| What defines Business process management (BPM)? | According to Gartner:
BPM is a management discipline that treats business processes as assets to be valued, designed and exploited in their own right
BPM is a structured approach employing methods, policies, metrics, management practices and software tools to manage and continuously optimise an organisation's processes
BPM aims to improve agility and operational performance
BPM treats processes as organisational building blocks with as much (if not more) significance as functional areas and geographic territories |
| THE PROCESS MANAGEMENT CYCLE II | Creation of a formal process (design)
Ongoing management › Measurement of process performance › Sense customer needs and expectations › Benchmark against the competitors
Performance gaps › Faulty execution (occasional error pattern): hard to find the cause, but easy to fix › Faulty design (continuous error pattern): easy to find, but hard to fix
Develop plan and fix errors.
Re-iterate cycle |
| NA | NA |
| THE PROCESS MANAGEMENT CYCLE II | Creation of a formal process (design)
Ongoing management › Measurement of process performance › Sense customer needs and expectations › Benchmark against the competitors
Performance gaps › Faulty execution (occasional error pattern): hard to find the cause, but easy to fix › Faulty design (continuous error pattern): easy to find, but hard to fix
Develop plan and fix errors.
Re-iterate cycle |
| THE PROCESS MANAGEMENT CYCLE II | Creation of a formal process (design)
Ongoing management › Measurement of process performance › Sense customer needs and expectations › Benchmark against the competitors
Performance gaps › Faulty execution (occasional error pattern): hard to find the cause, but easy to fix › Faulty design (continuous error pattern): easy to find, but hard to fix
Develop plan and fix errors.
Re-iterate cycle |
| THE PROCESS MANAGEMENT CYCLE II | Creation of a formal process (design)
Ongoing management › Measurement of process performance › Sense customer needs and expectations › Benchmark against the competitors
Performance gaps › Faulty execution (occasional error pattern): hard to find the cause, but easy to fix › Faulty design (continuous error pattern): easy to find, but hard to fix
Develop plan and fix errors.
Re-iterate cycle |
| THE PROCESS MANAGEMENT CYCLE II | Creation of a formal process (design)
Ongoing management › Measurement of process performance › Sense customer needs and expectations › Benchmark against the competitors
Performance gaps › Faulty execution (occasional error pattern): hard to find the cause, but easy to fix › Faulty design (continuous error pattern): easy to find, but hard to fix
Develop plan and fix errors.
Re-iterate cycle |
| THE PROCESS MANAGEMENT CYCLE II | Creation of a formal process (design)
Ongoing management › Measurement of process performance › Sense customer needs and expectations › Benchmark against the competitors
Performance gaps › Faulty execution (occasional error pattern): hard to find the cause, but easy to fix › Faulty design (continuous error pattern): easy to find, but hard to fix
Develop plan and fix errors.
Re-iterate cycle |
| What defines Business process management (BPM)? | According to Gartner:
BPM is a management discipline that treats business processes as assets to be valued, designed and exploited in their own right
BPM is a structured approach employing methods, policies, metrics, management practices and software tools to manage and continuously optimise an organisation's processes
BPM aims to improve agility and operational performance
BPM treats processes as organisational building blocks with as much (if not more) significance as functional areas and geographic territories |
| What is a process? | A process is a series of steps or tasks required to achieve a specific goal
All steps in the process needs to be completed to create value.
A process can be broken down into subprocesses, and are cross functional. |
| What is the process model? | Explains what a process ‘contains/consist of’
A description of status quo (As-Is)
Multiple processes/sub-processes can be included = multiple levels of processes |
| What defines a functional silo perspective? | A typical organisation structure is arranged by function
Self-contained functional units:
› Optimize expertise knowhow and learning
› Avoid redundancy within functional area
› Are easier to benchmark with outside organisations
› Make it easier to understand the role of each function |
| What are some disadvantages of the function silo perspective? | The functional perspective can introduce challenges when handing over tasks between departments
Communication gaps between departments → duplication of work → or forgotten work
Loss of information in business processes → execution errors The functional perspective invites to sub-optimization
Each department tends to lose sight of the organizations overall objective and operate in a way that maximizes their local goals
Losing the big picture means losing business effectiveness
Customers and Stakeholders are not well served |
| Process perspective to organisations | Allows focus on the work that ensures optimal value creation
› Avoid or reduce duplicate work, facilitate cross-functional communication, optimize business processes, and best serve the Customers and Stakeholders |
| What is a well defined process? | A well-defined process has:
1. A start and an end
2. Input and output
3. A set of activities (or sub-processes) that transform the input into output
4. A set of metrics for measuring effectiveness and efficiency
5. A set of associated roles and responsibilities |
| Effectiveness vs Efficiency? | Effectiveness: Doing the right thing.
The relationship between output and goal
The extent to which output of the process are obtained as expected.
Quality measure.
Efficiency: Doing things right.
The relationship between output and input
The average time it takes for the process to be completed.
Productivity measure |
| Functional silo vs. business process perspective | Look at the picture |
| How do we conduct process improvements? | Redesign of business processes with the aim of improving how work is done
Four key areas for process improvement:
Effectiveness – does the process output contribute to achieve the objective?
Efficiency – how fast/cheap/resource minimizing can the process be executed?
Internal control – e.g., possibility to change data by during execution of the process? (Accident/Illegal)
Ex: if stock status is kep manually, there is a greater risk of typing errors and thus lack of internal control.
Compliance – does the process comply with organizational rules and government regulations?
Ex: GDPR legislations and certifications. KYC |
| Complexity of a process | Picture |
| What defines Business process management (BPM)? | According to Gartner:
BPM is a management discipline that treats business processes as assets to be valued, designed and exploited in their own right
BPM is a structured approach employing methods, policies, metrics, management practices and software tools to manage and continuously optimise an organisation's processes
BPM aims to improve agility and operational performance
BPM treats processes as organisational building blocks with as much (if not more) significance as functional areas and geographic territories |
| What are Radical vs Incremental Changes? | Incremental - small changes over time
- (business process improvements) (BPI)
Radical - Few large changes - (Business Process Reengineering)(BPR) |
| What is Business Process Re-engineering (BPR) | Fundamental change of business processe
Used when the current process objective is to be changed e.g., when implementing a new strategy or a new IS
Appropriate for addressing cross-functional processes
The goal is to make a rapid breakthrough impact on key metrics
Radical change typically face greater internal resistance compared with incremental change
Requires careful planning
Used only when major change is needed in a short time. |
| Business Process Improvement (BPI) | Business processes are improved through small incremental changes
› Choose a business process to improve
› Choose a metric by which to measure the business process
› Get input from the employees on how to improve the process based on the metric
Employees often react favorably to incremental change
› Gain control and ownership of improvements
› Render change less threatening |
| Business process management (BPM) | Both Business process Re-engineering and Improvement
“an integrated system for managing business performance by managing end-to-end business processes” |
| The business process management cycle 1 | Is focus on the customers. And target performance. We continue to go around the circle until we meet the performance target(s) |
| THE PROCESS MANAGEMENT CYCLE II | Creation of a formal process (design)
Ongoing management › Measurement of process performance › Sense customer needs and expectations › Benchmark against the competitors
Performance gaps › Faulty execution (occasional error pattern): hard to find the cause, but easy to fix › Faulty design (continuous error pattern): easy to find, but hard to fix
Develop plan and fix errors.
Re-iterate cycle |
