Management Information System

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Using MIS 3e
Chapter 7
Business Process Management
David Kroenke

Q1 Why is business process management important to organizations? Q2 Q3 Q4 Q5 Q6 Q7 Q8 How do organizations solve process problems? What role do information systems play in business processes? What are the most common functional applications used today? What are the problems with functional information systems? What are the functions and characteristics of customer relationship management (CRM) information systems? What are the functions and characteristics of enterprise resource planning (ERP) information systems? 2020?

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Chapter Preview
• Explore information systems within an organization, extend the business process discussion from Chapter 3, and work from the general to the specific. We begin with an overview of business process management, a systematic approach that modern businesses use to review and improve their business processes. Next, we’ll discuss the three ways of fixing business processes. Then, we’ll examine the role information systems play in business processes, and conclude the chapter with specific examples of information systems. We’ll survey functional IS and discuss the two most important crossfunctional IS: Customer Relationship Management (CRM) and Enterprise Resource Planning.(ERP). MRV has a process problem that has caused Mr. Butterworth to become “not a happy camper.” We’ll use that example to illustrate concepts in this chapter Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 7-2

Why Is Business Process Management Important to Organizations? • Processing of an order at a typical online retailer. Figure 7-1 shows a Web page for REI



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Why Is Business Process Management Important To Organizations? Tasks for processing an order Figure 7.2

BPM
• Business Process Management (BPM) Systematic process of creating, assessing, altering business processes. • Four stages of BPM 1.Create model of business process components • • Users review and adjust model “As-is model” documents current process; it is changed to solve process problems

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Why Is Business Process Management Important to Organizations? • Processing an order crosses departmental boundaries. • Credit card processing, shipping, scheduling extend to other companies. • Business processes and IS must evolve as business changes. • Video

Stages of the BPM Cycle

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BPM
2. Create system components
Uses five elements of IS (hardware, software, data, procedures, people)

Functional Processes
• Functional processes involve activities within a single department or function. • Examples are accounting, human resources, sales forecasting, and other processes that are contained in a single department. • BPM is easier to accomplish with functional processes: A single department manager has authority over all of the activities and the resources assigned to them. If the department decides to change a business process, the change and attendant problems are localized within that manager’s authority.

3. Implement business process 4. Create policy for ongoing assessment of process effectiveness Adjust and repeat cycles

MRV never designed its processes, had no assessment program

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Scope of Business Process Management

Functional Processes
• Problem with functional processes is...
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