Day 1

1
Day 1

• Course overview

2
Learning objectives

• Definition of business process-related terms
• Business process (BP)
• Business process management (BPM)
• Business process redesign (BPR)
• BPR for e-business
• Business Process Management Systems (BPMS)
• Role of IT in BPR projects
• ITEC 4030 in practice
• ITEC 4030 Course overview

3
Business Process

• Davenport (1993) A specific ordering of work
  activities across time and place, with a
  beginning, an end, and clearly identified inputs
  and outputs
• Keen (1997) Any work that meets these four
  criteria
• It is recurrent
• It affects some aspects of organizational
  capabilities
• It can be accomplished in different ways that
  make a difference in terms of cost, value,
  service, or quality
• It involves coordination
• Khan (2004) Sequence of tasks that are performed
  in series or in parallel by two or more
  individuals or computer applications to reach a
  common goal
• ?A business process is a logically sequenced set
  of work activities and associated resources that
  produces value to a customer

4
Examples of Business Processes

• Order processing Defines how customer orders are
  received, entered, manufactured (or assembled),
  shipped and invoiced
• Loan processing Defines how a bank processes
  loan applications and the rules and approvals
  that must be obtained
• Purchase order processing Defines rules and
  paperwork that must be processed in order to
  control the acquisition of goods/services
• Other
• Claim processing defines how an insurance company
  receives, reviews and processes claims
• Customers complaint processing defines the
  mechanisms an organization uses to handle
  complaints issued by customers
• Etc.

5
Business Processes Properties and Representation

• Cross-functional or cross-enterprise
• Degree of structure of a process
• Activities can require human intervention or be
  automated
• Information flow around the process
• Knowledge created around the process
• (internal and/or external) customer-facing
• Hand offs
• Multiple versions
• Value adding

6
Business process management

• Khan (2004) Discipline of modeling, automating,
  managing and optimizing a business process
  through its life cycle to increase profitability
• bpmg.org (2006) Holistic management approach to
  operating business that produces a highly
  efficient, agile, innovative, and adaptive
  organization .
• BPM implies
• The redesign of business processes (see next
  slide)
• The use of BPMS that execute the redesigned
  business process and monitor its performance (see
  slide 12)

7
Business process redesign

• Hammer and Champy (1993)
• "Fundamental rethinking of business processes
• to achieve dramatic improvements in critical,
  contemporary measures of performance, such as
  cost, quality, service and speed"
• Implications
• Search for quantum improvements rather than
  incremental ones
• Use of IT (computer applications) to enable the
  process to be done in new ways
• In ITEC 4030, fundamental" and "dramatic" mean
• Implementing a set of BPR principles
• Identifying IT applications that shape and
  support the redesign of business processes

8
BPR for E-Business

• Rethinking and redesigning business processes at
  both enterprise and supply chain level
• Entire supply chain involves the distributor,
  the manufacturer, the resellers and the customers
  
• Enterprise involves front office and back office
  functions
• Must create value
• Redesigning business processes requires
  adjustment of work environment so that new
  process can be executed effectively (see next
  slide)

9
Leavitt Diamond Understanding organizational
adaptation

• Information
• Technology Use

Business Processes
Organizational Form
Requisite People Skills
10
Leavitt Diamond

• Four sets of organizational variables
• If any of these variables is changed the other
  three need to be adjusted accordingly
• If a new IT is introduced to the organization
  then
• Business processes need to be changed
• New people skills need to match the IT
• Perhaps new organizational form need to be
  introduced

11
Relationship between IT and BPR

• Role of IT in BPR projects
• IT does not just support BPs
• IT shapes new possibilities for BPs
• ?Avoid deciding on IT options after BPR
• Three generic IT-enabled ways of redesigning BPs
• Restructuring and reconfiguring BPs (Restructure
  it)
• Changing the information flow around BPs
  (Informate it)
• Changing Knowledge Management around BPs (Mind
  It)
• BPMS (see next slide)

12
Business Process Management Systems
Business Process Management Systems

• BPMS typically include the following tools
• Business process modeler used to define the
  business process
• Process execution engine that executes the
  defined process and captures the process
  execution data
• Business activity monitoring component which
  consists of a set of reporting tools for process
  owners and other managers
• User portal that allows end-users to participate
  in the process execution
• Admin portal used by process owner to deploy and
  manage (i.e. version management) the process
  definition

13
ITEC 4030 in practice

• Major industry players IBM, Oracle, SAP, BEA,
  Webmethods
• Improve operations (Business Process)
• Speed innovation (IT Infrastructure)
• Shape corporate governance (Organization)
• Boost team performance (People Skills)
• Relevant job titles
• BP analysts / BPM consultants / BP modeler/ BP
  Improvement Manager
• IT integration specialists
• Enterprise engineers / Enterprise architects /
• IT consultants / IT analysts / IT strategists
• Solution architects / IT architects

14
BPR Project PhasesBPR in the BIG course
overview

• Phase 1 The vision
• BPR project starts vision of how a company should
  be
• 4030 The implementation of BPR principles
  addresses the limitations of current processes
• Phase 2 The mobilization
• A project leader is selected and a core BPR team
  is formed
• 4030 The team acts as the BPR team
• Phase 3 The process redesign (also known as BPR
  ? BPR in the BIG)
• BPs are redesigned and their performances are
  compared
• This typically involves process scoping,
  modeling, analysis, redesign and integration
  planning
• 4030 AS-IS and (possible) TO-BE processes are
  analyzed and compared
• Phase 4 The implementation and the subsequent
  adjustments
• The IT infrastructure, the organization and
  people's skills are adjusted to fit the TO-BE
  process
• 4030 The focus is on the design of IS that shape
  and support the TO-BE process
• Phase 5 The maintenance
• The new process is monitored on a continuous
  basis and modified if required
• 4030 This phase is skipped (TO-BE process and
  new IT solutions should be robust!)

15
ITEC 4030 in one slide

• Concurrent design of business processes IT
  solutions
• Business process
• Understand, model and analyze business processes
  
• Identify opportunities to improve them by using
  IT solutions
• Output Business process report
• IT solution
• Design the IT solution that shape and support the
  new process
• Output IT solution report

16
Thank you