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Topic 3 Business
Process Management
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Business Process Management
Process: set of actions or activities that may
change the state of the system
Business Process; Consists of a set ofactivities that are performed in coordination in an
organizational and technical environment.
A business process is also collection of related,
structured activities or tasks that produce aspecific service or product for the consumer.
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Business Process Cont
A business process can also be a set of
associated procedures or activities with
defined roles and relationships carried out torealize a business function in pursuit of
business objectives.
Business Process Management; Includes
concepts, methods, and techniques tosupport the design, administration,
configuration, enactment, and analysis of
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Business Process Management
Business Process Management
System; is a generic software system that
is driven by explicit processrepresentations to coordinate the
enactment of business process.
Examples of Business Process include,Insurance claims, Ordering Process,
Transport agency, registration process etc
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Simple ordering Process-Reseller
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Ordering Process-Buyer
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Business Process management BPM is based on the observation that each
product that a company provides to the market is
the outcome of a number of activities performed.
Business processes are the key instrument to
organizing these activities and to improving the
understanding of their interrelationships
A company can reach its business goals in anefficient and effective manner only if people and
other enterprise resources, such as information
systems, play together well. Business processes
are an important concept to facilitating thiseffective collaborationFriday, March 04, 2011 8Topic 3 Business Process Management
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BPM
Business processes underlie all organizational
efforts and the effectiveness with which they arecarried out contributes directly to critical business
goals such as customer retention, length of time it
takes to fulfill a product order or service or
regulatory compliance.
Business Process Management (BPM) is a
management discipline that combines a process-
centric and cross-functional approach to improving
how organizations achieve their business goals.
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Important aspects of BPM from the
Management point of view Improving the operations of companies Increasing customer satisfaction
Reducing cost of doing business
Establishing new products and services at low cost.
BPM is an IT-enabled management discipline that
promotes organizational agility and supports the
efforts of people to drive process change and rapidinnovation. As such, BPM supports the alignment
of IT and business activities both within the
organization and with business partners and
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Benefits of BPM
Increased customer retention, gained throughbetter, faster customer sales and services
Reduced process time, gained through process
optimization and efficiencies.
Improved regulatory compliance, gained through
improved process control, regulation and
monitoring
Reuse and creation of new IT assets, through
integration with legacy applications
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Benefits of BPM Cont Reduced risk reduced waste and more profitable
allocation of human resources.
Greater personal productivity and satisfaction,
resulting from greater insight into processes and
improved workflow.
Increased agility through compression of lifecycle,allowing across multiple business processes
Information derived from more rapid process
innovation and response to changing business
conditions. Improved efficiencies across organizational
boundaries such as departments, branches and
trading partners.
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Business Process Lifecycle
1. Process Design and Analysis. The business process lifecycle is entered in the
design and analysis phase, in which surveys on
the business processes and their organizationaland technical environment are conducted
2. Process Configuration.
-Implementation of the process and configuration tosuit the organitional needs eg NSSF
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Business Process Lifecycle Cont
3.Process EnactmentOnce the system configuration phase is
completed, business process instances can
be enacted. The process enactment phaseencompasses the actual run time of the
business process. Business process
instances are initiated to fulfill the business
goals of a company.
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Business Process Lifecycle Cont
4.Evaluation
The evaluation phase uses information
available to evaluate and improvebusiness process models and their
implementation.
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Administration and Stakeholders
Chief Process Officer: The chief processofficer is responsible for standardizing and
harmonizing business processes in the
enterprise. He/she is responsible for theevolution of business processes in the
presence of changing market
requirements
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Business Engineer: Are business domain
experts responsible for defining strategic
goals of the company and organizational
business processes.
Process Designer: Are responsible for
modeling business processes bycommunicating with business domain
experts and other stakeholders
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Administration and Stakeholders
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Developers: Are Information Technology
professionals who create software artifacts
required to implement business processes.
NB These different types of stakeholders need
to cooperate closely in designing business
processes and in developing adequate
solutions for enacting them
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Classification of Biz Processes
Organizational
versus Operational
-Different levels can beidentified in business
process management,
ranging from high level
business strategies toimplemented business
processes
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Classification of Biz Processes Cont
Intraorganisational Processes versus
process Choreographies
Each business process is performed by a
single organization. If there is no interactionwith business processes performed by
other organisations, then the business
process is called intraorganisational
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Classification of Biz Processes Cont
Most business processes however, interact
with business processes in other
organizations, forming process
choreographies.
The primary focus of intraorganisational
business processes is the streamlining of
the internal processes by eliminatingactivities that do not provide value.
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Process Choreography
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Classification of Biz Processes cont
Degree of Automation Fully automated
Partially automated
Degree of Repetition
-Highly repetitive processes-those without
human interaction like airline ticketing
-Not so repetitive processes-those that
involve human interaction like Insurance
claims.
