Dr. Dr.

Tam Nguyen
Organization structure
Value chain model and Supply chain operation references (SCOR)
Business process architecture (BPA)
Process Identification
Centralize vs decentralize
An organizational
structure is a system that
outlines how certain
activities are directed in
order to achieve the
goals of an organization.
These activities can
include rules, roles, and
responsibilities. The
organizational structure
also determines how
information flows
between levels within the
company. Hierarchy structure
In a Matrix organizational
structure, the reporting
relationships are set up as a
grid, or matrix, rather than in
the traditional hierarchy. It is
a type of organizational
management in which people
with similar skills are pooled
for work assignments,
resulting in more than one
manager to report to
mostly adopted by small
companies and start-ups in
their early stage. It’s almost
impossible to use this model
for larger companies with
many projects and
employees
Network
organizational
structure helps
visualize both internal
and external
relationships between
managers and top-
level management.
employees form small,
multidisciplinary
teams that work
independently to
achieve common goals
Within a divisional
types of organizational
charts has its own
division which
corresponds to either
products or
geographies. Each
division contains the
necessary resources
and functions needed
to support the product
line and geography.
Line organizational structure is
one of the simplest types of
organizational structures. Its
authority flows from top to
bottom. Unlike other
structures, specialized and
supportive services do not take
LINE-STAFF STRUCTURE
place in these organizations. FUNCTIONAL
STRUCTURE
Team-based organizational structures are made of teams working towards a common goal while working
on their individual tasks. They are less hierarchical and they have flexible structures that reinforce
problem-solving, decision-making and teamwork.
This is a series assignment with 4 stages and 1
explanation document!!!
Your group is about open a store
What are the specific tasks to be accomplished by your
shop’s employees?
How many employees do you need?
Draw an organization chart based on employee tasks
(incl. management tasks). Each position on the chart will
perform specific tasks or be responsible for particular
outcomes.
Should the chart resemble a pyramid, a wheel with hub
and rim, or rather a network(use structure in previous
slide)? Why?
is a general description of a system. It
identifies its purpose, vital functions,
active elements, and critical processes and
defines the nature of the interaction
among them.
Chuỗi giá trị là tập hợp tất cả các quy trình mà 1 tổ chức sử dụng để tạo 1 sản phẩm hoặc dịch vụ
được định giá bởi một nhom skhachs hàng cụ thể , mỗi bước trong chuỗi sẽ thêm vào giá trị cuối cùng của sphoacwj dịch vụ Có ba loại quy trình trong doanh nghiệp:
Các quy trình cốt lõi bao gồm các việc tạo ra giá trị cốt lõi cho
doanh nghiệp, đó là sx HH và dv
Mô hình này giúp các doanh nghiệp tối ưu hóa hiệu quả

Có 3 quy trinh: Quy trình chính, quy trình quản lý, quy trình hỗ trợ

Quy trình kinh doanh là chuỗi các hoạt động

Value chain model – Michael PRO3 Model

Porter
 Xác định mục tiêu

ZACHMAN Framework
https://www.zachman.com/resources/ea-articles-reference/327-
Read more about TOGAF model the-framework-for-enterprise-architecture-background-
Firm as series of
activities that add value
to products or services
Highlights activities
where competitive
strategies can best be
applied: Primary activities
vs. support activities
At each stage, determine
how information systems
can improve operational
efficiency and improve
customer and supplier
intimacy
Utilize benchmarking,
industry best practices
 level 2 triển khai từ level 1
Mô hình này được gọi là khung tham chiếu
level1 triển khai 5 hđ trong 1 chuỗi

level 0 mô tả ở cấp độ cap nhất

Supply chain operation

reference (SCOR) model -
a three-level model. They
treated the value chain as
Level 0, and treated a
given supply chain as
Level 1. They subdivided a
supply chain into four
major subprocesses:
source, make, deliver, and
return.
 Process architecture is
the structural design of
general process
systems.
is a visual, hierarchical
model of the processes
Process discovery methods:
1. evidence based
- Document analysis
- observation of an organization. It is
- Au tomated process discovery
2. Interview based
a critical business
3. Workshop based blueprint that guides
decision-makers and
executes strategy
Identify the scope
Identify related
stakeholders
Define lifecycle
processes
Organizing and
consolidating level 2
processes
 Business process scorecard
 Multiple value streams

Comprehensive list of
level 1 and 2 for an
organization
Pick an organization and redraw its business process architecture
(using the BPA guidelines).
 Management Processes

Core processes cover the essential Define Vision Develop Strategy Implement Manage Risk
value creation of a company, that is the
production of goods and services for Strategy
which customers pay. These include
design and development,
manufacturing, marketing and sales,
delivery, after-sales, and direct Core Processes
procurement (i.e., sourcing required for
the making of products or the delivery Manage
of services). Procure Procure Market Deliver
Customer
Support processes enable the
Materials Products Products Products
Service
execution of these core processes.
These include indirect procurement
(i.e., sourcing of hardware, furniture,
stationery, etc.), human resource Support Processes
management, information technology
management, accounting, financial
management, and legal services. Manage
Manage Personnel Information Manage Assets
Management processes provide
directions, rules, and practices for the
core and support processes. These
include strategic planning, budgeting,
compliance and risk management, as
well as investors, suppliers, and
partners management.
could be made up of
four major
subprocesses: plan
work, organize work,
communicate, and
control work.
Each of these
subprocesses in turn
includes a variety of
different activities.
 Process architecture as defined by
British Telecom in 2005
TOP-DOWN APPROACH

