SlideShare a Scribd company logo
1 of 75
Business
Management
Design By Curiosity
Prepared By: Prof. Ashish Desai
i n f o @ t h e c a m e n t o r . c o m
Process
a s h i s d e s a i @ g m a i l . c o m
Information
TECHNOLOGY
&
By : ASHISH DESAI
In this new technological world, business process designers are directly
involved in systems design.
The closer working relationship between business process designers
and IT helps to reduce the gap between the business requirement and
the final deployed solution.
Overview of Business Process
What is Process ?
ā€¢ Process is defined as a sequence of
events that uses inputs to produce outputs.
ā€¢ Process is ā€œa coordinated and
standardized flow of activities performed
by people or machines, which can traverse
(cross) functional or departmental
boundaries to achieve a business objective
and creates value for internal or external
customers.ā€
ā€¢ Process orientation is at the core of BPM.
ā€¢ Hence, understand clearly distinction
between the traditional functional
organization and process organization.
Overview of Business Process
By : ASHISH DESAI
ā€¢ System of interlinked processes which
involves concerted efforts to map, improve
and adhere to organizational processes.
ā€¢ Where traditional organizations are
composed of departments, today it consider
as n/w or systems of processes.
ā€¢ To manage a process,
ļ±The first task is to define it.
o defining steps (tasks) in process and mapping
the tasks
ļ±Once the process is mapped, performance
measures can be established
ļ±Enables the standardization (correction) of
and adherence
What is Business Process ?
Overview of Business Process
By : ASHISH DESAI
ā€¢ A business process is a prescribed sequence of
work steps performed in order to produce a
desired result for the organization.
ā€¢ Organizations have many different business
processes such as completing sale, purchasing
raw materials, pay employees and vendors, etc.
ā€¢ Each of processes has either a direct or indirect
effect on financial status of organization.
ā€¢ The no. and type of business processes and how
they are performed vary across enterprises.
ā€¢ This is also impacted by automation.
Business Process Flow
Overview of Business Process
By : ASHISH DESAI
Business Process Flow
Accounting ā€¢ It involved in recording and processing
accounting events of a company.
ā€¢ It begins when a transaction or
financial event occurs and ends with its
inclusion in the financial statements.
1. Source Document
2. Journal:
3. Ledger:
4. Trial Balance
5. Adjustments:
6. Adjusted Trial balance:
7. Closing entries:
8. Financial statement:
Overview of Business Process
ā€¢ Order to Cash (OTC or O2C) covers all
the business processes relating to
fulfilling customer requests for goods or
services.
ā€¢ It involves a customer order to the final
point of collecting the cash.
1. Customer Order
2. Recording
3. Pick release
4. Shipping
5. Invoice
6. Receipt
7. Reconciliation (Settlement)
Business Process Flow
SALES
Overview of Business Process
ā€¢ Processes relating to obtaining raw
materials required for production of
a product.
ā€¢ It involves placing an order with a
vendor to the point of payment to the
vendor.
1. Purchase requisition
2. Request for quote
3. Quotation
4. Purchase order
5. Receipts:
6. Payments
Business Process Flow
PURCHASE
Overview of Business Process
2. What is Process?
Process is defined as a sequence of events
that uses inputs to produce outputs.
OVERVIEW OF BUSINESS PROCESS
1. INTRODUCTION
In this new technological world, business
process designers are directly involved in
systems design.
3. What is Business Process?
Traditional organizations are composed of
departments, today it consider as n/w or
systems of processes.
3. What is Business Process?
To manage a process,
ļ±The first task is to define it.
ļ±Once process is mapped, performance
measures can be established
ļ±Enable standardization of & adherence
4. Business Process Flow
ļ‚§ A business process is a prescribed
sequence of work steps performed in
order to produce a desired result for the
organization.
ļ‚§ Each of processes has either a direct or
indirect effect on financial status of
organization.
OVERVIEW OF BUSINESS PROCESS
A. ACCOUNTING
1. Source Document
2. Journal:
3. Ledger:
4. Trial Balance
5. Adjustments:
6. Adjusted Trial balance:
7. Closing entries:
8. Financial statement:
4. Business Process Flow
The no. & type of business processes & how they performed vary across enterprises.
B. SALES
1. Customer Order
2. Recording
3. Pick release
4. Shipping
5. Invoice
6. Receipt
7. Reconciliation (Settlement)
C. PURCHASE
1. Purchase requisition
2. Request for quote
3. Quotation
4. Purchase order
5. Receipts:
6. Payments
D. FINANCE
From the financial planning stage to resource
allocation, monitoring and analysis, at every
step of the way, governments and agencies
ensure that public resources are used
effectively and reach the intended
beneficiaries (receiver).
Business processes are broadly classified into two categories.
1. ā€˜Organizationalā€™ Business Processes and
2. ā€˜Operationalā€™ Business Processes.
Different levels can be identified in business process management,
ranging from high-level business strategies to implemented business
processes.
classification of Business Process
By : ASHISH DESAI
Classification of Business
Process Flow
A. Business Strategy: At Highest level, strategy of
company is specified
B. Goals: At Second level, the business strategy is
broken down to operational goals
C. Organizational Business Process: At Third level,
ā€˜Organizationalā€™ Business Processes can be found.
o Specified in textual form by their IO and expected
results and their dependencies.
o Enriched with diagrams expressed in an ad-hoc or
semiformal notation.
ā€¢ ā€˜Operationalā€™ Business Processes: the activities
and their relationships are specified,
ā€¢ Implemented Business Processes : It contain
information on execution of the process activities
BPM refers to the closed loop, iterative management of business processes
ā€¢ BPM may be defined as: ā€œThe achievement of an organizationā€™s
objectives through the improvement, management and control of
essential business processesā€.
Business Process Management
BPM is about the management of business processes with the organization
being the primary focus.
By : ASHISH DESAI
Business Process Management
ā€¢ All Key Terms Are:
ļ±ACHIEVEMENT: strategic objectives as outlined in
the organizationā€™s strategic plan.
ļ±ORGANIZATION: enterprise or parts of an
enterprise, perhaps a business unit that is discrete
in its own right.
ļ±OBJECTIVES: range from the strategic goals of
the organization through to the individual process
goals.
ļ±IMPROVEMENT: making the business processes
more efficient and effective.
ļ±MANAGEMENT:
By : ASHISH DESAI
Business Process Flow
ā€¢ All Key Terms Are:
ļ±CONTROLS: ability to measure
correctly.
ļ±ESSENTIAL: achievement of the
organizationā€™s strategic objectives.
ļ±BUSINESS: by delivering benefits.
ļ±PROCESSES: making the business
processes more efficient and
effective.
By : ASHISH DESAI
Business Process MANAGMENT
Principles & Practices
1. BPMā€™s first principle is processes are assets
that create value for customers.
2. A managed process produces consistent value
to customers and has the foundation for the
process to be improved.
oentails the tasks of measuring, monitoring,
controlling, and analyzing business processes.
oto predict, recognize, and diagnose process
deficiencies, and it suggests the direction of
future improvements.
3. The third principle is continuous improvement
of processes.
oorganizations need to improve to stay
competitive.
By : ASHISH DESAI
ā€¢ Principles
o By measuring, monitoring, controlling, and
analyzing business processes, a company can
deliver consistent value to customers;
o Business processes should be continuously
improved;
ā€¢ Practices
o Appoint process owners;
o Senior management needs to commit and drive
BPM;
o Execution of BPM
o take a bottom-up approach;
o monitor, control, analyze, and improve
processes;
o Work collaboratively
o on cross-organizational
o Continuously train the workforce
Business Process
MANAGMENT
By : ASHISH DESAI
Business Process MANAGMENT
BPMā€™s Practices
1. PROCESS-ORIENTED ORGANIZATIONAL
STRUCTURE:
ā€¢ To make processes more effectively managed &
improved.
ā€¢ BPM identifies 3 types of process-oriented structures:
A. Process Organization
ļ‚§ Each process unit would contain various functions that
support the process.
ļ‚§ Process organization optimizes performance of
process.
B. Case Management Organization
ļ‚§ Employees would still report to functional heads & also
to case managers, responsible to oversee the end-to-
end process of an individual case.
C. Horizontal Process Management Organization
ļ‚§ Create process owners who are responsible for core
processes
By : ASHISH DESAI
2. APPOINT PROCESS OWNERS
ļ‚§ The process owner designs, deploys, and
improves the process
3. TOP-DOWN COMMITMENT, BOTTOM - UP
EXECUTION:
ļ‚§ Top management needs to commit to it and
support the process-focused management
approach it requires.
ļ‚§ Undoubtedly, organizations adopting BPM will
go through difficulties and oppositions.
4. USE INFORMATION TECHNOLOGY (IT) TO MANAGE
PROCESSES:
ļ‚§ BPMS aligns the IT solution to be more in line
with the process
Business Process MANAGMENT
BPM Practiceā€™s
By : ASHISH DESAI
5. COLLABORATE WITH BUSINESS PARTNERS:
ļ‚§ More focused on what they want to perform in
house and what to be outsourced.
6. CONTINUOUS LEARNING AND PROCESS
IMPROVEMENT:
ļ‚§ tasks workers are expected to perform and new
technologies that are implemented to support BPM
7. ALIGN EMPLOYEE REWARDS TO PROCESS
PERFORMANCE:
ļ‚§ When employee rewards are aligned to process
performance, they further collaborate among
workers who are engaged in the same process
8. UTILIZE BPR, TQM, AND OTHER PROCESS IMPROVEMENT
TOOLS:
Business Process MANAGMENT
BPM Practiceā€™s
By : ASHISH DESAI
ā€¢ Analysis phase:
o analysis of the current environment and
current processes,
ā€¢ Design phase:
o evaluation of potential solutions to
meet the identified needs,
ā€¢ Implementation phase:
o involves project preparation, blue
