1. BUSINESS PLUG-IN B2
Business Process

2. LEARNING OUTCOMES
Describe business processes and their importance to an organization
Differentiate between customer facing processes and business facing processes
Compare the continuous process improvement model and business process reengineering

3. LEARNING OUTCOMES
Describe the importance of business process modeling (or mapping) and business process models
Explain business process management along with the reason for its importance to an organization

4. INTRODUCTION
Business process improvement will, at a minimum, double the gains of a project by streamlining outdated practices, enhancing efficiency, promoting compliance and standardization, and making an organization more agile
Business process improvement involves three key steps
Measure what matters to most customers
Monitor the performance of key business processes
Assign accountability for process improvement

5. Examining Business Processes
The process steps are the activities the customer and store personnel do to complete the transaction
Business process - a standardized set of activities that accomplish a specific task, such as processing a customer’s order
Business processes transform a set of inputs into a set of outputs (goods or services) for another person or process by using people and tools

6. Examining Business Processes
Business process characteristics:
The processes have internal and external users
A process is cross-departmental
The processes occur across organizations
The processes are based on how work is done in the organization
Every process should be documented and fully understood by everyone participating in the process
Processes should be modeled to promote complete understanding

7. Examining Business Processes
Customer facing process - results in a product or service that is received by an organization’s external customer
Business facing process - invisible to the external customer but essential to the effective management of the business

8. Examining Business Processes

9. Business Process Improvement
Companies are forced to improve their business processes because customers are demanding better products and services

10. Business Process Improvement
Continuous process improvement model - attempts to understand and measure the current process, and make performance improvements accordingly

11. BUSINESS PROCESS REENGINEERING
Business process reengineering (BPR) - analysis and redesign of workflow within and between enterprises

12. BUSINESS PROCESS REENGINEERING
Managerial approach to reengineering projects
Define the scope
Analyze
Evaluate
Plan
Approve
Execute

13. Business Process Design
Business process modeling (or mapping) - the activity of creating a detailed flow chart or process map of a work process showing its inputs, tasks, and activities, in a structured sequence
Business process model - a graphic description of a process, showing the sequence of process tasks, which is developed for a specific
As-Is process model
To-Be process model

14. Business Process Design

15. Business Process Design

16. Business Process Design

17. Business Process Design

18. SELECTING A PROCESS TO REENGINEER
Criteria to determine the importance of the process:
Is the process broken?
Is it feasible that reengineering of this process will succeed?
Does it have a high impact on the agency’s strategic direction?
Does it significantly impact customer satisfaction?
Is it antiquated?
Does it fall far below best-in-class?
Is it crucial for productivity improvement?
Will savings from automation be clearly visible?
Is the return on investment from implementation high and preferably immediate?

19. Business Process Management
Business process management (BPM) - integrates all of an organization’s business process to make individual processes more efficient

20. Business Process Management
BPM allows business process to be executed more efficiently and measures performance and identifies opportunities for improvement, BPM benefits include:
Update processes in real-time
Reduce overhead expenses
Automate key decisions
Reduce process maintenance cost
Reduce operating cost
Improve productivity
Improve process cycle time
Improve forecasting
Improve customer service

21. BPM TOOLS
Business process management tool - an application that designs business process models and simulates, optimizes, monitors, and maintains various processes

22. CRITICAL SUCCESS FACTORS
Understand reengineering
Build a business and political case
Adopt a process management approach
Measure and track performance continuously
Practice change management and provide central support
Manage reengineering projects for results

23. Business Process Modeling Examples

24. Business Process Modeling Examples

25. Business Process Modeling Examples

26. Business Process Modeling Examples

27. Business Process Modeling Examples

28. Business Process Modeling Examples

29. Business Process Modeling Examples

30. Closing Case One Streamlining Processes at Adidas
Over the past 15 years, Adidas-Salomon transformed itself from a manufacturing organization to a global sports brand manager with 14,000 employees located around the world
Previously, Adidas-Salomon operated in a decentralized manner, and each operating unit chose software that suited its geography and internal preferences
The company believed that implementing and creating common processes, especially in its sales organization, would help it establish global direction, streamline and automate its business
Operations thereby improving flexibility, scalability, and visibility across the extended enterprise

31. CLOSING CASE ONE QUESTIONS
Describe business processes and their importance for Adidas-Salomon
Identify a few examples of customer facing processes and business facing processes at Adidas-Salomon
How could Adidas-Salomon use continuous process improvement and business process reengineering to remain competitive?
How can a business process management tool help Adidas-Salomon remain at the top of its game?

32. CLOSING CASE TWO 3Com Optimizes Product Promotion Processes
To gain better control over the creation and execution of its product promotions, 3Com uses Savvion’s business process automation and management platform to build a Web-based system that streamlines the approval and management workflow of product promotions offered to distributors and resellers

33. CLOSING CASE TWO QUESTIONS
Describe business processes and their importance to 3Com’s business model
How can 3Com use continuous process improvement to become more efficient?
How can 3Com use business process reengineering to become more efficient?
Describe the importance of business process modeling (or mapping) and business process models for 3Com
How did 3Com use business process management software to revamp its business?