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Business Process Analysis

Topic
1 Business Process Overview


Business Process – Definition
Types of business processes
 What is BPA?
 Need for BPA

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Business Process - Definition

DEFINITION
A ‘business process’ means a complete Input
coordinated thread of all the serial and
parallel activities needed to deliver value
to your customers.

BUSINESS PROCESS:

s ecr uos e R noi t a mr of nI


Has a goal Business
Has Inputs Process
Has Outputs
Uses Resources
Has a number of activities that are
performed in a specific order
Creates value at the end of the process Output

GOAL
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Business Process Characteristics
Real business processes are characteristically:
 Large and complex, involving the flow of materials, information and business
commitments
 Very dynamic, responding to demands from customers and to changing market
conditions
 Widely distributed and customized across boundaries within and between businesses,
often spanning multiple applications with very different technology platforms
 Long running – a single instance of a process such as order to cash may run for months
or even years
 Automated – at least in part. Routine activities should be performed by computers
where possible, for the sake of speed and reliability
 Dependent on the intelligence and judgment of humans. People perform tasks that
are too unstructured to delegate to a computer or that require personal interaction with
customers. People also make sense of the rich information flowing though your value
chain – solving problems before they irritate your customers and devising strategies to
take advantage of new markets
 Difficult to make visible. In many companies the processes are not conscious or
explicit, but undocumented and implicit, embedded in the history of the organization.

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Business Value from Business Processes

Source: CSC Corp


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Business & Technology Priorities

Gartner’s Survey of 1400 CIOs (2007)

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Topic
2 Business Process Analysis Overview


What is BPA?
Need for BPA
 Role of process model in BPA

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What is BPA?

BPA - An exercise of defining the Business Processes using tools, simulating and analyzing the
processes with a view to assess and improve their performance

 Visual representation provides better


understanding
Analyze
Model the the  Evaluate Process capabilities
As-Is activities Why Model  Detect problem area sources
Process in the
process  Deduce (work out) possible solutions

Business  Validate the appropriate solution

Process  Define performance measures


Process
Analysis  Implement the modified process
Analysis
 Simulation is used to explore design
Simulate
Optimize the what-if alternatives
processes scenarios
Why Simulate  It reveals bottlenecks (blocks) that are not
obvious during static modelling
 Pinpoints (locate) potential improvement
areas
 It helps in designing and fine-tuning the
process model before real-time process
deployment & execution
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Urge (advice) for Process Improvement – Key Driver for BPA

Business Objectives
 Increase in Revenue Process Analysis
 Increase in Market share
 Increase in Profit & profitability
 Increase in Shareholder wealth
 Increase in Customer satisfaction
 Increase in Employee satisfaction Calls for

Increase in Productivity Process Improvement


Pulling forces
Reduction in cost

Reduction in cycle times

Sits upon
oC
noittepm Reduction in
duplication / inefficiency
otsuC
rem
ed
sdnam Counter measures Mergers & acquisitions

Technology Reducing process


advancements complexity

Flexible processes
gnignahC Process knowledge
snoitalugeR Coordinated processes

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Reasons to use BPA

 Elimination of activities that do not add value


 Simplification of tasks and activities
 Integration of jobs or job groups
 Automation of task and activities (technology)
 Process Improvement

“Automating a mess yields an automated mess”


Hammer & Champy, Reengineering the Corporation, 1993

or better stated,

“if you automate an inefficient process, you simply become less efficient quicker”

“Analyze your business today and map the path to tomorrow”

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Advantage BPA

 Non- invasive process-based integration


across functions
 Improve Process efficiency
Analyze and Improved
Improve Process  Enhanced Process Documentation
Processes Control  Establish Process accountability
Business Agility  Develop and measure process KPI
& Flexibility  Improved Business Reporting
 Significantly improved quality, accuracy,
and consistency
Measurable  Process responsive to organizational
Process changes
Metrics
 Institutionalized Process review
mechanisms

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BPA Life Cycle
As-Is
Process
Modeling
Process Gap
Discovery Analysis

Process
Process Modeling To-Be
Standardization Business Process
Process Modeling
Analysis &
Optimization

Process Process
Optimization Simulation

Document/ Migrate
Analyze Processes forDetermine Process Redefine Business Assess efficiency of Test
new feasibility of new
Determine Cost-Benefit/
existing Business
bottlenecks and lacunae
Improvement potential
Processes processes processes ROI
Processes

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Thank you for your time!

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