printing, realization, final preparation,
go live
ā€¢ Run and Monitor phase:
o involves business process execution or
deployment
ā€¢ Optimize:
o Iterate for continuous improvement.
Business Process MANAGMENT
BPM Life Cycle
By : ASHISH DESAI
2. KEY TERMS ARE:
ACHIEVEMENT:
ORGANIZATION:
OBJECTIVES:
IMPROVEMENT:
MANAGEMENT:
CONTROLS:
ESSENTIAL:
BUSINESS:
PROCESSES:
BUSINESS PROCESS MANAGMENT
1. INTRODUCTION
BPM is about the management of business
processes with the organization being the
primary focus.
3. PRINCIPLE & PRACTICES
1. BPMā€™s first principle is processes are
assets that create value for customers.
2. A managed process produces consistent
value to customers and has the foundation
for the process to be improved.
3. The third principle is continuous
improvement of processes.
4. BPMā€™s PRACTICE
1. PROCESS-ORIENTED ORGANIZATIONAL
STRUCTURE:
A. Process Organization
B. Case Management Organization
C. Horizontal Process Management
Organization
BUSINESS PROCESS MANAGMENT
4. BPM PRACTICE
2. APPOINT PROCESS OWNERS
3. TOP-DOWN COMMITMENT, BOTTOM - UP
EXECUTION:
4. USE INFORMATION TECHNOLOGY (IT) TO
MANAGE PROCESSES:
5. COLLABORATE WITH BUSINESS PARTNERS:
6. CONTINUOUS LEARNING AND PROCESS
IMPROVEMENT:
7. ALIGN EMPLOYEE REWARDS TO PROCESS
PERFORMANCE:
8. UTILIZE BPR, TQM, AND OTHER PROCESS
IMPROVEMENT TOOLS:
5. BPM LIFE CYCLE
1. Analysis phase:
2. Design phase:
3. Implementation phase:
4. Run and Monitor phase:
5. Optimize:
By : ASHISH DESAI
SIX SIGMA
BUSINESS PROCESS RE ENGINEERING ( BPR )
THEORIES OF PROCESS MANAGMENT
TOTAL QUALITY MANAGEMENT ( TQM )
By : ASHISH DESAI
THEORIES OF PROCESS MANAGMENT
ā€¢ Six Sigma is a set of strategies, techniques, and
tools for process improvement.
ā€¢ It seeks to improve the quality of process outputs by
identifying and removing the causes of defects.
ā€¢ It follows a life-cycle having phases:
1. Define:
o Customers identified & their requirements gathered.
2. Measure:
o O/p variances are graphed & process sigma are calculated.
3. Analyze:
o Possible causes of process o/p variations are identified and
analyzed statistically to determine root cause of variation.
4. Improve:
o Solution alternatives are generated to fix the root cause.
5. Control:
SIX SIGMA
By : ASHISH DESAI
THEORIES OF PROCESS MANAGMENT
ā€¢ To improve the quality of products and
services through ongoing refinements in
response to continuous feedback.
ā€¢ It originated in the manufacturing sector and
has since been adapted for use in almost
every type of organization
ā€¢ TQM processes divided into four categories:
1. PLAN
o People define problem and collect relevant data.
2. DO
o People develop and implement a solution.
3. CHECK
o People confirm the results .
4. ACT
o People document their results.
T Q M
By : ASHISH DESAI
THEORIES OF PROCESS MANAGMENT
ā€¢ It provides a systematic approach to manage
and bring in transformational change is called
Business Process Reengineering (BPR).
ā€¢ (BPR) is: ā€œBPR is the fundamental rethinking
and radical redesign of processes to achieve
dramatic improvement, in critical,
contemporary measures of performance such
as cost, quality, and speedā€.
ā€¢ This has a few important key words are ;
ā€¢ Dramatic achievement means to achieve
80% or 90% reduction
ā€¢ Radical redesign means BPR is reinventing
and not enhancing or improving
B P R
By : ASHISH DESAI
THEORIES OF PROCESS MANAGMENT
B p R
ā€¢ Fundamental rethinking means
asking the question ā€œwhy do you do
what you doā€, thereby eliminating
business processes altogether if it
does not add any value to the
customer.
ā€¢ BPR aims at major transformation of
the business processes to achieve
dramatic improvement.
ā€¢ It transforms an organization in ways
that directly affect its performance.
By : ASHISH DESAI
ā€¢ Organization wide commitment
ļ‚§ Changes to business processes have a direct
impact on processes, organizational structures
ā€¢ BPR team composition
ļ‚§ A BPR team is formed to take the BPR project
forward and make key decisions
ā€¢ Business needs analysis
ļ‚§ Identify what processes need reengineering.
ā€¢ Adequate IT infrastructure
ļ‚§ A set of hardware, software, networks,
facilities, etc. in order to develop, test,
deliver, monitor, control or support IT services.
ā€¢ Effective change management
ļ‚§ Resistance would be a natural consequence
which needs to be dealt with effectively.
ā€¢ Ongoing continuous improvement
THEORIES OF PROCESS MANAGMENT
B P R
By : ASHISH DESAI
as process owners, process managers, and the method of
measuring the effectiveness and efficiency of a business process.
ā€¢ The implementation enormous But
in competitive global market is all
the
BPM IMPLEMENTATION
By : ASHISH DESAI
BPM IMPLEMENTATION
KEY FACTORS
By : ASHISH DESAI
BPM IMPLEMENTATION
NEED FOR BPM IMPLEMENTATION
ā€¢ Create long-term future positioning of
business
ā€¢ Initiate continuous improvement
ā€¢ Introduce a knowledge of product
ā€¢ Re-engineer the business radically
ā€¢ Any organization is the sum of its business
processes and is the fundamental part of
any organizationā€™s infrastructure .
ā€¢ The challenge for todayā€™s organizations is
that these departments operate as
independent functional units.
BPM IMPLEMENTATION
AUTOMATION OF FUNCTIONAL UNITS
ā€¢ The consumer is often confronted with poor
customer service due to broken processes,
inefficient processes and manual processes
ā€¢ Consumer is becoming more and more
demanding with respect to delivery time
and also demanding higher quality
ā€¢ The number of interfaces with the customers
is growing
ā€¢ The product, service and price options have
increased the complexity of the business
CHALLENGES I N B P M
By : ASHISH DESAI
BPM IMPLEMENTATION
B P M TECHNOLOGY
ā€¢ To achieve these benefits, Business Process Layer is
introduced in the Traditional IT architecture.
ā€¢ The traditional IT architecture contains 3 layers:
Database, Application and Presentation.
ļ‚§ Database layer physically contains data;
ļ‚§ Application Layer contains applications and process
logic;
ļ‚§ Presentation Layer is what users see.
ā€¢ BPM provides linking the various independent
applications needed to execute a single end-to-end
business process.
ā€¢ Manage flow of activities along different applications,
and people involved & reduce execution time.
ā€¢ By tracking business process, an organization can
monitor its performance and at same time audit for
compliance.
BPM IMPLEMENTATION
VALUE CHAIN AUTOMATION
ā€¢ Separate activities which are necessary to
strengthen an organization's strategies and are
linked together both inside and outside the
organization.
ā€¢ VCA defined as a chain of activities that a firm
operating in a specific industry performs in order
to deliver a valuable product or service
ā€¢ It comprises of Primary and Supportive activities.
ā€¢ Primary ones are inclusive of inbound logistics,
operations, outbound logistics, marketing and sales,
and services.
ā€¢ Supportive activities relate to procurement, human
resource management, technology development
and infrastructure.
By : ASHISH DESAI
BPM IMPLEMENTATION
B E N E F I T S
ā€¢ Saving on costs:
ā€¢ Staying ahead in competition
ā€¢ Fast service to customers
ā€¢ Risk to jobs
ā€¢ False sense of security
R I S K
By : ASHISH DESAI
2. KEY FACTORS ARE:
Scope
Goals
Methods to be
Skills Required
Tools to be used
Investments
Sponsorship/Buy-in
B P M IMPLEMENTATION
1. INTRODUCTION
Business process may cover different people
as process owners, process managers, and the
method of measuring the effectiveness and
efficiency of a business process.
3. NEED FOR BPM IMPLEMENTATION
ļ‚§ Create long-term future positioning of
business
ļ‚§ Initiate continuous improvement
ļ‚§ Re-engineer the business radically
4. AUTOMATION OF FUNCTIONAL UNITS
The consumer is often confronted with poor
customer service due to broken processes,
inefficient processes and manual processes
6. BPM TECHNOLOGY
To achieve these benefits, Business Process
Layer is introduced in the Traditional IT
architecture.
BPM provides linking the various independent
applications needed to execute a single end-
to-end business process.
Manage flow of activities along different
applications, and people involved & reduce
execution time.
B P M IMPLEMENTATION
5. CHALLENGES IN BPM
The number of interfaces with the customers
is growing
7. VALUE CHAIN AUTOMATION
ā€¢ VCA defined as a chain of activities that
a firm operating in a specific industry
performs in order to deliver a valuable
product or service
ā€¢ It comprises of Primary and Supportive
activities.
8. BENEFITS
ā€¢ Saving on costs:
ā€¢ Staying ahead in competition
ā€¢ Fast service to customers
9. RISK
ā€¢ Risk to Job
ā€¢ False Sense of Security
AIS is defined as a system of
that is used by decision
makers.
ACCOUNTING INFORMATION SYSTEM
ā€¢ The resulting can be
or externally by other interested parties
By : ASHISH DESAI
ACCOUNTING INFORMATION SYSTEM
ā€¢ Allows to perform accounting functions and tasks.
ā€¢ Three basic functions of AIS
ā€¢ Collect and store data:
o Collect and store data about organizationā€™s business
activities and transactions
o Source documents are special forms used to capture
transaction data
o Control over data collection is improved by pre-numbering
each source document.
ā€¢ Record transaction:
o Record transactions data into journals.
ā€¢ Safeguarding organizational assets:
o Two important methods
o Documentation allows management to verify that
assigned responsibilities were completed correctly.
o Segregation of duties refers to dividing responsibility for
different portions of a transaction among several people.
By : ASHISH DESAI
ACCOUNTING INFORMATION SYSTEM
ā€¢ Financing Cycles:
ļ‚§ The cycle consists of a set of transactions leading to the
recognition of a major economic event
ā€¢ Revenue Cycle:
ļ‚§ It involves capturing and recording of customer orders;
shipment of the goods;
ā€¢ Expenditure Cycle
ļ‚§ It includes expenditures involving accounts like Purchases,
Accounts Payable, Cash Disbursements, Inventory and
General Ledger.
ļ‚§ It includes preparation and recording of purchase orders;
receipt of goods and the recording of the cost of
inventory;
ā€¢ Human Resource Cycle
ā€¢ General Ledger & Reporting System
Processing CYCLE
By : ASHISH DESAI
