Page 56 - DCAP302_ENTERPRISE_RESOURCE_PLANNING

Enterprise Resource Planning

notes introduction

Business process re-engineering is one approach for redesigning the way work is done to better
support the organization’s mission and reduce costs. Re-engineering starts with a high-level
assessment of the organization’s mission, strategic goals, and customer needs. Basic questions are
asked, such as “Does our mission need to be redefined? Are our Basic questions are asked, such as
“Does our mission need to be redefined? Are our strategic goals aligned with our mission? Who
are our customers?” An organization may find that it is operating on questionable assumptions,
particularly in terms of the wants and needs of its customers. Only after the organization rethinks
what it should be doing, does it go on to decide how best to do it.
In this unit, we will discuss the concept of BPR and its advantages and challenges.
A business process or business method is a collection of related, structured activities or tasks
that produce a specific service or product (serve a particular goal) for a particular customer or
customers. It often can be visualized with a flowchart as a sequence of activities.
figure 3.1: Business process

Information Resource Goal

<<supply>> <<supply>>
<<goal>>

<<Process>>
Event Output
Business Process

A business process:
1. Has a Goal;
2. Has specific input;
3. Has specific output;
4. Uses resources;
5. Has a number of activities that are performed
in some order;
6. May affect more than one organizational unit.
Horizontal organizational impact;
7. Creates value of some kind for the customer.
The customer may be internal or external

A business process:
1. Has a Goal
2. Has specific inputs

3. Has specific outputs
4. Uses resources
5. Has a number of activities that are performed in some order
6. May affect more than one organizational unit. Horizontal organizational impact
7. Creates value of some kind for the customer. The customer may be internal or external.

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