This document provides an overview of business processes. It defines a business process as a network of connected activities and buffers that transform inputs into outputs to satisfy customer requirements. The key components of a business process are described as the inputs and outputs, flow units, activities and buffers, resources, and information structure. Different types of business processes like individual, vertical, and horizontal processes are also discussed. The document emphasizes that well-designed business processes are important for overall business performance by efficiently satisfying customer needs.
Business Process Management (BPM) is a management approach to continuously improve processes and achieve organizational objectives through a set of methodologies and technologies. This introduction video to BPM provides definitions, key components, an IT request process example, and methodologies.
Explore more about BPM on http://www.appian.com/
Visit the BPMbasics Learning Center for additional free resources and whitepapers: http://www2.appian.com/bpmbasics
Business Process Management (BPM) is a management approach to continuously improve processes and achieve organizational objectives through a set of methodologies and technologies. This introduction video to BPM provides definitions, key components, an IT request process example, and methodologies.
Explore more about BPM on http://www.appian.com/
Visit the BPMbasics Learning Center for additional free resources and whitepapers: http://www2.appian.com/bpmbasics
Selecting and Implementing Insurance Advertising Compliance Technology SolutionsMark F. Catone
As regulatory requirements increase and more pressure is placed on compliance staff to increase productivity, technology can play a critical role in automation and managing a firm's risk profile. This session/presentation will summarize the features, benefits and implementation of technology solutions to manage advertising compliance.
This Slide deck gives a quick Idea about the Business process Modelling, various block used and their meanings, AS-is Process, its To-Be process and corresponding swim lane diagram.
Presentation given at the IIR Business Process Management Conference, San Diego, CA, November 13th, 2007. It focuses on the difference between rules and processes, the integration points of BPMS and BRMS, and ways to get started.
Case Management: Managing chaos: unstructured processes and dynamic BPMCapgemini
Business Process Management (BPM)
solutions have helped organizations
manage structured business processes
that are clearly documented and
well understood. But organizations
now face the challenge of managing
unstructured or semi-structured
processes that are collaborative,
content-intensive, and subject to
constant change. Case Management around a BPM
solution – preferably in conjunction
with an Enterprise Content
Management system – solves many
of the problems.
An introduction to the different phases of the BPM life cycle: Analyze, Design, Implement, Measure, Improve.
Key Takeaways:
- Analysis Frameworks provide context
- Transactions perform work, Analytics manage work
- The diagram isn’t everything
- Improve your capabilities in 3 areas:
-- Process Maturity
-- Process Management Maturity
-- Organizational Maturity
Presented by Michael zur Muehlen (Stevens Institute of Technology) at the Appian World 2012 Conference, April 16, 2012, in Reston VA.
The presentation demonstrates the stages for setting up a business process for a sales function
The methodology mentioned in the presentation is based on best practices used to set up business development functions for SME's for promoting their products/services.
Selecting and Implementing Insurance Advertising Compliance Technology SolutionsMark F. Catone
As regulatory requirements increase and more pressure is placed on compliance staff to increase productivity, technology can play a critical role in automation and managing a firm's risk profile. This session/presentation will summarize the features, benefits and implementation of technology solutions to manage advertising compliance.
This Slide deck gives a quick Idea about the Business process Modelling, various block used and their meanings, AS-is Process, its To-Be process and corresponding swim lane diagram.
Presentation given at the IIR Business Process Management Conference, San Diego, CA, November 13th, 2007. It focuses on the difference between rules and processes, the integration points of BPMS and BRMS, and ways to get started.
Case Management: Managing chaos: unstructured processes and dynamic BPMCapgemini
Business Process Management (BPM)
solutions have helped organizations
manage structured business processes
that are clearly documented and
well understood. But organizations
now face the challenge of managing
unstructured or semi-structured
processes that are collaborative,
content-intensive, and subject to
constant change. Case Management around a BPM
solution – preferably in conjunction
with an Enterprise Content
Management system – solves many
of the problems.
An introduction to the different phases of the BPM life cycle: Analyze, Design, Implement, Measure, Improve.