ACCOUNTING INFORMATION SYSTEM
ā€¢ Data Processing Cycle
ā€¢ It involves data processing activities which has been
updated and stored.
ā€¢ If the process of updating of the data stored is
periodic, it is referred to as batch processing
ā€¢ If involves immediate updating as each transaction
occurs, is referred to as on-line, real-time processing.
ā€¢ The controls on data are maintained using Audit Trials.
ā€¢ This is done by capturing snapshots
ā€¢ The Data Processing Cycle consists of following basic
steps
o Data input
o Data storage
o Data processing
o Information output
Processing CYCLE
By : ASHISH DESAI
2. THREE FUNCTION OF AIS:
A. Collect and store data:
Source documents are special forms used to
capture transaction data
B. Record transaction:
C. Safeguarding organizational assets:
Documentation
Segregation
ACCOUNTING INFORMATION SYSTEM
1. INTRODUCTION
AIS is defined as a system of
that is used by decision makers.
3. PROCESSING CYCLE
ļ‚§ Financing Cycles:
ļ‚§ Revenue Cycle:
ļ‚§ Expenditure Cycle
ļ‚§ Human Resource Cycle
ļ‚§ General Ledger & Reporting System
ļ‚§ Data Processing Cycle
o Batch Processing
o On-line
o Real-Time Processing
o Data Processing Cycle
o Data input
o Data storage
o Data processing
o Information output
Process mapping is a visual description of the flow of activities in a
process.
ā€¢ Accountants and auditors must understand the
ā€¢ procedures and processes of a business process and the systems
ā€¢ A picture, or chart, of the system is a concise, complete, easy-to-
understand way to analyze a system
APPROACH TO MAPPING THE SYSTEM
It describes the sequence of activities that make up a process, from its
starting point to its end point.
By : ASHISH DESAI
APPROACH TO MAPPING SYSTEM
Importance of DOCUMENTING IS
ā€¢ Depicting how the system works:
ļ‚§ help employees understand how a system
works, assist accountants in designing control
ā€¢ Training users:
ļ‚§ help train users to operate (IS) h/w and s/w,
ā€¢ Designing new systems:
ļ‚§ A blueprints help architects design building
ā€¢ Controlling system development and
maintenance costs:
ļ‚§ off-the-shelf software that is relatively
reliable and inexpensive.
ā€¢ Standardizing communications with others:
ļ‚§ proposed system in a common language and
help users communicate with one another
about these systems.
By : ASHISH DESAI
APPROACH TO MAPPING SYSTEM
Importance of DOCUMENTING IS
ā€¢ Auditing Information Systems:
ļ‚§ Auditors determine the strengths &
weaknesses of a system
ā€¢ Documenting business processes:
ļ‚§ helps managers better understand how
their businesses operate what controls are
missing
ā€¢ A picture, or chart, of the system is a
concise, complete, easy-to-understand way
to analyze a process or system.
ā€¢ Some popular pictorial representation are:
ļ‚§ Entity Relationship Diagram;
ļ‚§ Data Flow Diagram;
ļ‚§ Flowchart;
ļ‚§ Decision Tree; and
ļ‚§ Decision Table
By : ASHISH DESAI
E ā€“ R DIAGRAM
ā€¢ (ER) diagram is a data modeling technique that
creates a graphical representation of the entities,
and the relationships between entities, within an
information system.
By : ASHISH DESAI
E ā€“ R DIAGRAM
ā€¢ One-to-One relationship (1:1),
ā€¢ One-to-Many relationship (1:N),
ā€¢ Many-to-One relationship (1:N),
ā€¢ Many-to-Many relationship (M:N),
By : ASHISH DESAI
E ā€“ R DIAGRAM
ā€¢ simple and easily understandable.
ā€¢ understood by non-technical specialist.
ā€¢ Can help in database design.
Advantages of E-R Diagram
Limitation of E-R Diagram
ā€¢ Physical design derived from E-R Model
may have some amount of ambiguities or
inconsistency.
ā€¢ Sometime diagrams may lead to
misinterpretations.By : ASHISH DESAI
ā€¢ For example, the elements writer, novel, and consumer may be described using ER
diagrams
By : ASHISH DESAI
ā€¢ Construct an E-R diagram for a car-insurance company
ā€¢ whose customers own one or more cars each.
ā€¢ Each car has associated with it zero to any number of recorded accidents.
CUSTOMER CAR
ACCIDENT
Driver
- id
Address
Name License
Model
Year
Report_No.
Location
Date
Associate
Owns
By : ASHISH DESAI
ā€¢ A university consists of a number of departments. Each department offers several courses.
ā€¢ A number of modules make up each course. Students enroll in a particular course and
take modules towards the completion of that course.
ā€¢ Each module is taught by a lecturer from the appropriate department, and each lecturer
tutors a group of students.
ā€¢ Draw an E-R Diagram.
By : ASHISH DESAI
DATA FLOW DIAGRAM
ā€¢ (DFD) is a graphical representation of the flow of
data through an information system.
ā€¢ A DFD illustrates the data flowing from a process
to another, and the results.
ā€¢ DFD provides a mechanism for functional
modelling as well as information flow modelling.
ā€¢ The Context Diagram is a high-level DFD that
shows the entire system as a single process.
ā€¢ The context-level DFD is next "exploded", to
produce Level 1 DFDs for each process that show
how system is divided into sub-systems (processes)
ā€¢ There are two types of DFDs:
1. Physical DFD
2. Logical DFD
By : ASHISH DESAI
E ā€“ R DIAGRAM
ā€¢ describing the boundaries of the system.
ā€¢ provide a detailed representation of system
components.
ā€¢ supports the logic behind the data flow
Advantages of E-R Diagram
Limitation of E-R Diagram
ā€¢ make the programmers little confusing
ā€¢ simply takes a long time to create
ā€¢ Physical considerations are left out.
By : ASHISH DESAI
ā€¢ Construct an DFD diagram for a organization which gives fundamentals approach
between consumer and vendor while purchasing goods.
Consumer Vendor
Organi
zation
Order Purchase Order
Product Served
Payment Payment
0.0
By : ASHISH DESAI
ā€¢ Draw DFD on the cash withdrawal process from process from Bank.
Customer TellerBank
Request For Transaction Request Accepted
Provide Cash
0.0
Received Cash
By : ASHISH DESAI
ā€¢ Draw DFD on the cash withdrawal process from process from Bank.
By : ASHISH DESAI
ā€¢ Draw a Context Level Diagram for Payroll Processing System that interacts with the
following five agents:
ā€¢ Government Agencies; Employees; Management; Time Keeping and Human
ā€¢ Resources.
By : ASHISH DESAI
F L O W C H A R T
ā€¢ A flowchart is a diagram sequence of steps,
involved in solving a problem.
ā€¢ Itā€™s blueprint, that shows general plan, architecture,
and essential details of the proposed structure.
ā€¢ It helps the programmer avoid fuzzy thinking and
accidental omissions of intermediate steps.
ā€¢ Flowcharts can be divided into Three categories
1. DOCUMENT FLOW CHARTS
o flow of documents from the departments, groups, or
individual s
2. SYSTEM FLOWCHARTS
o While Document Flowcharts focus on tangible
documents, system flowchart concentrates on the
computerized data flows of Information systems.
3. PROGRAM FLOWCHARTS
o most detailed arithmetic operations on data
By : ASHISH DESAI
F L o w c H A R t
ā€¢ Quicker grasp of relationships
ā€¢ Effective Analysis
ā€¢ Communication
ā€¢ Documentation
ā€¢ Efficient coding
ā€¢ Orderly check out of problem
Advantages of Flow Chart
Limitation of E-R Diagram
ā€¢ Complex logic
ā€¢ Modification
ā€¢ Reproduction
ā€¢ Link between conditions and actions
By : ASHISH DESAI
Data Flow DiagramFlow CHART
ā€¢ Draw a flowchart to compute and print income tax and surcharge on the income of
person, where income is to be read from terminal and tax is calculated as per
following rates:
ļ‚— Charge Surcharge @ 2% on the amount of total tax, if the income of person
exceeds Rs. 2,00,000
By : ASHISH DESAI
READ
I
I >
1,50,000
Tax=20000+0.3*
(Inc-150000)
Y
N
60,000
< I <=
150000
Y
N
Tax=2000+0.2*
(Inc-60000)
A B
I >
2,00,000
Schg = 0.02*Tax
Schg = 0
40,000
< I <=
60,000
Tax=0.1*
(Inc-40000)
Y
N
START
Y
N
By : ASHISH DESAI
A B
Tax=0
Print Tax & Schg
END
By : ASHISH DESAI
Flow CHART
A bicycle shop in Delhi hires bicycles by the day at different rates as shown ;
To attract his customers, the proprietor also gives a discount on the number of days a bicycle
is hired for. If the hire period is more than 10 days, a reduction of 15% is made. For every
bicycle hired, a deposit of ` 20 must be paid.
Develop a flowchart to print out the details for each customer such as name of customer,
number of days a bicycle is hired for, hire-charges and total charges including the deposit.
It is also assumed that there are 25 customers and complete details for each customer such as name of
customer, season and number of days the bicycle is required for is inputted through console.
Season Charges / Day
Spring (March - May) 8
Summer (June - August) 9.50
Autumn (Sept - Nov.) 5
Winter (Dec. - Feb.) 6
By : ASHISH DESAI
Flow CHART
START
READ
nm,seas,days
N = N+1
Seas =
SPRING
Rate = 8
Y
N
Seas =
SUMMER
Y
N
Rate = 9.50
A B
By : ASHISH DESAI
Flow CHARTA B
Seas =
AUTUMN
Y
N
Rate = 5.00
Rate = 6.00
BCHG = Rate * Days
Days>10
Y
N
DCHG = Rate * 0.15
DCHG = Rate
C
By : ASHISH DESAI
Flow CHARTC
TCHG = DCHG + 20
Print HCHG,
TCHG,
nm,seas,days
N>25
Y
N
D
By : ASHISH DESAI
Flow CHART
START
READ
nm,seas,days
N = N+1
Seas =
SPRING
Rate = 8
Y
N
Seas =
SUMMER
Y
N
Rate = 9.50
A B
D
By : ASHISH DESAI
Flow CHARTC
TCHG = DCHG + 20
Print HCHG,
TCHG,
nm,seas,days
N>25
Y
N
D
STOP
By : ASHISH DESAI
Flow CHART
A company has 2,500 employees. Their salaries are stored as J(s), 1, 2, ---- 2500. The
salaries are divided in four categories as under :
Draw a flow chart for finding the percentage of the employees in each category.
Less than Rs.1,000
Rs. 1,000 to Rs. 2,000
Rs. 2001 to Rs. 5000
Above Rs. 5000
By : ASHISH DESAI
Flow CHART
START
READ
J(1)ā€¦J(2500)
I=0
I = I+1
J(I)<1000 P1 = P1 + 1
Y
N
J(I)<2000 P2 = P2 + 1
Y
N
A B
By : ASHISH DESAI
Flow CHARTA B
J(I)<=5000
Y
N
P3 = P3 + 1
P4 = P4 + 1
If I <2500
Y
N
C
R1 = P1/2500
R1 = P1/2500
R1 = P1/2500
R1 = P1/2500
By : ASHISH DESAI
Flow CHART
START
READ
J(1)ā€¦J(2500)
I=0
I = I+1
J(I)<1000 P1 = P1 + 1
Y
N
J(I)<2000 P2 = P2 + 1
Y
N
A B
C
By : ASHISH DESAI
Flow CHARTA B
J(I)<=5000
Y
N
P3 = P3 + 1
P4 = P4 + 1
If I <2500
Y
N
C
R1 = P1/2500
R1 = P1/2500
R1 = P1/2500
R1 = P1/2500
Print R1,
R2,R3,R4
By : ASHISH DESAI
Flow CHARTA B
J(I)<=5000
Y
N
P3 = P3 + 1
P4 = P4 + 1
If I <2500
Y
N
C
R1 = P1/2500
R1 = P1/2500
R1 = P1/2500
R1 = P1/2500
STOP
Print R1, R2,R3,R4
By : ASHISH DESAI

