BPM1Essentials3114.pptx

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1、Topic 1.Business process management(BPM)essentials 1.Functional management approach overview.2.Value chain concept.3.Business process essentials.4.Business process management(BPM)basics.Functional management approach overviewFunctional management approach is focused on separate functions performance

2、Advantages:High labor productivityHigh professional skills levelFunctions doubling diminishingGood opportunities for work automation Functional management approach overviewFunctional organization structureTop managerFunctional managerFunctional managerLine managerExecutorsdisciplinary subordinationt

3、echnical subordinationFunctional management approach overviewCostsSpecialization levelFunctional management approach overviewUnder the functional-oriented management system each organizational unit has its own plan,its own reporting system,its own performance indicators.Having different goals,units

4、are indirectly interested in the general outcome Functional management approach overviewProcess run pattern ProcurementProductionSalesDeliveringTop managementFunctional management approach overviewWeek unit connections Responsible for the result persons absence Focus on intermediate outcome rather t

5、han on final one,interests conflictDisadvantages of functional-oriented management High overheads Information support inefficiency,the partial automation Low responsiveness and work speedFunctional management approach overviewConsumer:Consumers power increasingCompetition:Strong competition in the g

6、lobalized worldChanges:Fast changes speed Main business challengesProcessstructureFunctionalstructureDivisionalstructureProcessstructureProjectstructureCraft productionMass productionStandardized productionMarketing-oriented productionOrganizational structure evolutionFunctional management approach

7、overviewValue chain conceptValue chain(proposed by M.Porter)is a sequence of primary and secondary(supporting)activities involved in creating consumer value for the consumer both in the organization and all the way from raw materials extraction to the product consumption Value chain conceptPorters v

8、alue chainValue chain conceptValue system(Supply chain)Suppliers value chainEnterprise value chainDistribution channels value chainConsumer value chainSupply chain-the network of business relationships and processes that collectively create and deliver value(products and services)to consumers.Value

9、chain conceptSupply-Chain Operations Reference-model(SCOR)is a process reference model developed by the management consulting firm PRTM and endorsed by the Supply-Chain Council(SCC)as the cross-industry de facto standard diagnostic tool for supply chain management.Value chain conceptValue chain conc

10、eptValue chain conceptValue chainValue chain conceptBusiness process essentialsBusiness process is a steady purposeful sequence of functions performance,aimed at creating a result that has value to the consumer A business process provides a definite volume of services,through a defined and measurabl

11、e input and output,that is valuable for external or internal customer.It can be repeated,has a responsible process owner and has all the necessary resources and information.Business process essentialsOrganization business processes Network is a union of interdependent and concerted organization proc

12、esses as a whole system Business process Client is an internal or external customer of the business process resultsBusiness process essentialsPrimary output is the main Business process result,the scope of a business process existence Secondary output is a business processes byproduct,which may have

13、(or not have)the value for secondary business process clients.It is not the main goal for a business process Business process output is the products,information or services which are the scope of a business process existence Business process essentialsPrimary input is a flow of objects that are the

14、subject of labor for a business process,i.e.converted for output:raw materials,information that requires processing,etc.Secondary input is a flow of objects that provide normal business process execution standards,rules,tools,etc.Business process inputs are incoming objects(raw materials,products,pa

15、rts,information or services)which are converted into a process outputs during its execution.Business process input a is an output of other one Business process essentialsBusiness process Resources are incoming objects(raw materials,parts,information or services)which are turned into the process outp

16、uts during its performance,and means of performing(labor,technical,technological resources,managing information).Business process Resources often are outputs(results)of other oneBusiness process essentialsInternal clientsPrimary inputSecondary inputExternal clientsSecondary outputPrimary outputSecon

17、dary clientDirect client Indirect clientDirect clientIndirect clientPrimary outputDirect clientPrimary outputBusiness-ProcessIndirect clientBusiness process inputs,outputs and clients classification Business process essentialsBusiness processBusiness process ownerBusiness process resoursesBusiness p

18、rocess resultsInputOutputLabor objects;Tools and equipment;ExecutorsThe business process owner is the official who is responsible for the process progress and results and possesses the necessary resources Managing influenceProcess indicators(feedback)Legend:Business process management modelPrimary o

19、utput of business process must be:measurable;valuable;finishedBusiness process essentialsBusiness process management model:A internalB completeBusiness process essentialsThe process structure of the organization referred to the identification and definition of work processes,considering space,time,g

20、oods and people.The organizational structure of an organization sets up the decision-making and information channels.The organizational and operational structure are in a dependent relationship and therefore consider the same objects from various perspectives.While organizational structure describes

