BPM1Essentials.ppt

1、Topic 1. Business process management (BPM) essentials,Functional management approach overview. Value chain concept. Business process essentials. Business process management (BPM) basics.,Functional management approach overview,Functional management approach is focused on separate functions performan

2、ce Advantages: High labor productivity High professional skills level Functions doubling diminishing Good opportunities for work automation,Functional management approach overview,Functional organization structure,Functional management approach overview,Costs,Specialization level,Functional manageme

3、nt approach overview,Under the functional-oriented management system each organizational unit has its own plan, its own reporting system, its own performance indicators. Having different goals, units are indirectly interested in the general outcome,Functional management approach overview,Process run

4、 pattern,Procurement,Production,Sales,Delivering,Top management,Functional management approach overview,Disadvantages of functional-oriented management,Information support inefficiency, the partial automation,Functional management approach overview,Functional management approach overview,Value chain

5、 concept,Value chain (proposed by M. Porter) is a sequence of primary and secondary (supporting) activities involved in creating consumer value for the consumer both in the organization and all the way from raw materials extraction to the product consumption,Value chain concept,Porters value chain,V

6、alue chain concept,Value system (Supply chain),Supply chain - the network of business relationships and processes that collectively create and deliver value (products and services) to consumers.,Value chain concept,Supply-Chain Operations Reference-model (SCOR) is a process reference model developed

7、 by the management consulting firm PRTM and endorsed by the Supply-Chain Council (SCC) as the cross-industry de facto standard diagnostic tool for supply chain management.,Value chain concept,Value chain concept,Value chain concept,Value chain,Value chain concept,Business process essentials,Business

8、 process is a steady purposeful sequence of functions performance, aimed at creating a result that has value to the consumer A business process provides a definite volume of services, through a defined and measurable input and output, that is valuable for external or internal customer. It can be rep

9、eated, has a responsible process owner and has all the necessary resources and information.,Business process essentials,Organization business processes Network is a union of interdependent and concerted organization processes as a whole system Business process Client is an internal or external custo

10、mer of the business process results,Business process essentials,Business process essentials,Business process essentials,Business process Resources are incoming objects (raw materials, parts, information or services) which are turned into the process outputs during its performance, and means of perfo

11、rming (labor, technical, technological resources, managing information). Business process Resources often are outputs (results) of other one,Business process essentials,Business process inputs, outputs and clients classification,Business process essentials,Business process owner,Business process res

12、ourses,Business process results,Input,Output,Business process management model,Primary output of business process must be: measurable; valuable; finished,Business process essentials,Business process management model: A internal B complete,Business process essentials,The process structure of the orga

13、nization referred to the identification and definition of work processes, considering space, time, goods and people. The organizational structure of an organization sets up the decision-making and information channels. The organizational and operational structure are in a dependent relationship and

14、therefore consider the same objects from various perspectives. While organizational structure describes the general way of staff dividing and communicating within the organization, the process structure describes the way of work performing.,Business process essentials,Organizational structure is sta

15、tic Process structure is dynamic,Business process essentials,Marketing research (market to business) New product design (idea to product) Supplying Manufacturing Sales Delivering Service,HR management Accounting & Finances Purchasing (Purchase to Pay) Assets management Warehouse management Relations

16、hip management IT support Security management,New technology design (idea to technology ) Processes engineering,Strategic planning (vision to plan) Business planning Controlling,Business process essentials,Core business processes,Business process essentials,Traditional marketing and CRM approaches c

17、omparing,Business process essentials,Different CRM-system classes functions,Business process essentials,Client life-time profit increasing with 5% increasing of loyal clients number,Business process essentials,Marketing,Product development,Supplying,Process development,Production,Testing,Packaging a

18、nd stocking,Sales and distribution,Installation,Technical support and service,Utilization,Marketing,PLM,Business process essentials,Business process levels (according to the Process Classification Framework by the American Productivity and Quality Center),Business process essentials,Business Process

19、 is a pattern, a model of activity Specific enterprise activity is a set of Business Process Instances,Business process management (BPM) basics,New businesses performance statistics (Source: Business Design Corporation) 64,2% of all new businesses fail within 10 years 86% of new businesses do not ge

20、t profit Reason business processes are not managed properly,Business process management (BPM) basics,Business process management (BPM) basics,Business Process Management (BPM) is the management processes that supports transactions throughout their life cycle with a given organization policies and bu

21、siness models. More generally, Business Process Management is a new philosophy of management, centered on the processes integration and management to achieve business goals.,Business process management (BPM) basics,BPM is based on three core principles: Companies often have non-homogenous businesses

22、 Different businesses require different organizations The organization is to be focused on market or customer requirements,Business process management (BPM) basics,The following individual questions should be answered to build the companys business model and to identify the first areas for action: W

23、hich markets / customer groups will be addressed with which products? Which are the key success factors in the various business fields? Which processes are required by the company? Where is the main emphasis? How will BPM become authoritative?,Business process management (BPM) basics,Business-field

24、matrix,Business process management (BPM) basics,Strategic management,Business process management,Business process execution,Business process management (BPM) basics,Business process outsourcing (BPO) is the movement of business processes from inside the organization to an external service provider.

25、With the global telecommunications infrastructure now well established and consistently reliable, BPO initiatives often include shifting work to international providers. Main insourcing countries,Business process management (BPM) basics,Business process management (BPM) basics,Controlling,Modeling,I

26、mplementing,Improving,BPM System,Business process management (BPM) basics,Another point of view on BPM System,Business process management (BPM) basics,The underlying principle of the BPM (Business Process Management) is that the general goal becomes a cornerstone, and reaching this goal becomes the

27、sense of all the activity. The result of the work is measured not by each executors functions duration and quality, but by entire process completeness.,Business process management (BPM) basics,Simplification and minimization of coordination mechanisms,Order,Order,Order,Output delivering,Business process management (BPM) basics,BPM goals: To make a process manageable (measurable) To make a process “human independent” To make a process transparent To make a process executable (by human or by automate) Common business goals (im