ism chp. 2.2

Business process model

A graphic description of a process, showing the sequence of process tasks, which is developed for a specific purpose and from a selected viewpoint

Managing Business Process

Businesses gain a competitive edge when they minimize costs and streamline business processes

• Customer facing process

Results in a product or service that is received by an organization's external customer aka front-office procedures (sending out bills)

• Business facing process

Invisible to the external customer but essential to the effective management of the business aka back-office procedures (performance feedback and rewards)

Business process reengineering (BPR)

STRATEGIC... Analysis and redesign of workflow within and between enterprises. (Set project scope >> study competition >> create new processes >> Implement solution.) • A company can improve the way it travels the road by moving from foot to horse and then horse to car • BPR looks at taking a different path, such as an airplane which ignore the road completely

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 management (BPM) systems

focus on evaluating and improving processes that include both person-to person work flow and system-to-system communications. • Think of BPM as a way to build, implement, and monitor automated processes that span organizational boundaries • BPM not only allows a business process to be executed more efficiently, but also provides the tools to measure performance and identity opportunities for improvement.

▫ To-Be process model

how the process problem will be solved or implemented. It shows the results of applying change improvement opportunities to the current (As-is) process model.

▫ As-Is process model

what the process problem is. It represents the current state of the operation that has been mapped, without any specific improvements or changes to existing processes.

Streamlining

• MANAGERIAL... Streamlining - Improves business process efficiencies by simplifying or eliminating unnecessary steps, removes bottlenecks and redundancy. • Bottleneck - Occur when resources reach full capacity and cannot handle any additional demands • Redundancy - Occurs when a task or activity is unnecessarily repeated

Automation

• OPERATIONAL... Customers are demanding better products and services • Steps are: Document as-is process >> Establish Measures >> Follow Process >> Measure Performance >> Identify and Implement Improvements • Business process improvement - Attempts to understand and measure the current process and make performance improvements accordingly • Automation - The process of computerizing manual tasks (Transaction processing systems (TPS) are primarily used for automation.)

Using MIS to Improve Business Processes

• Workflow - Includes the tasks, activities, and responsibilities required to execute each step in a business process • Types of change an organization can achieve, along with the magnitudes of change and the potential business benefit