SYSTEM ANALYSIS AND DESIGN –

LECTURE 2

•Business Process Management

(BPM)
L EARNING O BJECTIVES
 Discuss on the concepts of Business Process and
Business Process Management (BPM)
 Explain the need for BPM

 List the benefits of Using BPM

 Describe the relationship between BPM and

system analysis and design
 Discuss on BPM lifecycle

 Illustrate the As-Is and To-Be case studies

 Draw flowcharts given a scenario

R ECAP
 Organisation need IT to survive
 Everything is being digitised

 More ubiquitous devices

 High demand in efficiency and productivity

 Much competition

 Require instantaneous transaction

B USINESS PROCESS

 Set of activities performed by people or system

 Deliver some kind of value through a product or
process to internal or external customers
 A business process describes a sequence or flow of
activities, which lead to accomplishing a set of
specific organizational goals.
 Those activities can involve both h u m a n and
system interactions.
 The flow of a process is controlled by decisions,
triggers, events, and exceptions, any of which
may be influenced by rules or policies
TYPES OF BUSINESS PROCESSES
 Business processes span industries, both vertical and
horizontal, and can include any type of business operation.
Examples include:
 Manufacturing – a n product assembly process, a quality
assurance process, a corrective/preventive maintenance
process.
 Finance – a n invoicing process, a billing process, a risk
management process
 Health – a medical assessment, a drug approval
 Banking – customer on-boarding, credit check
 Travel – trip booking, agent billing
 Defense – a sit u a tion r oom process, emergency
management process
 HR – a starters process, a leavers process, vacation request
 Public Sector – application for a government service
 Compliance – a safety audit, a legal check
E XAMPLES
 A business process can often be visualized as a
flowchart or workflow of logical steps.
C HALLENGES
 Today’s volatile business environment, and the
increasing complexity and proliferation of high-
impact technologies such as analytics, cloud
computing, software-as-a-service and mobility
pose tough challenges to management teams.
 To address them, companies in all industries and
geographies are focusing more attention and
resources on business process management
(BPM).
B USINESS PROCESS MANAGEMENT (1)
 Business process management (BPM) is the
discipline of improving a business process
from end to end by analyzing it, modelling
how it works in different scenarios,
executing improvements, monitoring the
improved process and continually
optimizing it.
B USINESS PROCESS MANAGEMENT (2)
 Business process management (BPM) is the
process of analyzing and improving business
processes to create a more efficient and effective
organization.
 Business process management is neither task
management or project management (although it
can occur within the context of a project).
 BPM is focused more on repetitive and ongoing
processes t h a t follow a predictable pattern.
 Goal of BPM :
Reduce h u ma n error and miscommunication
Focus stakeholders on the requirements of their roles
B USINESS PROCESS MANAGEMENT (3)
 BPM is a systematic approach to improving a
company's business processes.
 BPM fosters collaboration between IT and
business users to jointly build applications t h a t
effectively integrate people, process and
information.
 BPM gives a n organization the ability to define,
execute, manage and refine processes t h a t
involve h u ma n interaction, work with multiple
applications, and handle dynamic process rule and
changes.
N EED FOR BPM
 Unmanaged, chaotic processes hurt a
business and lead to one or more of these
scenarios:
Time wasted
More errors
Increased blame
Lack of d a t a
Demoralized employees
W HY BUSINESS PROCESS MANAGEMENT ?

