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Introduction to Business Process Management, fig. 1.1, fig. 1.2 - Coggle…
Introduction to Business Process Management
Definitions
Business process:
A collection of inter-related events, activities, and decision points that involve a number of actors and objects, which collectively lead to an outcome that is of value to at least one customer
Business process management
A body of methods, techniques, and tools to identify, discover, analyze, redesign, execute, and monitor business processes in order to optimize their performance.
Art & science of overseeing how work is performed in an organization to ensure consistent outcomes and to take advantage of improvement opportunities
:red_cross: not about improving the way individual activities are performed
:check: about managing chains of events, activities, & decisions that add value to org & cust.
Processes Everywhere
Order to cash
performed by a vendor
starts when a cust. submits an orfer to purchase
ends when product/service has been delivered & payment has been made
activities: purchase order verification, shipment, delivery, invoicing, payment receipt, acknowledgement
Quote to order
precedes order to cash
starts when supplier receives request for quote (RFQ) from cust.
ends when cust. places a purchase order based on received quote
RFQ
aka invitation for bid (IFB): when a company solicits select suppliers & contractors to submit price quotes and bids for the chance to fulfill certain tasks or projects
quote to order + order to cash = quote to cash
Procure to pay
starts when it's determined that product/service needs to be purchased
ends when product/serviced has been delivered & paid for
activities: obtaining quotes, approving the purchase, selecting a supplier, issuing a purchase order, receiving the goods (or consuming the service), and paying the invoice
counterpart of quote to cash: for every procure-to-pay process there is a corresponding quote-tocash
process on the supplier’s side
Issue to resolution
starts when cust. raises a problem/issue, e.g. complaint of product defect
continues until cust, supplier, or both agree that issue has been resolved
similar to: claim to resolution in insurance companies
Application to approval
starts when someone applies for a benefit/privilege
ends when benefit/privilege is granted/denied
common in gov't agencies, e.g. building permits, business licenses, admission into uni, leave requests
Ingredients of a Business Process
Events:
Things that happen atomically (no duration), & may trigger execution of a series of activities
Activity:
Both fine-grained & coarse-grained units of work; More than a single unit of work
Task:
A simple activity, can be seen as a single unit of work; Fine-grained unit of work performed by a single process participant
Decision points:
Points in time when a decision is made that affects the way the process is executed
Actors:
Incl. human, org, software systems
Internal (process participants)
External
Physical objects:
Equipment, materials, products, paper docs
Informational objects:
Electronic docs, electronic records
Outcomes
Ideally should deliver value to the actors involved in the process (
positive outcome
)
If not (
negative outcome
)
Customer:
One who consumes the output
Can be internal customer
Sometimes, there are multiple customers in a process
Origins and History of BPM
The Functional Organization
The Birth of Process Thinking
The Rise and Fall of BPR
The BPM Lifecycle
fig. 1.1
fig. 1.2