INFS1000 Lecture Notes - Lecture 7: Purchase Order, Information System, Database Application
4 Jun 2018
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WEEK 7: BUSINESS PROCESS MANAGEMENT
WHY IS BUSINESS PRCOCESS MANAGEMENT IMPORTANT TO ORGANISATIONS?
• BPs are complex and change over time à adapt to changing environments
• Business Process Management (BPM):
o Systematic process of creating, assessing and improving BPs
o BPM applies to all orgs (including not-for-profit and Gov agencies)
1. Create a model of the current BP
a. “As-is” model documents the current process
b. Business users review and adjust the model à changed to solve process problems
c. Results in a “to-be” model = new process
2. Create system components
a. Create or alter IS to support/facilitate new process
b. Uses 5 elements of IS
3. Implement new BP
a. Change the way the org operates, train people, implement IS
4. Create policy and procedures to assess process effectiveness on an ongoing basis
a. Adjust and repeat cycles
• BPM varies with the scope + size of process
o Functional Processes:
§ Activities in a single department or function
§ BPM easier at this level
§ Problem is that may lead to ‘isolated silos’
§ E.g. marketing campaign management
o Cross-Functional Processes:
§ Activities across/among many business departments
§ Eliminate or reduce isolated systems and data
§ E.g. ERP
o Inter-organisational Processes:
§ Activities that cross organisational boundaries
• E.g. supply chain management (SCM), credit card processing
§ More difficult than functional and cross-functional processes
§ Requires negotiation to resolve conflict b/w priorities
PROCESS MODELLING
• The activity of representing BPs = creating process models à central to business
o ‘As-is” model o ‘To-be” model
PROCESS MODELLING NOTATIONS
• Several standards have been developed to support BPM
o Petri Nets
o Event-driven Process Chains (EPC)
o Business Process Modelling Notation (BPMN)
§ A standard set of terms + graphical notations for documenting BPs
• Common language = models are understandable across various orgs
• Facilitate exchange of knowledge and experience across situation
THREE BPMN LAYOUTS
1. Simple Layout
a. Provides a quick overview of a process
2. Swim Lane Layout
a. Visualises who does which activities (people component)
b. Used to enrich a process model with role and organisational info
3. Database Interaction Layout
a. Used to visualise how activities are supported by an IS or database
b. Models the data/message flows between activity and system/database
Document Summary
Activities in a single department or function. Problem is that may lead to isolated silos". E. g. supply chain management (scm), credit card processing. More difficult than functional and cross-functional processes. Requires negotiation to resolve conflict b/w priorities. The activity of representing bps = creating process models central to business. Several standards have been developed to support bpm: petri nets, event-driven process chains (epc, business process modelling notation (bpmn) A standard set of terms + graphical notations for documenting bps: common language = models are understandable across various orgs. Facilitate exchange of knowledge and experience across situation. Is play an important role in implementing bps: support activities to entire processes through automation + providing data. The redesign of bps to take advantage of is is increasingly common. Information systems for linking activities: example. Database application to track prospect financial info, location, client status (e. g. converted, dropped out)
