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EFF0RTSBY
AnchalPundir
10609135
KartikeyPandey
10609152
FaisalShah
10609147
Priyamva-da
10609165
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KNOWLEDGEAR
EA 3
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A business process is a logicalenvelope that co-ordinates andgives purpose to business
activities; generally where anactivity delivers an output and aprocess delivers an outcome.
A business process is a high level
component of a business that iscomprised of a number of lowerlevel business activities.
BUSINESS PROCESSES
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It connects one partof the organization to
the other.
The connectives linesin an organizationchart tell us who
reports to whom butnot what people do.
ORGANIZATION CHART
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Identifying Business Process
Identifying Business Process
In the context of change and uncertainty , it is important to be able
to develop and agree a clear understanding of what a business sets
out to achieve at a high level.
From the high level of the corporate vision, which provides a
rationale and a general direction, down to the definition of
operational activities, an organisation needs to be able to understand
what is to be done and how it is to be done.
Based on an understanding of what stakeholders expect from an
organisation we can derive idealised process sets, and then get towork on the difference between what we are doing and what we
should be doing.
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The value chain as an early indicator of process thinking
The internal value chain shows how the various activities and
functions in a business unit contribute to the customer'srequirements, and how costs are incurred in doing so.
The value chain helps to get beyond the detail of current
arrangements in order to see the bigger picture in relation to the
whole business & the way that customers see it.3/14/2011 6BUSINESS PROCESSES
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BUSINESS PROCESS REDESIGN
The value chain is based on concern for the customer.
We must seek out an analytical approach that will deal with all
stakeholders, and take some account of their relative importance
Business processes can be radically redesigned and significant
benefits can be gained from rationalisation and reorganisation of
processes.
Two major issues to be dealt here are :
Depth of ChangeScope of Change
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DEPTHOFCHANGE
BUSINESSPROCESS
IMPROVEMENT
Finding activitiesthat are inefficientor timeconsuming.
Exploring theapplication of
informationtechnology to theirimprovement.
BUSINESSPROCESS
REDESIGN
Look for ways in
which activitiescombine intobusiness processes.
Wholesale change:elimination ofredundant activities,
redeployment ofinventory, closesharing ofinformation withpartners.
BUSINESSPROCESS
INVENTION
Find completelynew businessprocess models &use totally newthinking.
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SCOPE OF CHANGE
It tells whether we are dealing with one department, with a wholebusiness unit, or with a complete industry.
Scope of change can be defined at different levels:
1. LOCAL REDESIGN
2.INTERNAL REDESIGN
3.INTERFACE REDESIGN
4.INDUSTRY NETWORK REDESIGN
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LOCALREDESIGN:
Redesigning within a single
functional area of our business,either in the value-adding streamor in the supporting activities.
INTERNALREDESIGN:
Straddling different functional
areas of the business in order toachieve improved informationflow and tighter integration of
activities.
INTERFACE REDESIGN:
Set out to build links with externalparties. The timescales involvedin external partnerships can be
considerably extended, and not allpartners will pull with the same
enthusiasm.
INDUSTRYNETWORK
REDESIGN:
Customers and suppliers decideto get together and exclude our
business altogether from the chainof industry activity -
Disintermediation.
SCOPEOFCHANGE
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PRINCIPLES OF BUSINESS PROCESS REDESIGN
Organise around outcomes, not tasks.
Have those who use the output perform the process.
Subsume information processing into the real work.
Treat dispersed resources as centralised.
Link parallel activities.
Put the decision point where the work is performed.
Capture information only once, at source.
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BUSINESS MODELLING
A process model of a business isimportant as it sits between the high
and low level viewpoints and helpsto communicate what is envisionedand what is intended to change
A process model sits comfortablybetween the new vision and thepractical considerations .
It allows to be assure of theviability and completeness of ourvision for the business.
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APPROACHES TOBUSINESS MODELLING
TOP-DOWNAPPROACH
One approach to business process analysis that embraces both
visionary and operational viewpoints and that provides an informal
but structured analytical method that enables reconciliation of these
different levels of thinking.
THESEAPPRACHES WORKS ON TWO FRONTS:
1: What are we to do as a business , and why?
2: How are we to do it?
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GENERALAPPROACH TOBUSINESS
MODELLING
Develop a Vision
Determine What must be done
Determine How it shall be done
Reconcile activities with processes
Assess current performance
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ANANALYSIS METHOD
1.Develop a Vision : A vision statement must be negotiated with the senior management
team.
A good vision statement sets a target to aim at. It makes clear the principal outcome of all the efforts of the
business .
A vision is about choices: positioning, scoping and differentiating .
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2. Identify Stakeholders :
A stakeholder is any identifiable type of individual or organisation
that can influence the course of the business.
Different stakeholder groups may share the same expectations orhave conflicting hopes and aspirations .
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3.Tabulate Stakeholder Expectations
:
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a. Out of a consolidated list ofall expectations , identify whatkind of process will satisfy the
expectation?
b. For the first expectation,create a process that will
satisfy it.
c. For subsequent
expectations, examine whetherthey will be satisfied by any of
the processes so farestablished.
d.For any new processes,review their possiblecontribution to other
expectations.
4.Derive list ofideal processes:
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5. Process-expectation map :
Build up a matrix showing how each of the processesthat have been nominated contribute to each of theexpectations from the consolidated list.
Note the strength of the contribution.
Processes assessed by the extent to which they satisfyexpectations and the importance of those expectationsaccording to the mission statement .
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6. Tabulate Business Objects :
Populate each Business activity with the activities (at a lower level)
that will "realise" the process.
- Brainstorming
- Reduction With the vision statement to hand, tabulate and organise a list of the
high level objects in a business.
Include high level objects that represent key components of the
business .
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7. Derive activities using object lifecycle
analysis :
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8. Activityprocesses map :
Each process has a proportionate number of activities .
A process may have no activities, or very few .
An activity may not be mapped to any process.
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9. Assess Business Performance :
Assess current process performance .
Rational view of the difference between our views of business
performance and assess it against evidence of what our stakeholders
think.
Performance of each process judged according to the performance
of the weakest activity contributing to it.
The transformational processes are critical to the future of the
organisation, and so their importance is a function of the need to
change, or the desire to change.
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We are concerned with business processes in order to deliver
business performance that is appropriate to the expectations of our
stakeholders, and to ensure that we are investing in information
systems in the most appropriate areas of activity.3/14/2011 27BUSINESS PROCESSES
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Managerial Issues in Process Management
Business
modelling
Process
Management
StakeholdersChange
management
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