Op

Front 1

1.1 Why should you study BPM?

Back 1

1. Processes are at the core of every organization

2. Process improvement is highly valued

3. BPM is a key IT-related skill of a Business Analyst

4. There are jobs in BPM (that are difficult to offshore)

5. For many businesses, BPM ranks as a top priority for 2012

6. IT-advisory firm, Gartner, believes BPM is important.

Front 2

1.2 Emergency Exemple of Organisational Process and Organizational Structure

Back 2

Front 3

2.1.1 Galbraith's Star Model of Organisational Design 1 - Strategy

Back 3

Company's formula for success.

It sets the organization's direction and encompasses the company's vision and mission, as well as its short-and long-term goals.

Front 4

2.1.2 Capabilities

Back 4

The unique integrated combination of skills, processes,human abilities, and technology.

Front 5

2.1.3 Structure

Back 5

• Where formal power and authority are located
• How we are organised
• What the key roles are
• How work is managed
  

Front 6

2.1.4 Processes

Back 6

• How decisions are made

• The work flow between roles

• The mechanisms for collaboration

Front 7

2.1.4 Rewards

Back 7

• How behaviour is shaped by the goals

• How we assess progress

• At what level should results and behaviors be measured andrewarded

Front 8

2.1.5 People

Back 8

• What skills are needed

• How we best develop our talent

Front 9

2.1.6 The key of Organisational Design

Back 9

• Achieve fit between the factors
  
• Alignment is effectiveness
  

Front 10

2.2.1 Function Structure vs. Product Structure

Back 10

Front 11

2.2.2 Which structure is more likely to favourindividual incentive rewards: function or product?

Back 11

In product structure, they develop a strong team identity around the productsthey produce and the markets they serve. So measures and rewards are typically closely linked to business unit success, instead of individual performance.

In functional structure, the depth of expertise and specialisation is needed so the individual incentive rewards are more likely to be favoured.

Front 12

3.1 Waves of process improvement

Back 12

SWTBEB

Front 13

3.2 BPM is the convergence of three approaches to process improvement

Back 13

Front 14

3.3 PROBLEMS with organisational structures that are based on functions, hierarchical command, and 'management by objectives' - which could be solved by TQM

Back 14

* functional groups work for themselves, and sometimes against the overall process

* quotas and targets lead to game playing

* hierarchical control takes away workers' desire to improve and maintain quality

* managers become distant from the realities of work process

Front 15

3.4 Six Sigma

Back 15

• Six Sigma is a recent approach to process management that continues the Quality tradition
• An emphasis is placed on measuring outcomes and reducing the variability of each step
• Developed by Motorola, by Mikel Harry
• GE - 1999 claimed $2 billion cost savings from Six Sigma; 40% of executive bonuses attached to using the approach (Other major companies claiming great benefits are: Honeywell, Black & Decker, Texas Instruments)

Front 16

3.5 Critical-to-Quality

Back 16

• A Critical-to-Quality chart maps the outcomes desired by the process analysts

Front 17

4.1 The 7 types of waste

Back 17

Lean - focus on efficiency; centres around the identification and reduction of WORMPIT

WORMPIT

1. Waiting - gaps between process steps

2. Over production - production more than the customers can consume

3. Rework - damage to the process through the need to rework defective products (or services)

4. Motion - inflict wear and tear on resources (eg. separating people who need to work together)

5. (Over) Processing - work which adds no value for the customer (eg. a too long report)

6. Inventory - supplied goods that lie idle

7. Transportation - movement of goods (or information) risks damage or loss (distortion of information)

Front 18

4.2 Business Process Reengineering (BPR)

Back 18

• Emerged in 1990s
• Originated in USA by Thomas Davenport and Michael Hammer
• Focus on obliteration of old processes and replacement with radically innovative business processes
• Reengineering is the radical redesign of business processes for dramatic improvement
• IT is seen as a critical enabler of new processes
• Focused on processes in the office, not the factory.
  

Front 19

4.3 An example for BPR 1

Back 19

Front 20

4.3 An example for BPR 2

Back 20

Front 21

4.3 TQM vs. BPR in the devil's quadrangle

Back 21

Front 22

7.1 Enterprise Systems Definition

Back 22

• Today’s primary tool for supporting routine organisational processes
  
• Enterprise systems (ESs) are large-scale, integrated application - software packages that use the computational, data storage, and data transmission power of modern information technology to support processes, information flows, reporting, and data analytics within and between complex organisations
  

Front 23

7.2 Example Enterprise Systems include

Back 23

– Enterprise Resource Planning (ERP)

– Customer Relationship Management (CRM)

– Supply Chain Management (SCM)

– Data Warehousing Systems (DWs)

– Software platforms on which these applications are built (e.g., SAP’sNetWeaver)

Front 24

7.3 SAP's Business Suite, 2008

Back 24

Front 25

7.4 Achieving Fit

Back 25

Front 26

7.5 Configuration and Customization

Back 26

• Configuration

Each module has tables in which predefined settings are made: e.g. to specify the country of use; preferred accounting procedures; GST, etc.

