ISI2B3 - Pemodelan Proses Bisnis

Process Identification
Prodi Sistem Informasi – Fakultas Rekayasa Industri
 Objective

01. Understand the application of business

processes at different organizational levels

02. To discussed the process identification

phase of the BPM lifecycle

03. Distinguished the two steps of process

definition, process architecture
definition and process selection
 Please,
read page 40 to 42
 Business Process

Business Process

Business Process Business Process Continuous

Automation
Business Process
COSTLY
Business Process
Monitoring
Business Process

Business Process
BPM Lifecycle Process
identification

Process
Process architecture
architecture

Conformance
Conformance and
and Process As-is
As-is process
process
performance
performance insights
insights discovery model
model

Process
monitoring and Process
controlling analysis

Executable
Executable Insights
Insights on
on
process
process weaknesses
weaknesses and
and
model
model their
their impact
impact

Process Process
implementation To-be
To-be process
process redesign
model
model
 Process identification steps
1. Designation step
○ Enumerate main processes Process
○ Determine process scope Architecture

2. Prioritization step (aka Process selection)

Prioritize processes based on:
Prioritized
○ Importance
Process
○ Health
Portfolio
○ Feasibility

After Davenport (1993)


FIRST
differentiate categories of
processes
SECOND
describe different relationships
between processes that are
important for a process
architecture
THIRD
present a method for defining
the process landscape as a top-
level representation of the
process architecture
Process Architecture Definition
Process identification is
concerned with two steps: ● The aim of a process
process architecture
definition and selection architecture is to provide a
of processes. representation of the
processes that exist in an
organization.
● The process architecture
has to face the complexity
of the whole organization.
There are three way in order
to approach this complexity
in a systematic way.
01. Process
FIRST
Categories
differentiate categories of
processes
 Porter: Types of processes

Management
Processes

Customers / Stakeholders
Suppliers / Partners

Core Processes

Support Processes

After Michael Porter (1985)

 Process Categories
One of the most influential categorization schemes is Porter’s Value Chain model. It originally distinguished two categories of
processes: core processes (called primary activities) and support processes (support activities). Management processes were added
as a third category.
proses bisnis utama

CORE PROCESSES SUPPORT PROCESSES MANAGEMENT PROCESSES

• Core processes cover the essential
value creation of a company, is the
production of goods and services
for which customers pay.
• include design and development,
manufacturing, marketing and
sales, delivery, after-sales, and
direct procurement
penentuan
ketentuan-ket
• Support processes enable the • Management processes provide entuan
execution of these core processes. directions, rules, and practices for dalam
the core and support processes.
proses bisnis
singkronisasi
• include indirect procurement, • include strategic planning,
human resource management,
antara
budgeting, compliance and risk
support agar
information technology management, as well as investors, bisa
management, accounting, financial suppliers, and partners mendukung
core process
management, and legal services. management.
aturan maupun praktik bagaimana core dan
proses bisnis pendukung
support berjalan
 Core, Management and Support Processes

Management processes Sign

provide direction, rules and Contracts
practices
Establish
Sourcing Plan
Evaluate
Vendors
Procedure Vendors
Process

Core processes
Fill Order Process
generate value as they
are directly linked to Receive Approve Deliver
Fill Order
external customers Order Order Order

Reorder
Supplies
Support processes provide
Stock Process Order
resources to be used by other Supplies Supplies
processes
Receive
Supplies
Process Architecture Example [ Wholesaler ]

Strategic
Management

Logistics Suppliers
Management Management
Warehouse Demand
Management Management
Process
Management processes group

Direct
Sales Distribution
procurement

Marketing Service
Core processes
Indirect
Finance IT HR
procurement
Support processes
Process Architecture Example [ Insurance company ]

Strategic
Management
Corporate Market Investor
Development Development Relations
Management processes

Risk Assessment & Management

Marketing & Sales

Underwriting Policy Claims
Management Servicing Management
Payments Collection and Disbursement
Assets Management
Core processes

Finance/ Legal/
Reinsurance IT HR
Treasury Audit
Support processes
02. Relationship
Between
SECOND
describe different relationships
between processes that are
important for a process
Process
architecture
 SEQUENCE
there is a logical sequence
between two processes.
horizontal relationship.
This means that one process
provides an output that the
other process takes as an
input.
DECOMPOSITION
there is a decomposition in which one
specific process is described in more
detail in one or more subprocesses.
vertical or hierarchical
relationship.
often used as the primary
relationship that defines the
structure of the process
architecture.
Each element of this process
landscape model is decomposed
into a more detailed process on
the next level.
SPECIALIZATION
there exist several variants of a
generic process.
Instance, there might be a
generic process for handling
job applications in a multi-
national company.
Variants are not only defined
for different legal contexts,
but also for different
categories , services and
types of customers or
suppliers.
VALUE CHAIN
 Value Chain
“Value chains are a well-known approach in business administration to
organize the work that a company conducts to achieve its business goals.“

Michael Porter The value chain is based on a functional organization of an

enterprise, where the activities that are conducted are organized into
“Value chains were developed to organize
business functions.
high-level business functions and to relate
them to each other, providing an
understanding of how a company
operates.” Functional Decomposition  an important concept to capture and
manage complexity
The process of breaking
down a coarse-grained
function into finer-grained
In order to fulfill their business goals, companies functions
cooperate with each other, that is, the value chains of
these companies are related to each other The ordering of the value chains in a value
system loosely follow the overall impression
the modeller wants to communicate with
the value system.
 Value Chain
Value System Each value system consists of a number
The ecology of the value chains of cooperating enterprises. of value chains, each of which is
associated with one enterprise.

