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Recorded on : May 23, 2014

CA Intermediate (IPC) Course

Paper 7A: Information Technology

Chapter 1 : Business Process Management and IT –

Part 2

CA. Veena Hingarh

© The Institute of Chartered Accountants of India

Disclaimer Statement

• This lecture has been delivered by faculty members to supplement the

Study Material, Practice Manual and other content

• The views expressed in this lecture are of the Faculty Member.

• The content of this video lecture has not been specifically discussed by
the Council of the Institute or any of its Committees and the views
expressed herein may not be taken to necessarily represent the views of
3 the Council or any of its committees

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Recorded on : May 23, 2014
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Hence, students are advised to

refer to the Study Material
Due to changes in law, there is including Supplementary Study
likely to be some time gap Material, if any, and other
between these changes and the relevant legislation for latest
recording of updated lectures. provisions/ amendments
required for forthcoming

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Learning Objectives

To understand Classification of
the accounting Business
process flow Processes

Introduction to

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Accounting Process Flow

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Sales Process Flow

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Purchase Process Flow

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Financial Management Life Cycle

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Classification of Business Process

Organizational Business

Operational Business Process

Levels of business process


Source: “Business Process Management, Concepts, Languages and Architectures“

by Mathias Weske, Springer

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Organizational Business Processes

Inputs, outputs,
expected results, and Informal and
dependencies on other semiformal techniques
business processes

Multiple operational
processes contribute to Influenced by the
one organizational business strategy

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Organizational Business Processes

Source: “Business Process Management, Concepts, Languages and Architectures“

by Mathias Weske, Springer

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Operational Business Processes

Implemented business process

contain information on the
Basis of developing execution of the process
implemented business process activities and the technical and
organisational environment in
which they will be executed

To represent the relationships

between the organizational
Stakeholders are among the
business process, their
influential factors
dependencies are depicted by
a process landscape diagram

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Operational Business Processes

Source: “Business Process Management, Concepts, Languages and

Architectures“ by Mathias Weske, Springer
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BPM Technology

BPM = process and organization

(including people) as well as technology

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BPM Implementation

• A single process, a department, or entire company

• Process understanding, improvement, automation, re-
engineering, optimization

Methods to be used
• Six sigma, BPM Life Cycle, TQM, Informal methods

Skills required
• Consultants, Trained employees, formal certification, basic
education, existing skill set

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BPM Implementation

Tools to be used
• White-boards, sticky notes, software for mapping,
documentation, software for simulation,
comprehensive BPMS

Investments to make
• Training, tools, time

Sponsorship/Buy-in needed
• Executive level, Department level, Process Owner level,
Employee level

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Need for a BPM Implementation

Create shot-term cost

Create long-term future effectiveness and Initiate continuous
positioning improvement to current improvement
customer services

Introduce a knowledge
Re-engineer the Address the cultural
of product and
business radically barriers
customer profitability

Introduce leadership
and a role for managers
and empowered staff

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Need for a BPM Implementation – BPM leads to

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Business Process Management and IT

Question Time – Part 2

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Question 1: Business processes are broadly
classified into two categories which are:

A) Input and Output processes

B) Manual and Automated processes

C) Organizational and Operational business processes

D) Internal and External processes

Answer: C

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Question 2: Which of the following statements are
not true for organisational business processes:

B) Multiple operational C) Contain information on

A) They include informal
processes contribute to one execution of process
and semiformal techniques
organizational process activities

D) They are influenced by

Answer: C
the business strategy

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Question 3: Operational business processes
are represented by a:

A) Process Landscape Diagram

B) Flow Chart

C) Data Flow Diagram

D) Pie Chart

Answer: A

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Question 4: What term describes 'an approach supported by software
tools intended to increase process efficiency by improving
information flows between people as they perform business tasks'?

A) Business Process Automation

B) Business Process Re-engineering

C) Business Process Management

D) Business Process Improvement

Answer: C

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Question 5: Need for implementing BPM
does not include

B) Introduce a
A) Initiate continuous knowledge of product C) Increase the profit
improvement and customer of the organisation

D) Re-engineer the
Answer: C
business radically

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Thank you

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