More Related Content

What's hot

Business Process Modeling
Business Process ModelingBusiness Process Modeling
Business Process Modelingguest2c3da5c7
Ā 
Business Process Management .ppt
Business Process Management .pptBusiness Process Management .ppt
Business Process Management .pptsAdikmOhammed9
Ā 
Business Process Management in IT company
Business Process Management  in IT company Business Process Management  in IT company
Business Process Management in IT company Dhrubaji Mandal ā™›
Ā 
MIS enterprise system for collaboration
MIS enterprise system for collaborationMIS enterprise system for collaboration
MIS enterprise system for collaborationSabana Maharjan
Ā 
Business Process Management Introduction
Business Process Management IntroductionBusiness Process Management Introduction
Business Process Management IntroductionGBTEC Software AG
Ā 
Automation CoE at Scale Using Agile to build RPA
Automation CoE at Scale Using Agile to build RPAAutomation CoE at Scale Using Agile to build RPA
Automation CoE at Scale Using Agile to build RPAHexaware Technologies
Ā 
Framework for a business process management competency centre
Framework for a business process management competency centreFramework for a business process management competency centre
Framework for a business process management competency centreMartin Moore
Ā 
Enterprise Systems
Enterprise SystemsEnterprise Systems
Enterprise SystemsSaurabh Goel
Ā 
Erp Enterprise Resource Planning
Erp   Enterprise Resource PlanningErp   Enterprise Resource Planning
Erp Enterprise Resource PlanningVIshal Gujarathi
Ā 
BPM (Business Process Management) Introduction
BPM (Business Process Management) IntroductionBPM (Business Process Management) Introduction
BPM (Business Process Management) IntroductionIntegrify
Ā 
Laudon Ch13
Laudon Ch13Laudon Ch13
Laudon Ch13Riju Nair
Ā 
Leveraging Technology for Business Growth
Leveraging Technology for Business GrowthLeveraging Technology for Business Growth
Leveraging Technology for Business Growthincommerce
Ā 
Implementing ITIL Change Management
Implementing ITIL Change Management Implementing ITIL Change Management
Implementing ITIL Change Management ITSM Academy, Inc.
Ā 
Enterprise Resource Planning (ERP) Systems
Enterprise Resource Planning (ERP) SystemsEnterprise Resource Planning (ERP) Systems
Enterprise Resource Planning (ERP) SystemsVagelis Tsitsopoulos
Ā 
Unit 6 erp life cycle
Unit 6 erp life cycleUnit 6 erp life cycle
Unit 6 erp life cycleKanchanPatil34
Ā 
Pain Point Analysis Guide & Template
Pain Point Analysis Guide & TemplatePain Point Analysis Guide & Template
Pain Point Analysis Guide & TemplateExpert Toolkit
Ā 

What's hot (20)

Business Process Modeling
Business Process ModelingBusiness Process Modeling
Business Process Modeling
Ā 
Business Process Management .ppt
Business Process Management .pptBusiness Process Management .ppt
Business Process Management .ppt
Ā 
Business Process Management in IT company
Business Process Management  in IT company Business Process Management  in IT company
Business Process Management in IT company
Ā 
Ethical issues of IS
Ethical issues of ISEthical issues of IS
Ethical issues of IS
Ā 
MIS enterprise system for collaboration
MIS enterprise system for collaborationMIS enterprise system for collaboration
MIS enterprise system for collaboration
Ā 
Business Process Management Introduction
Business Process Management IntroductionBusiness Process Management Introduction
Business Process Management Introduction
Ā 
Automation CoE at Scale Using Agile to build RPA
Automation CoE at Scale Using Agile to build RPAAutomation CoE at Scale Using Agile to build RPA
Automation CoE at Scale Using Agile to build RPA
Ā 
Framework for a business process management competency centre
Framework for a business process management competency centreFramework for a business process management competency centre
Framework for a business process management competency centre
Ā 
Enterprise Systems
Enterprise SystemsEnterprise Systems
Enterprise Systems
Ā 
Erp Enterprise Resource Planning
Erp   Enterprise Resource PlanningErp   Enterprise Resource Planning
Erp Enterprise Resource Planning
Ā 
Business Process Management System
Business Process Management SystemBusiness Process Management System
Business Process Management System
Ā 
BPM (Business Process Management) Introduction
BPM (Business Process Management) IntroductionBPM (Business Process Management) Introduction
BPM (Business Process Management) Introduction
Ā 
Laudon Ch13
Laudon Ch13Laudon Ch13
Laudon Ch13
Ā 
Leveraging Technology for Business Growth
Leveraging Technology for Business GrowthLeveraging Technology for Business Growth
Leveraging Technology for Business Growth
Ā 
Top five future trends in erp
Top five future trends in erpTop five future trends in erp
Top five future trends in erp
Ā 
Strategic alignment
Strategic alignmentStrategic alignment
Strategic alignment
Ā 
Implementing ITIL Change Management
Implementing ITIL Change Management Implementing ITIL Change Management
Implementing ITIL Change Management
Ā 
Enterprise Resource Planning (ERP) Systems
Enterprise Resource Planning (ERP) SystemsEnterprise Resource Planning (ERP) Systems
Enterprise Resource Planning (ERP) Systems
Ā 
Unit 6 erp life cycle
Unit 6 erp life cycleUnit 6 erp life cycle
Unit 6 erp life cycle
Ā 
Pain Point Analysis Guide & Template
Pain Point Analysis Guide & TemplatePain Point Analysis Guide & Template
Pain Point Analysis Guide & Template
Ā 

Similar to Business Process Management and Information Technology

Intro process-centric-organizations
Intro process-centric-organizationsIntro process-centric-organizations
Intro process-centric-organizationsStephen Depoe
Ā 
workshop1.pptx
workshop1.pptxworkshop1.pptx
workshop1.pptxssuser0d0f881
Ā 
Six sigma-and-supply-chain
Six sigma-and-supply-chainSix sigma-and-supply-chain
Six sigma-and-supply-chainStephen Depoe
Ā 
IMBOK Business Process
IMBOK Business ProcessIMBOK Business Process
IMBOK Business ProcessStephen Cloete
Ā 
Principles of BPR.pptx
Principles of BPR.pptxPrinciples of BPR.pptx
Principles of BPR.pptxrajalakshmi5921
Ā 
Business process reengineering module 1
Business process reengineering module 1Business process reengineering module 1
Business process reengineering module 1POOJA UDAYAN
Ā 
1. Automated Business Process
1. Automated Business Process1. Automated Business Process
1. Automated Business ProcessAshish Desai
Ā 
What Is Process Flow - Discover How To Visualize It - Slideshare.docx
What Is Process Flow - Discover How To Visualize It - Slideshare.docxWhat Is Process Flow - Discover How To Visualize It - Slideshare.docx
What Is Process Flow - Discover How To Visualize It - Slideshare.docxYoroflow
Ā 
The changing business environment manager's perspective
The changing business environment   manager's perspectiveThe changing business environment   manager's perspective
The changing business environment manager's perspectiveLou Foja
Ā 
The changing business environment manager's perspective
The changing business environment   manager's perspectiveThe changing business environment   manager's perspective
The changing business environment manager's perspectiveLou Foja
Ā 
thinking-lean-bpm-lean-and-six-sigmaall-together-now
thinking-lean-bpm-lean-and-six-sigmaall-together-nowthinking-lean-bpm-lean-and-six-sigmaall-together-now
thinking-lean-bpm-lean-and-six-sigmaall-together-nowWilliam LaFollette
Ā 
Bisuness process management
Bisuness process managementBisuness process management
Bisuness process managementDigvijay Mahalle
Ā 
BPRe Design.pptx
BPRe Design.pptxBPRe Design.pptx
BPRe Design.pptxTHANGARASUA
Ā 
Strategies for Business Process Improvement
Strategies for Business Process ImprovementStrategies for Business Process Improvement
Strategies for Business Process ImprovementTilak Ramaprakash
Ā 
IGrafx Performance Management Whitepaper
IGrafx Performance Management WhitepaperIGrafx Performance Management Whitepaper
IGrafx Performance Management WhitepaperSteven Bonacorsi
Ā 
I Grafx Performance Management Whitepaper
I Grafx Performance Management WhitepaperI Grafx Performance Management Whitepaper
I Grafx Performance Management WhitepaperSteven Bonacorsi
Ā 
The Power of Business Process Improvement
The Power of Business Process ImprovementThe Power of Business Process Improvement
The Power of Business Process ImprovementBusiness Book Summaries
Ā 

Similar to Business Process Management and Information Technology (20)

Intro process-centric-organizations
Intro process-centric-organizationsIntro process-centric-organizations
Intro process-centric-organizations
Ā 
workshop1.pptx
workshop1.pptxworkshop1.pptx
workshop1.pptx
Ā 
Six sigma-and-supply-chain
Six sigma-and-supply-chainSix sigma-and-supply-chain
Six sigma-and-supply-chain
Ā 
IMBOK Business Process
IMBOK Business ProcessIMBOK Business Process
IMBOK Business Process
Ā 
Principles of BPR.pptx
Principles of BPR.pptxPrinciples of BPR.pptx
Principles of BPR.pptx
Ā 
Business process reengineering module 1
Business process reengineering module 1Business process reengineering module 1
Business process reengineering module 1
Ā 
1. Automated Business Process
1. Automated Business Process1. Automated Business Process
1. Automated Business Process
Ā 
What Is Process Flow - Discover How To Visualize It - Slideshare.docx
What Is Process Flow - Discover How To Visualize It - Slideshare.docxWhat Is Process Flow - Discover How To Visualize It - Slideshare.docx
What Is Process Flow - Discover How To Visualize It - Slideshare.docx
Ā 
The changing business environment manager's perspective
The changing business environment   manager's perspectiveThe changing business environment   manager's perspective
The changing business environment manager's perspective
Ā 
The changing business environment manager's perspective
The changing business environment   manager's perspectiveThe changing business environment   manager's perspective
The changing business environment manager's perspective
Ā 
thinking-lean-bpm-lean-and-six-sigmaall-together-now
thinking-lean-bpm-lean-and-six-sigmaall-together-nowthinking-lean-bpm-lean-and-six-sigmaall-together-now
thinking-lean-bpm-lean-and-six-sigmaall-together-now
Ā 
Bisuness process management
Bisuness process managementBisuness process management
Bisuness process management
Ā 
BPRe Design.pptx
BPRe Design.pptxBPRe Design.pptx
BPRe Design.pptx
Ā 
Strategies for Business Process Improvement
Strategies for Business Process ImprovementStrategies for Business Process Improvement
Strategies for Business Process Improvement
Ā 
IGrafx Performance Management Whitepaper
IGrafx Performance Management WhitepaperIGrafx Performance Management Whitepaper
IGrafx Performance Management Whitepaper
Ā 
I Grafx Performance Management Whitepaper
I Grafx Performance Management WhitepaperI Grafx Performance Management Whitepaper
I Grafx Performance Management Whitepaper
Ā 
Mis ppt
Mis pptMis ppt
Mis ppt
Ā 
BPR.pptx
BPR.pptxBPR.pptx
BPR.pptx
Ā 
The Power of Business Process Improvement
The Power of Business Process ImprovementThe Power of Business Process Improvement
The Power of Business Process Improvement
Ā 
VerSteeg - Reset reboot recover
VerSteeg - Reset reboot recover VerSteeg - Reset reboot recover
VerSteeg - Reset reboot recover
Ā 