The starting point is the process landscape on Level 1 that shows Model structure, methodology and
the value chains of the company.
Meta modelling standards
Level
Defines business activities

Operations Levels Process Levels Business Levels

Level 2 provides a decomposition for each business process of the Level A Distinguishes operational customer
oriented processes from management
value chains. Business Activities and strategic process

Shows groups of related business

Level 3 provides a further decomposition down to sub-processes Level B Logical functions and standard end-to-end
and tasks. Process Groupings Levels processes (e.g. Service Streams)

Level 1 Level C Core processes that combine together to

deliver Service Streams and other end-
Core Processes
Process to-end processes

Landscape Level D Decomposition of core processes into

detailed ‘success model’ business
(incl. Value Chains) Business Process Flows process flows

Detailed operational process flows

Level 2 Level E Physical with error conditions and product and
Operational Process Flows geographical variants (where
Business Processes Levels required).

(e.g. BPMN) Level F Further decomposition of detailed

Detailed Process Flows operational where required
Level 3+
© British Telecommunications (2005)

Sub-processes and Tasks

(e.g. BPMN)
Is it a process at all?
•It must be possible to identify main action, which is applied to a
category of cases.
Can theisprocess
•Name be+controlled?
of form verb noun.
•Repetitive series of events and activities to execute individually
observable cases.
•Without a clear case notion, process management is not feasible.

Is•Also, without any

the process sense of repetition,
important enougha group of business activities
to manage?
may better qualify as a project than as a business process.
•There is customer who is willing to pay for outcomes,
•Organization that carries out the process would be willing to pay
another party for taking over, or

Is•Legal, mandatory
the scope framework
of the compels
process an organization
not too big? to execute it.

•1:1 relation between initial event and activities.

Is the scope of the process not too small?

•Rule of thumb: there should be at least three different actors –
excluding the customer – involved.
•If there are no handoffs between multiple actors or systems, there is
little that can be improved using BPM methods.
 Sequence

Manage
Sequence (horizontal Procure Procure Market Deliver
Customer
relationship): This relationship Materials Products Products Products
Service
describes that there is a logical
sequence between two processes.
This means that one process Decomposition Specialization
provides an output that the other
process takes as an input
Procure Handle Job
Decomposition (vertical
relationship): This relationship Products Application
describes that there is a
decomposition in which one specific
process is described in more detail in
one or more subprocesses. Handle Job Handle Job
Process Assemble
Specialization: This relationship Application Application
Parts Parts
describes that there exist several (Austria) (Germany)
variants of a generic process.
Variants are not only defined for
different legal contexts, but also for
different categories of products or
services and for different types of
customers or suppliers
 Management Processes

Manage Communicate Manage Manage Manage Risks and Manage

The model of the process Enterprise in and out Processes Quality Opportunities Innovation

architecture that covers the

processes on Level 1 is known Core Processes
as the process landscape model Manage
Contact Manage Foster
Customer
or simply the process architecture Relationship
Customer Sales Relationship

for Level 1 Operate Plan and Buy Maintain Check

Vehicles Vehicles Vehicles Vehicles

Transport Plan Customer Transport Evaluate

Customer Transport Customer Transport

Provide Plan Build Maintain Evaluate

Infrastructure Infrastructure Infrastructure Infrastructure Infrastructure

Support Processes

Manage Manage Manage Manage Manage Provide Winter

Personnel Financials Information Materials Disruptions Service
What are core, support, and
management processes of a
university?
Clarify terminology:

• Define key terms.

• Use organizational glossary.
• Use reference models.
• Ensure that stakeholders have a consistent understanding of process
Identify end-to-end
landscape model. processes:

• Those processes interface with customers and suppliers.

• Goods and services that organization provides are good starting point.
• Properties help to distinguish processes, including: Product type, Service
type,
For eachChannel, Customer
end-to-end type.
process, identify its sequential
processes:
• Identify the internal, intermediate outcomes of end-to-end process.
• Perspectives help set boundaries: Product lifecycle, Customer
relationship, Supply chain, Transaction stages, Change of business
For each business
objects, process, identify its major management and
Separation.
support processes:
• What is required to execute the previously identified processes.
• Typical support processes are management of personnel, financials,
information, and materials.
• However, these can be core processes if they are integral part of
business model.
• Management processes are usually generic.
 Decompose and specialize Compile process profile: Check completeness and
business processes: consistency:
Processes of process landscape should be Each of the identified processes Reference models can be used to
further subdivided into abstract process should be described using process check whether all major processes
on Level 2. profile. are included.
Further subdivision until processes can be Process profile supports definition of Reference models can help to check
managed autonomously by single process boundaries, vision performance consistency of terminology.
owner. indicators, resources, etc.
Check whether all processes can be
Considerations when this subdivision associated with functional units of
should stop: Manageability and Impact. organization chart and vice versa.
Name of Process: Procure-to-Pay
Vision: The objective of the procurement process is to secure that the
entire range of external products and services becomes available on time
and is at the required level of quality.
Process Owner: Chief Financial Officer (CFO)

