Chapter 7--Business Process Management

Business Process Management(BPM) - systematic process of creating,assessing,and altering business processes.
As-is Model- documents the current situation and then change that model to make adjustments necessary to solve process problems.
Functional Processes-involve activities with a single department or function
Islands of automation- work in isolation from one another.
Cross-functional processes- involve activities among several or even many,business departments.
Object Management Group(OMG)- created a standard set of terms and graphical notations for documenting business processes.
Process designers can increase the performance of a business process in three fundamental ways:
1. they can add or remove resources to a given process without changing.
2. designers can change the structure of a process without changing resource allocations
3. Designers can do both.
A functional application is a computer program that supports or possibly automates the major activities in a functional process.
Operations applications are especially prominent for non-manufacturers such as distributors.wholesalers, and retailers.
Order-entry application obtains customer contact and shipping data,verifies customer credit,validates payment method, and enter the order into a queue for processing.
Order-management applications track the order through the fulfillment process,arrange for and schedule shipping,and process expectations.
Inventory applications support inventory control and inventory management.
Manufacturing planning applications help businesses allocate inventory and equipment to manufacturing processes.
A bill of materials(BOM) is a list of the materials that comprise a product.
Materials requirements planning- an application that plans the need for materials and inventories of materials used in the manufacturing process.
Manufacturing resource planning- a follow-up to MRP that includes the planning of materials,personnel,and machinery.
A customer relationship management is a cross-functional application that tracks all interactions with the customer from prospect through follow-up service and support.
Customer life cycle: marketing,customer acquisition,relationship management, and loss/churn.
Service is a repeatable task that a business needs to perform.
Encapsulation places the logic in one place,which is exceedingly desirable.