• Internal Code :
  • Subject Code : PROJ6009
  • University : Laureate International Universities
  • Subject Name : Management

Business Process Management

Introduction

In system engineering and business process management, business process modelling (BPM) is the activity of illustrating processes of a business in order to analyse, improve and automate the current process. Business model provides a framework for the development of economic, social and other forms of value under a wide range of formal and informal processes to represent key aspects of the business. Business process, on the other hand, is the collection of structured activities which can produce a specific product or service for particular customers or customer (Chang, 2016). The management of business process focuses on aligning the said needs of customers with organizational objectives to promote business effectiveness and efficiency. This report presents a critical analysis of the role of business process management in King ICT Company. In addition to this, the report also evaluates commonly used approaches for the management of business processes, along with the risks associated with them and their implementation plan.

The King ICT Company

The main domain of ICT business is to deliver, implement and integrate IT business solution s and provide respective IT support. King ICT is one of the biggest system integrators in the business and its portfolio includes consultancy services, services for implementation and development of ICT infrastructure and IT solutions, services for information systems dimensioning, and technical support and maintenance. The policy of the company states that the implementation and development of IT solutions, project management and customer care have to be of the highest quality.  This means that the business process of the business should continually analyse and improve the underlying methodology.

The company socializes in advance ICT solutions and is part of the M SAN group which includes more than 30 affiliated companies. The company operates in a wide variety of business objectives such as energetics, education, trade, telecommunications, transport, agriculture and judiciary (King ICT, n.d.). In terms of business operations, King ICT is closely connected with global partners and its processes are in accordance with international quality management standards. The integration processes are led by experts recommended by PMI.

Role of BPM in King ICT Company

Business process and practices are rapidly changing, especially in the ICT industry, in which constant innovation required additional measures to keep up with the changing pace of market needs and available technology. Business process management would bring flexibility in its operations which would facilitate the adaptation of business in respect of market needs (vom Brocke, Zelt & Schmiedel, 2016). Moreover, BPM in King ICT would increase efficiency by making business processes more visible which in turns, makes it easier to find and rectify inefficiencies. This helps to improve organizational efficiency and save resources. 

Compliance with relevant standards and transparency is another crucial aspect of ICT business, and it is necessary for King ICT to engage in the same. Implementation of BPM ensures that the company earns the capability of implementing relevant regulations, and prevent and delays in the compliance process which saves money by avoiding fines and makes the entire process more transparent. As already mentioned, the company provides IT integration services to its customers. Business process management can enhance communication among IT and business users, and eliminate misunderstandings. BPM allows the business to shift its focus from the application to the actual process and integrate the technology in a streamlined manner.

4 Key Methodologies for Process Management

Six Sigma

It is a set of tools and techniques used  for business process improvement. Six Sigma methodology seeks to improve the process quality by identifying the causes of defects and reducing the impact of variability in business processes and manufacturing. It uses a mix of statistical and quality management methods.
The implementation plan in the Six Sigma approach begins with a pilot project to identify defects in the business process. Then training is provided to team members and a plan is formed for implementation (Yoon & Jung, 2017). The pilot project sets the initial steps and necessary changes are made accordingly. After completion of the pilot project, evaluation forms the basis for further continuation. In terms of risk, Six Sigma generates a large amount of data and is a complicated and time-consuming procedure which increases the risk of errors and also increases the cost of the project. 

Lean 

Lean and six sigma are complementary methodologies, while six sigma is about quality control, lean focuses on decreasing the time between activities for optimization. Lean methodology aims to remove, or at least reduce the wastage in business processes. There are mainly 8 types of wastage considered under lean methodology, namely, defects, overproduction, waiting, non-utilized talent, transportation, inventory, motion, and extra processing (Laureani & Antony, 2019). 
Lean implementation plan includes identification of value, mapping the value stream, creating flow and establishing pull. After that, continuous improvements are made to improve the overall process. This process is not without its own disadvantages. There is an inherent problem of inventory in lean methodology, along with difficulty to change and a high implementing cost (Yoon & Jung, 2017).

