22-Mar-17

Business Process Management

Lecture #2
Brief history of business process
management

T. Aria Auliandri, MSc.

aria@feb.unair.ac.id

Lecture #2
Brief history of business process management

History of managements focus on business

processes.
The iceberg syndrome
What is business process management?
Why is it important to improve business
processes before automating them?
Use of external BPM experts

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History of managements focus on business processes.

1980s there was a considerable focus on Total Quality

Management (TQM).
Exceeding the customers expectation
In the early 1990s by Business Process
Reengineering (BPR) as promoted by Hammer and
Champy.
Radical Change Process Improvement
Mid- and late 1990s, Enterprise Resource Planning
(ERP) systems gained organizational focus
Systemized Resource Allocation
in the early 2000s, many Customer Relation
Management (CRM) systems were rolled out.
Managing the Interaction with Customer

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History of managements focus on business processes.

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The iceberg syndrome

The iceberg syndrome

BPM is often like an iceberg; people and
organizations only see what is above the
water.
People often see the perception
component as the completion of pretty
pictures or process models, whereas
reality is addressed in the implementation
of these processes and the achievement of
business benefits.
An excellent strategy is of no use unless it is
well executed.

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What is business process management?

more than just software
more than just improving or reengineering
your processes it also deals with the
managerial issues
not just hype it is an integral part of
management.
more than just modeling it is also about
the implementation and execution of these
processes, which requires analysis.

Why is it important to improve business

processes before automating them?

The first rule of any technology is that

automation applied to an efficient operation
will magnify the efficiency.
The second is that automation applied to an
inefficient operation will magnify the
inefficiency.

(Bill Gates, Microsoft Corporation)

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When should you do BPM ?

a high volume of similar and repetitive transactions
a clear flow of high-volume transactions that need to
be passed from one person to another, with each
adding some value along the way
a need for real-time monitoring of transactions (a
need to know a transaction status at all times)
a critical issue with processing time that is, time is of
the essence
a need to complete many calculations within the
transaction
transactions or files need to be accessible by
many parties at the same time.

Management of business processes

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Use of external BPM experts

Setting up a project, program or Center of
Business Process Excellence.
Monitoring the progress of a project, program
or Center of Business Process Excellence.
Monitoring the performance of the business and
identifying areas for improvement.
Conflict resolution and project/program revival.
Support for the manager.
Evaluating (or auditing) project(s) and
program(s).

SUMMARY

Lecture #2
Brief history of business process management

History of managements focus on business

processes.
The iceberg syndrome
What is business process management?
Why is it important to improve business
processes before automating them?
Use of external BPM experts

7
 22-Mar-17

Thank You.

Any suggestion, feedback, comments:

tuwanku@gmail.com
aria@feb.unair.ac.id