ITECH 5404 : Business Process Analytics and Change : Describes a Set o
Answer:
The Porter process categorization model is a value chain model which describes a set of processes and components which add value to an end service or product. The organization is viewed as a system with sub systems. Each consists of input, transformative processes, and output, which utilize resources such as raw materials and labour. The model divides the activities into two generic categories that a business should follow in their pursuit of profits; primary activities and supporting activities. The figure below depicts the model.
Figure 1: The Porter categorization mode
1.1.1Primary activities
These are the basic activities that guide the whole value chain procedure and include:-
- Inbound logistics- This involves all activities geared towards the receiving, storing and dissemination of input to be transformed into end products
- Operations- These are the processes required to actually transform inputs into finished goods and/or services (output)
- Outbound logistics- This involves the collecting, storing and distributing the end product/service to the consumer
- Marketing and sales- These are activities that reach out to potential buyers and inform them about the available end products/services. They also facilitate the buying of the final product.
- Services- These are activities which are necessary to keep the product/service effective to the buyer after selling or delivering it to them.
These are activities which support the primary activities and include:-
- Procurement- This is the acquisition of materials, and/or services from external sources to be used in the value chain
- Human resource management- Involves activities related to the recruitment, hiring, training and laying off of staff involved in the value chain of the organization.
- Technological development- This involves the employment of equipment, hardware, software and technical know-how to transform input into final products/services.
- Infrastructure- This consists of activities which support the whole value chain process and include strategic management, finance, accounting, legal and public affairs and quality control.
The capability maturity model outlines how much an organization’s processes and practices are capable of achieving the desired outcome (Bayreuth et al., 2012). It involves a sequential set of stages which show the maturity level of the processes and practices, with the top most level provisioning for process optimization and improvisation.
The capability maturity model was originally developed by the US department of defence to assess a contractor’s ability to deliver high quality software in time and within budget limits. This was due to many failures, delays or overstretching of the budget due to project complexity.
Even though the model was originally meant for software projects, it has been widely adopted in business process management to assess how effective the business processes are in ensuring that the desired end product/service (output) is achieved through the value chain. The processes are continually reviewed and improved as is deemed necessary.
The capability maturity model has five aspects in which it focuses. These include:-
- Key process areas- A key process area is a set of logically related activities which are intended to achieve a specific goal or a set of goals
- Goals- These are the preplanned results that are expected from a key process area
- Common features- These are practices that implement a key process area. Examples include measurement and analysis and verification of implementation.
- Key practices- These are the most effective practices employed in the implementation of key process areas
- Maturity levels- These are the five levels, which according to the Software Engineering Institute include initial (chaotic), repeatable, defined, capable and efficient, which is the topmost level.
The practical applications of a capability maturity model are description, prescription and comparison. For descriptive purposes, the current business processes are described just the way they are whereby no attempts for improvisations are made. For prescriptive purposes the model identifies desirable maturity levels and how to implement potential improvements. Lastly, the comparative purpose allows for internal or external assessment of the business processes.
2.3 Case function matrix
Figure 2: Case/function matrix of Bellatra dental clinic
CASES
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New patients |
Ongoing general dental patients |
Ongoing orthodontic and cosmetic patients |
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Business functions |
Processes |
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Arrival of patient |
Complete sign in register (reception) |
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Complete confidential patient information form, medical history and patient photo |
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Enter information into online database (administration staff) |
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Acquire updates to confidential information and medical history |
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Enter details and care updates into patient’s electronic care record |
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Conduct comprehensive exam |
Take x-rays on site |
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Take offsite specialist panoramic dental x-rays |
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Give full report |
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Give schedule of care, copy of x-rays and dental care package |
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Give initial treatment |
Confirm medical history |
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Give medication |
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Follow up treatment appointment |
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Give maintenance care |
Discuss medical history |
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Examine and clean teeth |
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Take onsite x-rays |
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Perform bi-monthly check up |
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Perform twice yearly check up |
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Release patient |
Process payment (accounts staff) |
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Check private health insurance |
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Book all ongoing patients for next appointment |
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From the customer support process model it can be seen that the 7PGM’s first guideline has been applied, in that it has utilized as few elements as possible. The second and third guidelines have also been observed by keeping the elements’ paths to a minimum and by using a single start and end event. Finally, the model has been kept as structured as possible by connecting split connectors to join connectors.
