• Lecture questions: better to ask when we meet in class
• General study related questions: Email first then visit C109
2 3/1/2016
• 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
3 3/1/2016
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
4 3/1/2016
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
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!*
5 3/1/2016
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.
• 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)
6 3/1/2016
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.
7 3/1/2016
• 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.
8 3/1/2016
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.