Value System Value System with interaction arcs

 Value Chain

Secondary/Support
Functions provide the
environment in which the
primary functions can be
performed efficiently.

Primary Functions
contribute directly to the
competitive advantage of the
company.
 Value Chain – Primary Function
Inbound Logistics
Business functions that collectively make sure the company receives raw material, goods and
information, required for performing its business. Inbound logistics interact significantly with business
partners to request quotations, to collect and select offers, to negotiate contracts, to organize
transportation, and to manage incoming goods and information.

Operations

Operations aggregate business functions responsible for producing added-value products that
contribute directly to the revenue of the company.

Outbound Logistics

Outbound logistics take care of distributing these products to warehouses or other distributing
centers so that they can be distributed to the customers.

Marketing and Sales

The business functions for marketing the company’s products and for selling them in a
competitive market are organized. The typical function in this primary business function is
organizing and conducting a campaign to market a new product.

Services

Once a product is sold, the company needs to keep in touch with buyers, both to
cater to problems with the sold product and to provide valuable customer
information for developing and marketing future products.
 Value Chain Modeling
● Chain of processes an organization performs to deliver
value to customers and stakeholders
● More generally, a mechanism to group high-level
business processes according to an order relation (can
be applied to core, support and management processes)

business
process
Procure-to-service

order
relation
Typical value chains for core processes

Stocked
products:
Example: Producer

Specializations
MTO
products:

ETO
products:
Example: value chain of non-core processes
Support processes

HR:

Accounting:

Management processes

Suppliers
management:

Risk
management:
Example: process architecture & value chains
Wholesaler
Strategic
Management

Warehouse Logistics
Management Management
Suppliers Demand
Management Management
Management processes
Chevron: Direct
Sales Distribution
Box:
collapsed procurement groups
value chain Procure-to-Service
processes/
Marketing Service value chains
Core processes

Indirect
Finance IT HR
procurement
Support processes
03. Reuse of
reference
THIRD
present a method for defining
Model
the process landscape as a top-
level representation of the
process architecture
 it difficult to identify processes of an organization and the levels of a process architecture. It might be helpful
to use reference models as an aid.
These reference models are developed by a range of industry consortia, non-profit associations,
government research programs, and academia.

01
Information Technology
03
Process Classification Framework (PCF)
Infrastructure Library (ITIL) by AXELOS by the American Productivity
and Quality Center (APQC)

02
Supply Chain Operations
04Performance Framework
Reference Model (SCOR) by APICS by Rummler & Brache
APQC PCF Overview

Category
 APQC Classification Framework

Group

Activity

Process group
 Process
Architecture
[ Result ]
Process Architecture: hierarchical view
Level 1
Process
Landscape

Process hierarchy
Level 2
Main
Processes
(e.g. BPMN)

Level 3+
Subprocesses, Tasks
(e.g. BPMN)
 Example: Hierarchical Process Architecture
Insurance company Strategic
Management
Level 1
Corporate Investor
Development Relations

Management Processes
Risk Assessment Market
and Management Development

Sales and Marketing

Underwriting Policy Claims

Management Servicing Management

Collections and Disbursement

Asset Management
Core Processes
Finance/ Legal/
Reinsurance IT HR
Treasury Audit

Enabling Processes
 Example: Hierarchical Process Architecture
Insurance company
Level 2

Strategic Corporate Marketing Investor

Management development development relations
Process
group
Define Define offering Plan
Design & manage
business concept & and customer investor
corporate policies
long-term vision value proposition relations

Develop
Define pricing
Build Process
Manage
business investor subgroup
knowledge strategy
strategy relations

Manage Manage Manage

Define and manage
strategic change & investor
channel strategy
initiatives improvement relations

Manage Communicate
partners with stakeholders

Manage
investments &
divestments

Management processes
Example: Hierarchical Develop Define offering

Process Architecture
business and customer Process
strategy value proposition subgroup
Define
Develop overall
offering and
mission statement
positioning

Main
Evaluate strategic Develop value
options proposition process
Insurance company Level 3
Select
Validate value
long-term business
proposition
strategy

Coordinate
Develop
functional and
new branding
operational strategies

Align
functional and
operational strategies

Create
organisational
design

Develop
organisational
goals

Formulate
business unit
strategies

Management processes
 Example: Hierarchical Process Architecture
Insurance company
Level 4

Develop overall Main

mission statement
process
Define
current business

Formulate Subprocess
mission

Communicate
mission

Management processes
Gracias!