Chapter 1 Flashcards
Process?
Systematic and co-ordinated flow of activities, performed by people or machines, for the attainment of organisation’s objectives
Business Process Management?
BPM is defined as the achievement of an organization’s objectives through the improvement, management and control of essential business processes.
Primary benefits of using technology for BPM
Distribution of tasks to process participants and amalgamation of applicants
The effectiveness gains for enterprise through au0tomated coordination of activities
BPM Principles
Principles:
a) “Processes are assets” that create value for customers.
b) A managed process produces “consistent value to customers.”
c) Continuous improvement of process. Business processes are central to an organisation’s value creation.
BPM Practices
Practices:
a) Process-oriented organizational structure
- Process org
- Case management org
- Horizontal process mgmt org
b) Appoint process owners
c) Top down commitment, Bottom-Up Execution
d) Use of information technology systems to monitor, control, analyze, and improve processes
f) Continuously train the personnel.
h) Utilize both incremental (e.g., Six Sigma) and more radical (e.g., BPR) to process improvement
Accounting processes Cycle in BPM
Accounting or Book keeping life cycle covers the business processes involved in recording and processing accounting events of a company
It begins when a transaction or financial event occurs and ends with its inclusion in the financial statements.
Accounts/Book keeping Life cycle
Life cycle:
a) Source Document: Document the capture data from transactions.
b) Journal: Transactions are recorded into journals from the source document.
c) Ledger: Entries are posted to the ledger from the journal.
d) Trial Balance: Unadjusted trial balance containing totals from all account heads is prepared.
e) Adjustments: Appropriate adjustment entries are passed.
f) Adjusted Trial balance: Trial balance is finalized post adjustments.
g) Closing entries: Appropriate entries are passed to transfer accounts to financial statements.
h) Financial statement: The accounts are organized into the financial statements.
Short note on Finances
- Most important and limited resource available with government
- Proper use can help target areas of need, bring efficiency and improve services
Financial planning –> Resource allocation –> Operation and monitoring –> Evaluation, Analysis and Reporting
Key factors and related consideration in implementing BPM
Scope goals Skills required Sponsorship needed Methods to be used Tools to be used
Benefits of BPM
- determines right person for the right task at the right time
- Managing large amounts of documents and data
- The business can be re-arrange process steps and add in manual steps quickly ( Less Errors)
- Reduced process cost due to increased quality/less errors
- Reduced training time, expenses and internal support request
- Intangible benefits i.e. better information quality
Need for BPM Implementation
a) Create the long-term future positioning,Enhance future capability of the business
b) Create short-term cost effectiveness,Improvement to current customer service;
c) Initiate continuous improvement, from base of current but improved processes
d) Re-engineer the business radically
e) Introduce leadership and a role for managers and empowered staff.
f) Introduce a knowledge of product and customer profitability;
Challenges in Implementing BPM/BPA/BPMS
- The no. of interfaces with the customers are growing (e.g. phone, fax, SMS, PDA,email etc..)
- The product, service and price options have increased the complexity of business
- Budgets are being cut.
BPM Technology
BPM Technology can
-complement existing and future investments
and give organisation the ability to
- implement a real-time process improvement
- without the extensive process conversion efforts
Value Chain Automation
It refers to separate activities which are necessary to strengthen an organization’s strategies and are linked together both inside and outside the organisation
Value Chain Analysis is a useful tool for working out how we can create the greatest possible value for customers.
The Benefits & Risks of Business Process Automation (BPA)?
Benefits:
» Saving on costs: Automation leads to saving in time and labour costs.
» Staying ahead in competition: Businesses need to adopt automation to survive
» Fast service to customers: Automation helps to serve customers faster and better.
Risks:
» Risk to jobs: Automation may leads to posing a threat to jobs.
» False sense of security: Automating poor processes will not gain better business practices.
