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Information Technology
ITEC 4030
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Business Process Management Systems ITEC 4030 – Winter 2011 – Peter Khaiter Lecture 1 – Course Overview – Jan 12 Business Process - Davenport (1993): A specific ordering of work activities across time and place, with a beginning, an end, and clearly identified inputs and outputs - Keen (1997): Any work that meets these four criteria: o It is recurrent o It affects some aspects of organizational capabilities o It can be accomplished in different ways that make a difference in terms of cost, value, service, or quality o It involves coordination - Khan (2004): Sequence of tasks that are performed in series or in parallel by two or more individuals or computer applications to reach a common goal - A business process is a logically sequenced set of work activities and associated resources that produces value to a customer Examples of Business Processes - Order processing: Defines how customer orders are received, entered, manufactured (or assembled), shipped and invoiced - Loan processing: Defines how a bank processes loan applications and the rules and approvals that must be obtained - Purchase order processing: Defines rules and paperwork that must be processed in order to control the acquisition of goods/services - Other: o Claim processing defines how an insurance company receives, reviews and processes claims o Customers complaint processing defines the mechanisms an organization uses to handle complaints issued by customers o Etc. Business Processes: Properties and Representation - Cross-functional or cross-enterprise - Degree of structure of a process - Activities can require human intervention or be automated - Information flow around the process - Knowledge created around the process - (Internal and/or external) customer-facing - Hand offs - Multiple versions - Value adding Business Process Management - Khan (2004): Discipline of modeling, automating, managing and optimizing a business process through its life cycle to increase profitability - (2006): Holistic management approach to operating business that produces a highly efficient, agile, innovative, and adaptive organization. - BPM implies: o The redesign of business processes (see next slide) o The use of BPMS that execute the redesigned business process and monitor its performance Business Process Redesign - Hammer and Champy (1993): o "Fundamental rethinking …of business processes… o …to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed" - Implications: o Search for quantum improvements rather than incremental ones o Use of IT (computer applications) to enable the process to be done in new ways - In ITEC 4030, “fundamental" and "dramatic" mean: o Implementing a set of BPR principles o Identifying IT applications that shape and support the redesign of business processes BPR for E-Business - Rethinking and redesigning business processes at both enterprise and supply chain level o …Entire supply chain involves the distributor, the manufacturer, the resellers and the customers o …Enterpris
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