ITA 372 ch 3

Cost efficiencies

processes should streamline employees’ work

Customer satisfaction and differentiation

processes should help a company better serve its customers and provide clear and visible differentiation.

Standardization

each location or business unit should perform work \n the same way wherever possible; shared services standardize processes and cut costs

Value-added activities

processes should add value to the \n organization

Improved agility and speed

processes should be nimble and efficient \n so the company can anticipate, manage, and respond to changes in the marketplace

Scalability

processes need to be able to handle predicted future \n workload to support company growth \n

“As is” process

refers to the current process that is flawed \n and in need of change

“To be” process

refers to the future design of the new \n business process that is much for efficient and effective

Business process reengineering (BPR)

the fundamental, dramatic, radical redesign of business \n processes to achieve breakthrough performance in key \n measures of cost, flexibility, accuracy, quality, speed, \n and customer satisfaction.

Two types of BPR

clean slate and technology- enabled.

\n Clean slate reengineering

process designers will start with a “clean sheet” of paper and redesign a process from scratch

Technology-enabled reengineering

the technology provides the roadmap for \n fundamental process change

\n paving the cow paths

recreating outdated, inefficient processes within \n the ERP system.

Business process improvement (BPI)

changes to existing processes that occur somewhat slowly and incrementally

Customer-Facing Processes

processes should make it easy for customers to interact with a business so they will keep coming back

Core Competency Processes

a company’s “bread and butter”

High Volume, Low-Margin Processes

usually a symptom of operating in an extremely competitive market with enormous price pressure

Quality control

checking someone else’s work. It is areactive tool to product quality aimed at identifying and correcting defects after the fact

Quality assurance

builds control into the process to eliminate defects in the first place. It is a proactive tool focused on preventing defects in the first place.

High Skill, Time Intensive Processes

labor-intensive processes that consume highly-skilled workers are expensive

High Complexity, Specialized Resource Processes

businesses tend to embrace complexity and the market \n advantages that complex solutions garner; replace complex \n activities with simpler ones

Processes Built around Obsolete or Changing Technology

legacy systems trap companies into inefficient \n business processes and obsolete business models

Digital transformation

he “process of using digital technologies to create new—or modify existing—business processes, culture, and customer experiences to meet changing business and market requirements.”

stakeholder analysis

should be performed early on to determine the individuals and groups who have the most influence over the project’success and those who will be impacted by it.