Oganizationl Strategy And Information Systems Flashcards
Business Process
●A business process is a sequence of activities that accomplish a specific task
●Business processes transform a set of inputs into a set of outputs (goods or services) by using people and tools.
o Basic elements of business processes: inputs, outputs and resources
Business process (input and output)
- input: raw material } problem -> information flow
- Resources: labour, machine, tools, knowledge base} labour
- output: product} service
Functional processes
are contained wholly within a single functional department
oBusiness processes in the marketing, accounting, finance, human resources and IT departments
Cross functional processes
a process in which different departments within the same company work hand in hand to achieve a common goal
oMore complicated, more strategic to the company oE.g., Procurement process; fulfillment process
Business processes as a management issue
Excellent business processes bring both strategic (such as customer experience) and operational benefits (such as cost reduction and cycle time reduction)
●Business process is considered a source of competitive advantage
oThe processes represent “how-to” knowledge within organizations
The role of IT in business process
oIT executes business process: automate and informate business
process
oIT capture and store process data : when, where, and who information about an activity is recorded
oIT monitors business process performance
The role of business processes in harnessing the business value of IT
oHarnessing the business value of IT requires business process changes and business process innovation.
Role of IT
- Executions
- Process data
- Monitor `
Value of business processes to organization
Business process excellence – how to pursue? ●Business Process Reengineering (BPR)
●Business Process Improvement (BPI) ●Business Process Management (BPM)
Competitive advantage parameter
- customer service: align customer needs
- differentiation: result of optimizing
- cost: optimizing: supplier and operation
- quality: optimizing -> design, development and production
Business process reengineering
involves the radical redesign of core business processes to achieve dramatic improvements in productivity, cycle times and quality
◦Examines business processes with a “clean slate” approach
◦Aiming to dramatically improve customer service, cut operational costs, and become world-class competitors
Business Process Improvement (BPI)
a democratic and evolutionary approach to changing business processes
◦”reengineering with a dirty sheet of paper”
◦BPI Methodology: DMAIC Methodology
STEPS
- define as is process (input, resource, output)
- measure process: maintains ( number of units produced per unit line)
- analyze process: maintains
- improve: redesign and implement to be process
- control and monitor the process
BPR vs BPI
BPI
- bottom up approach
- departmental
- INCEMENTAL, EVOLUTIONALRY CHANGE
- takes less tome
- Low risk, low cost
- quantifiable results
BPR
- top down approach
- organizational
- radical redesign, revolutionary
- time consuming
- high risk, high cost
- impacts can be overwhelming
Business Process Management
●The use of a management system to support the business process modelling, analysis, design, implementation, management, and optimization of business processes
Capabilities
● business process modeling and documentation ● Process automation and execution
● Process analysis
● Process sharing
