F09_class_22_Ch7_Bus_Process

F09_class_22_Ch7_Bus_Process - Business Process Management...

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Business Process Management Chapter 7 MIS 301 Introduction to IT Management
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Class Business MIS 301 Extra Credit Opportunities Dan Ranta, ConocoPhillips - Monday, 10/26, 5:15-6:15pm in GSB 2.126 Bob Johansen, Institute for the Future – Thursday, Nov. 5, 5:15-6:15 in Ch. 7 – Business Process Management MRV has a problem Defective business process results in unhappy customer (no tent) Its business process needs fixing
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Business Process at REI
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Tasks for processing an order Why Is BPM Important to Organizations?
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Processing orders crosses departmental boundaries Credit card processing, shipping, scheduling extend to other companies Business processes and IS must evolve as business changes Why Is BPM Important?
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BPM - Systematic process of creating, assessing, altering business processes 1. Create model of business process components Users review and adjust model “as-is model” documents current process; it is changed to solve process problems 1. Create system components (5-part IS model) Uses hardware, software, data, procedures & people 2. Implement business process 3. Create policy for ongoing effectiveness assessment Adjust and repeat cycles MRV never designed its processes, had no assessment program Four Stages of BPM
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Functional Single department BPM easier at this level Problem: may lead to “islands of automation,” also called “functional silos” Cross-functional Goal: Eliminate/reduce isolated systems and data Uses committees to resolve conflicts between departments Interorganizational Most difficult to do Ex: SCM, credit card transaction processing Requires negotiation, contracts, litigation to resolve conflicts between organizations BPM Varies in Scope
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Functional Company Silos Name from grain silos In company silos, systems are segregated in functional areas
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Functional (potential silo problem) Cross-functional Goal: Eliminate/reduce isolated systems and data Uses committees to resolve conflicts between departments Interorganizational Most difficult to do
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