Business Processes Integrating and IT PDF

Business processes integrating and IT The Enterprise Architecture Framework (EAF) Enterprise Architecture Framework (EAF) is a structured approach that helps organizations design, implement, and manage their information technology (IT) infrastructure and business processes. It provides gui...

Business processes integrating and IT The Enterprise Architecture Framework (EAF) Enterprise Architecture Framework (EAF) is a structured approach that helps organizations design, implement, and manage their information technology (IT) infrastructure and business processes. It provides guidelines on how to create and use enterprise architecture in a way that aligns IT with business goals. EAFs help organizations to better plan, organize, and integrate their IT systems with business strategies, which ultimately improves efficiency and supports growth. Purpose of EAF: primary goal of EAF is to bridge the gap between IT and business. It helps ensure that IT investments and resources are aligned with the organization’s business strategy, improving how the organization views and achieves IT. The Enterprise Architecture Framework (EAF) Current Trends Influencing the Future of EAF 1.Digital Transformation: 1. many companies are undergoing a digital transformation, which involves moving away from traditional, on-premise IT infrastructure to more flexible and scalable cloud-based solutions. 2. this transformation also means adopting new ways of working, such as DevOps, which focuses on collaboration between software development and IT operations teams to improve the speed and quality of software deployment. Two Key Changes in EAF Due to Digital Transformation: 3. Move Away from Physical Servers: As companies move to the cloud, they will no longer need to buy and manage physical servers on-site. This shift reduces hardware costs and allows organizations to scale their IT infrastructure up or down quickly based on demand. 4. Shift Towards Cloud Deployment and High-End Solutions: Companies will increasingly adopt cloud-based solutions and services. This shift will bring about more complexity in managing the organization's IT landscape, as there will be a mix of different cloud services, platforms, and tools. The Enterprise Architecture Framework (EAF) Why a Holistic EAF is Necessary: 1. with these changes, the IT landscape becomes more complex and challenging to manage. Therefore, a holistic Enterprise Architecture Framework is necessary to guide organizations through this complexity, ensuring that all parts of the business are working together efficiently. The Future of EAF: 1.Adaptability and Flexibility: future EAFs will need to be more adaptable and flexible to keep up with the rapidly changing technology landscape. They should support new business models, like those enabled by cloud computing, AI, and digital transformation. 2.Improving IT and Business Alignment: EAFs can help align IT with business goals, improve decision-making, reduce costs, and enhance organizational agility.  DevOps DevOps is a combination of cultural philosophies, practices, and tools that aim to enhance an organization's ability to deliver applications and services quickly and efficiently. It integrates and automates the work of software development (Dev) and IT operations (Ops) to improve collaboration and productivity. It aims to shorten the systems development life cycle and provide continuous delivery with high software quality. Real-World Example: Amazon and DevOps Amazon operates a large e-commerce platform with a global user base. To stay competitive and meet customer expectations, it needs to continuously update and improve its applications and services. The company must deliver new features, fix bugs, and deploy changes frequently without disrupting service. How Amazon Uses DevOps: 1. Continuous Deployment and Integration: 2. Infrastructure as Code (IaC): 3. Automated Monitoring and Feedback: 4. Microservices Architecture: 5. Collaboration and Culture:  What Is Business Process Integration? Business Process Integration (BPI) is the practice of aligning and connecting various business processes within an organization to work more efficiently and effectively. It involves integrating people, data, and technology to ensure that different parts of the organization — such as sales, finance, operations, and customer service — can communicate and collaborate seamlessly. This integration helps organizations coordinate both internal activities and external interactions with partners, customers, and vendors.  3 Types of Process Integrations Native integrations: A native integration is when data seamlessly flows between software applications. These integrations are already baked into the software, so the setup process is more straightforward. You just need to allow permission between the apps you want to connect. For example build in app for management (ERP) API integrations: An API integration is when two or more applications share data with each other through their application programming interfaces (APIs). For example, you’d use a custom API to connect your online store with a payment processor to accept orders if there are no native integrations. Third-party integrations: Companies with specialized needs often develop in-house software. But it’s often more practical to use an existing tool to add a specific feature. You could use third-party integrations in these cases instead of developing a feature from scratch. For example Uber App, integrates a Map functionality from an app like Google Maps to track rides. The Benefits of Integrated Business Processes? Siloed systems can have a negative impact on how your company functions. When your systems aren’t integrated, problems like duplicate entry and outdated information are more likely to occur Increases Operational Efficiency The lack of integration between software and processes, creates more work for your employees. Employees waste time navigating between different systems and copying data from Eliminates one source Data Silos to another Unintegrated systems create data silos — when data is stored in one place but is inaccessible or isolated from the rest of the organization. Facilitates Process Automation Process automation lets your company automate repetitive tasks, reduce errors, and standardize how work gets done. However, you’ll have a hard time automating your processes if your systems aren’t integrated. Business Process Integration Example: Purchase Orders Let’s say your company has a PO system to create purchase orders, but it’s separate from the systems you use to manage inventory and update accounts. (Problem 1) It’s not exactly efficient, and it leaves a lot of room for error. (The result of problem 1) For example, what if an employee fills out the wrong data or calculates totals incorrectly? The accounting team would be working with inaccurate data (unless they manage to catch the you can integrate your forms into a database and add dynamic routing to your mistake) (Scenario) workflows like follow (Solution) 1- An employee creates a new PO form, which populates with their personal details. 