m00340020220114128m0034-pt02-business processes

7/31/2019 M00340020220114128M0034-PT02-Business Processes

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Course Name : M0034 - Information and Business Process

Year : 2011

Business ProcessesSession 2


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Learning outcome

Student will able to describe the model of business process


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Learning objectives

After studying this chapter, student will able to :

Describe alternative organizational structures and theirstrengths, weaknesses, and implications for

organizational operations.

Define and give examples of a business process.

Discuss the benefits of organizations adopting abusiness process perspective.


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ORGANIZATIONAL DESIGNOrganizational design(also called organisational structure or hierarchy)

The organization of a business enterprise through the

structure of the relationships, interactions and reportingresponsibilities among staff.

Functional perspective

A view of organizational design that emphasiseshierarchical reporting roles, narrowly specified worker

roles and an emphasis on departments.


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ORGANIZATIONAL DESIGN

Business functionA specific subset of the organization that is designed to

perform a particular task that contributes to theorganization achieving its objectives.


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WHAT ISA BUSINESS PROCESS?

Business processAny set of interlocking activities that work together, across

the organization, to achieve some predetermined

organizational goal, which is typically defined around

satisfying customer needs.


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TABLE 2.1 Functional versus process perspective

Functional perspective Process perspective

Focus What is done e.g.accounting, sales, logistics

How is it done

Orientation Vertical, hierarchical Horizontal, across theorganization

Objective Task driven Customer drivenPersonnel Specialists perform highly

defined tasks

Generalists perform tasks

across the process

Sources: Base on Sandoe, Corbitt & Boykin 2001.32


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WHAT IS

A BUSINESS PROCESS?Business process within the organization

Business processes are the key to any organization.

Businesses do not operate without a process that can

be followed, with examples including processes to orderraw materials within a manufacturing firm, manufactureproducts, sell products to customers, handle customerenquiries and hire new employees.

Each of these broad processes will be an integral part of

an organization, because, for example, without themanufacturing process the organization has no goods tosell and without the purchasing process, theorganization has no raw materials to convert intofinished goods.


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Examples

Sales

Aim: To sell goods to the customer and collect cashfrom sales.

Participants: Sales staff, customer, billing staff,warehouse.

Inputs: Sales order.

Outputs: Invoice, receipt, shipping document.


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Purchasing

Aim: To acquire goods from suppliers and managestock in order to sell to customers and avoid stock-outs.

Participants: Warehouse staff, purchasing staff, salesstaff, vendor.

Inputs: Purchase requisition, back-order.

Outputs: Purchase order.


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WHY

BUSINESS PROCESS?

What are the benefits of organizations adopting a business processperspective?

Resource benefits flow from having a process emphasis.

These emerge due to the more highly coordinated and integratedapproach that the process perspective offers an organization, reducingwasted time due to rework, bureaucracy and administration.

The business process perspective can yield benefits through improvedcustomer service and customer relations, a value-adding emphasis and,

potentially, a competitive advantage. Because processes are usually based around the product and therefore

the customer, customer satisfaction, attention and service are potentiallyhigher in a process-focused organization.


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m00340020220114128m0034-pt02-business processes

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