UNSW Business School: INFS3604 Business Process Management (Week 1) PDF

UNSW Business School Information Systems and Technology Management INFS3604 Business Process Management Week 1- Introduction to BPM George Joukhadar (LiC) Copyright Notice Copyright • There are some file-sharing websites that specialise in buying and selling academic work to and from universi...

UNSW Business School Information Systems and Technology Management INFS3604 Business Process Management Week 1- Introduction to BPM George Joukhadar (LiC) Copyright Notice Copyright • There are some file-sharing websites that specialise in buying and selling academic work to and from university students. • If you upload your original work to these websites, and if another student downloads and presents it as their own either wholly or partially, you might be found guilty of collusion — even years after graduation. • These file-sharing websites may also accept purchase of course materials, such as copies of lecture slides and tutorial handouts. By law, the copyright on course materials, developed by UNSW staff in the course of their employment, belongs to UNSW. It constitutes copyright infringement, if not academic misconduct, to trade these materials. Country Acknowledgement of Country UNSW Business School acknowledges the Bidjigal (Kensington campus) and Gadigal (City campus) the traditional custodians of the lands where each campus is located. We acknowledge all Aboriginal and Torres Strait Islander Elders, past and present and their communities who have shared and practiced their teachings over thousands of years including business practices. We recognise Aboriginal and Torres Strait Islander people’s ongoing leadership and contributions, including to business, education and industry. UNSW Business School. (2021, July 24). Acknowledgement of Country [online video]. Retrieved from https://vimeo.com/369229957/d995d8087f Prescribed readings ▪ Dumas at al. 2018 Chapter 1 5 Agenda ▪ Introduction ▪ What is a business process? ▪ What is Business Process Management? 6 Objective of this course ▪ To introduce the discipline of modeling, analyzing, automating and monitoring business processes. ▪ No coding in this course ▪ Related Courses • Business Analysis • Business Analytics: For those interested in Business Analytics, Process Mining is getting lots of interest; it is the evolution of BPM (see next slide) 7 2023 Gartner Magic Quadrant for Process Mining Tools We use Celonis and SAP Signavio in this course!! BPM Lifecycle (Course Structure) Week 1 Management Processes Process identification Examples for BPM lifecycle and process mining Define Vision B 30h A 3m 10m 5m A 1.5h D 30m 2h 10m Conformance and performance insights 10min B Procure Products Market Products Deliver Products Manage Customer Service C Manage Personnel Manage Information Manage Assets E C 15m Manage Risk Support Processes Process architecture 15h 5m Implement Strategy Core Processes Procure Materials 35h Develop Strategy D Process discovery Weeks 2 &3 As-is process model E Process monitoring Executable process model Process analysis Week 9 Process implementation Weeks 4,5 & 7 Insights on weaknesses and their impact To-be process model Process redesign Week 8 Agenda ▪ Introduction ▪ What is a business process? ▪ What is Business Process Management? 10 Ask ChatGPT (discuss in 2 min) ChatGPT Response: A business process refers to a series of interrelated tasks or activities that are performed within an organization to achieve a specific goal or outcome. These processes often involve the coordination of people, resources, information, and technology to deliver a desired result. Business processes can be formalized and documented to provide a clear structure and guidelines for how work is conducted within an organization. Business processes can span various areas within a company, such as operations, finance, human resources, sales, marketing, and more. Examples of common business processes include order fulfillment, inventory management, customer relationship management, procurement, budgeting, project management, and quality control. Efficient and effective business processes are essential for organizations to operate smoothly, minimize errors, reduce costs, improve productivity, and enhance customer satisfaction. They can be analyzed, optimized, and automated using various methodologies and tools, such as Business Process Management (BPM), to streamline operations and drive continuous improvement within the organization. Issue delivery receipt Prepare shipment Load truck Schedule payment Package products Schedule delivery Issue invoice Check & confirm PO Unload truck Notify shipment Check Invoice Request PO change Match incoming payment Obtain PO confirm. 12 Business processes Assets & Partners Financial Human Resources Technology Organisation Function A Function B Function C Business Process Business Process Customers Business Process Materials 13 PO received Check & confirm PO Package products Load truck Notify shipment Issue invoice Match payment Payment made PO issued Obtain PO confirm. Schedule delivery Unload truck Issue delivery receipt Check invoice Schedule payment Goods arrived 14 Another example… Serve meal Load dishwasher Bring menu Collect laundry Brush grills Collect payment Take order Unload dishwasher Collect laundry Present bill Sweep & mop Clean kitchen surfaces Greet & seat 15 Customer arrived Greet & seat Take order Bring menu Serve meal Present bill Issue invoice Customer paid Kitchen is dirty Load dishwasher Clean kitchen surfaces Brush grills Collect laundry Sweep & mop Unload dishwasher Kitchen is clean 16 What is a business process? “A complete end-to-end set of activities that provide value, through the delivery of a product or service, to the customer of the service”. Sharp and McDermott “How an organisation does its work – the set of activities it pursues to accomplish a particular objective for a particular customer.” Thomas Davenport “Process: an organised group of related activities that together create a result of value to the customer.” Michael Hammer “A collection of inter-related events, activities and decision points that involve a number of actors and objects, and that collectively lead to an outcome that is of value to at least one customer.” Dumas et al. 17 What is a business process? Typical processes in organisations: • Order-to-cash • Quote-to-order • (quote-to-order + order-to-cash = quote-to-cash) • Procure-to-pay (aka Purchase-to-Pay) • Application-to-approval • Issue-to-resolution Core and non-core processes – what is the value proposition? 