2.7 7PGM discussion for: Conduct comprehensive exam
The 7PGM’s first guideline has been observed by keeping elements in the process model to a minimum. The second and third guidelines have also been observed by keeping the elements’ path to a minimum and by using a single start and end event. The fourth guideline has also been applied by keeping the model as structured as possible, that is the split connector has connected to a join connector. Finally, the sixth guideline has been observed by using the verb-object activity label.
2.8 Cycle time for: Arrival of patients
It takes approximately thirty minutes for a new or ongoing patient to complete sign in register, to give details and information and pass it on to administration to enter into the relevant databases.
2.9 Cycle time for: Conduct comprehensive exam
For the general dental patients it takes 90 minutes to take x-rays and get a full report. However, orthodontic and cosmetic dental patients have to be sent offsite for x-rays to be taken whereby results come back to the clinic after 7 days. This is the longest time in the model. Therefore, the cycle time is 7 days.
2.10 Redesign for: Arrival of patients
Unlike in the previous process model, all data entry is done by reception, thus eliminating the need for passing the details to administration.. The new process model will be as follows:
2.11 Redesign for: Conduct comprehensive exam
With the redesign for the new process model, there is no need to send the patient to the offsite laboratory for x-rays. The specialist x-rays will be done on site, reducing the cycle time for getting x-ray results and submitting a report to the orthodontic and cosmetic dental patients. The new model will be as follows
Conclusion:
Business process modeling and reengineering is a very beneficial tool to the organization for continually improving their services and products. From the above reengineered business process model the Transnational bank stands to benefit in a number of ways which include:-
- Faster customer service
- Reduced costs of operation
- More time for management to be customer oriented
- Increased profits
Introduction:
Business organizations and enterprises continually face the challenge of providing better products and services to their clients and customers and therefore outdoing their competitors (Phiphopsuthipaiboon and Boonsiri, 2016). This also means that they get to keep their current customers, gain new ones and generally expand their business to make better profits.
At the core of these business practices are business processes. A business process is a set of logically related activities which accept input and produce output at the end of their execution. Business process modeling is the discipline by which enterprises and organizations manage these processes in a cycle of analysis, design, and implementation. It has gained prominence among SMEs in the recent decades as it continues to be adopted (Dallas and wynn, 2014). The typical aims of the business process model is to speed up execution, attain flexibility and reduce costs. Business process redesign on the other hand, focuses on analyzing an existing process model, identifying its flaws and proposing a new one.In this document both BPM and BPR are used to come up with the prescriptive process model to be adopted.
As business process models keep increasing in size, they need to be managed through a business process architecture, which is a means to structure a collection of business process models (Dijkman et al., 2012). This structuredness tends to have a lot of benefits for largescale software engineering, among them being reusability and understandability (Dumas et al, 2012).
References:
Dallas, I., & Wynn, M. T. (2014). Business process management in small business: a case study.
In Information Systems for Small and Medium-sized Enterprises (pp. 25-46). Springer Berlin Heidelberg.
Dijkman, R. M. Designing a Process Architecture-A Concrete Approach. Technical report, TU
Eindhoven.
Dumas, M., La Rosa, M., Mendling, J., Mäesalu, R., Reijers, H. A., & Semenenko, N. (2012,
June). Understanding business process models: the costs and benefits of structuredness. In International Conference on Advanced Information Systems Engineering. Springer, Berlin, Heidelberg.
Dumas, M., La Rosa, M., Mendling, J., & Reijers, H. A. (2013). Fundamentals of business
process management. Heidelberg: Springer.
Eid-Sabbagh, R. H., Dijkman, R., & Weske, M. (2012, September). Business process
architecture: use and correctness. In International Conference on Business Process Management (pp. 65-81). Springer, Berlin, Heidelberg.
Phiphopsuthipaiboon, S. (2016). BUSINESS PROCESS REENGINEERING-CASE STUDY ON
COMPUTER CENTER SERVICE (Doctoral dissertation, Chulalongkorn University).
Röglinger, M., Pöppelbuß, J., & Becker, J. (2012). Maturity models in business process
management. Business Process Management Journal, 18(2).
Rosemann, M., & vom Brocke, J. (2015). The six core elements of business process
management. In Handbook on business process management 1 (pp. 105-122). Springer Berlin Heidelberg.
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