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Chapter 8

4 August, 2015 - 12:26
1. What does the term business process mean?
   

a. A process is a series of tasks that are completed in order to accomplish a goal. A business process, therefore, is a process that is focused on achieving a goal for a business.

2. What are three examples of business process from a job you have had or an organization you have observed?
   

a. Students can answer this in almost any way. The examples should consist of morethan a single step.

3. What is the value in documenting a business process?
   

a. There are many answers to this. From the text: it allows for better control of the process, and for standardization.

4. What is an ERP system? How does an ERP system enforce best practices for an organization?
   

a. An ERP (enterprise resource planning) system is a software application with a centralized database that is implemented across the entire organization. It enforces best practices through the business processes embedded in the software.

5. What is one of the criticisms of ERP systems?
   

a. ERP systems can lead to the commoditization of business processes, meaning that every company that uses an ERP system will perform business processes the same way.

6. What is business process reengineering? How is it different from incrementally improving a process?
   

a. Business process reengineering (BPR) occurs when a business process is redesigned from the ground up. It is different from incrementally improving a process in that it does not simply take the existing process and modify it.

7. Why did BPR get a bad name?
   

a. BPR became an excuse to lay off employees and try to complete the same amount of work using fewer employees.

8. List the guidelines for redesigning a business process.
   

a. The guidelines are as follows:

     

i. Organize around outcomes, not tasks.

     

ii. Have those who use the outcomes of the process perform the process.

     

iii. Subsume information-processing work into the real work that produces the information. Treat geographically dispersed resources as though they were centralized.

     

iv. Link parallel activities instead of integrating their results.

     

v. Put the decision points where the work is performed, and build controls into the process.

     

vi. Capture information once, at the source.

9. What is business process management? What role does it play in allowing a company to differentiate itself?
   

a. Business process management (BPM) can be thought of as an intentional effort to plan, document, implement, and distribute an organization’s business processes with the support of information technology. It can play a role in differentiation through built-in reporting, and by empowering employees, enforcing best practices, and enforcing consistency.

10. What does ISO certification signify?
   

a. ISO certification shows that you know what you do, do what you say, and have documented your processes.