INFO HW
CHAPTER TWO
DECISIONS AND PROCESSES
VALUE DRIVEN BUSINESS
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SECTION 2.2
BUSINESS PROCESSES
© The McGraw-Hill Companies, All Rights Reserved
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MANAGING BUSINESS PROCESSES
Businesses gain a competitive edge when they minimize costs and streamline business processes
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MANAGING BUSINESS PROCESSES
Customer facing process - Results in a product or service that is received by an organization’s external customer
Business facing process - Invisible to the external customer but essential to the effective management of the business
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BUSINESS PROCESS MODELING
Business process modeling (or mapping) - The activity of creating a detailed flow chart or process map of a work process showing its inputs, tasks, and activities, in a structured sequence
Business process model - A graphic description of a process, showing the sequence of process tasks, which is developed for a specific
As-Is process model
To-Be process model
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BUSINESS PROCESS MODELING
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BUSINESS PROCESS MODELING
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BUSINESS PROCESS MODELING
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BUSINESS PROCESS MODELING
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BUSINESS PROCESS MODELING
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USING MIS TO IMPROVE BUSINESS PROCESSES
Types of change an organization can achieve, along with the magnitudes of change and the potential business benefit
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OPERATIONAL BUSINESS PROCESSES AUTOMATION
Customers are demanding better products and services
Business process improvement – Attempts to understand and measure the current process and make performance improvements accordingly
Automation – The process of computerizing manual tasks
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MANAGERIAL BUSINESS PROCESSES STREAMLINING
Streamlining – Improves business process efficiencies by simplifying or eliminating unnecessary steps
Bottleneck – Occur when resources reach full capacity and cannot handle any additional demands
Redundancy – Occurs when a task or activity is unnecessarily repeated
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STRATEGIC BUSINESS PROCESSES REENGINEERING
A company can improve the way it travels the road by moving from foot to horse and then horse to car
BPR looks at taking a different path, such as an airplane which ignore the road completely
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