More from Ashish Desai

2. Account and Financial Information System
2. Account and Financial Information System2. Account and Financial Information System
2. Account and Financial Information SystemAshish Desai
Ā 
5. Core Banking System
5. Core Banking System5. Core Banking System
5. Core Banking SystemAshish Desai
Ā 
4. E-Commerce, M-Commerce and Emerging Technologies
4. E-Commerce, M-Commerce and Emerging Technologies4. E-Commerce, M-Commerce and Emerging Technologies
4. E-Commerce, M-Commerce and Emerging TechnologiesAshish Desai
Ā 
Study Abroad for USA and UK
Study Abroad for USA and UKStudy Abroad for USA and UK
Study Abroad for USA and UKAshish Desai
Ā 
Higher Studies in Australia
Higher Studies in AustraliaHigher Studies in Australia
Higher Studies in AustraliaAshish Desai
Ā 
Information Technology
Information TechnologyInformation Technology
Information TechnologyAshish Desai
Ā 
2. Financial and Accounting System
2. Financial and Accounting System2. Financial and Accounting System
2. Financial and Accounting SystemAshish Desai
Ā 
5. Core Banking System
5. Core Banking System5. Core Banking System
5. Core Banking SystemAshish Desai
Ā 
4. e commerce, m-commerce and emerging technologies 2018
4. e commerce, m-commerce and emerging technologies 20184. e commerce, m-commerce and emerging technologies 2018
4. e commerce, m-commerce and emerging technologies 2018Ashish Desai
Ā 
Information systems and its components iii
Information systems and its components   iiiInformation systems and its components   iii
Information systems and its components iiiAshish Desai
Ā 
Information systems and its components ii
Information systems and its components   iiInformation systems and its components   ii
Information systems and its components iiAshish Desai
Ā 
Information systems and its components 1
Information systems and its components 1Information systems and its components 1
Information systems and its components 1Ashish Desai
Ā 

More from Ashish Desai (12)

2. Account and Financial Information System
2. Account and Financial Information System2. Account and Financial Information System
2. Account and Financial Information System
Ā 
5. Core Banking System
5. Core Banking System5. Core Banking System
5. Core Banking System
Ā 
4. E-Commerce, M-Commerce and Emerging Technologies
4. E-Commerce, M-Commerce and Emerging Technologies4. E-Commerce, M-Commerce and Emerging Technologies
4. E-Commerce, M-Commerce and Emerging Technologies
Ā 
Study Abroad for USA and UK
Study Abroad for USA and UKStudy Abroad for USA and UK
Study Abroad for USA and UK
Ā 
Higher Studies in Australia
Higher Studies in AustraliaHigher Studies in Australia
Higher Studies in Australia
Ā 
Information Technology
Information TechnologyInformation Technology
Information Technology
Ā 
2. Financial and Accounting System
2. Financial and Accounting System2. Financial and Accounting System
2. Financial and Accounting System
Ā 
5. Core Banking System
5. Core Banking System5. Core Banking System
5. Core Banking System
Ā 
4. e commerce, m-commerce and emerging technologies 2018
4. e commerce, m-commerce and emerging technologies 20184. e commerce, m-commerce and emerging technologies 2018
4. e commerce, m-commerce and emerging technologies 2018
Ā 
Information systems and its components iii
Information systems and its components   iiiInformation systems and its components   iii
Information systems and its components iii
Ā 
Information systems and its components ii
Information systems and its components   iiInformation systems and its components   ii
Information systems and its components ii
Ā 
Information systems and its components 1
Information systems and its components 1Information systems and its components 1
Information systems and its components 1
Ā 

Recently uploaded

AIM of Education-Teachers Training-2024.ppt
AIM of Education-Teachers Training-2024.pptAIM of Education-Teachers Training-2024.ppt
AIM of Education-Teachers Training-2024.pptNishitharanjan Rout
Ā 
Unit 3 Emotional Intelligence and Spiritual Intelligence.pdf
Unit 3 Emotional Intelligence and Spiritual Intelligence.pdfUnit 3 Emotional Intelligence and Spiritual Intelligence.pdf
Unit 3 Emotional Intelligence and Spiritual Intelligence.pdfDr Vijay Vishwakarma
Ā 
21st_Century_Skills_Framework_Final_Presentation_2.pptx
21st_Century_Skills_Framework_Final_Presentation_2.pptx21st_Century_Skills_Framework_Final_Presentation_2.pptx
21st_Century_Skills_Framework_Final_Presentation_2.pptxJoelynRubio1
Ā 
Model Attribute _rec_name in the Odoo 17
Model Attribute _rec_name in the Odoo 17Model Attribute _rec_name in the Odoo 17
Model Attribute _rec_name in the Odoo 17Celine George
Ā 
How to Add a Tool Tip to a Field in Odoo 17
How to Add a Tool Tip to a Field in Odoo 17How to Add a Tool Tip to a Field in Odoo 17
How to Add a Tool Tip to a Field in Odoo 17Celine George
Ā 
REMIFENTANIL: An Ultra short acting opioid.pptx
REMIFENTANIL: An Ultra short acting opioid.pptxREMIFENTANIL: An Ultra short acting opioid.pptx
REMIFENTANIL: An Ultra short acting opioid.pptxDr. Ravikiran H M Gowda
Ā 
How to Manage Call for Tendor in Odoo 17
How to Manage Call for Tendor in Odoo 17How to Manage Call for Tendor in Odoo 17
How to Manage Call for Tendor in Odoo 17Celine George
Ā 
Spellings Wk 4 and Wk 5 for Grade 4 at CAPS
Spellings Wk 4 and Wk 5 for Grade 4 at CAPSSpellings Wk 4 and Wk 5 for Grade 4 at CAPS
Spellings Wk 4 and Wk 5 for Grade 4 at CAPSAnaAcapella
Ā 
FSB Advising Checklist - Orientation 2024
FSB Advising Checklist - Orientation 2024FSB Advising Checklist - Orientation 2024
FSB Advising Checklist - Orientation 2024Elizabeth Walsh
Ā 
Understanding Accommodations and Modifications
Understanding  Accommodations and ModificationsUnderstanding  Accommodations and Modifications
Understanding Accommodations and ModificationsMJDuyan
Ā 
Graduate Outcomes Presentation Slides - English
Graduate Outcomes Presentation Slides - EnglishGraduate Outcomes Presentation Slides - English
Graduate Outcomes Presentation Slides - Englishneillewis46
Ā 
How to Add New Custom Addons Path in Odoo 17
How to Add New Custom Addons Path in Odoo 17How to Add New Custom Addons Path in Odoo 17
How to Add New Custom Addons Path in Odoo 17Celine George
Ā 
Towards a code of practice for AI in AT.pptx
Towards a code of practice for AI in AT.pptxTowards a code of practice for AI in AT.pptx
Towards a code of practice for AI in AT.pptxJisc
Ā 
FICTIONAL SALESMAN/SALESMAN SNSW 2024.pdf
FICTIONAL SALESMAN/SALESMAN SNSW 2024.pdfFICTIONAL SALESMAN/SALESMAN SNSW 2024.pdf
FICTIONAL SALESMAN/SALESMAN SNSW 2024.pdfPondicherry University
Ā 
Interdisciplinary_Insights_Data_Collection_Methods.pptx
Interdisciplinary_Insights_Data_Collection_Methods.pptxInterdisciplinary_Insights_Data_Collection_Methods.pptx
Interdisciplinary_Insights_Data_Collection_Methods.pptxPooja Bhuva
Ā 
Accessible Digital Futures project (20/03/2024)
Accessible Digital Futures project (20/03/2024)Accessible Digital Futures project (20/03/2024)
Accessible Digital Futures project (20/03/2024)Jisc
Ā 
How to setup Pycharm environment for Odoo 17.pptx
How to setup Pycharm environment for Odoo 17.pptxHow to setup Pycharm environment for Odoo 17.pptx
How to setup Pycharm environment for Odoo 17.pptxCeline George
Ā 
Transparency, Recognition and the role of eSealing - Ildiko Mazar and Koen No...
Transparency, Recognition and the role of eSealing - Ildiko Mazar and Koen No...Transparency, Recognition and the role of eSealing - Ildiko Mazar and Koen No...
Transparency, Recognition and the role of eSealing - Ildiko Mazar and Koen No...EADTU
Ā 
OS-operating systems- ch05 (CPU Scheduling) ...
OS-operating systems- ch05 (CPU Scheduling) ...OS-operating systems- ch05 (CPU Scheduling) ...
OS-operating systems- ch05 (CPU Scheduling) ...Dr. Mazin Mohamed alkathiri
Ā 

Recently uploaded (20)

AIM of Education-Teachers Training-2024.ppt
AIM of Education-Teachers Training-2024.pptAIM of Education-Teachers Training-2024.ppt
AIM of Education-Teachers Training-2024.ppt
Ā 
Unit 3 Emotional Intelligence and Spiritual Intelligence.pdf
Unit 3 Emotional Intelligence and Spiritual Intelligence.pdfUnit 3 Emotional Intelligence and Spiritual Intelligence.pdf
Unit 3 Emotional Intelligence and Spiritual Intelligence.pdf
Ā 
21st_Century_Skills_Framework_Final_Presentation_2.pptx
21st_Century_Skills_Framework_Final_Presentation_2.pptx21st_Century_Skills_Framework_Final_Presentation_2.pptx
21st_Century_Skills_Framework_Final_Presentation_2.pptx
Ā 
Model Attribute _rec_name in the Odoo 17
Model Attribute _rec_name in the Odoo 17Model Attribute _rec_name in the Odoo 17
Model Attribute _rec_name in the Odoo 17
Ā 
How to Add a Tool Tip to a Field in Odoo 17
How to Add a Tool Tip to a Field in Odoo 17How to Add a Tool Tip to a Field in Odoo 17
How to Add a Tool Tip to a Field in Odoo 17
Ā 
REMIFENTANIL: An Ultra short acting opioid.pptx
REMIFENTANIL: An Ultra short acting opioid.pptxREMIFENTANIL: An Ultra short acting opioid.pptx
REMIFENTANIL: An Ultra short acting opioid.pptx
Ā 
How to Manage Call for Tendor in Odoo 17
How to Manage Call for Tendor in Odoo 17How to Manage Call for Tendor in Odoo 17
How to Manage Call for Tendor in Odoo 17
Ā 
Spellings Wk 4 and Wk 5 for Grade 4 at CAPS
Spellings Wk 4 and Wk 5 for Grade 4 at CAPSSpellings Wk 4 and Wk 5 for Grade 4 at CAPS
Spellings Wk 4 and Wk 5 for Grade 4 at CAPS
Ā 
FSB Advising Checklist - Orientation 2024
FSB Advising Checklist - Orientation 2024FSB Advising Checklist - Orientation 2024
FSB Advising Checklist - Orientation 2024
Ā 
Our Environment Class 10 Science Notes pdf
Our Environment Class 10 Science Notes pdfOur Environment Class 10 Science Notes pdf
Our Environment Class 10 Science Notes pdf
Ā 
Understanding Accommodations and Modifications
Understanding  Accommodations and ModificationsUnderstanding  Accommodations and Modifications
Understanding Accommodations and Modifications
Ā 
Graduate Outcomes Presentation Slides - English
Graduate Outcomes Presentation Slides - EnglishGraduate Outcomes Presentation Slides - English
Graduate Outcomes Presentation Slides - English
Ā 
How to Add New Custom Addons Path in Odoo 17
How to Add New Custom Addons Path in Odoo 17How to Add New Custom Addons Path in Odoo 17
How to Add New Custom Addons Path in Odoo 17
Ā 
Towards a code of practice for AI in AT.pptx
Towards a code of practice for AI in AT.pptxTowards a code of practice for AI in AT.pptx
Towards a code of practice for AI in AT.pptx
Ā 
FICTIONAL SALESMAN/SALESMAN SNSW 2024.pdf
FICTIONAL SALESMAN/SALESMAN SNSW 2024.pdfFICTIONAL SALESMAN/SALESMAN SNSW 2024.pdf
FICTIONAL SALESMAN/SALESMAN SNSW 2024.pdf
Ā 
Interdisciplinary_Insights_Data_Collection_Methods.pptx
Interdisciplinary_Insights_Data_Collection_Methods.pptxInterdisciplinary_Insights_Data_Collection_Methods.pptx
Interdisciplinary_Insights_Data_Collection_Methods.pptx
Ā 
Accessible Digital Futures project (20/03/2024)
Accessible Digital Futures project (20/03/2024)Accessible Digital Futures project (20/03/2024)
Accessible Digital Futures project (20/03/2024)
Ā 
How to setup Pycharm environment for Odoo 17.pptx
How to setup Pycharm environment for Odoo 17.pptxHow to setup Pycharm environment for Odoo 17.pptx
How to setup Pycharm environment for Odoo 17.pptx
Ā 
Transparency, Recognition and the role of eSealing - Ildiko Mazar and Koen No...
Transparency, Recognition and the role of eSealing - Ildiko Mazar and Koen No...Transparency, Recognition and the role of eSealing - Ildiko Mazar and Koen No...
Transparency, Recognition and the role of eSealing - Ildiko Mazar and Koen No...
Ā 
OS-operating systems- ch05 (CPU Scheduling) ...
OS-operating systems- ch05 (CPU Scheduling) ...OS-operating systems- ch05 (CPU Scheduling) ...
OS-operating systems- ch05 (CPU Scheduling) ...
Ā 

