IT CHAP -1 BPM
What is BPM
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The achievement of an
organization’s objectives through
improvement of essential
business process.
BPM is means to study, identify,
change, modify & monitor
business processes.
BPM is a structure, methodology
to streamline business process to
increase efficiency.
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Why BPM
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Because of huge competition it
is difficult to survive without
improving business processes,
customer may select alternative
supplier
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Journal
Posting
Unadjusted trial balance
Adjustment
Adjusted trial balance
Closing
Financial statement
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Create customer value
Monitor
Improvement to stay in
competition
Information technology
Recording
Pick release
Shipping
Invoice
Receipt
Reconciliation
Purchase
cycle
transaction
Production dept.
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Purchase order
Request quote
Quotation
Compare
Invoice
Receipt
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payment
Financial
Transaction
cycle
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resources
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Operation &Financial
planning
Allocation of
monitoring
Report
Risk to job
False sense of
security
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Customer satisfaction
Cost saving
Competitive edge
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Benefits of BPA
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A/cing transaction
cycle
Transaction layer
Create long-term future
Create short-term cost
effectiveness
Initiate continuous
improvement
Introduce a knowledge of
product
Re-engineer the business
Address the cultural
barriers
Introduce leadership
At highest level
At second level
At third level
Operational
business processes
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Challenges in
implementation of BPA
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Interfaces with customer is
growing
Product, service and price
options have increased
Budgets
Automation not only
implementing technology,
It is about automating the
business process
New way of working, monitoring
& managing
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BPM practices
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Appoint ownermanager
Bonus to employee
Bottoms-up
Co-operationapproach
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Radical
IT use
Training
Types of relationship
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One to one
One to many
Many to one
Many to many
Allows enterprises to devise
process centric IT solutions
Accomplish IT enabled business
process change
Closer business involvement
Ability to integrate people &
systems
Monitor, control & improve
business
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Job- people may
become jealous
False sense of security
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Record transaction: In journals
Safeguarding organizational
assets
Impact of IT on BPM
Risk of BPA
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Basic
Collect & store data
functions
Benefits of BPMS
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Automated
Coupling
Free
Cost-savings
Compliances
Business risk of failure
of IT
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Top management
Outdated
Gap analysis
Over-engineering
Not flexible
Software failure
Deficient project
Insufficient resources
Inadequatetraining
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Comprises of primary &
supportive activities
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Primary- inbound, outbound
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logistics, operations, sales &
services
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Secondary- procurement, human
resource management,
technology dept, &
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infrastructure
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Information as a Business
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Fundamental re-thinking, and
radical re-design of existing
business process
To achieve dramatic
improvement, in critical,
contemporary measures of
performance such as cost,
quality, service, & speed.
Achieve 80-90% transformation
'Clean slate approach'
Major improvements
Asset
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ERD
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BPR
VCA
AIS
Challenges of BPA
Anything that converts
input into output
Eg: sales, purchase,
accounting, customer care,
logistics etc
Sales transaction
cycle
Customer order
BPM principle
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Need for BPM
implementation
Different levels of
BPM
BPA
Process
Stand for entity relationship diagram
Developed before database
development
To Connect 2 different entities, there
is a need of relationship
Must be available, accessible
service within organization by
continuous updating the old
database system
useful, digital, accessible,
relevant, accurate,
trustworthy, searchable,
understandable, & shareable
Treated as a valuable
commodity
Allow decision-makers to
better an organization's
performance
Decision-making process can
be badly hampered
without effectively
management of information
BPR success factors
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Organization wide
commitment
BPR team composition
Business needs analysis
Adequate IT infrastructure
Effective change
management
Ongoing continuous
improvement
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Approaches to
mapping system
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Entity relationship
Data flow
Systems flow
System outline
Decision tree
Decision table
Parts of decision-table
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Condition stub
Action stub
Condition entries
Action entries
BY- CA SWAPNIL PATNI