Reengineering

Unlike other process improvement models, reengineering fundamentally changes business processes. This makes in extremely expensive, risky and time-consuming (Binci, Belisari & Appolloni, 2019). The implementation process in reengineering includes the following steps:

  1. Identifying and communicating the need for change.

  2. Putting together a team of experts.

  3. Finding the inefficient processes and defining key performance indicators (KPI).

  4. Reengineering the processes and comparing them with KPIs.

As-is and To-be

This model first defines the current state of the business process (As-is process) in an organization in order to identify the areas of improvement. However, it only deals with the identification and does not necessarily provide information as to how the said improvement should be made (Beynon-Davies, 2018). After the As-Is process, the To-be process defines the future state fo the business process, which is the ideal state of how the management wants its business to function.
The business process management of King ICT Company will use the As-is and T0-be approach to identify the issues in its current state and to determine required changes in the business processes. 

Business process model of King ICT Company

Under BPM, “As-is” and “To-be” process analysis are used to determine the current business operations of the company and what the management want the process to look like. While as-is process outlines the current state of business processes and the helps to identify and gaps and issues associated with the current model, to-be process mapping documents what the process would look like once the identified issues are resolved.

The below-mentioned diagrams illustrate the AS-IS process diagram of various processes in the company.

Phase 1 – Administration

Diagramatic Representation of AS-IS Process- Administration

The administration phase in the business process involves sales activities and negotiation between the sales department and customers which leads to acceptance and contracting.

Phase 2 – Project initiation and planning

Diagramatic Representation of AS-IS Process- project planning

Phase 3 – Project realization and control

Diagramatic Representation of AS-IS Process- project control

Phase 4 – Project closure

Diagramatic Representation of AS-IS Process- project closure

Sub-process: Project realization

Diagramatic Representation of AS-IS Process- sub process

Based on the analysis of current processes in King ICT, it is inferred that there are inconsistencies in its processes of project delivery management which includes the delivery of hardware, software and integration of IT services in projects. Thus, the implementation of an integrated IT system is suggested to improve the deliverables and to improve organizational efficiency. The implementation of the proposed IT system integration will be executed in three phases, namely, consolidation of virtualization and ICT platform, implementation of private cloud and finally, the implementation of an integrated ICT system.

The below-mentioned diagrams illustrate the To-be process diagram of various processes in the company. 

Phase 1 - Administration

Diagramatic Representation of TO-BE Process- Administration

Phase 2 – Project initiation and planning

Diagramatic Representation of TO-BE Process- Project Initiation

Phase 3 – Project realization and control

Diagramatic Representation of TO-BE Process- project control

Phase 4 – Project closure

Diagramatic Representation of TO-BE Process- project closure

Sub-process: Realization

Diagramatic Representation of TO-BE Process- sub process

The proposed consolidation of ICT platform includes virtualization of hardware infrastructure which will provide confidential and reliable IT platform to the company and is the centralized foundation for the cloud environment. It reduces the need for hardware equipment and decreases the total cost of ownership. Moreover, the implementation of cloud computing enables the company to establish a central access for IT tool, irrespective of the device, time or place.

Conclusion

In conclusion, modern companies like King ICT dispose of a large volume of business data and face issues related to their management. The success of King ICT depends on the effective management of its data which includes data collection, processing and transferring. From the analysis of the current "as-is" business model of the company, it was inferred that the implementation of modern IT solutions will significantly improve its business processes. Therefore, the proposed "to-be" models suggest the implementation of private cloud and automation to improve the business process of King ICT Company. The proposed integration of IT systems in the business processes will result in effective management and automation of delivery processes, which includes delivery and implementation of "hardware" projects and delivery of IT services. In addition to this, it will improve business performance in terms of cost reduction and increased profit. The business automation, improved business efficiency and minimized error risk will also help to increase the satisfaction of organizational employees.

References

Beynon-Davies, P. (2018). Characterizing business models for digital business through patterns. International Journal of Electronic Commerce, 22(1), 98-124.
Binci, D., Belisari, S., & Appolloni, A. (2019). BPM and change management. Business Process Management Journal.
Chang, J. F. (2016). Business process management systems: strategy and implementation. CRC Press.
King ICT. (n.d.).About us. Retrieved from http://www.king-ict.com/en/about-us
Laureani, A., & Antony, J. (2019). Leadership and Lean Six Sigma: a systematic literature review. Total Quality Management & Business Excellence, 30(1-2), 53-81.
vom Brocke, J., Zelt, S., & Schmiedel, T. (2016). On the role of context in business process management. International Journal of Information Management, 36(3), 486-495.
Yoon, J. H., & Jung, J. Y. (2017). Integration of Six Sigma and BPM for Continuous Process Improvement. The Korean Journal of Bigdata, 2(1), 5-15.

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