Business Process Management and Information Technology

  • 1. Business Management Design By Curiosity Prepared By: Prof. Ashish Desai i n f o @ t h e c a m e n t o r . c o m Process a s h i s d e s a i @ g m a i l . c o m Information TECHNOLOGY &
  • 2. By : ASHISH DESAI In this new technological world, business process designers are directly involved in systems design. The closer working relationship between business process designers and IT helps to reduce the gap between the business requirement and the final deployed solution. Overview of Business Process
  • 3. What is Process ? ā€¢ Process is defined as a sequence of events that uses inputs to produce outputs. ā€¢ Process is ā€œa coordinated and standardized flow of activities performed by people or machines, which can traverse (cross) functional or departmental boundaries to achieve a business objective and creates value for internal or external customers.ā€ ā€¢ Process orientation is at the core of BPM. ā€¢ Hence, understand clearly distinction between the traditional functional organization and process organization. Overview of Business Process By : ASHISH DESAI
  • 4. ā€¢ System of interlinked processes which involves concerted efforts to map, improve and adhere to organizational processes. ā€¢ Where traditional organizations are composed of departments, today it consider as n/w or systems of processes. ā€¢ To manage a process, ļ±The first task is to define it. o defining steps (tasks) in process and mapping the tasks ļ±Once the process is mapped, performance measures can be established ļ±Enables the standardization (correction) of and adherence What is Business Process ? Overview of Business Process By : ASHISH DESAI
  • 5. ā€¢ A business process is a prescribed sequence of work steps performed in order to produce a desired result for the organization. ā€¢ Organizations have many different business processes such as completing sale, purchasing raw materials, pay employees and vendors, etc. ā€¢ Each of processes has either a direct or indirect effect on financial status of organization. ā€¢ The no. and type of business processes and how they are performed vary across enterprises. ā€¢ This is also impacted by automation. Business Process Flow Overview of Business Process By : ASHISH DESAI
  • 6. Business Process Flow Accounting ā€¢ It involved in recording and processing accounting events of a company. ā€¢ It begins when a transaction or financial event occurs and ends with its inclusion in the financial statements. 1. Source Document 2. Journal: 3. Ledger: 4. Trial Balance 5. Adjustments: 6. Adjusted Trial balance: 7. Closing entries: 8. Financial statement: Overview of Business Process
  • 7. ā€¢ Order to Cash (OTC or O2C) covers all the business processes relating to fulfilling customer requests for goods or services. ā€¢ It involves a customer order to the final point of collecting the cash. 1. Customer Order 2. Recording 3. Pick release 4. Shipping 5. Invoice 6. Receipt 7. Reconciliation (Settlement) Business Process Flow SALES Overview of Business Process
  • 8. ā€¢ Processes relating to obtaining raw materials required for production of a product. ā€¢ It involves placing an order with a vendor to the point of payment to the vendor. 1. Purchase requisition 2. Request for quote 3. Quotation 4. Purchase order 5. Receipts: 6. Payments Business Process Flow PURCHASE Overview of Business Process
  • 9. 2. What is Process? Process is defined as a sequence of events that uses inputs to produce outputs. OVERVIEW OF BUSINESS PROCESS 1. INTRODUCTION In this new technological world, business process designers are directly involved in systems design. 3. What is Business Process? Traditional organizations are composed of departments, today it consider as n/w or systems of processes. 3. What is Business Process? To manage a process, ļ±The first task is to define it. ļ±Once process is mapped, performance measures can be established ļ±Enable standardization of & adherence 4. Business Process Flow ļ‚§ A business process is a prescribed sequence of work steps performed in order to produce a desired result for the organization. ļ‚§ Each of processes has either a direct or indirect effect on financial status of organization.
  • 10. OVERVIEW OF BUSINESS PROCESS A. ACCOUNTING 1. Source Document 2. Journal: 3. Ledger: 4. Trial Balance 5. Adjustments: 6. Adjusted Trial balance: 7. Closing entries: 8. Financial statement: 4. Business Process Flow The no. & type of business processes & how they performed vary across enterprises. B. SALES 1. Customer Order 2. Recording 3. Pick release 4. Shipping 5. Invoice 6. Receipt 7. Reconciliation (Settlement) C. PURCHASE 1. Purchase requisition 2. Request for quote 3. Quotation 4. Purchase order 5. Receipts: 6. Payments D. FINANCE From the financial planning stage to resource allocation, monitoring and analysis, at every step of the way, governments and agencies ensure that public resources are used effectively and reach the intended beneficiaries (receiver).
  • 11. Business processes are broadly classified into two categories. 1. ā€˜Organizationalā€™ Business Processes and 2. ā€˜Operationalā€™ Business Processes. Different levels can be identified in business process management, ranging from high-level business strategies to implemented business processes. classification of Business Process By : ASHISH DESAI
  • 12. Classification of Business Process Flow A. Business Strategy: At Highest level, strategy of company is specified B. Goals: At Second level, the business strategy is broken down to operational goals C. Organizational Business Process: At Third level, ā€˜Organizationalā€™ Business Processes can be found. o Specified in textual form by their IO and expected results and their dependencies. o Enriched with diagrams expressed in an ad-hoc or semiformal notation. ā€¢ ā€˜Operationalā€™ Business Processes: the activities and their relationships are specified, ā€¢ Implemented Business Processes : It contain information on execution of the process activities
  • 13. BPM refers to the closed loop, iterative management of business processes ā€¢ BPM may be defined as: ā€œThe achievement of an organizationā€™s objectives through the improvement, management and control of essential business processesā€. Business Process Management BPM is about the management of business processes with the organization being the primary focus. By : ASHISH DESAI
  • 14. Business Process Management ā€¢ All Key Terms Are: ļ±ACHIEVEMENT: strategic objectives as outlined in the organizationā€™s strategic plan. ļ±ORGANIZATION: enterprise or parts of an enterprise, perhaps a business unit that is discrete in its own right. ļ±OBJECTIVES: range from the strategic goals of the organization through to the individual process goals. ļ±IMPROVEMENT: making the business processes more efficient and effective. ļ±MANAGEMENT: By : ASHISH DESAI
  • 15. Business Process Flow ā€¢ All Key Terms Are: ļ±CONTROLS: ability to measure correctly. ļ±ESSENTIAL: achievement of the organizationā€™s strategic objectives. ļ±BUSINESS: by delivering benefits. ļ±PROCESSES: making the business processes more efficient and effective. By : ASHISH DESAI
  • 16. Business Process MANAGMENT Principles & Practices 1. BPMā€™s first principle is processes are assets that create value for customers. 2. A managed process produces consistent value to customers and has the foundation for the process to be improved. oentails the tasks of measuring, monitoring, controlling, and analyzing business processes. oto predict, recognize, and diagnose process deficiencies, and it suggests the direction of future improvements. 3. The third principle is continuous improvement of processes. oorganizations need to improve to stay competitive. By : ASHISH DESAI
  • 17. ā€¢ Principles o By measuring, monitoring, controlling, and analyzing business processes, a company can deliver consistent value to customers; o Business processes should be continuously improved; ā€¢ Practices o Appoint process owners; o Senior management needs to commit and drive BPM; o Execution of BPM o take a bottom-up approach; o monitor, control, analyze, and improve processes; o Work collaboratively o on cross-organizational o Continuously train the workforce Business Process MANAGMENT By : ASHISH DESAI
  • 18. Business Process MANAGMENT BPMā€™s Practices 1. PROCESS-ORIENTED ORGANIZATIONAL STRUCTURE: ā€¢ To make processes more effectively managed & improved. ā€¢ BPM identifies 3 types of process-oriented structures: A. Process Organization ļ‚§ Each process unit would contain various functions that support the process. ļ‚§ Process organization optimizes performance of process. B. Case Management Organization ļ‚§ Employees would still report to functional heads & also to case managers, responsible to oversee the end-to- end process of an individual case. C. Horizontal Process Management Organization ļ‚§ Create process owners who are responsible for core processes By : ASHISH DESAI
  • 19. 2. APPOINT PROCESS OWNERS ļ‚§ The process owner designs, deploys, and improves the process 3. TOP-DOWN COMMITMENT, BOTTOM - UP EXECUTION: ļ‚§ Top management needs to commit to it and support the process-focused management approach it requires. ļ‚§ Undoubtedly, organizations adopting BPM will go through difficulties and oppositions. 4. USE INFORMATION TECHNOLOGY (IT) TO MANAGE PROCESSES: ļ‚§ BPMS aligns the IT solution to be more in line with the process Business Process MANAGMENT BPM Practiceā€™s By : ASHISH DESAI
  • 20. 5. COLLABORATE WITH BUSINESS PARTNERS: ļ‚§ More focused on what they want to perform in house and what to be outsourced. 6. CONTINUOUS LEARNING AND PROCESS IMPROVEMENT: ļ‚§ tasks workers are expected to perform and new technologies that are implemented to support BPM 7. ALIGN EMPLOYEE REWARDS TO PROCESS PERFORMANCE: ļ‚§ When employee rewards are aligned to process performance, they further collaborate among workers who are engaged in the same process 8. UTILIZE BPR, TQM, AND OTHER PROCESS IMPROVEMENT TOOLS: Business Process MANAGMENT BPM Practiceā€™s By : ASHISH DESAI
