BPM

BPM 1
1
Introduction
Introduction

D P Goyal

Introduction
Introduction : Students
Experience in Software
IT background

Introduction : Self

Course Objectives
To develop
Conceptual understanding of business processes and their
management.
Skills for analysing existing (As-Is) and design (To-Be) business
processes in any business enterprise for its strategic advantage.
An overall understanding on innovatively integrating information
technologies like enterprise resource planning (ERP) systems
An understanding on building effective process implementation and
change management plans.

Not a techy course: Focus on IT as an

organisational Infrastructure & Knowledge
Catalyst

Pedagogy
To visualize IS/IT in an integrated organizational setup, it is imperative
to have the pedagogy as

learner centric and discussion oriented

Students are expected to study the readings and cases assigned to
them for the class-discussions. Wherever need be, concepts will be
addressed in a lecture format for ease of understanding and
application. Group projects presentations will be another learning
focus. In all, the course will be based on
Case Studies
Group project/ Presentations
Assignments

Evaluation

Quizzes
Presentation, Case participation
Mid Term Test
Group Project
End term Exam

20
10
20
20
30

References
Harmon, P. (2003) Business Process Change: A
Manager's Guide to Improving, Redesigning, and
Automating Business Processes, Morgan Kaufman, San
Francisco.
D P Goyal, Enterprise Resource Planning: A Managerial
perspective, Tata McGraw Hill publications, 2011
Systems Analysis & Design by Shelly et al. ; Thomson,
2006.
Organizational Transformational through Business
Process Reengineering: Applying the lessons learned by
Vikram sethi & William R King: Pearson Education,2003.
Cases and Notes to be provided

References

(Web & Journals)

www.bptrends.com
www.brint.com
www.tatamcgrawhill.com
http://myphlip.pearsoncmg.com/cw/
Journals

MIS quarterly

Harvard Business Review

Vikalpa

Decision

Decision Support Systems

Presentations
1: BPM: A Management Philosophy
2: Business Process Improvement & Innovation
3: BPR
4: Management of Business Process Change
5: ERP System and Business Process Reengineering
6:BPO: A business strategy
7: BPM in Government Organisations
There would be two/three Presentations per alternate session in the same
order starting from 6th session. Class Rep is to ensure. No rescheduling.

Groups for Presentation

Group 1:
Group 2:
Group 3:
Group 4:
Group 5:
Group 6:
Group 7:

Project
BPM at XYZ Company
Objectives:
To understand the mission, goals, and strategies of the
organisation
To analyse the business processes of the organisation
To map the AS-IS business processes
To propose TO-BE business processes
To conduct feasibility study of the proposed business processes

Scope:
A,b,c (functional area(s) like Marketing; Finance; Operations; HR etc)

Project Report: Format

Importance of BPM and need for study

Objectives of the project
Scope of the project
Methodology applied
Analysis
Findings
Recommendations
Limitations & Future Scope of Work
References

Project Deadlines
Submission of Project details: Sept 28,
2016
Review : November 02, 2016
Submission : November 15, 2016

Other Issues
Material / soft copies / handouts
Class Rep (+back-up) : Mobile numbers

Business processes
Work in organizations is completed by business
processes that consists of various steps that are
executed in different parts of the organisation
Sequence of tasks or activities that take a set of
inputs and convert them into desired inputs

Figure 1: A generic process

Process Steps
Input

Step 1

Step 2

Step 3

Output

Business process - example

Make skateboards
What are some parts of a skateboard

Buy parts
What are some steps in the buying process
Who performs these steps

Sell skateboards
What are some steps in the selling proces
Who performs these steps

Exercise
Identify some of the key business
processes in an organization. Do all
companies have the same key processes?
Why or Why not?

Some Key Processes

Key processes
Procurement
Fulfillment
Production

Procurement Process

Create Purchase
Requisition

Create & Send

Purchase Order
(PO)

Receive
Goods

Receive Invoice
From Supplier

Send Payment
To Supplier

Fulfillment Process

Receive
Customer Order

Prepare
Shipment

Send
Shipment

Send Invoice
To Customer

Receive
Payment

Functional structure
Common functions
Typical tasks in functional areas
Review steps in procurement
Who does what where?
Characterize processes - who is responsible
for the process?

Why functional structure?

Information Technology

Human Resources

Finance & Accounting

Research & Development

Sales & Marketing

Warehouse

Operations

Purchasing

Functional organizational

Exercise
Identify the drawbacks of a functional
organizational structure? What negative
consequences do they lead to?

Functional view
Silo effect and poor coordination of
activities across processes
Common problems are
Delays,
Excess inventory,
Lack of transparency across processes

The Silo effect

Communication and collaboration between
functions
What must be communicated?
What information must be exchanged?
How is this coordinated

Paper based processes

Processes supported by functional systems
Processes supported by enterprise systems

Paper-based process

Sales

Warehouse

Receive
Customer
Order

Create/
Update
Paperwork

Delay!

Prepare
Shipment

Send Paperwork

Delay!

Accounting

Send
Shipment

Create/
Update
Paperwork

Delay!

