael Hammer, revolutionized the conversation about process improvement, it often lacked a sustainable, structured approach. The "third wave" of BPM is seen as the successor to reengineering, addressing its limitations with a more holistic and process-centric approach.
They draw on real-world examples to underscore the inadequacies of traditional approaches to business processes. They highlight the growing disconnect between business and IT-an issue they term the "Business-IT Divide." This divide, they argue, creates a rift that hinders effective process management, often leading to misaligned goals and communication breakdowns between departments.
To counter this, the authors propose a radical shift: treating business processes as “first-class citizens.” In this paradigm, processes aren’t just supplementary concerns; they become central, managed, and optimized in the same way we handle other critical business assets. This re-centering of processes, they claim, is essential for an organization to remain agile and adaptable in the face of change.
One of the key tools supporting this vision is the Business Process Modeling Language, or BPML, a standardized, machine-readable language that enables seamless collaboration across departments and organizations. The promise of BPML, along with a Business Process Management System-or BPMS-offers organizations the ability to automate, monitor, and continuously improve their operations.
However, no theory is without its critics, and The Third Wave is no exception. One area where the book draws criticism is its limited discussion of the ethical implications of BPM. Automation and continuous improvement, while critical for efficiency, inevitably raise concerns about the human impact. Smith and Fingar emphasize transparency and collaboration, but they don’t deeply engage with the potential consequences of large-scale automation on employment or the broader societal implications of automated decision-making.
Additionally, while the authors rely heavily on case studies and anecdotal evidence, critics argue that the book doesn’t always provide the statistically significant data necessary to firmly establish its claims. The insights are valuable, certainly, but they are grounded more in interpretation than empirical research.
So, what is the lasting impact of *Business Process Management: The Third Wave*? For one, the book introduced a new framework for businesses, pushing them to shift from data-centric IT solutions to a process-centric model that focuses on the flow of work, decisions, and information across the enterprise. It gave organizations a roadmap for bridging the business-IT divide, offering solutions that emphasize the continuous optimization of business processes.
And yet, despite its forward-looking ideas, it’s crucial to remember that this is a book written at the turn of the century, during a period of digital transformation that was still in its infancy. The authors couldn’t fully predict the role AI or machine learning would eventually play in BPM, but their core ideas about agility, automation, and a process-first mentality remain highly relevant in today’s increasingly complex business environment.
Ultimately, The Third Wave is a call to action-a call for businesses to rethink how they manage their processes, how they align their goals with their IT capabilities, and how they prepare for the future. Whether you're a business leader or an IT professional, this book offers valuable lessons on navigating the evolving landscape of business process management.