BUSINESS PROCESS MANAGEMENT AND PROCESS MODELLING IN 5431
BUSINESS PROCESS MANAGEMENT AND PROCESS MODELLING IN 5431 IT AND MANAGEMENT JON IDEN 10. 3. 21
Purpose, learning ourcome You will know what a business process is, and how we use this approach in digitalization You will know what characterize a process-oriented organization You will know the basics of process modelling and how to draw a process model
The limitations of the organizational chart • Focus on functions and managers • Organizational changes has little effects on operational work and work performance • No one has the overview of the end-to-end processes • Where is the customer? 4
What is business process management? 5
What do firms apply business process managent for? Standardize practize Controll how work is conducted Digitalization Be more effective Increase the quality on performance and output 6
What motivates firms? What is your organization’s main motive for Digi business process management? # Percent Increase customer satisfaction 37 23. 3 Increse effectiveness 36 22. 6 Increase quality 30 18. 9 Compliance (ISO sertification) 26 16. 4 Increase control 15 9. 4 Reduce costs 7 4. 4 Increase adaptability 2 1. 3 Other 6 3. 8 159 100 In total (N) Brennhovd og Flatebø, 2017 taliz ation BPTrends (2016): 1. Reduce costs 2. Improve products and services 3. Increase customer satisfaction For employees, management and customers 7
What is a process? A process model made with RIS (roller i samarbeid) 8
The lay-out of a RIS-model 9
O p e r a t i v p r o s e s s l e d e l s e Make a process model for handling a travel settlement The following roles take part: Traveler, Manager, Accountant • Traveler fills out a travel invoice, and send it to manager by internal mail • Manager checks the travel invoice to see if the corrects rates have been used, and if the travel expenses are in accordance with what was agreed. Then she signs. She returns the travel invoice to the traveler by internal mail. • Traveler makes a copy of the signed travel invoice and achieves the copy. The original is forwarded to accountant by internal mail. • Accountant checks the completion to see if the use of the rates is correct and that it has been summed correctly. She also checks that the expenses have been entered into the correct account. • Accountant registers the information from the travel invoice in the financial system. The financial system automatically ensures that traveler receives his receivables at the next salary payment. 10
O p e r a t i v p r o s e s s l e d e l s e Lag en prosessmodell for behandling av reiseoppgjør Følgende roller deltar: Reisende, Leder, Regnskapsmedarbeider • Reisende fyller ut reiseregning. Reiseregning sendes til leder i internpost • Leder kontrollerer reiseregning for å se om det er brukt riktige satser, og om reiseutgiftene er i samsvar med det som var avtalt. Deretter signerer hun. Leder returnerer reiseregning til den reisende i internpost • Reisende tar en kopi av signert reiseregning, og arkiverer kopien. Originalen sendes videre til regnskapsmedarbeider i internpost • Regnskapsmedarbeider kontrollerer utfyllingen for å se om bruken av satsene er korrekt og at det er summert riktig. Hun kontrollerer også at utgiftene er ført på riktig konto • Regnskapsmedarbeider registrerer opplysningene fra reiseregningen i økonomisystemet. Økonomisystemet sørger automatisk for at reisende får sitt tilgodehavende ved neste lønnsutbetaling 11
What is a process? Det flere personer fra ulike enheter i organisasjonen til sammen utfører for å behandle en sak fra den oppstår til den er ferdigbehandlet og overlevert kunden, inklusiv de ressurser som benyttes og de regler som regulerer behandlingen, omtaler vi som prosess. What several persons from different organizational units do together in order to process a case from the beginning until it is complete and handed over to the customer, inclusive the resources necessary and the rules that regulate the processing, do we refer to as a process. Iden, J. (2018). Prosessledelse. 2. utgave. Bergen: Fagbokforlaget 12
Roles Relations Rules Resources 13
What is a process? In process management, we are concerned with everything that is part of the process, and that this is seen as a whole, both in design, management and in improvement 14
What do we mean by everything? What does a process consist of? My working model. Iden, J. (2018). Prosessledelse. 2. utgave. Bergen: Fagbokforlaget, Iden, J. (2009). Businss Process Management. IPA AS 15
What do we mean by everything? What does a process consist of? My working model. Iden, J. (2018). Prosessledelse. 2. utgave. Bergen: Fagbokforlaget 16
Process examples • Purchase - from identified a need to received item • Invoice processing - from received invoice to payment • Life insurance - from application to issued policy • Non-life insurance - from notification of damage to settlement • Employment - from identified need to employment • Order processing - from received order to delivered item • Travel invoice - from completed travel invoice to reimbursed expenses 17
One digitalization example: Purchase – from order to payment I 18
One digitalization example: Purchase – from order to payment II 19
How do we improve a process? Etablering Kartlegging Analyse og omforming Implementering Forvaltning Initiating Understanding Analyzing and redesigning Implementing Managing 20
Robotic Process Automation - RPA Performs digital tasks A digital worker Mimics what a human being does in front of the computer Rule-based tasks with a predetermined result 21
RPA – selling ads in sykepleien. no Roald et al. , (2017). Automatisering av annonsesalg i Sykepleien. Prosjektoppgave i STR 453 Digitalisering, våren 2017, NHH. 22
Robotic Process Automation – the developer’s environment 23
But what really is a process? A sequence of activities? A process is simply a structured, measured set of activities designed to produce a specified output for a particular customer or market Davenport, T. (1993). Process Innovation. Boston. HBS Press Or both? An organization? A collection of roles that cooperate to reach a goal Iden, J. (2009). Business Process Management. The RIS Methodology. Bergen: IPA AS Iden, J. (2018). Prosessledelse. Bergen. Fagbokforlaget A process model i the quality system versus living humans ----- Documented practice versus real practice 24
It is all about seeing the organization in a new way Away from the one-sided focus on my unit and my tasks, to a focus on our processes and our deliveries; our shared responsibility 25
The characteristics of a process-oriented organization Process awareness Managers and employees know the processes in the company and see them as central units in the organization Process ownership The company has process owners who ensure that the processes are appropriately designed and that they function in accordance with the goals set. Process metrics The company has set goals for each process, and systematically collects information about performance and results Continuous process improvement On a continuous basis, and on the basis of information obtained about goal achievement and relevance, the company changes the processes as needed Iden, J. (2018). Prosessledelse. 2. utgave. Bergen: Fagbokforlaget 26
How do you shape process awareness? The process chart 27
The literature discusses different 'types' of processes • Primary processes • Support processes • Management processes Processes are different: • Few roles - many roles • Few cases - many cases • Simple matters - complex matters • Not very resource-intensive - resource-intensive • Internal - external Porter’s value chain (1985). The foundation for many process charts. But what is the problem with that? 28
Summary • A process designates how a task is performed in an organization, from the beginning to the end. Including roles, relationships, rules and resources • We draw process models in order to understand the present situation and to envisage how we want the future process to be • A process-oriented organization is characterized by process awareness, process ownership, process metrics and continuous process improvement • Hint: practice process modelling. This is central to digitalization 29
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