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Lecture 1

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10 views

Lecture 1

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itrat.aliya514
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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LECTURE # 1

1. Introduction & Fundamentals

Business Process

A business process is a collection of related events, activities and decisions, that involve a number of
actors and resources, and that collectively lead to an outcome that is of value to an organization or
its customers.

• Business processes are what companies do whenever they deliver a service or a product to
customers

• A company can outperform another company offering similar kinds of service if it has better
processes and/or executes them better

Processes and Outcomes

Every process leads to one or several outcomes, positive or negative

1. Positive outcomes deliver value

Delivers value to the involved actors

2. Negative outcomes reduce value

Involved actors do not receive any value

Issue-to-resolution process’ outcomes:

 Issue repaired without technician intervention


 Issue repaired with minor technician intervention
 Issue repaired and fully covered by warranty
 Issue repaired and partly covered by warranty
 Issue repaired but not covered by warranty
 Issue not repaired (customer withdrew request)

Business process attributes

Objective or Goal: Every business process exists to achieve a specific outcome. For example,
the goal of a customer service process may be to resolve customer complaints within a
certain timeframe.

Inputs: These are the resources, information, or materials that a business process requires
to function. Inputs can come from internal or external sources (e.g., customer orders, raw
materials).

Activities or Tasks: A business process is made up of several steps or activities. Each activity
contributes to the final outcome, and these steps are often sequential or dependent on
each other.

Outputs: The outputs are the final results or products that the process produces. These
could be physical goods, services, or even information that satisfies the business's objective.

Actors or Participants: These include the people, systems, or machines involved in


executing the business process. They could be employees, automated systems, or third-
party service providers.

Process Flow or Workflow: This refers to the logical sequence of activities in a business
process, outlining how tasks move from one step to another. It can be represented through
flowcharts or diagrams.

Rules and Constraints: Business processes are governed by specific rules and constraints,
such as regulations, policies, or quality standards. These ensure that the process is carried
out correctly and consistently.

Tools and Technology: Many business processes are supported by technology, such as
software systems (ERP, CRM) or tools that help automate tasks and improve efficiency.

Metrics and Performance Indicators: Metrics are used to measure the efficiency and
effectiveness of a business process. Common performance indicators include time taken,
cost incurred, error rates, and customer satisfaction.

Improvement and Optimization: Business processes are often subject to review and
improvement efforts. Over time, organizations strive to refine and optimize processes to
reduce waste, increase efficiency, and adapt to changing conditions.

Why Business Process Management?

“The first rule of any technology used in a business is that automation applied to an efficient
operation will magnify the efficiency.
The second is that automation applied to an inefficient operation will magnify the inefficiency.”

Business Process Management (BPM)

Business Process Management (BPM) is a body of principles, methods and tools to design,
analyze, execute and monitor business processes.

 Business processes are the focal point of BPM

Goals of Business Process Management

1. Get holistic view on how an organisation works


2. Understand activities of an organisation and their relations
3. Understand embedding of activities within an organisational and technical context

*Potential for improving the business process

A structured BPM approach: The BPM Lifecycle

 The BPM lifecycle is a widely accepted model to structure BPM initiatives


 High level abstraction of what need to be done
 Consists of six consecutive phases
 Each phase has an output, which is used in the next phase
 Iterative nature of the lifecycle makes it an ongoing endeavour

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