Business Process

Five-Component Framework
Actors

Instructions

Bridge

Hardware Software Data Procedures People

Computer Side Human Side

1
Business Process – Learning Objectives
• Understand what is business process
• Understand how business process supports for different systems in an
organization
• Understand the value of an enterprise resource planning (ERP) system
• Understand how business process management work
• Understand how business process reengineering work
• Understand how business process combine with information
technology to bring competitive advantage for an organization

2
ERP Systems
• For many business organizations, ERP system is a good opportunity to
improve their business.
• For other business organizations, implementing an ERP brings them
questions:
• What are the differences between the current process they used and the
process embedded in the new ERP? Which one is better?
• If use the same ERP systems as our competitors use, is it much more difficult
to differentiate for our organization?

3
Business Process Management
• To improve a business processes, wee need to create structures to
manage it.
• Business process management (BPM) includes actions to plan,
document, implement, and distribute business processes in an
organization with the support of information technology.
• BPM is not only make a business more efficient but also provide a
competitive advantage.

4
Some benefits from BPM
• Empowering employees
• Built-in reporting
• Enforcing best practices
• Enforcing consistency

5
Business Process Re-engineering

6
Business Process Re-engineering
• Business process re-engineering (BPR) is action which re-designs the
current process to achieve valuable improvements in productivity and
quality.
• When organizations want to manage their processes to gain a
competitive advantage, they need to review and understand if the
current business process they are implementing is effective or not.
Then, they will re-design or re-engineer the current process.

7
Guidelines for business process re-
engineering
• Focus on outcomes, not tasks.
• Is it possible for one person to perform all steps in the process?
• Have ones who use the outcomes of the process to perform the process
• Can we empower a person who needs the outcome to perform the process?
• Collect information-processing work into the real work that creates the information.
• When a department creates information, should it be process just only in that department? or need the collaboration of
other departments?
• Handle geographically dispersed resources as if they were centralized.
• Do we need to separate support departments for each location?
• Organize parallel activities instead of waiting each group is done to integrate their results.
• Do department work parallel, share data and communicate with other during perform their tasks?
• Identify the decision points to build controlling tools for the process.
• Do we have built-in information technology controlling tools to support staffs to have decision-making authority?
• Capture information once, at the source.
• Duplicated entering information causes work delay and errors. Do we have allow us to store once and retrieve information
right away whenever we need?

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International Standards Organization (ISO)
Certification
• Many organizations now have shown that they are using best practices in
their business processes. To convince their customer, they try to get ISO
certification.
• The ISO certification determines a level of quality standards that
organizations can implement in an effective way.
• The ISO 9001 certification is focused on quality management.
• To receive ISO certification, an organization have to be audited and
checked if it meets specific criteria or not:
• Tell what you do (describe your business process).
• Show where it says that (reference your process documentation).
• Prove that the organization applied the process (exhibit evidence in tracking
documentation).