Recording Date: May 23, 2014

Intermediate (IPC) Course

Paper 7A: Information Technology

Chapter 1 : Business Process Management and IT –

Part 1

CA. Veena Hingarh

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Recording Date: May 23, 2014
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Learning Objectives

Understand concepts
To understand
of Business Process To understand the
different approaches
Management and impact of information
used in mapping
Business Process technology on BPM
business systems
Reengineering

To understand benefits
Payback achieved by
and risks of
implementing BPM
implementation of
packages
BPM and BPR projects

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Task Statements

To determine whether the goals of BPM are achieved

effectively and efficiently

To determine whether the implementation of BPM is done

in a structured manner

To determine whether the business strategy and

operational goals have been translated into organisational,
operational and implemented business process

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Task Statements

To evaluate whether
To determine
BPR have succeeded to
appropriateness of the
achieve improvements
approach adopted in
in profit, customer
mapping systems
satisfaction, quality, etc.

To evaluate payback
To evaluate business
achieved by
risks involved in
implementing and
implementation of BPM
integrated BPM system

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Knowledge Statements

Key concepts, terms methodologies and techniques

Practices that are making “process thinking” a new approach

Key capabilities of BPM systems

Classification of business strategy, operational goals, organisational

business processes, operational business processes and implemented
business processes

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Knowledge Statements

Application of BPM solution to accounts

Different approaches to Mapping systems

BPR – terms, methodologies, and techniques

Impact of IT on BPM

Payback achieved through implementing integrated BPM systems

Stumbling blocks faced while implementing BPM systems

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Definition

"Business Process Management (BPM) is a disciplined

approach to identify, design, execute, document, monitor,
control, and measure both automated and non-automated
business processes to achieve consistent, targeted results
consistent with an organization's strategic goals. BPM
involves the deliberate, collaborative and increasingly
technology-aided definition, improvement, innovation, and
management of end-to-end business processes that drive
business results, create value, and enable an organization to
meet its business objectives with more agility.“
• Definition by Association of Business Process Management Professionals
(ABPMP)

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Business Process Management

The objective of BPM is to evaluate efficacy and usefulness of

business processes for reducing costs and ensuring value
creation

BPM is a way of looking at and then controlling the processes

that are present in an organization.

It is an effective methodology to use in times of crisis to make

certain that the processes are efficient and effective, as this
will result in a better and more cost efficient organization

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Business Process Management

Aligns processes with enterprise goals

Finds ways to improve processes

Establishes measurements that can be used to track and monitor

performance for continuous improvement and optimisation

Helps in streamlining complex processes

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BPM organisational concepts
Transformational Process supporting
concepts technologies

Business Process Workflow

reengineering management

Six Sigma Process analysis

Total Quality
Automation suites
Management

Service enabled
systems

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BPM organisational concepts

Philosophy Methodology Technology

• Corporate Culture • Six Sigma • BPMS
• Management • Flowcharts • Work Flow
Approach • Lean Office • Process Mapping
• Value Stream Mapping • Process Automation
• TQM

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Six Sigma

Seeks to improve the

quality of the process
A set of strategies, outputs by identifying
techniques and tools and removing the
for process causes of defects and
improvement minimizing variability
in manufacturing and
business processes

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Total Quality Management (TQM)

An organisation wide effort to install and make permanent

a climate in which it continuously improves its ability to
deliver high quality products and services to customers

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Process
Sequence of events that uses inputs and produces outputs

Taking a Issuing a
Processing the
customer customer
order
order` invoice

A coordinated and standardized flow of activities performed by people or

machines, which can traverse functional or departmental boundaries to achieve a
business objective and create value for internal and external customers

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Functional v/s. process organisation

Source:“Business Process Management Systems, Strategy and Implementation“

by James. F Chang, Auerbach Publications

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Process Management

Steps to manage a process

• Define the steps of the process
• Map tasks to roles involves in the process
• Establish performance measures
• Create an organisational standardised set-up
• Assign enterprise process owners and align
employee performance reviews and compensation
to the value creation of the process.

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Business Process Management
The achievement of an organisation’s objectives through the
improvement, management and control of essential business processes

Achievement Organization Objectives

Improvement Management Control

Essential Business Processes

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BPM – Principles
To improve products and services through structured approach to
performance improvement

First Principle – • Processes are assets

Second
• Consistent Value to customers
Principle

• Continuous improvement of
Third Principle processes

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BPM Practices

Information Strive for process

Appoint process
technology is the oriented organisation
owners
essential enabler structure

Execution of BPM
Senior management
process improvements
needs to commit and
should take a bottom-
drive BPM
up approach

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BPM Practices

Information technology Work collaboratively

Continuously train
monitor, control, with business partners
workforce and improve
analyze and improve on cross-organizational
business processes
processes business processes

Utilize both incremental

Align employee
or more radical
bonuses and rewards to
methodologies to
business process
implement process
performance
improvement

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Business Processes

A prescribed sequence of work steps performed in order

to produce a desired result

Well-defined beginning and end and completed in a

short period

Examples to key business processes include accounting

and sales and purchase.

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 Question Time – Part 1
Business Process Management and IT

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Question 1
It is a set of strategies, techniques and tools for process improvement

A) Six Sigma

B) Total Quality Management

C) Flow Charts

D) Decision Tree

Answer: A

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Question 2
Which of the following is not a tenet of Business Process Management

A) Aligns processes with enterprise goals

B) Finds ways to improve processes

C) Puts the right person to the right job

D) Helps in streamlining complex processes

Answer: C

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Question 3
Which of the following steps are not required to manage a process?

B) Establishing C)
A) Defining it performance Organizational
measures setup

D)
Answer: D
Computerization

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Question 4
Process Supporting technologies do not include:

A) Workflow management

B) Automation Suites

C) Process Analysis

D) Six Sigma

Answer: D

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Question 5
Principles of BPM do not include:

A) Processes are assets that create value to customer

B) Business processes are organizational assets that are central to

creating value for customers

C) Senior management needs to commit and drive BPM

D) Business processes should be continuously improved

Answer: C

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Question 6
Practices in BPM do not include:

B) Utilizing
A) Replacement of methodologies for C) Appointment of
old systems process process owners
improvement

D) Training of
Answer: A
Work Force

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 Thank you

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