 The need to s ta n dardize t he core business

processes
 The need to improve th e communication
efficiency in a globally dispersed organization
 The need to compress business operation cycle
time (process optimization)
 The need to streamline the management process
(monitoring, auditing, performance management)
C LASS A CTIVITY
 What are the benefits of using BPM?
ANSWER
 Improved Business Agility: Making changes to a n organization’s best practices is necessary to
keep up with changing conditions in the market. BPM allows organizations to pause business
processes, implement changes and re-execute them. The changed process “will have the unique
ability to stay on track and implement changes or redefine the tasks of its process users,” according
to Breyfogle. “The end result is a higher level of adaptability to unstable situations.” Altering
workflows, as well as reusing and customizing them, allows business processes to become more
responsive and gives the organization more knowledge of the effects t h a t process modifications
have.
 Reduced Costs and Higher Revenues: A BPM solution may not deliver immediate reductions
in operational costs. However, the solution eradicates bottlenecks, which significantly reduces costs
over time. The solution can also reduce lead times for product sales, giving customers quicker
access to services an d products. This leads to higher sales and improved revenue. BPM solutions
can also allocate and track resources to reduce waste, which can also reduce costs and lead to
higher revenues.
 Higher Efficiency: The potential for higher efficiency is brought by the integration of
organizational processes from st art to finish. If a BPM automatically alerts process owners of a
project’s status, this leads to more proficient monitoring of delays or reallocating tasks among
employees. Efficiencies are also created when the BPM allows automation and removal of
redundant tasks.
 Better Visibility: BPM allows software programs to make process automation possible, informing
organizations of performance and real-time indicators of business process function. This happens
without extensive labor or monitoring techniques. Enhanced transparency leads to better
managem ent and the ability to modify structures and processes efficiently while tracking
outcomes.
 Compliance, Safety and Security: According to Breyfogle, reliable BPM practices assist
organizations by keeping them informed of their duties with financial reports, labor law
compliance and a wide range of government rules t h a t organizations should follow. A
comprehensive BPM guarantees t h a t organizations comply with standards and stay up to dat e
with the law. BPM can also promote safety and security measures by properly documenting
procedures and facilitating compliance. As a result, organizations can encourage their staff to
safeguard organization assets, such as private information and physical resources from misuse,
loss or theft.
BPM AND S YSTEM A NALYSIS AND D ESIGN
 Understanding business processes is a critical
step in system analysis and design
 Process modeling is a powerful means to
communicating requirements with the users.
 A good software will not help if the related
processes are poorly designed
 Business process management systems (BPMSs)
provide tools to conduct process analysis via
simulation to improve process designs
U SE OF I NFORMATION S YSTEMS
 Information systems simply transform the
processes with the goal of making the process
more efficient, convenient, effective, reliable, and
so forth.
 First, we represent the current (usually deficient)
state As-Is process. Seeing the As-Is process
diagrammed exposes obvious areas for
improvement in the process.
 The redesigned and improved business process is
called the To-Be process. This process takes into
consideration the deficiencies identified in the
As-Is process and the goals of the business. The
area of work t h a t focuses on improving business
processes is called business process redesign
BPM L IFECYCLE (1)
BPM L IFECYCLE (2)
 Design – The focus of design phase is to gather process data,
prioritize processes for improvement or re-engineering, and
represent current and target a n end result of processes.
 Analyze – The focus of analyze phase is to experiment and
test certain processes using statistical analysis and simulation
of processes, t h a t help decide on the optimal processes to
implement.
 Execute – The focus of execute phase is to implement or
deploy processes created in Define phase, and
enhance/optimize with detail during Analyze phase.
 Monitor – The focus of monitor phase is to measure and track
the performance of executed processes against established
metrics, and create reports, dashboards, etc. and help analyze
the process for ongoing improvements.
 Optimize – The focus of optimize phase is to improve or,
where required, re-engineer deployed processes and make sure
t h a t the business goals are achieved and customer needs are
met.
BUSINESS P ROCESS MANAGEMENT
EXAMPLES

 HR:
 Have you ever felt your organization’s on-
boarding process is too complex and chaotic?
 Is your HR department asking the candidates to
fill out paper forms t h a t makes them exhausted?
This is because your HR department lacks the
principle of Business Process Management
(BPM).
 Applying business process management, helps
you automate your HR processes end-to-end,
thereby cutting down on cost, time and paper
forms.
T OOLS TO MODEL BUSINESS PROCESSES

 Flowcharts
 UML
ACTIVITY
- As-Is and To-Be scenario for the following:

- - Student Registration a t the university

- - Complaint management in a Municipal/ Local
Council
- - MC/ Application for de-registration of modules
a t the University