Presentation on theme: "Information Technology Table of Contents S. No.Chapter Name 1.Business Process Management & IT 2.Information Systems and IT Fundamentals 3.Telecommunication."— Presentation transcript:
Table of Contents S. No.Chapter Name 1.Business Process Management & IT 2.Information Systems and IT Fundamentals 3.Telecommunication and Networks 4.Business Information Systems 5.Business Process Automation through Application Software
Chapter  Business Process Management & IT
What is a PROCESS Engineering perspective~ A Sequence of steps that convert given input into desired output. Business perspective ~ Coordinated and standardized sequence of events; Performed by people and machines; Surpass functional boundaries; To achieve business objective and to create value for customers. Example : Accounting, Marketing, Costing, Budgeting, Operations, SCM etc.
Functional v/s Process Organization FactorsFunctionalProcess Work Unit DepartmentTeam Key person Functional ExecutiveProcess Owner Benefits Functional Excellence Easier to implementation Clear management direction Market responsiveness Improved communication & coordination between dept. Performance measurement with process goal. Weakness Barrier to communicate between depts. Poor customer services. Lack of optimizing organit’al performance Duplication of expert Inconsistency of functional performance Increased operational complexity Strategy Cost-leadershipDifferentiation
PM is a planned efforts to map and improve organizational process. It involves following tasks ~ Define the Process and Roles involved. Establish performance measures Develop organizational setup to standardize the process.
“The achievement of an organizational objectives through the improvement, management and control of essential business process.” It is a combination of methods and tools for ensuring processes are improved to achieve enterprises objectives.
BPM results in increase effectiveness, cost reduction and enhancing value creation. It is achieved through proactive and reactive management It uses business tools such BPR, Six Sigma and TQM. BPR : Business Process Re-engineering Six Sigma : creates defects free output TQM : Total Quality Management
Achievement : Realizing strategic objectives Organization : Independent entity with which process is associated end-to-end. Objectives : Strategic goals or defined process output. Improvement : Increased efficiency and effectiveness.
Management : People or Process performance measurement. Control : Check to ensure adherence to standard. Plan-Do-Check-Act cycle. Essential : That contributes to achieve strategic goals and values creation to customer Business : Economic activities Process : Sequence of steps
Processes are Assets Value to Customers Continuous Improvement Involved Technology BPM Principles
Develop process oriented structure Appoint process owner Top management’s commitment to BPM Follow bottom-up approach for implementation Involve IT Work boundary less collaboration. Continuous training and improvement Performance related incentives Use of radical approach viz. TQM, BPR
Classification of Business Process Business process OrganizationalOperational Business Strategy Goals Organizational BP Operational BP Implemented BP determine realize
Organizational v/s Operational Combination of many operational process Described in plain text and diagrams in semiformal notation Works in non-technical environment Specify tasks by their input, output and interdependencies E.g. Production process Part of an organizational process Described as steps of a procedure Executes in technical environment Performs the tasks. E.g. Quality control
Challenges in BPA Implementation Growing number of user interfaces. Increase complexity due to product, service price options. Suite of build and buy applications with its own data format. Budgetary control. Automation does not guaranty improvement. Linking existing application by process layer in the system. Skill requirements. Change in organizational structure.
It is automation of BPs and to create a process layers by linking various application to execute a single end-to-end process. BPM technology provides ~ Better management of flow of activities. Better administration of people. Reduce delivery time Performance monitoring Support audit for compliance Maximize ROI
Value Chain Analysis Value chain is a set of activities within and around an organization to provide value-for- money product/services. VC analysis is a useful tool to identify activities involved in the process and assessing the value added by each of them. It helps to identify the ways in which we enhance value creation for customers.
Support Activities Primary Activities Firms Infrastructure Human Resources Management Technology Development Inbound Logistics Operations Outbound Logistics Marketing & Sales Services Procurement
Accounting Information System System of collection, storage, processing and reporting of financial and accounting data. Collection : pre- numbered, properly designed Sr. document. Storage : chronological recording in journals. Safeguarding : controls to ensure accurate processing.
Financing cycle Human Resource cycle Expenditure cycle General ledger and reporting cycle Revenue cycle Production cycle Funds Data labor Raw Material Finished goods Funds
Financing Cycle ~ It includes collection and storage of transaction involving acquisition of funds and utilization of funds. Revenue Cycle ~ It includes collection and storage of transaction involving Sales and Marketing, A/Cs Receivable, Inventory. Expenditure Cycle~ It includes collection and storage of transaction involving Purchasing, A/Cs Payable, Cash disbursement.
Human Resource Cycle ~ It includes collection and storage of transaction involving Payroll, Job, Taxation. Production Cycle ~ It includes collection and storage of transaction involving Operations, Quality, Inventory. General Ledger and Reporting Cycle~ It includes collection and storage of transaction of all other cycles to post them into related ledgers and generate various reports as financial statement.
Data Processing Cycle ~ It is a back end cycle concerned with storage and updation of data in many files. It works in on-line real time basis to keep the file always updated. It generates audit trail to support auditing of other cycles. It maintains three type of data file : Master file Transaction file Reference file
1 Business involvement in designing IT based processes 2 Ability to integrate people and system participating in the process 3 Ability to simulate business processes 4 Ability to real time monitoring, controlling and improvement in the process 5 Ability to change existing process in real time without elaborate efforts.
Automating repetitive processes 1 Loosely coupling with existing applications 2 Operational saving : Cost and Time 3 Reduction in Administration activities : Audit and Compliance 4 Freeing up of employee time : No manual activities 5
Risk of failure of IT Inadequate investment in training Lack of corporate policy Lack of top management involvement Poor project management Failure in gap analysis Customization of software Not enough flexibility Compatibility with systems of partners Fail to meet business need Technological obsolescence
Business Process Re-engineering BPR focuses on core business processes and attempt to change them with best practice. Definition – – Business Process Re-engineering is the fundamental rethinking and radical re- designing of processes to achieve dramatic improvement in critical and contemporary measures of performance such as cost, quality, service and speed.
BPR Success factors Organization wide commitment – Strong leadership and support and sponsorship from top management Team Composition – Consultant, top management, process owner and users Business Need Analysis – Which current processes need re-engineering
Adequate IT infrastructure – Set of appropriate hardware, software, network, and facilities Effective change management – To change people behavior, organization culture, processes, technology On-going Continuous Improvement – Gradual on-going improvement through continuous learning.
System Flowchart Diagrammatic representation of data flow, data storage, manual and automated steps of processing taken place in an IS. Data Flow Diagram Customer Salesman S.O.P. Sales file Management
S.No. FlowchartDFD 1. Steps of processFlow of data 2. Do not show external source and destination Describes path from external to internal source 3. Timing and sequence of process is shown Not described 4. How system functions What functions are performed by system. 5. Used to design a process Describe path of data within the process 6. Type ~ System, Program,Type ~ physical, Logical
Decision Table Credit eligibility R1 R2 R3 R4 C1 Experience >= 5 years Y Y N N C2 Credit limit OK Y N Y N A1 ACCEPT X A2 REJECT X X X
Decision Tree Play 9 Don’t play 5 Play 9 Don’t play 5 Play 2 Don’t play 3 Play 2 Don’t play 3 Play 4 Don’t play 0 Play 3 Don’t play 2 Play 2 Don’t play 0 Play 0 Don’t play 3 Play 0 Don’t play 2 Play 3 Don’t play 0 sunny over cast rainy <=70 >70 windy Non-windy