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ISM Week 5

What will business process improvement do at a minimum
-double the investment in a re-design project by:
-streamlining outdated practices,
-enhancing efficiency,
-promoting compliance and standardization,
-and making an organization more “agile”.
What are the three key steps of business process
-Measure what matters to most customers
-Monitor the performance of key business processes
-Assign accountability for process improvement
Why is business process management an MIS function?
-Since BPM projects cross application and system boundaries, they often need to be sanctioned and implemented by the MIS organization.
-And BPM products are most often software applications.
a standardized set of activities that accomplish a specific task, such as processing a customer’s order.
Business process
What do business processes transform
a set of inputs into a set of outputs (goods or services) for another person or process.
Why manage business processes?
-Examining business processes helps an organization determine bottlenecks and identify outdated, duplicate, and smooth running processes.
-Organizations are only as effective as their business processes.
-Developing logical business processes can help an organization achieve its goals.
attempts to understand and measure the current process, and make performance improvements accordingly
Continuous process improvement model
analysis and redesign of workflow within and between enterprises
Business process reengineering (BPR)
What are the 6 characteristics of business processes
-The processes have internal and/or external users.
-A process can be cross-departmental.
-The processes can occur across organizations.
-The processes are 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.
What should the pace of operations be for a manufacturing environment
largely slow and methodical methods; rarely reason to improvise
Where should the pace of operations be fast?
aviation, air traffic control, hospital emergency rooms, military actions, the processes are designed for fast-paced and rapidly changing situations
results in a product or service that is received by an organization’s external customer
Customer facing process
invisible to the external customer but essential to the effective management of the business
Business facing process
What are four examples of customer facing processes?
-Marketing campaign
-Sales initiative such as a discount
-New product
-New service
What are four examples of Business facing processes
-budgets
-goal setting
-day to day planning
-employee rewards
What are three ways to improve processes?
-Measure what matters to customers
-Monitor performance of key indicators
-Assign accountability for improvement
Why are companies forced to improve their business processes
because customers are demanding better products and services
What are the 6 managerial approach steps to BPR
1) define the scope (objectives, strategy, etc)
2) analyze (alternatives, effectiveness, efficiency, etc)
3) Evaluate
4) Plan (costs, benefits, requirements, etc)
5) approve (get approval from senior management)
6) execute (approved process)
What is the difference between continuous process improvement and business process reengineering?
-In the extreme, BPR assumes the current process is irrelevant, does not work, or is broken and must be overhauled from scratch.
-Such a clean slate enables business process designers to disassociate themselves from today’s process and focus on a new process
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 modeling (or mapping)
a graphic description of a process, showing the sequence of process tasks, which is developed for a specific
Business process model
Why is it important to diagram the As-Is process prior to diagramming the To-Be process?
It is important to understand the entire process from end-to-end before determining how to fix the process.
integrates all of an organization’s business process to make individual processes more efficient
business process management (BPM)
Who does BPM
-A good BPM solution requires two great parts to work together as one.
-Since BPM solutions cross application and system boundaries, they often need to be sanctioned and implemented by the MIS organization, while at the same time BPM products are business tools that business managers need to own.
-Therefore, confusion often arises in companies as to whether business or MIS managers should be responsible for driving the selection of a new BPM solution.
What are the 8 benefits to BPM
-Reduce overhead expenses
-Automate key decisions
-Reduce process maintenance cost
-Reduce operating cost
-Improve productivity
-Improve process cycle time
-Improve forecasting
-Improve customer service
Business processes allow for what
to be executed more efficiently
What are the opportunities included in BPM
-Bring processes, people, and information together.
-Break down the barriers between business areas and finding owners for the processes.
-Manage business processes within the enterprise and outside the enterprise with suppliers, business partners, and customers.
-Looking at automation horizontally instead of vertically.
What are the six critical success factors
1)Understand reengineering
2)Build a business and political case
3)Adopt a process management approach
4)Measure and track performance continuously
5)Practice change management and provide central support
6)Manage reengineering projects for results
What are the five requirements for BPM success
1)Integrate with existing operational systems such as ERP and databases.
2)Integrate business processes with those of a company’s suppliers and partners.
3)Incorporate the business rules that guide a business.
4)Provide managers with the visibility into those automated processes to monitor operations in real time.
5)Offer managers the ability to deal with exceptions when they occur by changing business rules to respond to business conditions in real time.
Customer Facing vs. Business Facing Processes
Customer-facing processes
• Result in a product or service that is received by an organization’s external customer.
• Adidas’ customer facing processes might include
– a marketing campaign,
– a sales initiative,
– a new product or service,
– distribution of a product or service,
– customer billing, customer service, and order processing.

Business facing processes at Adidas might include:
• strategic planning,
• internal budgets,
• internal training,
• purchasing raw materials in the supply chain.

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