INFORMATION SYSTEMS AND THE MODERN ORGANIZATION
A business process or business method is a collection of related, structured activities or tasks that produce a specific service or product (serve a particular goal) for a particular customer or customers. It often can be visualized with a flowchart as a sequence of activities with interleaving decision points or with a Process Matrix as a sequence of activities with relevance rules based on data in the process.
There was a time when business environment used to be static, but now time changed and due to the cut throat competition in the market, change is now an everyday activity. This enormous change in the business processes gave rise to process automation and in turn to the terms like Business Process Management, Business Process Reengineering, and Enterprise Application Integration and so on.
Often people get confused with these technical terms and think of them as similar or substitute of each other. In this article I am trying to lay emphasis on two evergreen topics i.e. business process management and business process reengineering. In my last article I tried to describe the Business Process Reengineering but here focus will be on Business Process Management. I will also be doing comparison of BPM with BPR.
BPM versus BPR
To differentiate between BPM and BPR let us analyze them from different aspects:-
Business Process Management | Business Process Reengineering |
Automates and reuses the existing processes | Recreates processes from the scratch |
Risk is low | Risk is high |
Change is continuous | One big and radical change is done |
Time taken for implementation is comparatively less | It takes lot of time to be implemented |
Business and IT collaboration is must | Business and IT collaboration is optional |
BPMS/BRE are the technology used | Based on workflow and EAI |
One or more process can be simultaneously taken and worked upon | One major process is taken and worked upon at a time |
BPM leads to asset optimization | Sometime BPR leads to lay offs |
Does not have any effect on the culture of the organization | During implementation cultural issues become a major concern |
Outcome is continuous and incremental | Outcome is drastic |
Less expensive | More expensive |
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