Week 2.2
ISA 235
Dr. Zelalem Bachore
SECTION 2.2
BUSINESS
PROCESSES
CHAPTER TWO OVERVIEW

SECTION 2.1 – Decision Support Systems (DSS)
 Making
Organizational Business Decisions
 Measuring Organizational Business Decisions
 Using MIS to Make Business Decisions
 Using AI to Make Business Decisions

SECTION 2.2 – Business Processes
 Managing
Business Processes
 Business Process Modeling
 Using MIS to Improve Business Processes
BUSINESS PROCESS MODELING

Business process modeling (or visual mapping):
The activity of creating a detailed flow chart or
process map of a work process showing its inputs,
tasks, and activities, in a structured sequence
 Communication
 Documentation
 Analysis
(e.g. simulation)
Business Process Model and Notation
BPMN from 10,000 miles…
A BPMN process model is a graph consisting of four
types of core elements/notations:
end
start
activity
event
Gateway/Decision
sequence
flow
Filling Customers Order
Reject order
Items not in
stock
Check
Check stock
stock
availability
Purchase
order
received
Items in
stock
Confirm
order
Emit
invoice
Ship goods
Archive
order
Order
fulfilled
BUSINESS PROCESS MODELING
• As-Is process model: Represents the
current state of the operation that has
been mapped, without any specific
improvements or changes to existing
processes.
• To-Be process model: Shows the
results of applying change improvement
opportunities to the current (As-Is)
process model.
BUSINESS PROCESS MODELING
USING MIS TO IMPROVE BUSINESS
PROCESSES

Business process
improvement
attempts to
understand and
measure the current
process and make
performance
improvements
accordingly.

Three primary types
of business process
change available to
firms and the business
areas in which they
are most often
effective
OPERATIONAL BUSINESS
PROCESSES AUTOMATION
 Automation
– The process of
computerizing manual tasks
Operational
business processes are
static, routine, daily business
processes such as stocking
inventory, checking out customers,
or daily opening and closing
processes.
OPERATIONAL BUSINESS
PROCESSES AUTOMATION
Steps in Business Process Improvement

MANAGERIAL BUSINESS PROCESSES
STREAMLINING
Managerial business processes are semi-dynamic,
semi-routine, monthly business processes such as
resource allocation, sales strategy, or manufacturing
process improvements
 Streamlining
– Improves business process
efficiencies by simplifying or eliminating
unnecessary steps
Bottleneck
– Occur when resources reach full
capacity and cannot handle any additional
demands
Redundancy
– Occurs when a task or activity is
unnecessarily repeated e.g. if both sales and
accounting check customer credit!!
STRATEGIC BUSINESS PROCESSES
REENGINEERING

Strategic business processes are dynamic,
nonroutine, long-term business processes such as
financial planning, expansion strategies, and
stakeholder interactions.
 Business
process reengineering (BPR) Analysis and redesign of workflow within and
between enterprises
Find
a completely different approach!!
STRATEGIC BUSINESS PROCESSES
REENGINEERING

A company can improve the way it travels the road by
moving from foot to horse and then horse to car automation and streamline

BPR looks at taking a different path, such as an
airplane which ignore the road completely
Assignment#6: Re-engineering & BPMN
STRATEGIC BUSINESS PROCESSES
REENGINEERING
• A company could improve the way it travels by changing from
foot to horse and then from horse to car.
• With a BPR mind-set, however, it would look beyond automating
and streamlining to find a completely different approach.
• It would ignore the road and travel by air to get from point A
to point B

Business process reengineering (BPR) - Analysis and
redesign of workflow within and between enterprises
Reading Assignment!
1.Metrics
2.Business Process
3.Best Practices
4.Model
5.Granularity
6.Visualization
Read Chapter 02.
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