2- The form populates with product code, pricing, and inventory details from your Enterprise Resource Planning (ERP) 3- The employee signs the form, and it routes to a manager for review. When processes are integrated in this manner, workflows are much more 4- Once approved, the efficient. Employees form automatically won’t updatesswitch have to constantly the accounting system before between applications, routing it to manual perform Financedata for processing. entry, or chase down their managers  What is a business process management software? Business process management software (BPMS) is an enterprise-level software solution to automate repetitive tasks, manage fundamental processing, and handle process logics. Business process management (BPM) a discipline, or a set of tools? BPM is a methodology that follows certain steps to analyze, measure, optimize, and improve the business process. It’s used to streamline the way a company operates. BPM defines specific organizational tasks, refines how those tasks get executed, and puts a system in place that can analyze and monitor how efficient the workflows are functioning. BPM consists of various methods to discover, model, analyze, measure, enhance, and optimize the business processes. It coordinates people, systems, and data to ensure the business outcomes support the business strategy. Business process management software Organizations as Systems Organizations and their members are usefully conceptualized as systems designed to accomplish predetermined goals and objectives through people and other resources that they employ. Organizations are composed of smaller, interrelated systems (departments, units, divisions, etc.) serving specialized functions.  Enterprise systems in organizations Enterprise systems : often referred to as enterprise resource planning (ERP) systems, is a term used to describe an integrated organizational (enterprise) information system. ERP is software that helps the flow of information between the functional areas in the organization. It is a customized system that, rather than being developed in-house, is usually purchased from one of the software development companies well-known for its ERP packages, such as SAP or Oracle. ERP includes sales and operations planning, distribution, procurement, and managing the supply chain.  Three Types of Enterprise Systems. 1- Customer Relationship Management (CRM) Customer Relationship Management (CRM) is the largest software market in the world that’s capable of handling complex data in one internal database. It focuses on marketing and strengthening customer communication. Analytics CRM functionalities include: Artificial intelligence Contact center automation Human resource management Integration with other software Lead management Marketing communication Sales automation Workflow automation Who uses CRM systems? CRM systems are customized to meet the specific needs of a business. Nowadays, CRM has become the best technological asset for collecting customer data and forecasting sales or market opportunities.  Three Types of Enterprise Systems. 2- Enterprise Resource Planning (ERP) Enterprise Resource Planning (ERP) systems integrate enterprise applications (called modules) such as purchasing, finance, human resources, and inventory management into one cross-functional system. Through ERPs, different departments can communicate and share information real-time. Accounting ERP functionalities include: CRM Finance Human resources Inventory and order management Marketing Planning Purchasing inventory Sales  Three Types of Enterprise Systems. 3- Supply Chain Management (SCM) Supply-chain management is the integration of the activities that get the materials and services, transform them into intermediate goods and the final product, and deliver them to customers Supply chain management is the practice of coordinating the various activities necessary to produce and deliver goods and services to a business's customers. Examples of supply chain activities can include designing, farming, manufacturing, packaging, or transporting. Procurement Product lifecycle management SCM functionalities include: Inventory planning Enterprise assets and production lines maintenance Logistics (fleet management and transportation) Order management Global suppliers management A Supply Chain Supply Chain Management Process Five key steps for building excellence  Supply Chain Management Process (PLAN) PLAN – Planning is the strategic part of the supply chain management process, to find out the best possible blueprint of how to fulfil the end requirement. SCM managers should identify a list of key components like plant location & size, warehouse design, delivery models, IT solutions’ selection, etc. Not only this, the supply chain management process would be incomplete if key matrices like transportation cost modelling, warehouse efficiency models, etc. are not developed. Supply Chain Management Process (SOURCE) SOURCE – At this stage of SC, the focus is on the most reliable suppliers for raw materials so that the production process would never be at risk. SC managers must ensure key pain points of the supply cycle are always being tracked to keep the engine running. Supply Chain Management Process (EXECUTE) EXECUTE – This is the stage where well-designed processes are implemented or manufacturing of manufactured products are ready for testing, packaging, and delivery. Not only this, results at this stage are quantified so that maximum possible efficiency is achieved. Specialists design cost-effective IT solutions which enable customers in building excellence and improving efficiency at the execution stage of the supply chain management process. Supply Chain Management Process (DELIVER) DELIVER – Supply chain when reaches this stage, the managers have a task at hand to deliver the product/service in the right quantity, at the right place and right time by employing suitable carriers. Supply chain managers should be fully equipped with modern IT tools to keep track of warehousing networks, inventory models as well as invoicing and payment receipts. Supply Chain Management Process (RETURN) RETURN – Returns’ handling is the last step of the supply chain management process. It not only involves reviewing returned products for quality purposes but also managing their inventory. At the ground level, supply chain managers should deploy their resources supporting them with technology for faster pickups, quicker replacements, etc. Returns management should be a value enhancement measure in the eyes of supply chain managers and they must ensure every desirable measure is taken for maximum possible efficiency.