IT CHAP -1

BPM
What is

The achievement of an
organizations objectives
through improvement of
essential business process.
BPM is means to study,
identify, change, modify &
monitor business
processes.
BPM is a structure,
methodology to streamline
business process to

Why BPM

Because of huge
competition it is difficult
to survive without
improving business
processes, customer may
select alternative supplier

Need for
BPM
implementati
Create
long-term

future
Create short-term cost
effectiveness

Initiate continuous
improvement

Introduce a
knowledge of product

Re-engineer the
business

Address the cultural

barriers
Different

levels of BPM

At highest level
At second level
At third level
Operational
business
processes

BPM
principle
Create customer value

Monitor
Improvement to stay in
competition
Information technology

BPA

Proce

Challenges of

Anything that
converts input into
output
Eg: sales, purchase,
accounting, customer
care, logistics etc

BPA
Risk to job

False sense

Transaction layer
Journal
Posting
Unadjusted trial
balance
Adjustment
Adjusted trial
balance
Closing

Sales

Customer
order
Recording
Pick release
Shipping
Invoice
Receipt

Production dept.
Purchase order
Request quote
Quotation
Compare
Invoice
Receipt

Financial

resources
Operation
&Financial planning
Allocation of
monitoring
Report

Impact of IT on
BPM
Allows enterprises to

Risk of
BPA
Job- people may

Record transaction: In
journals
Safeguarding

satisfaction
Cost saving
Competitive edge

devise process centric IT

solutions
Accomplish IT enabled
business process change
Closer business
involvement
Ability to integrate people
& systems
Monitor, control & improve

become jealous
False sense of
security
Challenges
in

implementation

ofInterfaces
BPA with customer is

growing
Product, service and price
options have increased
Budgets
Automation not only
implementing technology,
It is about automating the
business process
New way of working,
monitoring & managing

Purchase

Benefits of
BPA
Customer

A/cing

Basic
Collect & store data
functions

BPM
practices
Appoint owner-

manager
Bonus to
employee
Co-operation

Radical
IT use
Training

Types of
relationship

One to one
One to
many
Many to one
Many to

Automated
Coupling
Free
Cost-savings
Compliances

Business risk of
failure of IT

Top management
Outdated
Gap analysis
Over-engineering
Not flexible
Software failure
Deficient project
Insufficient resources
Inadequatetraining

human resource

management, technology
dept, & infrastructure

Information as a

Business Asset

Major improvements

Comprises of primary &

supportive activities
Primary- inbound,
outbound logistics,
operations, sales &
services

Secondary- procurement,

ERD

Fundamental re-thinking,
and radical re-design of
existing business process
To achieve dramatic
improvement, in critical,
contemporary measures of
performance such as cost,
quality, service, & speed.
Achieve 80-90%
transformation
'Clean slate approach'

Benefits of

BPR

VCA

AI

Stand for entity relationship

diagram
Developed before database
development
To Connect 2 different entities,

Must be available,
accessible service within
organization by
continuous updating the
old database system
useful, digital,
accessible, relevant,
accurate, trustworthy,
searchable,
understandable, &
shareable
Treated as a valuable
commodity
Allow decision-makers to
better an organization's
performance
Decision-making process
can be badly hampered
without effectively

BPR success

factors wide
Organization
commitment
BPR team
composition
Business needs
analysis
Adequate IT
infrastructure
Effective change
management

Approaches
to mapping
system

Entity relationship
Data flow
Systems flow
System outline
Decision tree
Decision table

Parts of
decision-table

Condition stub
Action stub
Condition entries
Action entries

BY- CA SWAPNIL PATNI