BUSINESS PLUG-IN

B2
Business Process

McGraw-Hill/Irwin

The McGraw-Hill Companies, All Rights Reserved

LEARNING OUTCOMES
1. Describe business processes and their
importance to an organization
2. Differentiate between customer facing
processes and business facing processes
3. Compare the continuous process
improvement model and business process
reengineering

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LEARNING OUTCOMES
4. Describe the importance of business
process modeling (or mapping) and
business process models
5. Explain business process management
along with the reason for its importance to
an organization

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INTRODUCTION
Business process improvement will, at a minimum,
double the gains of a project by streamlining
outdated practices, enhancing efficiency,
promoting compliance and standardization, and
making an organization more agile
Business process improvement involves three key
steps
1. Measure what matters to most customers
2. Monitor the performance of key business processes
3. Assign accountability for process improvement
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Examining Business Processes

The process steps are the activities the customer
and store personnel do to complete the transaction
Business process - a standardized set of activities
that accomplish a specific task, such as processing
a customers order
Business processes transform a set of inputs into a
set of outputs (goods or services) for another
person or process by using people and tools
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Examining Business Processes

Business process characteristics:

The processes have internal and external users

A process is cross-departmental
The processes occur across organizations
The processes are based on how work is done in the
organization
Every process should be documented and fully understood
by everyone participating in the process
Processes should be modeled to promote complete
understanding
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Examining Business Processes

Customer facing process - results in a
product or service that is received by an
organizations external customer
Business facing process - invisible to
the external customer but essential to the
effective management of the business

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Examining Business Processes

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Business Process Improvement

Companies are
forced to improve
their business
processes because
customers are
demanding better
products and
services

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Business Process Improvement

Continuous process improvement
model - attempts to understand and
measure the current process, and make
performance improvements accordingly

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BUSINESS PROCESS REENGINEERING

Business process reengineering (BPR) analysis and redesign of workflow within
and between enterprises

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BUSINESS PROCESS REENGINEERING

Managerial approach to reengineering
projects
1.Define the scope
2.Analyze
3.Evaluate
4.Plan
5.Approve
6.Execute
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Business Process Design

Business process modeling (or mapping) - the
activity of creating a detailed flow chart or process
map of a work process showing its inputs, tasks,
and activities, in a structured sequence
Business process model - a graphic description
of a process, showing the sequence of process
tasks, which is developed for a specific
As-Is process model
To-Be process model
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Business Process Design

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Business Process Design

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Business Process Design

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Business Process Design

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SELECTING A PROCESS TO
REENGINEER
Criteria to determine the importance of the process:
Is the process broken?
Is it feasible that reengineering of this process will
succeed?
Does it have a high impact on the agencys strategic
direction?
Does it significantly impact customer satisfaction?
Is it antiquated?
Does it fall far below best-in-class?
Is it crucial for productivity improvement?
Will savings from automation be clearly visible?
Is the return on investment from implementation high and
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preferably immediate?

Business Process Management

Business process management (BPM) - integrates all of an
organizations business process to make individual processes
more efficient

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Business Process Management

BPM allows business process to be executed more
efficiently and measures performance and identifies
opportunities for improvement, BPM benefits
include:

Update processes in real-time

Reduce overhead expenses
Automate key decisions
Reduce process maintenance cost
Reduce operating cost
Improve productivity
Improve process cycle time
Improve forecasting
Improve customer service

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BPM TOOLS
Business process management tool - an application that
designs business process models and simulates, optimizes,
monitors, and maintains various processes

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CRITICAL SUCCESS FACTORS

1.
2.
3.
4.

Understand reengineering
Build a business and political case
Adopt a process management approach
Measure and track performance
continuously
5. Practice change management and
provide central support
6. Manage reengineering projects for
results
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Business Process Modeling

Examples

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Business Process Modeling

Examples

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Business Process Modeling

Examples

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Business Process Modeling

Examples

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Business Process Modeling

Examples

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Business Process Modeling

Examples

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Business Process Modeling

Examples

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Closing Case One

Streamlining Processes at Adidas

Over the past 15 years, Adidas-Salomon transformed itself

from a manufacturing organization to a global sports brand
manager with 14,000 employees located around the world

Previously, Adidas-Salomon operated in a decentralized

manner, and each operating unit chose software that suited
its geography and internal preferences

The company believed that implementing and creating

common processes, especially in its sales organization, would
help it establish global direction, streamline and automate its
business

Operations thereby improving flexibility, scalability, and

visibility across the extended enterprise

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CLOSING CASE ONE QUESTIONS

1.

Describe business processes and their importance for

Adidas-Salomon

2.

Identify a few examples of customer facing processes and

business facing processes at Adidas-Salomon

3.

How could Adidas-Salomon use continuous process

improvement and business process reengineering to remain
competitive?

4.

How can a business process management tool help AdidasSalomon remain at the top of its game?
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CLOSING CASE TWO

3Com Optimizes Product Promotion Processes

To gain better control over the creation

and execution of its product promotions,
3Com uses Savvions business process
automation and management platform to
build a Web-based system that
streamlines the approval and
management workflow of product
promotions offered to distributors and
resellers
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CLOSING CASE TWO QUESTIONS

1.

Describe business processes and their importance to

3Coms business model

2.

How can 3Com use continuous process improvement to

become more efficient?

3.

How can 3Com use business process reengineering to

become more efficient?

4.

Describe the importance of business process modeling (or

mapping) and business process models for 3Com

5.

How did 3Com use business process management software

to revamp its business?
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