Send
Invoice

Send Paperwork

Delay!

Receive
Payment

Create/
Update
Paperwork

Delay!

Consequences of delays
Delays
Increased lead times
Increased cycle times

Excess inventory
just in case

Lack of visibility across the process

Status: where is my order
How is the process doing

Why accept these delays?

Functions vs. processes

Process using functional

systems

Sales

Warehouse

Receive
Customer
Order

Prepare
Shipment

Send
Shipment

Send Paperwork
Enter/Update
Data

Send
Invoice

Receive
Payment

Send Paperwork
Enter/Update
Data

Enter/Update
Data

Delay!
Sales
Information
System

Accounting

Enter/Update
Data

Enter/Update
Data

Delay!
Warehouse
Information
System

Accounting
Information
System

Processes using Enterprise

Systems

Sales

Warehouse

Receive
Customer
Order

Prepare
Shipment

Enter/Update
Data

Enter/Update
Data

Send
Shipment

Enter/Update
Data

Enterprise
Information
System

Accounting
Send
Invoice

Receive
Payment

Enter/Update
Data

Enter/Update
Data

Is this for MIS/IT majors?

Not just for IT majors!
Recall skills of a knowledge worker..
Strategic thinking / big picture

How processes work

How does my work impact the process
How will my failures impact the process
How does others work impact my work
What must I do well to ensure that the process is successful

Communication and collaboration

Project teams!

Framework: Key process

flows
Information Flow

Enterprise
Information
System

Data & Document Flow

Physical Flow

Role of ES in organizations
Execute the process
Inform, provide data, help complete steps
automation
Embedded in the process
Examples in procurement and fulfillment

Role of ES in organizations
Capture and store process data
Automatic capture
Entered from outside the system
Examples in procurement and fulfillment

Process view & Enterprise

Systems
Enterprise Systems are essential in
viewing organizations from a process
perspective.
Enterprise Systems connect the work that is
done across the organization and provide
coordination, data access, and transparency
across the process.

BPM
Refers to improving business processes; it
consists of
Capturing and understanding of the
business processes
Mapping of Business Processes
Analysing the existing processes (As-is)
Designing the new processes(To-be)
Integrating and implementing the new
processes
Managing change

BPM
is a management philosophy that is driven from the very
top of the organisation
is critical not merely from an operational perspective but
also from a strategic as well as a marketing perspective
recognises that business processes and how they are
managed are the key mechanisms that allow a firm to
deliver value to the customers, and ultimately, its
shareholders and stakeholders

Multiple Perspectives of Business Processes

Business Process

Strategic Perspective

Process as
Capability

Operational
Perspective

Customer
Perspective

Process as
`Workflow

Process as Service

Why BPM?
Global competition (hyper-competitive business
climate)
need for enhanced performance throughout the organisation (do
more with less, more quickly, more uniquely)
to make the firm easier to do business with and more agile, yet
still ensure compliance and reduce operational risk

Why BPM?
The Information revolution
Organizations are becoming critically dependent on
ICT to run smoothly, precisely because their
operations are spread all over the world.

Why BPM?
Consequently a new paradigm is emerging with
the integration and networking of business
partners and the focus on the firms business
processes.

Many of the best companies e.g. Cisco,

Texas Instruments, and Dell have embraced this
new approach to business
by becoming faster, more flexible, and more integrative, by focusing
on customers (both in terms of their demands and their needs),
competition, and business process management.

Such organisations have been described as horizontal, process-centric or

process oriented organizations.

Why BPM for you?

Todays manager is considered as a knowledge worker, who should
have the skills like
Strategic thinking: the ability to see the big picture and
understand how your organization works as a whole.
Information Literacy: the ability to determine what information is
needed, where to find it, and how to use it.
Communication and collaboration: the ability to function as an
effective part of a project team where you understand your role
as well as the role of others.

Thus, you need to have a thorough understanding of

both the fundamental business processes that
organizations use to do their work and the role of ICT
plays in supporting these processes.

Business Processes in
Practice
Story : Apple Computers
1998
Mac laptop and desktop
6 main products manufactured in their main
factories in ireland and singapore sold through
resellers
6658 employees; $6 billion revenues
Controlled every aspect of production and
distribution
No knowledge of their customers

Story: Apple
2008
21,600 employees and more than $24
billion revenues
Opened 200 retail stores all over the world
and had $ 4 billion revenues
Products 27 includes movies; digital music
and television

Story Apple
New CEO Steve Job
Focus on core competency: designing easy to use and
engaging hardware and software products
Revamped product line by modernizing the mac
operating system and providing apple computers with
new internet capabilities
Outsource manufacturing operations
Launched online store to sell directly
Implemented ERP system

Thus
The story of apple illustrates some of the
ways that
Every change transformed the core business processes
The changes were made visible and accessible across the
company through ERP system
(By outsourcing the production to the specialized manufacturers
could fabricate very high quality finished goods at a lower cost
than apple could in its own factories. Apple can then invest the
money it saves by outsourcing its production process in hiring
more researchers and designers in california).

BPM
BPM 1
1
Introduction
Introduction

D P Goyal