topic 3 bpm

8/7/2019 Topic 3 BPM

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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

business processes.Topic 3 Business Process Management 3


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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


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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