Using MIS 3e Chapter 7Chapter PreviewStudy QuestionsWhy Is Business Process Management Important to Organizations?Why Is Business Process Management Important To Organizations?Why Is Business Process Management Important to Organizations?BPMStages of the BPM CycleSlide 9Scope of Business Process ManagementFunctional ProcessesSlide 12Cross-Functional ProcessesSlide 14Interorganizational ProcessesSlide 16How Do Organizations Solve Process Problems?How Do Organizations Solve Process Problems?Slide 19BPMN Process Diagram of Top-Level Business Processes at MRVBusiness Process Modeling Notation (BPMN)Task Assignments: Business Process with Three Swim LanesMRV Assemble & Ship Equipment Process (As-Is Diagram)Three Ways of Changing Business ProcessesSlide 25Slide 26Slide 27Slide 28Role of Information Systems in Business ProcessesIS Alternatives for Implementing the Register Clients ActivityInformation Systems for Facilitating Linkages Among ActivitiesProcess Linkage Problem for MRVSlide 33Equipment Database Resource Completely AutomatedSlide 35Most Common Functional Applications Used TodayCommon Functional ApplicationsSales and Marketing ApplicationsOperations ApplicationsPrincipal Operations ApplicationsManufacturing Information SystemsSlide 42Slide 43Bill of Materials ExampleManufacturing-Scheduling ApplicationsSlide 46Customer Service ApplicationsHuman Resource ApplicationsAccounting ApplicationsBOM for a Child’s Toy WagonSlide 51Problems of Functional ProcessesProblems Created by Islands of Automation or Information SilosSlide 54Functions and Characteristics of CRM Information SystemsScope of CRM in Value Chain ActivitiesFour Phases of the Customer Life CycleMajor Components of CRM ApplicationsCRM Centered on Integrated Customer DatabaseSlide 60Functions and Characteristics of Enterprise Resource Planning (ERP) Information SystemsERP Applications and the Value ChainERP FactsERP CharacteristicsSlide 65Example of SAP Ordering ProcessBenefits of ERPHow Is an ERP System Implemented?ERP ImplementationSlide 70Q8 2020?Non-SOA Business Model: Uses Titles, Not ServicesSOA Showing Two ServicesEncapsulationStandardsEthics Guide: Dialing for DollarsEthics Guide: Dialing for Dollars, Scenario 1Ethics Guide: Dialing for Dollars, Scenario 2Ethics Guide: Dialing for Dollars, Scenario 3Guide: The Flavor-of-the-Month ClubGuide: ERP and the Standard, Standard BlueprintsSlide 82Active ReviewCase Study 7: Process Cast in StoneCase Study 7: Process Cast in StoneSlide 86Business Process Management David KroenkeUsing MIS 3eChapter 7Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall7-2•Explore information systems within an organization, extend the business process discussion from Chapter 3, and work from the general to the specific. •We begin with an overview of business process management, a systematic approach that modern businesses use to review and improve their business processes. •Next, we’ll discuss the three ways of fixing business processes. •Then, we’ll examine the role information systems play in business processes, and conclude the chapter with specific examples of information systems. •We’ll survey functional IS and discuss the two most important cross-functional IS: Customer Relationship Management (CRM) and Enterprise Resource Planning.(ERP).•MRV has a process problem that has caused Mr. Butterworth to become “not a happy camper.” We’ll use that example to illustrate concepts in this chapterChapter PreviewCopyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall7-3Q1 Why is business process management important to organizations?Q2 How do organizations solve process problems?Q3 What role do information systems play in business processes?Q4 What are the most common functional applications used today?Q5 What are the problems with functional information systems?Q6 What are the functions and characteristics of customer relationship management (CRM) information systems?Q7 What are the functions and characteristics of enterprise resource planning (ERP) information systems?Q8 2020? Study QuestionsCopyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall7-4•Processing of an order at a typical online retailer. Figure 7-1 shows a Web page for REIWhy Is Business Process Management Important to Organizations?Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall7-5Tasks for processing an orderFigure 7.2Why Is Business Process Management Important To Organizations?Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall7-6•Processing an order crosses departmental boundaries.•Credit card processing, shipping, scheduling extend to other companies.•Business processes and IS must evolve as business changes.•VideoWhy Is Business Process Management Important to Organizations?Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall7-7•Business Process Management (BPM)Systematic process of creating, assessing, altering business processes.•Four stages of BPM1.Create model of business process components•Users review and adjust model•“As-is model” documents current process; it is changed to solve process problemsBPMCopyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall7-8Stages of the BPM CycleCopyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall7-92. Create system componentsUses five elements of IS (hardware, software, data, procedures, people)3. Implement business process4. Create policy for ongoing assessment of process effectivenessAdjust and repeat cyclesMRV never designed its processes, had no assessment programBPMCopyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall7-10Insert Figure 7-4 hereScope of Business ProcessManagementCopyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall7-11•Functional processes involve activities within a single department or function. •Examples are accounting, human resources, sales forecasting, and other processes that are contained in a single department. •BPM is easier to accomplish with functional processes: A single department manager has authority over all of the activities and the resources assigned to them. If the department decides to change a business process, the change and attendant problems are localized within that manager’s authority.Functional ProcessesCopyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall7-12•Problem with