Class 3

Business Process Management – Part 1

COMM 226 – Business Technology Management

 Class Overview

1 Business Process

2 Information Systems

3 Business Processes & Information Systems

4 Structured and Dynamic Processes

5 What is Information?

6 Activities of BPM

7 Class Discussion

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Learning Objectives

Q2-1 What is a business process?

Q2-2 What is an information system?
Q2-3 How do business processes and information systems relate?
Q2-4 How do structured and dynamic processes vary?
Q2-5 What is information?
Q2-6 What are necessary data characteristics?
Q2-7 How can I use these topics at work?
What is a Business Process? (1 of 6)

• Sequence of activities for accomplishing a function

• Activities are tasks within a business process
What is a Business Process? (2 of 6)

• Documenting business processes

– Business Process Model and Notation (BPMN)
▪ Global standard for documentation
– Roles and Actors
– Swimlanes

• Sequence of activities to accomplish a function

– Standardized using BPMN
 What is a Business Process? (3 of 6)

 Documenting business processes using BPMN

Resources

Pool

Lane (within a pool)

Lane (within a pool)

BPMN Quick Guide:

https://www.bpmnquickguide.com/view-bpmn-quick-guide/
What is a Business Process? (4 of 6)

 Documenting business processes using BPMN

Figure 2-1 Fast Food Restaurant Drive-Thru BPMN Diagram

What is a Business Process? (5 of 6)

• Documenting business processes using BPMN

• How much detail is enough?
• Avoid ambiguity
What is a Business Process? (6 of 6)

• Why do organizations standardize business processes?

– Enforce policies
– Produce consistent results
– Allow for scalability
– Reduce risk
 Class Overview

1 Business Process

2 Information Systems

3 Business Processes & Information Systems

4 Structured and Dynamic Processes

5 What is Information?

6 Activities of BPM

7 Class Discussion

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What is an Information System? (1 of 2)

• System
• Group of components interacting to achieve some purpose
• Information system (IS)
• Group of components to produce information
• Five components
• Computer hardware, software, data, procedures, and
people

• Figure 2-4 Five Components of an Information System

What is an Information System? (2 of 2)

• How can I use the Five-Component Model?

• Recognize that you are the key
• Make each component work
• Estimate the scope of a new IS
• Prioritize components by difficulty and disruption
• Appreciate that information systems are more than
technology
 Class Overview

1 Business Process

2 Information Systems

3 Business Processes & Information Systems

4 Structured and Dynamic Processes

5 What is Information?

6 Activities of BPM

7 Class Discussion

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 How Do Business Processes and Information
Systems Relate? (1 of 3)

Figure 2-1 Fast Food Restaurant Drive-Thru BPMN Diagram

 How Do Business Processes and Information
Systems Relate? (2 of 3)

An information system can support several processes

Figure 2-6 Processes and the Two IS at the Fast-Food Restaurant

How Do Business Processes and Information Systems
Relate? (3 of 3)

• The role of procedures

• Set of instructions for a person to follow when operating an
IS
• Different procedure for different processes
 Class Overview

1 Business Process

2 Information Systems

3 Business Processes & Information Systems

4 Structured and Dynamic Processes

5 What is Information?

6 Activities of BPM

7 Class Discussion

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 How Do Structured and Dynamic Processes Vary?
(1 of 2)
 Characteristics of structured processes
 Characteristics of dynamic processes

Figure 2-8 Differences Between Structured and Dynamic Processes

Characteristics of Processes
Structured Processes
Formally defined process, fixed flow
Process change slow and difficult
Control is critical
Innovation not expected
Efficiency and effectiveness important
IS procedures are prescriptive
Dynamic Processes
Informal process
Process change rapid and expected
Adaptation is critical
Innovation required
Effectiveness typically more important
IS procedures are supportive
 How Do Structured and Dynamic Processes Vary?
(2 of 2)

Figure 2-8 [continued]

Chapters in This Textbook

Structured Processes Dynamic Processes

Chapter 9: Procurement Chapter 11: Collaboration and Social
Media
Chapter 10: Sales Chapter 12: Analytics

Examples at the Fast-Food Restaurant

Structured Processes Dynamic Processes
Scheduling Landscaping
Drive Thru Community Outreach
Opening & Closing Hiring
 Class Overview

1 Business Process

2 Information Systems

3 Business Processes & Information Systems

4 Structured and Dynamic Processes

5 What is Information?

6 Activities of BPM

7 Class Discussion

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What is Information? (1 of 3)

• Information
• Knowledge derived from data
• Data presented in a meaningful context
• Processed data
• A difference that makes a difference
What is Information? (2 of 3)

• Common elements in the definitions

• Information:
• Is not data, it is more
• Varies from person to person
• Is located inside of you
What is Information? (3 of 3)

• How can I use these ideas about information?

