3 BPM b

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A business process is…

a chain of events, activities and decisions


...involving several actors and objects,
….triggered by a need
and leading to an outcome that is of value to a customer.

Examples:
• Order-to-Cash
• Procure-to-Pay (aka Purchase-to-Pay)
• Application-to-Approval
• Issue-to-Resolution
“My washing machine doesn’t work…”
Negative outcomes (value-reducing): Positive outcomes (value-adding):
• Fault not repaired in a timely manner • Fault repaired immediately with minor
• Fault repaired but customer pays more intervention
than expected • Fault repaired, covered by warranty

Insurance
Call Centre Company
Technician

Customer Customer
Customer
Parts
Service Store
Dispatch
Centre

VALUE
issue-to-resolution process
What is Business
Process
Management?

And why should I


care about it?

3
Improving Performance (Rummler’s Framework)
Business Environment
Economy Regulatory Culture

Assets & Organisation


Resources
Performance Planning Performance Management Stakeholders
Financial

Value
Human Function Function Function C
Resource A B
s Business Process
Technolog
y Business Process Customers
Materials
Business Process

Competitors
Process performance

If you had to choose between two services, you would typically choose the
one that is:

• F…
• C…
• B…
Process performance

If you had to choose between two services, you would typically choose the
one that is:

• Faster
• Cheaper
• Better
Process performance

Three dimensions of process performance

• Time
• Cost
• Quality
Improving process performance

Customer Greet & Take Bring Serve Present Issue Customer


arrived seat order menu meal bill invoice paid
How would you improve this process?

Outsource to Customer Standardize


Eliminate Cooking

Automate

Invest and Build


Re-sequence

Eliminate Waiters
Business Process Management (BPM)

Body of principles, methods and tools to design, analyze, execute


and monitor business processes, with the aim of improving their
performance.

IT systems
Customers Employees

Business
Processes
Data Trading
Partners

IT infrastructure Suppliers
Why BPM?

“The first rule of any technology


used in a business is that
automation applied to an efficient
operation will magnify the
efficiency.

The second is that automation


applied to an inefficient operation
will magnify the inefficiency.”
Bill Gates
In other words…

Information Yields
Technology Business
Value

Enables
Yields
Process
Change

Index Group (1982)

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