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This is a short introduction to BPM (Business Process Management) for a project we had to do for a course in Operations and Information Management as part of an MBA at the University of Stellenbosch Business School. References: Garimella K. & Lees M. & Williams B. 2008. BPM Basics For Dummies. Indianapolis: Wiley. Jeston, J. & Nelis, J. 2006. Business Process Management - Practical Guidelines to Successful Implementations. Oxford: Butterworth-Heinemann.
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B P Musiness
rocessanagement
Group 2
The next hype or real buiness saviour?
Introduction
• There is a big hype around BPM at the moment, attracting a lot of investments.
• Is BPM the key solution?
What is a Business Process? (1)
InputBusinessProcessSteps
Output
What is a Business Process? (2)
?
Input
Process
Output
Definition of BPM
BPM is a process-centric approach (cross-functional) for improving
business performance that combines information technology with
governance methodologies.
Key Enablers of BPM
Technology
Processes
People
Business Value of BPM
Transparency & Traceability
Responsiveness
Flexibility
Continuous Optimization
Effectiveness
Profit
Customer Satisfaction
When to consider BPM?
•Need for high growth
•M&A – retire legacy system
Organisational
•Need to provide support for control over operations
•Need to create high performance culture
Management
•Need for employee empowerment
•High turnover due to inadequate support infrastructure
Employees
•Low customer satisfaction
•Long lead times to meet orders request
Customers/ Suppliers/ Partners
•When there is a need to merge similar processes
•Unacceptably long time to get products to the markets
Product & Service
•Lack of process standardization
•Need for enterprise wide visibility of the processes
Processes
•Need to introduce new systems such as ERP
•Phasing out of older application systems
Information Technology
When not to consider BPM?
• To reduce head count• Everyone is implementing it• Only because the current system
is old• Only because the boss wants it• To meet regulatory requirments
Risks and Common Mistakes
• Insufficient clarity of processes and roles– Automation of bad processes
• Neglecting the end user• Silo thinking• No training
Does OIM = BPM?
Input Output
Process
Hype?
• A lot of confusion has been created in the market by the innumerous software vendors with no clear standards. They have created high expectations of BPM that can‘t be completely fullfilled by all software vendors.
• Companies need to carefully assess their needs and select BPM technology architecture accordingly.
Members – Group 2
• Abel• Christina• Funmi• Lukas• Magiel• Stephen