IS265 Ch 10 - Information Based Business Processes

What is a process?

Series of steps or tasks required to achieve a specific goal.

A process may

o extend across many organization boundaries

o involve a large number of individuals

o require many decisions and actions along the way

all-or-nothing concept of processes

a process needs to be completed or not done at all

Sub-processes what is it

a task or process that is part of a larger process

what is process modeling

o Mapping processes and sub-processes

o Helps understand the various processes that occur at different levels in organizations and how they interrelate

what are process modeling tools and four types

software available to help analysts describe business processes and create business process models or diagrams

• four types of tools

  • traditional process modeling languages

  • Object oriented modeling languages

  • dynamic process modeling languages

  • process integration languages

how do technology and processes relate

 Technologies play an ever increasing role in how business processes are performed and modified.

 Technology can also be a barrier or constraint to business process improvement

what are legacy systems

older, large applications that may be mission critical

are hard to replace and are somewhat inflexible

used to support key business processes

general characteristics of process improvement

 Business processes are inherently cross-functional

 Business Process Reengineering or Business Process Improvement seeks to break down organizational silos by redesigning business processes

what is business process reengineering (BPR) vs business process improvement (BPI)

business process reengineering (BPR)

• the redesign of business processes to improve how work is done across many functions within the organization

• fundamentally rethink how the whole process is gonna go

  • Instead of just improving what already exists

business process improvement (BPI)

• the redesign of a business process that is simple enough that it can be done with one function of the business or without significantly involving other business functionality

• Take a process and make it better 

  • Ex. checking out on a site → every extra click needed = a cart abandoned and a sale lost 

reengineering = extreme

improvement = smaller part improvement

four typical goals for business process reengineering

AI in process automation and two specific types that are popular

Robotic process automation (RPA)

• software that can be used to earily develop and manage toold that can replace humans or automate repetitive or routine workplace tasks that are based on rules

  • ex. invoice creation, managing inventory updates, customer service

Hyperautomation (Intelligent Process Automation)

• uses AI to automat processes and augment what humans can do

• automate processes that do not always follow rules for repetitive tasks

3 levels of reengineering/process improvement

Fundamental (rethinking)

• Why does the firm do things a certain way?

• what can be done better?

  • Ex. do we acc have to physically driver around the entire refinery or can be measure it and motorize it with a button?

Radical (redesign)

• reinvention or re-creation as opposed to making superficial changes or minor enhancements

• Can we reinvent something?

  • Ex. instead of engineer who comes and checks the thing in the refinery, what if we just take the word of the inspector and no try to optimize the design? (just an example of smtg extreme)

  • Ex. what if we have a computer send money back and forth instead of using the regular mail?

Dramatic (improvements)

• focuses on achieving significant improvements in performance

3 levels of change

• Automate - first order

  • technology performs process more efficiently

  • ex. replacing human labor with technology, usually easy to justify because benefits can be quantified

• Informate - second order

  • technology informs people

  • this can result in change in how business processes are performed

• Transform - third order

  • fundamental change of process

  • most difficult level of change

  • ex. Changes in technology can lead to layoffs of majority of staff