B6-W12-M12-Enterprise-Process-Architecture_Student (1)

BPAS – Module 12 Enterprise Process Architecture

Overview

• Course: IS210 – Business Process Analysis and Solutioning

• Institution: Singapore Management University, School of Computing and Information Systems

• Focus: Model, Analyze, Solve, Innovate

Learning Outcomes

• Understand the value chain in an organization.

• Familiarize with value chain modeling framework and process architecture.

• Gain insights into notations for process architecture: Porter value chain models and SAP business maps.

• Identify components of process architecture: functional units, business processes, and hierarchy.

• Apply process architecture design across domains.

BPM: Levels of Alignment

Key Concepts

• Process Levels: Understanding how various activities fit within the organizational structure.

  • Example Activities: Subprocess A1, Activity 1, Activity 3.

• Technology Role: Blueprinting, implementation, and operations in business processes.

• Transactional Elements: Sales, underwriting, claims, finance.

Process Architecture - Overview

Definitions

• Executive Modeling: Defining functional units and value chains/processes.

  • Create 2-3 levels of hierarchy.

• Hierarchy Modeling: Define Level 3 processes and depict subprocesses.

Value Chain

Value Definition

• Value: Total revenue buyers are willing to pay for products/services.

• Value Chain Activities: Includes design, production, marketing, delivery, and support.

  • Primary Processes: Operations, distribution, sales.

  • Support Processes: R&D, HR.

  • Management Processes: Regulations, policies, contracts.

Importance of Studying Value Chains

• Organizations may support 3 to 15 value chains.

• Goals include:

  • Identifying sources of competitive advantage.

  • Examining inter-process interactions and impacts on performance.

  • Aligning investments with the value chain.

Process Architecture for Value Chain

Diagrams

• Process architecture diagrams represent the value chain.

• Frameworks and notations in use:

  • Porter value chain models.

  • SAP Process Maps.

Porter Value Chain Model

Competitive Advantage

• Understanding Porter's model to identify competitive advantages across primary and support activities.

Porter Value Chain Example - Airlines

Process Drivers

• Analysis of B2B e-marketplaces in the airline industry focusing on:

  • Support and primary activities.

  • Functional units and subprocesses.

Process Architecture Framework

Components

• Common components include:

  • Departments and functional units.

  • Business processes (primary and supporting activities).

  • External stakeholders.

Functional Units

Roles

• Functional units facilitate operations of different processes:

  • Examples: HRM, Accounting, IT, Legal.

  • Importance of process ownership for accountability and performance.

Processes

Categories of Processes

• Core Process: Crucial for corporate expertise; delivers products/services.

• Supporting Process: Helps core processes function efficiently.

• Management Process: Guides operations, setting rules, and best practices.

• Sub-process: Smaller processes within primary ones.

Relationship Between Process Types

Example Workflow

• Demonstrates the interrelation of core, management, and supporting processes through an order fulfillment system.

Process Example: Insurance Company

Core Processes Defined

• Management processes: Strategic management, policy servicing, claims management.

• Core processes: Risk management, payment collections.

• Supporting processes: Finance, IT, HR.

Categorizing Business Processes

Exercise

• Task: Classify Singapore Management University processes into management, core, and supporting categories.

Levels of Process Representation

Levels Explained

• Representing processes at varying complexity levels:

  • Executive diagrams (2-3 levels).

  • Hierarchy diagrams (beyond 3 levels).

Summary of Process Architecture

Integration

• Combines functional units, processes, and levels into effective process architecture.

Executive Model Illustration

Template

• Provides a view of core and supporting processes within levels to understand departmental roles.

Need for Process Hierarchy Model

Purpose

• Illustrates hierarchy of subprocess architecture to manage complexity; higher levels are visualized through hierarchy models.

Process Hierarchy Model Template

Structure

• Organizes processes and sub-processes by level of detail.

Example: Order Handling in Logistics

Detailed Process Steps

• Highlights steps required from feasibility determination to order satisfaction within logistic operations.

Discussion Questions

• Importance of process architecture map for organizations?

• Benefits of using process architecture.

• Challenges faced while developing such architecture.

• Recommendations for effective usage.

Architectures/Frameworks

Overview of Frameworks

• eTOM, SCOR, PCF: Industry-specific frameworks for process classification and optimization.

Class Reflection

Submission Guidelines

• Individual reflections to be submitted post-module.