  • 21. ā€¢ Analysis phase: o analysis of the current environment and current processes, ā€¢ Design phase: o evaluation of potential solutions to meet the identified needs, ā€¢ Implementation phase: o involves project preparation, blue printing, realization, final preparation, go live ā€¢ Run and Monitor phase: o involves business process execution or deployment ā€¢ Optimize: o Iterate for continuous improvement. Business Process MANAGMENT BPM Life Cycle By : ASHISH DESAI
  • 22. 2. KEY TERMS ARE: ACHIEVEMENT: ORGANIZATION: OBJECTIVES: IMPROVEMENT: MANAGEMENT: CONTROLS: ESSENTIAL: BUSINESS: PROCESSES: BUSINESS PROCESS MANAGMENT 1. INTRODUCTION BPM is about the management of business processes with the organization being the primary focus. 3. PRINCIPLE & PRACTICES 1. BPMā€™s first principle is processes are assets that create value for customers. 2. A managed process produces consistent value to customers and has the foundation for the process to be improved. 3. The third principle is continuous improvement of processes. 4. BPMā€™s PRACTICE 1. PROCESS-ORIENTED ORGANIZATIONAL STRUCTURE: A. Process Organization B. Case Management Organization C. Horizontal Process Management Organization
  • 23. BUSINESS PROCESS MANAGMENT 4. BPM PRACTICE 2. APPOINT PROCESS OWNERS 3. TOP-DOWN COMMITMENT, BOTTOM - UP EXECUTION: 4. USE INFORMATION TECHNOLOGY (IT) TO MANAGE PROCESSES: 5. COLLABORATE WITH BUSINESS PARTNERS: 6. CONTINUOUS LEARNING AND PROCESS IMPROVEMENT: 7. ALIGN EMPLOYEE REWARDS TO PROCESS PERFORMANCE: 8. UTILIZE BPR, TQM, AND OTHER PROCESS IMPROVEMENT TOOLS: 5. BPM LIFE CYCLE 1. Analysis phase: 2. Design phase: 3. Implementation phase: 4. Run and Monitor phase: 5. Optimize: By : ASHISH DESAI
  • 24. SIX SIGMA BUSINESS PROCESS RE ENGINEERING ( BPR ) THEORIES OF PROCESS MANAGMENT TOTAL QUALITY MANAGEMENT ( TQM ) By : ASHISH DESAI
  • 25. THEORIES OF PROCESS MANAGMENT ā€¢ Six Sigma is a set of strategies, techniques, and tools for process improvement. ā€¢ It seeks to improve the quality of process outputs by identifying and removing the causes of defects. ā€¢ It follows a life-cycle having phases: 1. Define: o Customers identified & their requirements gathered. 2. Measure: o O/p variances are graphed & process sigma are calculated. 3. Analyze: o Possible causes of process o/p variations are identified and analyzed statistically to determine root cause of variation. 4. Improve: o Solution alternatives are generated to fix the root cause. 5. Control: SIX SIGMA By : ASHISH DESAI
  • 26. THEORIES OF PROCESS MANAGMENT ā€¢ To improve the quality of products and services through ongoing refinements in response to continuous feedback. ā€¢ It originated in the manufacturing sector and has since been adapted for use in almost every type of organization ā€¢ TQM processes divided into four categories: 1. PLAN o People define problem and collect relevant data. 2. DO o People develop and implement a solution. 3. CHECK o People confirm the results . 4. ACT o People document their results. T Q M By : ASHISH DESAI
  • 27. THEORIES OF PROCESS MANAGMENT ā€¢ It provides a systematic approach to manage and bring in transformational change is called Business Process Reengineering (BPR). ā€¢ (BPR) is: ā€œBPR is the fundamental rethinking and radical redesign of processes to achieve dramatic improvement, in critical, contemporary measures of performance such as cost, quality, and speedā€. ā€¢ This has a few important key words are ; ā€¢ Dramatic achievement means to achieve 80% or 90% reduction ā€¢ Radical redesign means BPR is reinventing and not enhancing or improving B P R By : ASHISH DESAI
  • 28. THEORIES OF PROCESS MANAGMENT B p R ā€¢ Fundamental rethinking means asking the question ā€œwhy do you do what you doā€, thereby eliminating business processes altogether if it does not add any value to the customer. ā€¢ BPR aims at major transformation of the business processes to achieve dramatic improvement. ā€¢ It transforms an organization in ways that directly affect its performance. By : ASHISH DESAI
  • 29. ā€¢ Organization wide commitment ļ‚§ Changes to business processes have a direct impact on processes, organizational structures ā€¢ BPR team composition ļ‚§ A BPR team is formed to take the BPR project forward and make key decisions ā€¢ Business needs analysis ļ‚§ Identify what processes need reengineering. ā€¢ Adequate IT infrastructure ļ‚§ A set of hardware, software, networks, facilities, etc. in order to develop, test, deliver, monitor, control or support IT services. ā€¢ Effective change management ļ‚§ Resistance would be a natural consequence which needs to be dealt with effectively. ā€¢ Ongoing continuous improvement THEORIES OF PROCESS MANAGMENT B P R By : ASHISH DESAI
  • 30. as process owners, process managers, and the method of measuring the effectiveness and efficiency of a business process. ā€¢ The implementation enormous But in competitive global market is all the BPM IMPLEMENTATION By : ASHISH DESAI
  • 32. BPM IMPLEMENTATION NEED FOR BPM IMPLEMENTATION ā€¢ Create long-term future positioning of business ā€¢ Initiate continuous improvement ā€¢ Introduce a knowledge of product ā€¢ Re-engineer the business radically ā€¢ Any organization is the sum of its business processes and is the fundamental part of any organizationā€™s infrastructure . ā€¢ The challenge for todayā€™s organizations is that these departments operate as independent functional units.
  • 33. BPM IMPLEMENTATION AUTOMATION OF FUNCTIONAL UNITS ā€¢ The consumer is often confronted with poor customer service due to broken processes, inefficient processes and manual processes ā€¢ Consumer is becoming more and more demanding with respect to delivery time and also demanding higher quality ā€¢ The number of interfaces with the customers is growing ā€¢ The product, service and price options have increased the complexity of the business CHALLENGES I N B P M By : ASHISH DESAI
  • 34. BPM IMPLEMENTATION B P M TECHNOLOGY ā€¢ To achieve these benefits, Business Process Layer is introduced in the Traditional IT architecture. ā€¢ The traditional IT architecture contains 3 layers: Database, Application and Presentation. ļ‚§ Database layer physically contains data; ļ‚§ Application Layer contains applications and process logic; ļ‚§ Presentation Layer is what users see. ā€¢ BPM provides linking the various independent applications needed to execute a single end-to-end business process. ā€¢ Manage flow of activities along different applications, and people involved & reduce execution time. ā€¢ By tracking business process, an organization can monitor its performance and at same time audit for compliance.
  • 35. BPM IMPLEMENTATION VALUE CHAIN AUTOMATION ā€¢ Separate activities which are necessary to strengthen an organization's strategies and are linked together both inside and outside the organization. ā€¢ VCA defined as a chain of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service ā€¢ It comprises of Primary and Supportive activities. ā€¢ Primary ones are inclusive of inbound logistics, operations, outbound logistics, marketing and sales, and services. ā€¢ Supportive activities relate to procurement, human resource management, technology development and infrastructure. By : ASHISH DESAI
  • 36. BPM IMPLEMENTATION B E N E F I T S ā€¢ Saving on costs: ā€¢ Staying ahead in competition ā€¢ Fast service to customers ā€¢ Risk to jobs ā€¢ False sense of security R I S K By : ASHISH DESAI
  • 37. 2. KEY FACTORS ARE: Scope Goals Methods to be Skills Required Tools to be used Investments Sponsorship/Buy-in B P M IMPLEMENTATION 1. INTRODUCTION Business process may cover different people as process owners, process managers, and the method of measuring the effectiveness and efficiency of a business process. 3. NEED FOR BPM IMPLEMENTATION ļ‚§ Create long-term future positioning of business ļ‚§ Initiate continuous improvement ļ‚§ Re-engineer the business radically 4. AUTOMATION OF FUNCTIONAL UNITS The consumer is often confronted with poor customer service due to broken processes, inefficient processes and manual processes
  • 38. 6. BPM TECHNOLOGY To achieve these benefits, Business Process Layer is introduced in the Traditional IT architecture. BPM provides linking the various independent applications needed to execute a single end- to-end business process. Manage flow of activities along different applications, and people involved & reduce execution time. B P M IMPLEMENTATION 5. CHALLENGES IN BPM The number of interfaces with the customers is growing 7. VALUE CHAIN AUTOMATION ā€¢ VCA defined as a chain of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service ā€¢ It comprises of Primary and Supportive activities. 8. BENEFITS ā€¢ Saving on costs: ā€¢ Staying ahead in competition ā€¢ Fast service to customers 9. RISK ā€¢ Risk to Job ā€¢ False Sense of Security
  • 39. AIS is defined as a system of that is used by decision makers. ACCOUNTING INFORMATION SYSTEM ā€¢ The resulting can be or externally by other interested parties By : ASHISH DESAI
  • 40. ACCOUNTING INFORMATION SYSTEM ā€¢ Allows to perform accounting functions and tasks. ā€¢ Three basic functions of AIS ā€¢ Collect and store data: o Collect and store data about organizationā€™s business activities and transactions o Source documents are special forms used to capture transaction data o Control over data collection is improved by pre-numbering each source document. ā€¢ Record transaction: o Record transactions data into journals. ā€¢ Safeguarding organizational assets: o Two important methods o Documentation allows management to verify that assigned responsibilities were completed correctly. o Segregation of duties refers to dividing responsibility for different portions of a transaction among several people. By : ASHISH DESAI
  • 41. ACCOUNTING INFORMATION SYSTEM ā€¢ Financing Cycles: ļ‚§ The cycle consists of a set of transactions leading to the recognition of a major economic event ā€¢ Revenue Cycle: ļ‚§ It involves capturing and recording of customer orders; shipment of the goods; ā€¢ Expenditure Cycle ļ‚§ It includes expenditures involving accounts like Purchases, Accounts Payable, Cash Disbursements, Inventory and General Ledger. ļ‚§ It includes preparation and recording of purchase orders; receipt of goods and the recording of the cost of inventory; ā€¢ Human Resource Cycle ā€¢ General Ledger & Reporting System Processing CYCLE By : ASHISH DESAI