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WORKFLOW MANAGEMENT
Factors that fuelled workflow management and
business process management.
Valve chains as a means to functionally break
down the activities a company performs and toanalyze their contribution to the commercial
success of the company. Value chains are a
well known approach in businessadministration to organize the work that a
company conducts to achieve its business
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WORKFLOW MANAGEMENT
Process orientation as the way to
organize the activities of enterprise. The
development in organizational business
process management led to workflow
management.
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Remember Value Chain ??
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Workflow Defined
Is the automation of a business process, in
whole or in part, during which documents,
information, or tasks are passed from one
participant to another for action according
to a set of procedural rules.
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Workflow Defined Cont
Workflow management system
Is a software system that defines, creates,
and manages the execution of workflow
through the use of software, running on
one or more workflow engines.
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System workflows
In system workflows, the workflow activities
are preformed automatically by software
systems. Therefore, knowledge workers do
not interact with the application.
So, system workflow consists of activities
that are implemented by software systems
without any user involvement.
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Human Interaction Workflows
An early predecessor of human interaction
workflow management systems is the
office automation system, developed in the
early 1980s.
Human interaction workflows are
workflows in which humans are actively
involved and interact with informationsystems.
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Human Interaction Workflow Sample
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Challenges forWorkflow Management
Lack of adequate support for knowledge
workers.
Technical Integration Challenges Process support without workflow systems
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BUSINESS PROCESS REENGIREEGING
If you have ever waited in line at the University
for registration or at the bank to withdraw
money or at URA for Tax assessment then,
you can appreciate the need for business
process improvement/reengineering.
The process begins with you stepping into line,and ends with you receiving your Registration
card/money/tax assessments
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Business Process Reengineering (BPR) Dfn
Business Process Reengineering or BPR
is the analysis and redesign of workflow
and processes within and between
Organizations.
BPR is the Fundamental rethinking and
Radical redesign of Business Processes toachieve Dramatic improvements in critical
measures of performance such as Cost,
Quality, Service and Speed.
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Symptoms of Poor Processes
Extensive information exchange, data
redundancy and re-keying of similar
information from different centers
Huge inventory, buffers and other assets
for trading companies
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Symptoms of Poor Processes Cont
Too many Controls and Checks which
increase the number of steps to conclude
a given transaction or process and this
leads to bureaucracy and delayed
service/goods delivery.
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Symptoms of Poor Processes Cont
Rework, Iteration & Duplication of work.
Doing the same work now and again or
the same piece of work is being done by
different people in the organization.
Complexity, Exceptions & Special cases,
Business processes being complex andambiguous making their execution more
complex and complicated
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Goals of Business Process Reengineering
Customer Friendliness
Meeting customer requirements closely Providing convenience to the customer
Effectiveness(Doing the right thing)
Outcome-based approach
Gaining loyalty of customers
Image and branding for the company
Efficiency(Doing something right)
Cost, offering services to customers at lower costas well doing business at lower costs
Time, timely service and product delivery to
customers
EffortFriday, March 04, 2011 39Topic 3 Business Process Management
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4 Steps in BPR
Understanding the Current Processes
ASIS study mapping current processes
Analysis of Root Causes forInefficiencies
Identifications of Problems, Issues andcomplications about the current processes
Inventing a NEW Process (TO BE Process)
Survey of Best Practices Consultation ofStakeholders
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4 Steps in BPR cont Constructing the NEW Process
Bringing in new Laws and Rules
Adopting Disruptive Technologies (technology,
process or business model that brings to a market
much more affordable product or service that is
much simpler to use.
Selling the NEW way of functioning
Change Management(getting all stakeholders
embracing the new well of doing business)
Communication Strategy(choosing the way to
communicate about the new way to the
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Challenges in a BPR Exercise
Identifying Customer Needs & Performance
Problems in the current Processes
Reassessing the Strategic Goals of the
Organization
Defining the opportunities for Reengineering
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Challenges in a BPR Exercise
Managing the BPR initiative
Controlling Risks
Maximizing the Benefits Managing Organizational Changes
Implementing the re-engineered
Processes
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Review Questions
BPM is an IT-enabled management discipline that promotesorganizational agility and supports the efforts of people to drive process
change and rapid innovation in organizations. In light of the above
statement describe the benefits of BPM to any organization of your
choice.
Question Two
Companies continue to reexamine and fundamentally change the way
they do business. Intense competitive Pressures and a sluggish
economy provide the motivation for continued efforts to "deliver more
with less."
A) Describe the symptoms of poor processes that can necessitate BPRin organizations today
B) Discuss the different challenges faced by organizations trying to
reengineer their processes in order to remain competitive in the market
today
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