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MIS524 Business Processes. What is a process?. A sequence of activities that achieves a business result that (is): produces a specified output for a customer or market has a beginning and end not based on existing organizational structures may be unnamed and unrecognized.

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what is a process
What is a process?
  • A sequence of activities that achieves a business result that (is):
    • produces a specified output for a customer or market
    • has a beginning and end
    • not based on existing organizational structures
    • may be unnamed and unrecognized
process characteristics
Process Characteristics
  • Dynamic vs. Slice in time
  • Customer viewpoint
  • De-emphasis of functional silos
  • Implications of process improvement
reengineering projects
Reengineering Projects
  • Reengineering projects were very frequent throughout 1990s
  • Processes reengineered: customer service (25%), order fulfillment (16%), manufacturing (15%), customer acquisition (11%)
  • Few cited research or product development, none cited management processes
  • Today reengineering may be carried via software package implementation, e.g. SAP
formula for process effectiveness
Formula for Process Effectiveness

Value Time

Elapsed Time

The objective is to get this close to 1

bpr life cycles
BPR Life Cycles
  • Mirror software development life cycles
  • Phases
    • Process identification
    • Process analysis
    • Process redesign
    • New process implementation
identifying processes for innovation
Identifying Processes for Innovation
  • First step in BPR Life Cycles
  • Selection from major organizational processes
  • Trade off between project magnitude and political feasibility
process types
Process Types
  • Core
  • Network
  • Support
  • Management
process selection criteria
Process Selection Criteria
  • Strategic Importance
  • Dysfunction
  • Feasibility
process types a different view keen 1997
Process Types: a different view (Keen 1997)
  • Identity
  • Priority
  • Background
  • Mandated
  • Folklore
process selection keen
Process Selection (Keen)

Yes

Does process X define your firm for customers, employees, or investors?

Identity

No

Is excelling at process X critically important to business performance?

Priority

Yes

No

Does X provide necessary support to other processes?

Background

No

Yes

Is X carried out because it is legally required?

Mandated

Yes

No

Folklore

determining process worth
Determining Process Worth

Does Process X tie up substantial capital?

No

Yes

Value Neutral

Does it generate more value than the cost of the capital it uses?

No

Yes

Liability

Asset

role of it
Role of IT
  • Databases
  • Telecommunication networks
  • Workflow software
  • Imaging
impact of it on process innovation examples
Impact of IT on Process Innovation - Examples
  • Automation – eliminating human labor from process
  • Sequence – changing process sequence or enabling parallelism
  • Information and analysis – capturing improved process information for analysis and decision making
  • Tracking – monitoring process status and objects for improved control
profiling successful reengineering projects teng jeong grover 1998
Profiling Successful Reengineering Projects (Teng, Jeong, Grover 1998)
  • Study to understand BPR success
    • 100 participating firms - manufacturing 29%, banking/finance 13%, insurance 10%
    • Main processes, customer service, product development, order management
  • Research questions
    • Do reengineering projects aimed at more radical changeresult in higher implementation success?
    • How are the allocation of resources and energy to stages of a project related to implementation success?
measures of success
Measures of Success
  • Perceived success of the project
  • Goal fulfillment
    • Goals - cost reduction, cycle-time reduction, customer satisfaction, worker productivity, defects reduction
    • Measure of the ratio actual/goal
reengineering projects change
Reengineering Projects Change
  • Work flow patterns
  • Roles and responsibilities
  • Performance measures and incentives
  • Organizational structure
  • IT applications
  • Shared values and culture
  • Skill requirements
results
Results
  • Significant correlation between extent of change to work flow, roles and responsibilities, performance measures, and IT applications with perceived success
  • Insufficient effort paid to later stages
  • Additional effort on later stages will have greater impact on project success