• Assume it is hard to communicate
• Recognize that all new information systems are frustrating
at first
• Understand how to be effective on a team
• Stay curious
• Realize that people share data but believe it is information
• Take responsibility for your own learning
What Are Necessary Data Characteristics?

• Accurate
• Timely
• Relevant
 To context
 To subject
• Just sufficient
• Worth its cost
How Can I Use These Topics at Work? (1 of 2)

Figure 2-14 Are You a Jake or a Jenn?

 Abstract Reasoning
 Jenn: Could not model lifecycle
 Jake: Change of address means two different things
 You: Can I apply models, think with them, see new things with them?
 Systems Thinking
 Jenn: Could not diagram how one activity fed into the next activity
 Jake: Make one process consistent to avoid affecting other processes
 You: Can you see how processes fit together?
How Can I Use These Topics at Work? (2 of 2)

Figure 2-14 [continued]

• Collaboration
 Jenn: Could not contact lead salesperson
 Jake: Shares mistakes with others and is open to feedback
 You: When I share my ideas do I encourage feedback?
• Experimentation
 Jenn: Expected to be told what to do
 Jake: Suggested trying a fix
 You: Do you propose and try out new solutions?
 Break

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 Class Overview

1 Business Process

2 Information Systems

3 Business Processes & Information Systems

4 Structured and Dynamic Processes

5 What is Information?

6 Activities of BPM

7 Class Discussion

28
 What are the Activities of Business Process Management?

• Four basic activities in BPM:

A structured, cyclical process for systematically monitoring,
modeling, creating, and implementing business processes.

Once a process change has been implemented, it is monitored. If it

needs improvement, it is remodeled, and components are created
and implemented. Many large firms label this ongoing process
improvement cycle a continuous improvement process (CIP).
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 What are the Activities of Business Process Management?

• The BPM Monitor Activity:

Organizations are dynamic, and processes within organizations

need to be adapted.
The need for process change arises from two sources:

 The process itself—the process does not consistently meet its

objectives
 The environment of the process—a change in technology or
business

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 What are the Activities of Business Process Management?
• The BPM Model Processes Activity:

 At some point, either because a process is not meeting its performance

objectives or because of changes in the environment, processes will need to
be changed.

 During the modeling activity, it is often necessary to document how the

process currently works. To accomplish this, business users who have
expertise and are involved in the process (this could be you!) adjust and
evaluate those models.

 Process analyst teams build an “as-is model” that documents the current
situation and then make adjustments to that model to solve process problems.

 A common way to construct an as-is model is with a BPMN document.

During the modeling activity, the analyst team also assesses objectives and
goals for the new process.

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 What are the Activities of Business Process Management?
• The BPM Create Components Activity:

 The team designs changes to the business process at a depth

sufficient for implementation.

 One component of the process may be an information system; if

so, the systems development life cycle may be used (More on
Week 10).

 In addition to IS components, the analyst team develops

procedures and training for activities that do not involve
information systems.

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 What are the Activities of Business Process Management?
• The BPM Implement Process Activity:

 During this activity, process actors are trained on the activities

they will perform and the IS procedures they will use.

 Activities to perform here are similar to implementation

activities for the systems development life cycle (SDLC).

 For processes, however, note that if the new version of the

business process involves considerable change for employees,
there will likely be resistance to the new system. It is important
to remember the need to address resistance to change (More on
Weeks 4 and 9).

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 Class Overview

1 Business Process

2 Information Systems

3 Business Processes & Information Systems

4 Structured and Dynamic Processes

5 What is Information?

6 Activities of BPM

7 Class Discussion

34
 Class Discussion

Let’s read Case Study 2 from the McKinney and Kroenke (2021)
textbook on “Delivering on Processes – Amazon” (Chapter 2, Page
46) and discuss the following questions at the end of the case with
your partner (15-20 min). Then share your findings with the class.

Discussion Questions:
 2-8
 2-9
 2-10

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 Next Class

Topic: Business Process Management – Part 2

Preparation:
 Chapter 7: Using IS to Improve Processes (Pearson)

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 Copyright

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