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3/1/2016

WELCOME TO
Business Process
Management
How to be successful in this paper

Dr. Ammar Rashid

Introduce yourself
Full Name

Degree (Major)

Semester number

Course Expectations

Your learning experience


• This course is part of your larger intellectual journey

• Development areas:
• Capacity to wonder
• Capacity to inquire
• Capacity to look, see and ask

• Engagement is one of the essential elements of good


teaching and learning experience

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Engagement
Yourself: Learning
reflection materials

Other
Instructor
students

Course Content

Contact
• E-mail: ammar.rashid@ucp.edu.pk

• Lecture questions: better to ask when we meet in class

• General study related questions: Email first then visit C109

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• On student attendance
→ compulsory, but…
• On teamwork
→ mutual respect and courtesy
• On extensions
→ not allowed
• On questions
→ always welcome
• On grades
→ From F to A+

*AMCIS 2010 CIO Symposium Keynote Presentation

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A business process is an
activity or set of activities that
will accomplish a specific
organizational goal. Business
process management (BPM) is
a systematic approach to
improving those processes

Processes Embedded in a Business

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Business Information Systems Exist everywhere


Business Processes Linking the Organisations
Customers,
Field demand
Customers, demand
Sources: Regional Warehouses: centers
centers sinks
plants Warehouses: stocking sinks
vendors stocking points
points

Supply Banking and Government

Inventory &
warehousing

Production/
purchase Transportation Transportation
Inventory &
warehousing

Definition of BPM
Business process management
• (BPM) is a management approach focused on
aligning all aspects of an organization with the
wants and needs of clients.
• It is a holistic management approach that
promotes business effectiveness and efficiency
while striving for innovation, flexibility, and
integration with technology. Business process
management attempts to improve processes
continuously.

Business operations
Functional areas (or functional silos):

Management
Human Operations
Accounting Finance Sales Marketing information
resource management
systems

Each functional area undertakes a specific core business function

Business Problems are everywhere!*

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What is a (Business) Process?


Collection of related events, activities and decisions, that
involve a number of actors and resources, and that
collectively lead to an outcome that is of value to an
organization or its customers.

Examples:
• Order-to-Cash
• Procure-to-Pay
• Application-to-Approval
• Claim-to-Settlement
• Fault-to-Resolution (Issue-to-Resolution)

“My washing machine won’t work!”

Warranty?
Call Centre
Technician

Customer Customer
Parts
Service Store
Dispatch
VALUE

fault-report-to-resolution process

© Michael Rosemann

Processes and Outcomes


• Every process leads to one or several outcomes, positive or
negative
• Positive outcomes deliver value
• Negative outcomes reduce value
• Fault-to-resolution process
• Fault repaired without technician intervention
• Fault repaired with minor technician intervention
• Fault repaired and fully covered by warranty
• Fault repaired and partly covered by warranty
• Fault repaired but not covered by warranty
• Fault not repaired (customer withdrew request)

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Why is BPM so important for an


organization?
• BPM is a comprehensive discipline that allows
organizations to design, model, deploy, and manage
business processes as per changing market dynamics.

• It creates actionable business intelligence (BI) in real time


and helps organizations to rapidly respond to change.
• BI is the set of techniques and tools for the transformation of raw
data into meaningful and useful information for business analysis
purposes.

• Function analysis is used to assess the


functions performed by an organization at
the macro level. This identifies growth
opportunities and provides guidance for
strategic planning.

• Service analysis is used to identify manual


processes for automation and helps prepare
them for integration with IT platforms.

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• Process analysis is an assessment of end-to-


end processes that aids process analysts to
identify process improvements and optimize
business performance.

• Information analysis is used to define and


assess the flow of information between
various stakeholders, identify any gaps, and
optimize those channels.

•Workflow analysis is used to define


and assess data workflow between
applications, networks, and systems.

Drivers for adopting BPM from the


perspective of key stakeholders

Stakeholders Key drivers for adopting BPM


Enterprise • Requirement for processes and tools to support organic
and inorganic growth such as new product launches,
company mergers, acquisitions, etc.
• Changes in an organizational structure, both strategic and
operational.
• Change in business strategy
• Legal compliance or regulation, for eg ISO requirements,
etc.
• Need for business agility to respond to market opportunity
and threats.

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Drivers for adopting BPM from the


perspective of key stakeholders

Stakeholders Key drivers for adopting BPM


Management • Need for reducing the “go to market” time.
• Improvement or development of a reliable performance
measurement system.
• Development of an end-to-end visibility of processes.
• Need for centralization of process controls.
• Need for process standardization to reduce duplication
and unnecessary effort.
• Need for ability to produce more from less, especially in
tough economic times.

Drivers for adopting BPM from the


perspective of key stakeholders

Stakeholders Key drivers for adopting BPM


Employees • Improvement of low employee motivation due to
duplicate processes resulting in efforts being spent on
unnecessary tasks.
• Encouragement for improvement of employee skills.
• Need for optimizing individual productivity.
• Need for an increase in employee empowerment.
• Clarification of an employee’s role and responsibilities.
• Provision for clear communications and understanding of
the process between employees.

Drivers for adopting BPM from the


perspective of key stakeholders
Stakeholders Key drivers for adopting BPM
Customers/Suppliers/ • Improvement of service quality to customers.
Partners • Improvements of lead delivery time.
• Rate increase for “get it right the first time”
• Reduction of high costs associated with processes which
ultimately result in savings for the customer.