21、 the general way of staff dividing and communicating within the organization,the process structure describes the way of work performing.Business process essentialsOrganizational structure is staticProcess structure is dynamic Top managerFunctional managerFunctional managerLine managerBusiness proces

22、s essentialsBusiness process classificationCore Business processes:Add value Secondary Business processes Supporting Business processes:Support infrastructure Development Business processes:Improve business to get profit tomorrowManagement Business processes:Manage processes of 3 previous typesMarke

23、ting research(market to business)New product design(idea to product)SupplyingManufacturingSalesDeliveringServiceHR managementAccounting&FinancesPurchasing(Purchase to Pay)Assets managementWarehouse managementRelationship managementIT supportSecurity managementNew technology design(idea to technology

24、)Processes engineeringStrategic planning(vision to plan)Business planningControllingBusiness process essentialsCore business processesBusiness process essentialsTraditional marketing and CRM approaches comparing Business process essentialsDifferent CRM-system classes functionsBusiness process essent

25、ialsClient life-time profit increasing with 5%increasing of loyal clients numberBusiness process essentialsMarketingProduct developmentSupplyingProcess developmentProductionTestingPackaging and stockingSales and distributionInstallationTechnical support and serviceUtilizationMarketingPLMBusiness pro

26、cess essentialsBusiness process levels(according to the Process Classification Framework by the American Productivity and Quality Center)Business process essentialsBusiness Process is a pattern,a model of activitySpecific enterprise activity is a set of Business Process Instances Business process ma

27、nagement(BPM)basicsNew businesses performance statistics(Source:Business Design Corporation)64,2%of all new businesses fail within 10 years 86%of new businesses do not get profitReason business processes are not managed properlyBusiness process management(BPM)basicsBusiness process management(BPM)ba

28、sicsBusiness Process Management(BPM)is the management processes that supports transactions throughout their life cycle with a given organization policies and business models.More generally,Business Process Management is a new philosophy of management,centered on the processes integration and managem

29、ent to achieve business goals.Business process management(BPM)basicsBPM is based on three core principles:Companies often have non-homogenous businesses Different businesses require different organizations The organization is to be focused on market or customer requirementsBusiness process managemen

30、t(BPM)basicsThe following individual questions should be answered to build the companys business model and to identify the first areas for action:Which markets/customer groups will be addressed with which products?Which are the key success factors in the various business fields?Which processes are r

31、equired by the company?Where is the main emphasis?How will BPM become authoritative?Business process management(BPM)basicsBusiness-field matrixBusiness process management(BPM)basicsStrategic managementEnterprise goalsEnterprise functionsBusiness process managementBusiness process executionProcess mo

32、delsProcess regulationPerformance indicatorsPerformance indicatorsBusiness process management(BPM)basicsBusiness process outsourcing(BPO)is the movement of business processes from inside the organization to an external service provider.With the global telecommunications infrastructure now well estab

33、lished and consistently reliable,BPO initiatives often include shifting work to international providers.Main insourcing countriesBusiness process management(BPM)basicsBusiness process management(BPM)basicsControllingModelingImplementingImprovingBPM SystemBusiness process management(BPM)basicsAnother

34、 point of view on BPM SystemBusiness process management(BPM)basicsThe underlying principle of the BPM(Business Process Management)is that the general goal becomes a cornerstone,and reaching this goal becomes the sense of all the activity.The result of the work is measured not by each executors funct

35、ions duration and quality,but by entire process completeness.Business process management(BPM)basicsSimplification and minimization of coordination mechanismsSourceMakeDeliverOrderOrderOrderOrderOutput deliveringBusiness process management(BPM)basicsBPM goals:To make a process manageable(measurable)T

36、o make a process“human independent”To make a process transparentTo make a process executable(by human or by automate)Common business goals(improve products quality,decrease product cycle,cut costs,increase sales)Business process management(BPM)basicsIn terms of analysis and optimization of business

37、processes,BPM and appropriate tools allow you to identify:-duplication of functions,-bottlenecks,-cost centers,-quality of certain operations,-missing or incomplete information,-automation possibility,-ISO 900 x certification opportunities Business process management(BPM)basicsMain BPM implementing

38、obstacles:1.Lack of stimulus to improve the effectiveness oforganization(low competition)2.Unwillingness to change the zone of managers responsibility 3.Familiarity and simplicity of the functional approach4.Low management culture5.The use of paper regulation documents as a tool for process management(without automation)6.Business process describing abuse 7.Too high expectations of the reference models and consultants involvement