A collection of related activities that produce a product or a service
of value to the organization, its business partners, and/or its
A process has inputs and outputs and activities may be measured.
Processes may have as low 1 or several functional areas.
Example: Accounting Business Process Accounts Payable,
Accounts Receivable, Cash Receipts, Invoice Billing, Etc.
May lead to competitive advantage if they innovate and become
more efficient than competitors.
May lead to liabilities if they become inefficient.
Example: Purchase tickets online, the firm must have up to date
prices, if not firm will hurt.
The following are significant measures of competitive performance
in the organization:
o Customer satisfaction, cost reduction, cycle and fulfillment
time, quality, product differentiation, productivity.
IT is the key enabler of achieving business process excellence.
o Business Process Reengineering is an approach that improves
the efficiency and effectiveness of an organizations business
o Starts off by viewing the process from a ―clean sheet‖
perspective and than reconstructing them to improve
A less radical, less disruptive and more incremental approach was
developed to replace the BPR was called BPM (Business Process
Business Process Management
A management technique that includes methods and tools to
support the design, analysis, implementation, management, and
optimization of business processes.
Initially BPM helps companies improve profitability by decreasing
costs and increasing revenues. Overtime, created a competitive
advantage by improving organizational flexibility.
Information Systems: Concepts and Definitions