Key Takeaways:
- Analysis Frameworks provide context
- Transactions perform work, Analytics manage work
- The diagram isn’t everything
- Improve your capabilities in 3 areas:
-- Process Maturity
-- Process Management Maturity
-- Organizational Maturity
Presented by Michael zur Muehlen (Stevens Institute of Technology) at the Appian World 2012 Conference, April 16, 2012, in Reston VA.
The presentation demonstrates the stages for setting up a business process for a sales function
The methodology mentioned in the presentation is based on best practices used to set up business development functions for SME's for promoting their products/services.
BizFlow - BPM at Jardine Lloyd Thompson for Sales, Document Handling, Custome...Garth Knudson
As far back as 2004, JLT EB started using business process management (BPM) to streamline a limited set of business operations. Use was confined to about 30 people in a “model office”. During that same time period, JLT acquired Profund, a leading provider of pension administration software in the UK. Customers included both in-house and third-party administrators. Profund had seen opportunities to expand its pension fund administration solutions into specific areas of process automation while helping customers to simplify the overall user experience. Deciding to use the current BPM tool, the company developed outward facing solutions that rolled out to end customers in 2007. BPM usage at JLT EB and Profund grew to about 300 users.
Between 2007-2010, JLT made more than 20 acquisitions globally across the group. JLT EB operations quickly became highly complex, distributed and paper-based. Employees were handling millions of documents annually covering Pension Administration, Payroll, Defined Contributions, Actuarial, Health and Risk, among other requests. Processes treated more than 16 million workflow elements, 300+ million rows of table data and 15 million SharePoint documents. The BPM solution covers 14 active offices in Europe and India, off-shoring and massive amounts of regulations. The company knew that in order to continuing growing at the same speed while containing costs, it would have to do more with less.
JLT EB accomplished its goals of increased revenues with lower costs with continual investment in BPM. JLT EB has worked with BizFlow and used the BizFlow BPM software to streamline >200 processes. From an ROI standpoint, this work has provided a key business component, contributing to JLT EB’s growth in trading profit by 50% in the last financial year. Revenue growth is enabled by more flexible solutions that can be highly tailored to internal client needs as well as end-customer engagements. Cost cutting is enabled through the use of process automation tied together with effective scanning, document handling and rule-based routing. Paper is largely removed, deadlines hit, and governance accomplished.
1
Introduction To Business Process Design
2
Overview
What is a business process?
Three definitions
Process types and hierarchies
Components of process architectures
The essence of Business Process Design (BPD)
Why is BPD important?
BPD and overall business performance
BPD and strategy
Why do inefficient processes exist?
Activity classification and BPD
3
What is a Business Process?
A pragmatic definition
A Business Process describes how something is done in
an organization
In general terms…
Business - Organizational entity that deploys resources to provide customers with desired products and services
Process (Merriam-Webster’s Dictionary)
(i)A natural phenomenon marked by gradual changes that
lead to a particular result
(ii)A natural continuing activity or function
(iii)A series of actions and operations conducing to an end
4
What is a Business Process?
2.Traditional Process definition in OM literature
A process specifies the transformation of inputs to outputs
Different types of transformations
Physical (Ex. raw material finished product)
Locational (Ex. flying from Denver to L.A.)
Transactional (Ex. depositing money in a bank)
Informational (Ex. accounting data financial statement)
The transformation model of a process
Inputs
Outputs
Process
5
What is a Business Process?
The Process View
Any organization entity or business can be characterized as a process or a network of processes
Based on the simple transformation model of a process
Has its origin in the areas of manufacturing and quality
The transformation model of a process
Inputs
Outputs
Process
6
What is a Business Process?
A more comprehensive process definition
A business process is a network of connected activities and buffers with well defined boundaries and precedence relationships, which utilize resources to transform inputs into outputs with the purpose of satisfying customer requirements
Process
Customers
Suppliers
Resources
Inputs
Outputs
7
Process Types and Hierarchies
Individual processes
Carried out by a single individual
2.Vertical or Functional processes
Contained within one functional unit or department
3.Horizontal or Cross Functional processes
Spans several functional units, departments or companies
Make up
Make up
8
Marketing
Operations
Accounting
CEO
Order Request
Order Fulfilled
Production planning
Vertical process
Horizontal process
Individual process
Buying a TV commercial
Illustration: Process Types and Hierarchies
9
Process Types and Hierarchies
Core cross-functional processes often have highest improvement potential
Core processes – essential for meeting market place demand through a specific strategy
Especially high improvement potential if a significant amount of non-manufacturing/service related activities
Reasons
Difficult to coordinate
Have not ke ...
