What is a Business Process ??
Business Process is a collection of interrelated tasks, which accomplish a particular goal for organization. There are three types of business processes:
1. Management processes: These are processes that govern the operations of a system. Typical management processes include "Corporate Governance" and "Strategic Management".
2. Operational processes: These are the processes that constitute the core business and create the primary value stream. Typical operational processes are Purchasing, Manufacturing, Marketing, and Sales.
3. Supporting processes: These are the processes to support the core processes.
Examples include Accounting, Recruitment, Technical support.
A business process can be decomposed into several sub-processes, which have their own attributes, but also contribute to achieving the goal of the super-process. The analysis of business processes typically includes the mapping of processes and sub-processes down to activity level. Activity is the smallest level of individual work that can be done in an organization.
Business Processes are designed to add value for the customer and should not include unnecessary activities. The outcome of a well designed business process is increased effectiveness (value for the customer) and increased efficiency (less costs for the company).
A business process begins with a customer’s need and ends with a customer’s need fulfillment.
So then What is BPMS ??
Yaaa.. it is what DBMS for DB to Business Process :-) .
Don't worry ..... BPMS is the software wrap around these processes to manage them properly.
oooh Then how it manages ??
It's a 5 step process (Lets call it Life cycle)
design, modeling, execution, monitoring, and optimization.
Lets see what they do individually
Design
Process Design encompasses both the identification of existing processes and designing the "to-be" process. Areas of focus include: representation of the process flow, the actors within it, alerts & notifications, escalations, Standard Operating Procedures, Service Level Agreements, and task hand-over mechanisms.
Good design reduces the number of problems over the lifetime of the process. Whether or not existing processes are considered, the aim of this step is to ensure that a correct and efficient theoretical design is prepared.
Modelling
Determines how the process that we considered in Design phase might operate under different circumstances like What if I have 75% of resources to do the same task? What if I want to do the same job for 80% of the current cost? Etc.,
Execution
Automating a process definition requires flexible and comprehensive infrastructure which typically rules out implementing these systems in a legacy IT environment. Here BRE seems to be a good option. Because Business rules have been used by systems to provide definitions for governing behavior, and a business rule engine can be used to drive process execution and resolution.
Monitoring
Monitoring encompasses the tracking of individual processes so that information on their state can be easily seen and statistics on the performance of one or more processes provided. An example of the tracking is being able to determine the state of a customer order (e.g. ordered arrived, awaiting delivery, invoice paid) so that problems in its operation can be identified and corrected
Process mining is an interesting area to look forward here. It is something like applying Data mining techniques to Process data. The aim of process mining is to analyze event logs extracted through process monitoring and to compare them with an 'a priori' process model. Process mining allows process analysts to detect discrepancies between the actual process execution and the a priori model as well as to analyze bottlenecks.
Optimization
Process optimization includes retrieving process performance information from modeling or monitoring phase and identifying the potential or actual bottlenecks and potential rooms for cost savings or other improvements and then applying those enhancements in the design of the process thus continuing the value cycle of business process management
2. Operational processes: These are the processes that constitute the core business and create the primary value stream. Typical operational processes are Purchasing, Manufacturing, Marketing, and Sales.
3. Supporting processes: These are the processes to support the core processes.
Examples include Accounting, Recruitment, Technical support.
A business process can be decomposed into several sub-processes, which have their own attributes, but also contribute to achieving the goal of the super-process. The analysis of business processes typically includes the mapping of processes and sub-processes down to activity level. Activity is the smallest level of individual work that can be done in an organization.
Business Processes are designed to add value for the customer and should not include unnecessary activities. The outcome of a well designed business process is increased effectiveness (value for the customer) and increased efficiency (less costs for the company).
A business process begins with a customer’s need and ends with a customer’s need fulfillment.
So then What is BPMS ??
Yaaa.. it is what DBMS for DB to Business Process :-) .
Don't worry ..... BPMS is the software wrap around these processes to manage them properly.
oooh Then how it manages ??
It's a 5 step process (Lets call it Life cycle)
design, modeling, execution, monitoring, and optimization.
Lets see what they do individually
Design
Process Design encompasses both the identification of existing processes and designing the "to-be" process. Areas of focus include: representation of the process flow, the actors within it, alerts & notifications, escalations, Standard Operating Procedures, Service Level Agreements, and task hand-over mechanisms.
Good design reduces the number of problems over the lifetime of the process. Whether or not existing processes are considered, the aim of this step is to ensure that a correct and efficient theoretical design is prepared.
Modelling
Determines how the process that we considered in Design phase might operate under different circumstances like What if I have 75% of resources to do the same task? What if I want to do the same job for 80% of the current cost? Etc.,
Execution
Automating a process definition requires flexible and comprehensive infrastructure which typically rules out implementing these systems in a legacy IT environment. Here BRE seems to be a good option. Because Business rules have been used by systems to provide definitions for governing behavior, and a business rule engine can be used to drive process execution and resolution.
Monitoring
Monitoring encompasses the tracking of individual processes so that information on their state can be easily seen and statistics on the performance of one or more processes provided. An example of the tracking is being able to determine the state of a customer order (e.g. ordered arrived, awaiting delivery, invoice paid) so that problems in its operation can be identified and corrected
Process mining is an interesting area to look forward here. It is something like applying Data mining techniques to Process data. The aim of process mining is to analyze event logs extracted through process monitoring and to compare them with an 'a priori' process model. Process mining allows process analysts to detect discrepancies between the actual process execution and the a priori model as well as to analyze bottlenecks.
Optimization
Process optimization includes retrieving process performance information from modeling or monitoring phase and identifying the potential or actual bottlenecks and potential rooms for cost savings or other improvements and then applying those enhancements in the design of the process thus continuing the value cycle of business process management
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