Business Engineering Step-by-step procedures to design Notations that describe the design Heuristic solutions Measurable goals

Business Engineering Organize business for competition Apply engineering principles High risk, high return Organize by processes by consolidating related tasks

What is an organization A structure for grouping people and other resources to achieve a common purpose.

What is a Function A field of endeavor involving work of a similar nature, employing particular skills and knowledge.

Need for Business Engineering Customer is in control Customer is more finicky Competition is global

Business Engineering Risks Change process risk –Soft factors motivation, commitment, leadership, etc. Technology risk –Hard factors concrete methods, common language, formal framework

Business process Internal set of activities to support customer Usually invisible, unnamed Exist naturally

Business Process Specific ordering of work activities across time and place with a beginning, an end, and clearly identified inputs and outputs: a structure of action (Davenport 1993) Outputs are products or services Interaction with external entity

Process by era Craftsworker –work organized around a multiskilled individual who completed the process Specialist –Division of labor and specialization Reengineering –work organized around workflow

Customer oriented process Focus is individual customer Concentrate on value addition to customer not other parts of business When is a customer satisfied? How do processes relate to products? How do processes relate to services?

Formal process framework Process description –specify every activity and deliverable Deliverables –business models Integral EIS –IT architecture & strategy Business model to IS model mapping

Business-development process Gather information Develop a model Communicate the model Implement model Build IS to support process

Business Process Design Frame the process –identify, set boundaries, goals Build As-Is model –model current workflow, assess Design To-Be model –model new workflow, assessment Develop use case scenarios –system requirements

Process Owner Executive Defines the process Sets and monitors goals

Process Leader Recruits staff from functional units Builds teams of process operators report to Process owner

Resource Owner Takes care of his/her personnel Coordinates resources from process leaders Develops resources Manages trainees & develops them Ensure appropriate compensation