2 LEARNING OUTCOMESDescribe business processes and their importance to an organizationDifferentiate between customer facing processes and business facing processesCompare the continuous process improvement model and business process reengineering
3 LEARNING OUTCOMESDescribe the importance of business process modeling (or mapping) and business process modelsExplain business process management along with the reason for its importance to an organization
4 INTRODUCTIONBusiness process improvement will, at a minimum, double the gains of a project by streamlining outdated practices, enhancing efficiency, promoting compliance and standardization, and making an organization more agileBusiness process improvement involves three key stepsMeasure what matters to most customersMonitor the performance of key business processesAssign accountability for process improvement
5 Examining Business Processes The process steps are the activities the customer and store personnel do to complete the transactionBusiness process - a standardized set of activities that accomplish a specific task, such as processing a customer’s orderBusiness processes transform a set of inputs into a set of outputs (goods or services) for another person or process by using people and tools
6 Examining Business Processes Business process characteristics:The processes have internal and external usersA process is cross-departmentalThe processes occur across organizationsThe processes are based on how work is done in the organizationEvery process should be documented and fully understood by everyone participating in the processProcesses should be modeled to promote complete understanding
7 Examining Business Processes Customer facing process - results in a product or service that is received by an organization’s external customerBusiness facing process - invisible to the external customer but essential to the effective management of the business
9 Business Process Improvement Companies are forced to improve their business processes because customers are demanding better products and services
10 Business Process Improvement Continuous process improvement model - attempts to understand and measure the current process, and make performance improvements accordingly
11 BUSINESS PROCESS REENGINEERING Business process reengineering (BPR) - analysis and redesign of workflow within and between enterprises
12 BUSINESS PROCESS REENGINEERING Managerial approach to reengineering projectsDefine the scopeAnalyzeEvaluatePlanApproveExecute
13 Business Process Design Business process modeling (or mapping) - the activity of creating a detailed flow chart or process map of a work process showing its inputs, tasks, and activities, in a structured sequenceBusiness process model - a graphic description of a process, showing the sequence of process tasks, which is developed for a specificAs-Is process modelTo-Be process model
18 SELECTING A PROCESS TO REENGINEER Criteria to determine the importance of the process:Is the process broken?Is it feasible that reengineering of this process will succeed?Does it have a high impact on the agency’s strategic direction?Does it significantly impact customer satisfaction?Is it antiquated?Does it fall far below best-in-class?Is it crucial for productivity improvement?Will savings from automation be clearly visible?Is the return on investment from implementation high and preferably immediate?
19 Business Process Management Business process management (BPM) - integrates all of an organization’s business process to make individual processes more efficient
20 Business Process Management BPM allows business process to be executed more efficiently and measures performance and identifies opportunities for improvement, BPM benefits include:Update processes in real-timeReduce overhead expensesAutomate key decisionsReduce process maintenance costReduce operating costImprove productivityImprove process cycle timeImprove forecastingImprove customer service
21 BPM TOOLSBusiness process management tool - an application that designs business process models and simulates, optimizes, monitors, and maintains various processes
22 CRITICAL SUCCESS FACTORS Understand reengineeringBuild a business and political caseAdopt a process management approachMeasure and track performance continuouslyPractice change management and provide central supportManage reengineering projects for results
30 Closing Case One Streamlining Processes at Adidas Over the past 15 years, Adidas-Salomon transformed itself from a manufacturing organization to a global sports brand manager with 14,000 employees located around the worldPreviously, Adidas-Salomon operated in a decentralized manner, and each operating unit chose software that suited its geography and internal preferencesThe company believed that implementing and creating common processes, especially in its sales organization, would help it establish global direction, streamline and automate its businessOperations thereby improving flexibility, scalability, and visibility across the extended enterprise
31 CLOSING CASE ONE QUESTIONS Describe business processes and their importance for Adidas-SalomonIdentify a few examples of customer facing processes and business facing processes at Adidas-SalomonHow could Adidas-Salomon use continuous process improvement and business process reengineering to remain competitive?How can a business process management tool help Adidas-Salomon remain at the top of its game?
32 CLOSING CASE TWO 3Com Optimizes Product Promotion Processes To gain better control over the creation and execution of its product promotions, 3Com uses Savvion’s business process automation and management platform to build a Web-based system that streamlines the approval and management workflow of product promotions offered to distributors and resellers
33 CLOSING CASE TWO QUESTIONS Describe business processes and their importance to 3Com’s business modelHow can 3Com use continuous process improvement to become more efficient?How can 3Com use business process reengineering to become more efficient?Describe the importance of business process modeling (or mapping) and business process models for 3ComHow did 3Com use business process management software to revamp its business?