session 3: business process optimization Flashcards
business process
an ongoing collection of related activities that create a product or service of value to organization
3 elements in business process:
inputs
resources
output
competitive advantage
any assets that provide an organization with an edge against competitors
2 metrics to asses performance of a firm
effectiveness: are we doing what matters
efficiency: are we doing things without wasting any ressources
cross-functional processes
: process that involves multiple divisions of each of which make its part in total workflow
marketing business processes
managing post-sale customer follow-up
handing customer complaints
collecting sales tax
handling returned goods from customers
applying copyrights and trademarks
producing sales leads
mgmt info system business processes
antivirus control
applying electronic mail policy
computer security issues
generating internet use policy
traning computer users
managing service agreements and emergency services
procurement process
incluudes all of the tasks involved in acquiring needed materials externally from a vendor
procurement process steps (5)
Warehouse :
-recognizes need for materials => pruchase requisition (Step1)
Purchasing department:
- identify suitable vendor, sends the order…(Step 2)
Warehouse:
-vendor ships the materials to the warehouse (Step3)
Accounting department:
- vendors send an invoice (Step 4)
-accounting sends payment to the vendor (Step 5)
fulfillment process
concerned with processing customer orders
fulfillment process steps
Sales department:
- customer purchase order
- validate order + creates a sales order
Sales order communicated data related to the order to other functiunal areas of org.
Warehouse:
- prepares and send the shipment to customer
Accouting:
- creates an invoice and send it to th ecustomers
- register customer payment
Business process of ordering an e-ticket from an airline website
SEE lesson
measures business process efficiency with
customer satisfaction
cost reduction
cycle and fulfillment time reduction
quality
differentiation
productivity
IS vital role in business processes
Executing the process
Capturing and storing process data
Monitoring process performance
IS in executing business processes
Inform people when its time to complete a task
Provide necessary data to complete the tasks
Provide means to complete the task
IS in capturing/storing data in business processes
Processes generate data => IS caputres and stores these data called process data or transaction data
Data need to be entered only once, everyone can easily access them
Data captured can provide immediate feedback
IS in monitoring business process perfomance
indicated how well a process is executing => evaulates info about the process
At 2 levels : process or instance
Identify pbls for improvments
Business Process Reengineering (BPR)
“clean sheet” prespective
radical
lenghty
impact = overwhelming
top-down approach
Business Process Improvement (BPI)
incremental approach
6 sigmas
low-risks/costs
bottom-up
quantifiable results
all employees trained in BPI
less time consuming
6 sigmas
goal is to ensure that the process has no more than 3.4 defects/million
5 phase to implement BPI
define: document the “as is” process
measure identifies relevant process metrics
analysis: identify pbls with the process and its root cause
improve: identify possible solutions and find the most appropriate solution
control : established process metrics and monitors improvments
Business Process Management (BPM)
a management system that includes methods and tools to support the design, analysis, implementation, management and continuous optimization of core business processes.
BPM components
process modelling : graphical depiction of all of the steps in a process
business activity monitoring
Business Activity Monitoring (BAM)
a real-time approach for measuring and managing business processes
identify failurs or exception and address them in real time
creates valuable recors of process behaviours that org. use to improve process
Business Process Management Suites (BPMS)
an integrated set of app used in BPM