Outsourcing Enabled Transformation This session will discuss the IT sourcing process used to separate a division (formerly MeadWestvaco Papers Group) to a stand alone company. The steps of understanding the business objectives that drive the IT strategy and execution will be outlined along with the do\'s and don\'t(s) of making a very complex transition process work with minimal customer impactThis presentation will also address the idea of using business oriented service level metrics to
Next Generation Communications & Document Automation For Legal ServicesDavid Blumentals
Helping law firms realize cost reductions upwards of 50% and productivity efficiencies in excess of 80% while ensuring improved document quality with faster, more reliable communications and compliance across the firm
Learn how to capitalize on Autodesk PLM 360 to manage your enterprise business processes; including new product introduction, items and BOMs, change management, document management and many more. We will discuss how to improve your organizations performance and product data visibility throughout your organization by incorporating different business applications onto a single platform. Understand how to improve compliance to your NPI and Quality processes by implementing task management with workflow validation. Learn how to track your development process through the use of connected, but dedicated, workspaces for different departmental tasks. Our hope is that attending this class will give you a tour of how Autodesk PLM 360 can transform your business, and prepare you for the next steps in implementing PLM 360 for NPI.
Discovering New Product Introduction (NPI) using Autodesk Fusion LifecycleRazorleaf Corporation
In this session you will learn how to capitalize on Autodesk Fusion Lifecycle to manage your enterprise business processes; including new product introduction, items and BOMs, change management, document management and many more. We will discuss how to improve your organizations performance and product data visibility throughout your organization by incorporating different business applications onto a single platform. Understand how to improve compliance to your NPI and Quality processes by implementing task management with workflow validation. Learn how to track your development process through the use of connected, but dedicated, workspaces for different departmental tasks. Our hope is that attending this class will give you a tour of how Autodesk Fusion Lifecycle can transform your business, and prepare you for the next steps in implementing Fusion Lifecycle for NPI.
2. What is a Business Process?
1. A pragmatic definition
A Business Process describes how something is done in
an organization
In general terms…
Business - Organizational entity that deploys resources to provide
customers with desired products and services
Process (Merriam-Webster’s Dictionary)
(i) A natural phenomenon marked by gradual changes
that
lead to a particular result
(ii) A natural continuing activity or function.
(iii) A series of actions and operations conducing to an 2
end.
3. What is a Business Process?
A process specifies the transformation of inputs to outputs
Inputs Process Outputs
The transformation model of a process
Different types of transformations
• Physical (Ex. raw material ⇒ finished product)
• Locational (Ex. flying from Denver to L.A.)
• Transactional (Ex. depositing money in a bank)
• Informational (Ex. accounting data ⇒ financial statement)
3
4. What is a Business Process?
3. A more comprehensive process definition
A business process is a network of connected activities and buffers
with well defined boundaries and precedence relationships, which
utilize resources to transform inputs into outputs with the
purpose of satisfying customer requirements
Resources
Process
Suppliers Inputs Outputs Customers
4
5. Process Types and Hierarchies
1. Individual processes
– Carried out by a single individual
Make up
2. Vertical or Functional processes
– Contained within one functional unit or department
Make up
3. Horizontal or Cross Functional processes
– Spans several functional units, departments or
companies
5
6. Process Types and Hierarchies
Core cross-functional processes often have highest
improvement potential
• Core processes – essential for meeting market place demand
through a specific strategy
• Especially high improvement potential if a significant
amount of non-manufacturing/service related activities
• Reasons
– Difficult to coordinate
– Have not kept up with improvements in manufacturing
– Difficult to detect waste and inefficiencies
– Often as little as 5% of the time considered adding customer value
– Customers more likely to abandon business because of “poor”
service than “poor” products
6
7. Components of the Process Architecture
Inputs and Outputs Information structure
Process
Flow units Resources
Architecture
The network of
activities and buffers
7
8. Components of the Process Architecture
Inputs and Outputs
• Establish interaction between the process and its environment
• Identify the process boundaries ⇒ easy to identify the Input consumed
from the environment in order to produce the desired Output
• Process inputs and outputs can be
– Tangible (Ex. raw material, cash, products, customers)
– Intangible (Ex. Information, time, energy, services)
Flow units
• A flow unit is a transient entity or a job that proceeds through the network
of activities and buffers and exits the process as a finished output
• Typically, the identity of a flow unit changes across the process
• Examples of common flow units: materials, orders, files, documents,
customers, products, cash, transactions…
• Flow rate – The number of jobs flowing through the process per time unit
8
9. Components of the Process Architecture
The network of activities and buffers
• The work performed on a job moving through a process can be divided
into an ordered sequence of activities
• The buffers represent storage or waiting points where the job waits before
moving to the next activity (queues, waiting rooms, etc.)
