BPM1Essentials

Topic1.Businessprocessmanagement(BPM)essentials1.Functionalmanagementapproachoverview.2.Valuechainconcept.3.Businessprocessessentials.4.Businessprocessmanagement(BPM)basics.FunctionalmanagementapproachoverviewFunctionalmanagementapproachisfocusedonseparatefunctionsperformanceAdvantages:•Highlaborproductivity•Highprofessionalskillslevel•Functionsdoublingdiminishing•GoodopportunitiesforworkautomationFunctionalmanagementapproachoverviewFunctionalorganizationstructureTopmanagerFunctionalmanagerFunctionalmanagerLinemanagerExecutorsdisciplinarysubordinationtechnicalsubordinationFunctionalmanagementapproachoverviewCoordinationcostsExecutioncostsTotalcostsCostsSpecializationlevelFunctionalmanagementapproachoverviewUnderthefunctional-orientedmanagementsystemeachorganizationalunithasitsownplan,itsownreportingsystem,itsownperformanceindicators.Havingdifferentgoals,unitsareindirectlyinterestedinthegeneraloutcomeFunctionalmanagementapproachoverviewProcessrunpatternProcurementProductionSalesDeliveringTopmanagementFunctionalmanagementapproachoverviewWeekunitconnectionsResponsiblefortheresultperson’sabsenceFocusonintermediateoutcomeratherthanonfinalone,interestsconflictDisadvantagesoffunctional-orientedmanagementHighoverheadsInformationsupportinefficiency,thepartialautomationLowresponsivenessandworkspeedFunctionalmanagementapproachoverviewConsumer:Consumer’spowerincreasingCompetition:StrongcompetitionintheglobalizedworldChanges:FastchangesspeedMainbusinesschallengesProcessstructureFunctionalstructureDivisionalstructureProcessstructureProjectstructureCraftproductionMassproductionStandardizedproductionMarketing-orientedproductionOrganizationalstructureevolutionFunctionalmanagementapproachoverviewValuechainconceptValuechain(proposedbyM.Porter)–isasequenceofprimaryandsecondary(supporting)activitiesinvolvedincreatingconsumervaluefortheconsumerbothintheorganizationandallthewayfromrawmaterialsextractiontotheproductconsumptionValuechainconceptPorter’svaluechainValuechainconceptValuesystem(Supplychain)Suppliers’valuechainEnterprisevaluechainDistributionchannelsvaluechainConsumer’valuechainSupplychain-thenetworkofbusinessrelationshipsandprocessesthatcollectivelycreateanddelivervalue(productsandservices)toconsumers.ValuechainconceptSupply-ChainOperationsReference-model(SCOR)isaprocessreferencemodeldevelopedbythemanagementconsultingfirmPRTMandendorsedbytheSupply-ChainCouncil(SCC)asthecross-industrydefactostandarddiagnostictoolforsupplychainmanagement.ValuechainconceptValuechainconceptValuechainconceptValuechainValuechainconceptBusinessprocessessentialsBusinessprocessisasteadypurposefulsequenceoffunctionsperformance,aimedatcreatingaresultthathasvaluetotheconsumerAbusinessprocessprovidesadefinitevolumeofservices,throughadefinedandmeasurableinputandoutput,thatisvaluableforexternalorinternalcustomer.Itcanberepeated,hasaresponsibleprocessownerandhasallthenecessaryresourcesandinformation.BusinessprocessessentialsOrganizationbusinessprocessesNetworkisaunionofinterdependentandconcertedorganizationprocessesasawholesystemBusinessprocessClientisaninternalorexternalcustomerofthebusinessprocessresultsBusinessprocessessentialsPrimaryoutputisthemainBusinessprocessresult,thescopeofabusinessprocessexistenceSecondaryoutputisabusinessprocessesbyproduct,whichmayhave(ornothave)thevalueforsecondarybusinessprocessclients.ItisnotthemaingoalforabusinessprocessBusinessprocessoutputistheproducts,informationorserviceswhicharethescopeofabusinessprocessexistenceBusinessprocessessentialsPrimaryinputisaflowofobjectsthatarethesubjectoflaborforabusinessprocess,i.e.convertedforoutput:rawmaterials,informationthatrequiresprocessing,etc.Secondaryinputisaflowofobjectsthatprovidenormalbusinessprocessexecution–standards,rules,tools,etc.Businessprocessinputsareincomingobjects(rawmaterials,products,parts,informationorservices)whichareconvertedintoaprocessoutputsduringitsexecution.BusinessprocessinputaisanoutputofotheroneBusinessprocessessentialsBusinessprocessResourcesareincomingobjects(rawmaterials,parts,informationorservices)whichareturnedintotheprocessoutputsduringitsperformance,andmeansofperforming(labor,technical,technologicalresources,managinginformation).BusinessprocessResourcesoftenareoutputs(results)ofotheroneBusinessprocessessentialsInternalclientsPrimaryinputSecondaryinputExternalclientsSecondaryoutputPrimaryoutputSecondaryclientDirectclientIndirectclientDirectclientIndirectclientPrimaryoutputDirectclientPrimaryoutputBusiness-ProcessIndirectclientBusinessprocessinputs,outputsandclientsclassificationBusinessprocessessentialsBusinessprocessBusinessprocessownerBusinessprocessresoursesBusinessprocessresultsInputOutputLaborobjects;Toolsandequipment;ExecutorsThebusinessprocessowneristheofficialwhoisresponsiblefortheprocessprogressandresultsandpossessesthenecessaryresourcesManaginginfluenceProcessindicators(feedback)Legend:BusinessprocessmanagementmodelPrimaryoutputofbusinessprocessmustbe:•measurable;•valuable;•finishedBusinessprocessessentialsBusinessprocessmanagementm