Customer of process: Expectation of customer:

 Requesting unit  Timely, economic and complete
provision

Outcome: Delivered products or provided services for the requested unit

Trigger: Need is identified

First activity: Submit Request
..
Last activity: Create Purchase Order
Interfaces inbound: Plan-to-Procure
Interfaces outbound: Construct-to-Complete

Required resources:
 Human resources:
Site Engineer, Clerk, Works Engineer
 Information, documents, know-how:
procurement guidelines, supplier rating, framework contract
 Work environment, materials, infrastructure:
Procurement information system

Process Performance Measures:

 Cycle Time
 Operational Costs
 Error Rate
Management Processes

Develop Vision Develop and Manage Business Market and Sell

and Strategy Manage Services Capabilities Services

Core Processes

Contract
Demand-to-Selection Selection-to-Bid Approval-to-Contract
Acquisition

Contract
Contract-to-Plan Plan-to-Completion Completion-to-Expiry
Execution

Support Processes

Manage Human Manage Financial Manage Risk and Manage External

Capital Manage IT Resources Manage Assets Compliance Relationships
Management Processes

ManageDefine, Operationalize, and Track Strategy Sales, Franchise, and Partner Management
Manage
Enterprise Innovation

Core Processes

Innovate Sell Deliver

Support Processes

Workplace and Corporate Finance Shareholder and

Procure to Pay
Attract, Develop, and Infrastructure and Operational Stakeholder
Retain Workforce Provision Compliance Management
Strategic Importance:

• Find out which processes have the greatest impact on the strategic goals.
• Consider profitability, uniqueness, or contribution to competitive advantages.
• Select those processes for process management that relate to strategy.
Health:

• Determine which processes are in deepest trouble.

• These processes may profit the most from BPM initiatives.
Feasibility:

• Determine how susceptible process is to BPM initiatives, incidentally or

continuously.
• Culture and politics may be obstacles.
• BPM should focus on those processes where it is reasonable to achieve benefits.
High Selection Focus Feasibility
Loan
Rating
Contract
Controlling Prepatation Low
Loan
Decision
Loan Market
Medium
Importance

Evaluation

Handling
High
Payments

Loan
Loan Planning
Application
Low

Poor Health Good

Example
A restaurant has recently lost many customers due to
poor customer service. The management team has
decided to address this issue first of all by focusing on
the delivery of meals. The team gathered data by asking
customers about how quickly they liked to receive their
meals and what they considered as an acceptable wait.
The data suggested that half of the customers would
prefer their meals to be served in 15 min or less. All
customers agreed that a waiting time of 30 min or more
is unacceptable.
 Performance Objectives
Performance
Measurments Formulate performance objectives of the process at a
high level, in the form of a desirable state that the
Time process should ideally reach, e.g., customers should be
served in less than 30 minutes.
Cost For each performance objective, identify the relevant
Quality performance dimension(s) and aggregation function(s),
and from there, define one or more performance
Flexibility measures for the objective in question, e.g., the
percentage of customers served in less than 30
minutes. Let us call this measure ST(30).
Define a more refined objective based on this
performance measure, such as
ST(30) >99%.
A travel agency has recently lost several medium-sized and large corporate
customers due to complaints about poor customer service. The management
team of the travel agency decided to appoint a team of analysts to address this
problem. The team gathered data by conducting interviews and surveys with
current and past corporate customers and also by gathering customer feedback
data that the travel agency has recorded over time. About 2% of customers
complained about errors that had been made in their bookings. In one occasion,
a customer had requested a change to a flight booking. The travel agent wrote an
email to the customer suggesting that the change had been made and attached a
modified travel itinerary. However, it later turned out that the modified booking
had not been confirmed in the flight reservation system. As a result, the customer
was not allowed to board the flight and this led to a series of severe
inconveniences for the customer. Similar problems had occurred when booking a
flight initially: the customer had asked for certain dates, but the flight tickets had
been issued for different dates. Additionally, customers complained of the long
times it took to get responses to their requests for quotes and itineraries. In most
cases, employees of the travel agency replied to requests for quotes within 2–4
working hours, but in the case of some complicated itinerary requests (about
10% of the requests), it took them up to 2 days. Finally, about 5% of customers
also complained that the travel agents did not find the best flight connections and
prices for them. These customers essentially stated that they had found better
itineraries and prices on the Web by searching by themselves.

Answering the following question:

1. Which business processes should the travel agency select for improvement?

2. For each of the business processes you identified above, indicate which
performance measure the travel agency should improve