Chapter 2

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 ManagementBusiness Process Reengineering
Automates and reuses the existing processesRecreates processes from the scratch
Risk is lowRisk is high
Change is continuousOne big and radical change is done
Time taken for implementation is comparatively lessIt takes lot of time to be implemented
Business and IT collaboration is mustBusiness and IT collaboration is optional
BPMS/BRE are the technology usedBased on workflow and EAI
One or more process can be simultaneously taken and worked uponOne major process is taken and worked upon at a time
BPM leads to asset optimizationSometime BPR leads to lay offs
Does not have any effect on the culture of the organizationDuring implementation cultural issues become a major concern
Outcome is continuous and incrementalOutcome is drastic
Less expensiveMore expensive
 

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