• Different types of jobs ⇒ different paths through the network
• Defining activities is crucial in process analysis
– Tradeoff between process and activity complexity
Process Complexity
Individual Activity Complexity
9
10. Components of the Process Architecture
Resources
• Tangible assets utilized to perform activities in a process
• Can be divided into:
Capital assets – real estate, machinery, equipment, IT systems…
Labor – people and their knowledge and skills
• Resources are utilized while inputs are consumed
Information structure
• Specifies the information required for making decisions and
performing activities in a process
• Limited information availability is a common cause for process
inefficiencies
– Information enables coordination!
10
11. Workflow Management Systems
• Management of administrative processes in the field of
Information Systems is often referred to as workflow
management
• Workflow management systems
– Control actions taken on documents moving through a business
process
– Workflow management software/systems are used to control
who does what to a specific document
• Using our comprehensive process definition
⇒ Process = Workflow
11
12. The Essence of Business Process Design
“How to do things in an efficient and effective way”
• An efficient process which does not deliver customer value is useless
A well designed process does the right things, right!
More formally…
• BPD is concerned with configuring the process architecture to satisfy
customer desires in an efficient way
– Customers can be both internal and external
• Internal customer requirements must be aligned with the desires of the
external customers in the business strategy
We make a clear distinction between process design and implementation
12
13. The Essence of Business Process Design
• BPD often most valuable when considering complex cross
functional processes
– Challenging coordination issues
– Process inefficiencies often related to handing off work from one
station or person to the next – introduces delays and errors
• The functional organization and division of labor paradigm
dates back to Adam Smith and the late 1700’s
• Division of labor rationale: by focusing on fewer tasks ⇒
– Workers’ skill level goes up ⇒ work faster
– No time lost when workers switch between tasks
– Workers well positioned to help develop better techniques and tools
• Drawback: more complex coordination issues when
– More complex products and services
– Customers demand more variety 13
14. Example 1
Explanation of existing claims process
1. Client notifies a local agent that she wishes to file a claim. She is given a claims
form and is told to obtain a cost estimate from a local glass vendor.
2. When the claims form is completed the local agent verifies the information and
forwards the claim to a regional processing center.
3. The processing center logs the date and time of the claim’s arrival. The data is
entered into a computer-based system (for record keeping only) by a clerk. The
claim is then placed in a hard copy file and passed on to a claims representative.
4. a) If the claims representative is satisfied with the claim it is passed along to
several others in the processing chain and eventually a check is issued and sent
to the client.
b) If there are problems with the claim the representative mails it back to the
client for necessary corrections.
5. When the client receives the check she can go to the local glass vendor and
replace the glass.
14
15. Example 1
New Design Recommended by the Team
Call in claim
Claims
Client processing
center
Notify Pay
Schedule repair
Approved
glass
vendor
15
16. Linking BPD to overall Business Performance
• Overall business performance?
– Detailed definition is company specific
– Generally, performance must be measured against the stated objectives
Profit maximizing firms Non-profit organizations
Overarching objective is usually to A common objective is survival and
maximize long term shareholder value growth while satisfying customer needs
Maximize revenues and Must use resources efficiently while
minimize costs understanding customer needs
Satisfying customer needs in an efficient way
Well designed business processes
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