  • 42. ACCOUNTING INFORMATION SYSTEM ā€¢ Data Processing Cycle ā€¢ It involves data processing activities which has been updated and stored. ā€¢ If the process of updating of the data stored is periodic, it is referred to as batch processing ā€¢ If involves immediate updating as each transaction occurs, is referred to as on-line, real-time processing. ā€¢ The controls on data are maintained using Audit Trials. ā€¢ This is done by capturing snapshots ā€¢ The Data Processing Cycle consists of following basic steps o Data input o Data storage o Data processing o Information output Processing CYCLE By : ASHISH DESAI
  • 43. 2. THREE FUNCTION OF AIS: A. Collect and store data: Source documents are special forms used to capture transaction data B. Record transaction: C. Safeguarding organizational assets: Documentation Segregation ACCOUNTING INFORMATION SYSTEM 1. INTRODUCTION AIS is defined as a system of that is used by decision makers. 3. PROCESSING CYCLE ļ‚§ Financing Cycles: ļ‚§ Revenue Cycle: ļ‚§ Expenditure Cycle ļ‚§ Human Resource Cycle ļ‚§ General Ledger & Reporting System ļ‚§ Data Processing Cycle o Batch Processing o On-line o Real-Time Processing o Data Processing Cycle o Data input o Data storage o Data processing o Information output
  • 44. Process mapping is a visual description of the flow of activities in a process. ā€¢ Accountants and auditors must understand the ā€¢ procedures and processes of a business process and the systems ā€¢ A picture, or chart, of the system is a concise, complete, easy-to- understand way to analyze a system APPROACH TO MAPPING THE SYSTEM It describes the sequence of activities that make up a process, from its starting point to its end point. By : ASHISH DESAI
  • 45. APPROACH TO MAPPING SYSTEM Importance of DOCUMENTING IS ā€¢ Depicting how the system works: ļ‚§ help employees understand how a system works, assist accountants in designing control ā€¢ Training users: ļ‚§ help train users to operate (IS) h/w and s/w, ā€¢ Designing new systems: ļ‚§ A blueprints help architects design building ā€¢ Controlling system development and maintenance costs: ļ‚§ off-the-shelf software that is relatively reliable and inexpensive. ā€¢ Standardizing communications with others: ļ‚§ proposed system in a common language and help users communicate with one another about these systems. By : ASHISH DESAI
  • 46. APPROACH TO MAPPING SYSTEM Importance of DOCUMENTING IS ā€¢ Auditing Information Systems: ļ‚§ Auditors determine the strengths & weaknesses of a system ā€¢ Documenting business processes: ļ‚§ helps managers better understand how their businesses operate what controls are missing ā€¢ A picture, or chart, of the system is a concise, complete, easy-to-understand way to analyze a process or system. ā€¢ Some popular pictorial representation are: ļ‚§ Entity Relationship Diagram; ļ‚§ Data Flow Diagram; ļ‚§ Flowchart; ļ‚§ Decision Tree; and ļ‚§ Decision Table By : ASHISH DESAI
  • 47. E ā€“ R DIAGRAM ā€¢ (ER) diagram is a data modeling technique that creates a graphical representation of the entities, and the relationships between entities, within an information system. By : ASHISH DESAI
  • 48. E ā€“ R DIAGRAM ā€¢ One-to-One relationship (1:1), ā€¢ One-to-Many relationship (1:N), ā€¢ Many-to-One relationship (1:N), ā€¢ Many-to-Many relationship (M:N), By : ASHISH DESAI
  • 49. E ā€“ R DIAGRAM ā€¢ simple and easily understandable. ā€¢ understood by non-technical specialist. ā€¢ Can help in database design. Advantages of E-R Diagram Limitation of E-R Diagram ā€¢ Physical design derived from E-R Model may have some amount of ambiguities or inconsistency. ā€¢ Sometime diagrams may lead to misinterpretations.By : ASHISH DESAI
  • 50. ā€¢ For example, the elements writer, novel, and consumer may be described using ER diagrams By : ASHISH DESAI
  • 51. ā€¢ Construct an E-R diagram for a car-insurance company ā€¢ whose customers own one or more cars each. ā€¢ Each car has associated with it zero to any number of recorded accidents. CUSTOMER CAR ACCIDENT Driver - id Address Name License Model Year Report_No. Location Date Associate Owns By : ASHISH DESAI
  • 52. ā€¢ A university consists of a number of departments. Each department offers several courses. ā€¢ A number of modules make up each course. Students enroll in a particular course and take modules towards the completion of that course. ā€¢ Each module is taught by a lecturer from the appropriate department, and each lecturer tutors a group of students. ā€¢ Draw an E-R Diagram. By : ASHISH DESAI
  • 53. DATA FLOW DIAGRAM ā€¢ (DFD) is a graphical representation of the flow of data through an information system. ā€¢ A DFD illustrates the data flowing from a process to another, and the results. ā€¢ DFD provides a mechanism for functional modelling as well as information flow modelling. ā€¢ The Context Diagram is a high-level DFD that shows the entire system as a single process. ā€¢ The context-level DFD is next "exploded", to produce Level 1 DFDs for each process that show how system is divided into sub-systems (processes) ā€¢ There are two types of DFDs: 1. Physical DFD 2. Logical DFD By : ASHISH DESAI
  • 54. E ā€“ R DIAGRAM ā€¢ describing the boundaries of the system. ā€¢ provide a detailed representation of system components. ā€¢ supports the logic behind the data flow Advantages of E-R Diagram Limitation of E-R Diagram ā€¢ make the programmers little confusing ā€¢ simply takes a long time to create ā€¢ Physical considerations are left out. By : ASHISH DESAI
  • 55. ā€¢ Construct an DFD diagram for a organization which gives fundamentals approach between consumer and vendor while purchasing goods. Consumer Vendor Organi zation Order Purchase Order Product Served Payment Payment 0.0 By : ASHISH DESAI
  • 56. ā€¢ Draw DFD on the cash withdrawal process from process from Bank. Customer TellerBank Request For Transaction Request Accepted Provide Cash 0.0 Received Cash By : ASHISH DESAI
  • 57. ā€¢ Draw DFD on the cash withdrawal process from process from Bank. By : ASHISH DESAI
  • 58. ā€¢ Draw a Context Level Diagram for Payroll Processing System that interacts with the following five agents: ā€¢ Government Agencies; Employees; Management; Time Keeping and Human ā€¢ Resources. By : ASHISH DESAI
  • 59. F L O W C H A R T ā€¢ A flowchart is a diagram sequence of steps, involved in solving a problem. ā€¢ Itā€™s blueprint, that shows general plan, architecture, and essential details of the proposed structure. ā€¢ It helps the programmer avoid fuzzy thinking and accidental omissions of intermediate steps. ā€¢ Flowcharts can be divided into Three categories 1. DOCUMENT FLOW CHARTS o flow of documents from the departments, groups, or individual s 2. SYSTEM FLOWCHARTS o While Document Flowcharts focus on tangible documents, system flowchart concentrates on the computerized data flows of Information systems. 3. PROGRAM FLOWCHARTS o most detailed arithmetic operations on data By : ASHISH DESAI
  • 60. F L o w c H A R t ā€¢ Quicker grasp of relationships ā€¢ Effective Analysis ā€¢ Communication ā€¢ Documentation ā€¢ Efficient coding ā€¢ Orderly check out of problem Advantages of Flow Chart Limitation of E-R Diagram ā€¢ Complex logic ā€¢ Modification ā€¢ Reproduction ā€¢ Link between conditions and actions By : ASHISH DESAI
  • 61. Data Flow DiagramFlow CHART ā€¢ Draw a flowchart to compute and print income tax and surcharge on the income of person, where income is to be read from terminal and tax is calculated as per following rates: ļ‚— Charge Surcharge @ 2% on the amount of total tax, if the income of person exceeds Rs. 2,00,000 By : ASHISH DESAI
  • 62. READ I I > 1,50,000 Tax=20000+0.3* (Inc-150000) Y N 60,000 < I <= 150000 Y N Tax=2000+0.2* (Inc-60000) A B I > 2,00,000 Schg = 0.02*Tax Schg = 0 40,000 < I <= 60,000 Tax=0.1* (Inc-40000) Y N START Y N By : ASHISH DESAI
  • 63. A B Tax=0 Print Tax & Schg END By : ASHISH DESAI
  • 64. Flow CHART A bicycle shop in Delhi hires bicycles by the day at different rates as shown ; To attract his customers, the proprietor also gives a discount on the number of days a bicycle is hired for. If the hire period is more than 10 days, a reduction of 15% is made. For every bicycle hired, a deposit of ` 20 must be paid. Develop a flowchart to print out the details for each customer such as name of customer, number of days a bicycle is hired for, hire-charges and total charges including the deposit. It is also assumed that there are 25 customers and complete details for each customer such as name of customer, season and number of days the bicycle is required for is inputted through console. Season Charges / Day Spring (March - May) 8 Summer (June - August) 9.50 Autumn (Sept - Nov.) 5 Winter (Dec. - Feb.) 6 By : ASHISH DESAI
  • 65. Flow CHART START READ nm,seas,days N = N+1 Seas = SPRING Rate = 8 Y N Seas = SUMMER Y N Rate = 9.50 A B By : ASHISH DESAI
  • 66. Flow CHARTA B Seas = AUTUMN Y N Rate = 5.00 Rate = 6.00 BCHG = Rate * Days Days>10 Y N DCHG = Rate * 0.15 DCHG = Rate C By : ASHISH DESAI
  • 67. Flow CHARTC TCHG = DCHG + 20 Print HCHG, TCHG, nm,seas,days N>25 Y N D By : ASHISH DESAI
  • 68. Flow CHART START READ nm,seas,days N = N+1 Seas = SPRING Rate = 8 Y N Seas = SUMMER Y N Rate = 9.50 A B D By : ASHISH DESAI
  • 69. Flow CHARTC TCHG = DCHG + 20 Print HCHG, TCHG, nm,seas,days N>25 Y N D STOP By : ASHISH DESAI
  • 70. Flow CHART A company has 2,500 employees. Their salaries are stored as J(s), 1, 2, ---- 2500. The salaries are divided in four categories as under : Draw a flow chart for finding the percentage of the employees in each category. Less than Rs.1,000 Rs. 1,000 to Rs. 2,000 Rs. 2001 to Rs. 5000 Above Rs. 5000 By : ASHISH DESAI
  • 71. Flow CHART START READ J(1)ā€¦J(2500) I=0 I = I+1 J(I)<1000 P1 = P1 + 1 Y N J(I)<2000 P2 = P2 + 1 Y N A B By : ASHISH DESAI
  • 72. Flow CHARTA B J(I)<=5000 Y N P3 = P3 + 1 P4 = P4 + 1 If I <2500 Y N C R1 = P1/2500 R1 = P1/2500 R1 = P1/2500 R1 = P1/2500 By : ASHISH DESAI
  • 73. Flow CHART START READ J(1)ā€¦J(2500) I=0 I = I+1 J(I)<1000 P1 = P1 + 1 Y N J(I)<2000 P2 = P2 + 1 Y N A B C By : ASHISH DESAI
  • 74. Flow CHARTA B J(I)<=5000 Y N P3 = P3 + 1 P4 = P4 + 1 If I <2500 Y N C R1 = P1/2500 R1 = P1/2500 R1 = P1/2500 R1 = P1/2500 Print R1, R2,R3,R4 By : ASHISH DESAI
  • 75. Flow CHARTA B J(I)<=5000 Y N P3 = P3 + 1 P4 = P4 + 1 If I <2500 Y N C R1 = P1/2500 R1 = P1/2500 R1 = P1/2500 R1 = P1/2500 STOP Print R1, R2,R3,R4 By : ASHISH DESAI