18 “My washing machine doesn’t work…” Negative outcomes (valuereducing): • Fault not repaired in a timely manner • Fault repaired but customer pays more than expected Call Centre Positive outcomes (value-adding): • Fault repaired immediately with minor intervention • Fault repaired, covered by warranty Insurance /warranty Technician Customer Customer issue-to-resolution process 19 Parts Store VALUE Service Dispatch Centre What is a business process? Elements of a process: Event: things that happen automatically. Events trigger processes. Activity: a set of tasks that are initiated (triggered) by an event. Simple activities are tasks. Decision points: a decision that affects the way the process is executed. Actors: human actors; organisations; IT systems. Physical objects: equipment; materials; products; locations; hard-copies. Immaterial objects: electronic documents and records; emails. Outcome: the execution of a leads to one or several outcomes. Outcomes should deliver value to actors (customers) involved in the process. • Customer: the actor who consumes the output of the process. • • • • • • • 20 What is a business process? Figure 1.1 - Dumas et al. 21 What is a business process? A process is • • • • • • • 22 A guide Clarity as to who does what and why How to understand contribution About collaboration, not ‘pass the parcel’ Sharing in a customer outcome Focused on the customer About adding value. What a process is not A process is not: • A low level task definition • A functional internal way of doing things • What you do to fulfil job responsibilities. 23 Agenda Introduction What is a business process? What is Business Process Management? 24 Ask ChatGPT ChatGPT Response: Business Process Management (BPM) refers to a systematic approach that organizations use to improve their business processes, increase efficiency, and achieve better outcomes. It involves analyzing, designing, implementing, and continually optimizing processes to enhance productivity, customer satisfaction, and overall performance. BPM focuses on understanding and managing end-to-end processes that span across different departments, functions, and systems within an organization. It involves the identification of activities, tasks, roles, and information flows required to complete a particular process. By mapping out these elements, organizations gain a holistic view of their operations and can identify areas for improvement. The goal of Business Process Management is to achieve operational excellence, improve customer satisfaction, reduce costs, and enhance agility and adaptability in a rapidly changing business environment. It is an iterative and ongoing practice that requires collaboration, communication, and a commitment to continuous improvement across the organization. Improving Performance (Rummler’s Framework) Business Environment Economy Regulatory Organisation Human Resources Technolog y Materials Performance Planning Function A Performance Management Function B Business Process Business Process Business Process Competitors 26 Function C Stakeholders Value Assets & Resources Financial Culture Customers Process Performance If you had to choose between two services, you would typically choose the one that is: ▪ F… ▪ C… ▪ B… 27 Process Performance If you had to choose between two services, you would typically choose the one that is: ▪ Faster ▪ Cheaper ▪ Better 28 Process Performance Three dimensions of process performance ▪ Time ▪ Cost ▪ Quality 29 Improving process performance Customer arrived Greet & seat Take order Bring menu Serve meal Present bill Issue Customer invoice paid 30 How would you improve this process? Outsource to Customer Standardize Eliminate Cooking Automate Invest and Build Re-sequence Eliminate Waiters 31 Business Process Management (BPM) Body of principles, methods and tools to design, analyze, execute and monitor business processes, with the aim of improving their performance. IT systems Customers Employees Business Processes Trading Partners Data IT infrastructure Suppliers 32 Why BPM? “The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency.” Bill Gates 33 In other words… Information Technology Yields Business Value Enables Yields Process Change Index Group (1982) 34 How to go about BPM? 36 The BPM Lifecycle (Course Structure) Week 1 Management Processes Process identification Examples for BPM lifecycle and process mining Define Vision B 30h A 3m 10m 5m A 1.5h D 30m 2h 10m Conformance and performance insights 10min B Procure Products Market Products Deliver Products Manage Customer Service C Manage Personnel Manage Information Manage Assets E C 15m Manage Risk Support Processes Process architecture 15h 5m Implement Strategy Core Processes Procure Materials 35h Develop Strategy D Process discovery Weeks 2 &3 As-is process model E Process monitoring Executable process model Process analysis Week 9 Process implementation Weeks 4,5 & 7 Insights on weaknesses and their impact To-be process model Process redesign Week 8 Questions 38