Plug it in 1: Business Processes and Business Process Management

Flashcard maker : Lily Taylor
Business Process
A collection of related activities that create a product or a service of value to the organization, its business partners, and/or its customers.
Business Process Management (BPM)
A management technique that includes methods and tools to support the design, analysis, implementation, management, and optimization of business processes.
Business Process Re-engineering (BPR)
A radical redesign of a business process that improves its efficiency and effectiveness, often by beginning with a “clean sheet”.
Cross-Functional Processes
No single functional area is responsible for a process’s execution. –
The 3 fundamental elements of the business process.
Description of the Input element of the BP.
Materials, services, and information that flow through and are transformed as a result of process activities.
Description of the Resources element of the BP.
People and equipment that perform process activities.
Description of the Outputs element of the BP.
The product or service created by the process.
The two fundamental metrics that organizations employ in assessing their processes and their descriptions.
Efficiency and Effectiveness
What is measured through Efficiency.
Focuses on doing things well in the process; for example, progressing from one process activity to another without delay or without wasting money or resources.
What is measured through Effectiveness.
Focuses on doing things that matter; that is, creating outputs of value to the process customer- for example, high-quality products.
Two business processes that cut across multiple functional areas within an organization.
Procurement and Fulfillment.
Description of the Procurement Process.
Includes all of the tasks involved in acquiring needed materials externally from a vendor
Description of the Fulfillment Process.
Concerned with processing customer orders.
Three areas of the Business Process in which Information Systems play a vital role.
-Executing the Process
-Capturing and storing Process Data
-Monitoring Process Performance
Process Data (Transaction Data)
Data captured during a transaction about the customer and their purchase.
Instance Level
A level at which the business process is monitored, in which the process is monitored by specific tasks and activities.
Process Level
A level at which the business process is monitored, in which the process is monitored as a whole.
The 6 measures of a Successful Business Process.
-Customer Satisfaction
-Cost Reduction
-Cycle and Fulfillment time reduction
The Five basic Phases of Business Process Improvement (BPI).
Description of the ‘Define’ phase of BPI.
-The BPI team documents the existing “as is” process activities, resources, and inputs and outputs. (Graphical Process Map)
-The team also documents the customer and customer’s requirements for the process output, together with a description of the problem that needs to be addressed.
Description of the ‘Measure’ phase of BPI.
-The BPI team identifies relevant process metrics to generate one output (Product or service) and collects data to see how the metrics evolve over time.
Description of the ‘Analyze’ phase of BPI.
The BPI team examines the “as is” process map and the collected data to identify the problems with the process and their root causes.
-The team should also benchmark the process.
Description of the ‘Improve’ phase of BPI.
The BPI team Identifies possible solutions for addressing the root causes, maps the resulting “to be” process alternatives, and selects and implements the most appropriate solution.
Description of the ‘Control’ phase of BPI.
The team establishes process metrics and monitors the improved process sfter the solution has been implemented to ensure the process performance remains stable.
Business Process Management Suites (BPMS)
An integrated set of applications that includes a repository of process information, it is used to support Business Process Management activities.

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