• Customisation

Special pieces of software can be written and added to the Enterprise Systems software code.

Front 27

7.5 In what ways is an Enterprise Systemsflexible to suit the needs of different organisations?

Back 27

• Industry-specific process maps

• Package selection

• Configuration

• Customisation

• Exchange of data through SOA (service-oriented architecture)

Front 28

7.7 Customer Relationship Management

• Definition
• Benefits
• Range

Back 28

• Customer relationship management (CRM) software is“packaged software that supports an organization’s customer strategy and customer-focused business processes.”

• Benefits:

– Improved Customer-facing Processes

– Improved Management Decisions

– Improved Customer Service

– Increased Business Growth and Revenue

CRM systems provide ICT support for hundreds of routine customer-facing processes, including customer analytics.

Front 29

7.7 Customer Relationship Management

• Definition
• Benefits
• Range

Back 29

• Customer relationship management (CRM) software is“packaged software that supports an organization’scustomer strategy and customer-focused businessprocesses.”

• Benefits:

– Improved Customer-facing Processes

– Improved Management Decisions

– Improved Customer Service

– Increased Business Growth and Revenue

CRM systems provide ICT support forhundreds of routine customer-facingprocesses, including customer analytics.

Front 30

7.8 An example of CRM

Back 30

Front 31

8.1 Data Warehouse and Business Intelligence work together

Back 31

Front 32

8.2 Data Warehouse Case 2

Back 32

Volvo+Teradata

Volvo Car Corporation drives product design, quality, cost reduction, and customer satisfaction through data-driven decision-making.

Front 33

9.1 Conclusion about markets

Back 33

All else being equal, markets appear to provide the optimal means of allocation of resources.

Front 34

9.2 Comparing costs: firms vs. markets

Back 34

Front 35

9.3 Fraud & Human Error

Back 35

• Two major vulnerabilities of process create costs :

– Employee Fraud (agency cost)
– Human Error (internal coordination cost)

• The design of processes must attempt to protect against these vulnerabilities.
  

Front 36

9.4 Hidden process 1

Back 36

Front 37

9.4 Hidden process 2

Back 37

Front 38

9.5 Failure to segregate duties

Back 38

Front 39

9.6 How to segregate duties

Back 39

Front 40

10.1 Business Process Architecture

Back 40

• Connecting business strategy to business requirements
• Manage all the processes
• Find out the noteworthy one

Front 41

10.2 Administration Function vs. Core Strategy (Magpie)

Back 41

• Administration Function (Thermal, Digestion, Movement to keep healthy) - Internal
• Core Strategy (Get more worms and get faster than competitors to survive and strive) - CEO/consultants level, external

Front 42

A.1What is an organisational/business process

Back 42

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 organisation or its customers.

Front 43

A.2) Important characteristics of organisational process

Back 43

• Cycle - a complete sequence that takes one input and transforms it into an output
• Case - A single entity that gets transform by the process
• Cross-functional boundary - Where the process passes from one physical resource to another (e.g. departments)
  
• Trigger - The event that starts one cycle of a process
• Volume - The number of cases over a given time
• Rhythm - Patterns in the rise and fall of volume, or the changing nature of cases
• 
  

Front 44

B.1) Explain why ‘process thinking’ is a significant way to understand organisation design.

Back 44

• ... ties organisation design to the source of value, i.e. the external stakeholders, it allows us to see what is contributing to value and what is not.
  
• ... address coordination between different functions or groups in the organisation
• ... promotes efficiency in repeated patterns of activity that are critical to creating value.
  

Front 45

B.2) Galbraith’s five basic organisational structures

Back 45

Front 46

D.1) The purpose of an IGOE diagram

Back 46

• ... to show inputs and outputs from stakeholders and adjacent processes in the organisation
• ... to show the rules that govern the process, such as safetylaws, and enablers that are the resources and tools that perform the work of the process.
  

Front 47

D.1) The purpose of an IGOE diagram

Back 47

• ... to show inputs and outputs from stakeholders and adjacent processes in the organisation
• ... to show the rules that govern the process, such as safetylaws, and enablers that are the resources and tools that tperform the work of the process.
  

Front 48

D.2) How might people in organisations find IGOE diagrams useful?

Back 48

The bigger purpose of an IGOE diagram

• ... communicate a clear picture to non-IT people and especially senior managers, so that they might confirm or deny what the analysis shows.
• ... to reach consensus among managers in the organisation about the purpose of a process.
• ... to show the potential source of problems affecting the smooth running of the process - for example, inappropriate rules or insufficient enablers.
  

Front 49

E) For BPMN

Back 49

• NAME the process
• WORK flows - capture the verbs
• MESSAGES - different from data
• CONDITIONS - can be phrases instead of sentences
• Double CHECK

Front 50

F) For Redesign principles

Back 50

• Look through the similar principles, do not jump to a conclusion, search for the most suitable one

Front 51

G) For Physical DFD

Back 51

circle for internal, rectangle for externals, line for information, double line for data storage

• NAME the process
• NAMES of the actors - the most representative words
• EXTERNALS - distinguish them from internals
• Double CHECK