BUS303: Strategic Information Technology

Process management should be an enduring element of an enterprise. Organizations need to continually evaluate about both their larger goals and the fine details of the steps that they take to achieve those goals. Process management provides support across this broad spectrum, as illustrated by Exhibit 10. Process management has become a basic requirement for nearly all organizations because it provides a methodical and systematic set of procedures for continuous improvement. It charts the roadmap to the future for most organizations.

In order for process management to be successful, there must be a person responsible for this task within the organization. Typically, the appointee is called a process manager. In addition, there can be process owners for key organizational processes. Process management occurs in parallel with the traditional functional structure of an organization. Thus, there is no need for a fundamental structural change, but there is a need to introduce new roles and recognize that management of a process often must span functional boundaries because processes span these boundaries.

Process management must support an organization's strategic success factors. Successful process management can create a competitive advantage and provide administrative efficiencies. It can also increase an enterprises’ innovativeness when applied to areas such as research and development.

In general, the success of process management is dependent on the skill of the process analysts, who must be supported by appropriate tools for modelling and analysis. Successful automation of processes is reliant upon a number of systems, such as a workflow system, a process management system, or the quality of the information system in which the processes are embedded.

A five stage model can be applied for introducing business process management. The stages are completed sequentially.

1. Preliminary study: Those responsible for making the change are identified. A process manager is nominated for each process. The extent of the project should also be established at this stage as it might not be sensible to model all processes in an entire enterprise in one project. 
2. Process modeling and documentation: All the elements (clients/customer, customer request, output, supplier, request to the suppliers, input, work capacity, etc.) of each process are recorded in a process model. This work is directed by the appropriate process manager. As well, the span and limits of these processes are documented. 
3. Measuring achievement: Only a measurable process is controllable, so appropriate metrics must be determined for each process. These metrics should be highly objective and easily measured. Once the metrics have been defined, they should be measured for each process. 
4. Active steering: Active steering (or controlling of a process) means that a process is managed to ensure high customer satisfaction, deviation from the predetermined goals is minimized, and problems are identified quickly and corrective action taken immediately. A sound measurement system will help in recognizing problems promptly and provide data for their rapid resolution. Active steering will increase customer satisfaction and efficiency and lower costs. 
5. Continuous process improvement: Technological change and a dynamic business environment create the need for continuous process improvement. Organizations should strive to continually raise the quality of processes by reducing errors and required resources for execution. Errors in products and processes should not be tolerated and processes should be monitored constantly to identify opportunities for further improvement and lowering of costs. 

Process management started with the Japanese concept of Lean Management, and now we have a wealth of approaches to process management. Organizations are increasingly combing process management and information systems to increase their efficiency and effectiveness. They realize that they need to redesign their processes first before automating them if they are to gain the greatest benefit from information systems.

Firms adopting process orientation can transform in many ways, including positive changes in:

• consumer orientation 
• competence orientation 
• concentration on creating added value 
• effectiveness and efficiency 
• delegation of responsibility and empowerment 
• support for organizational learning 

Business process management has become a core competency for many organizations and is thus closely related to strategic management. In addition, there is a strong linkage between information systems and process management. On the one hand, information is needed for the performance of processes, and on the other hand, new information is created by processes. Once again, we see evidence of the critical role of information systems in organizational success. Indeed, in today's information intensive economy, process management and information systems are critical partners in organizational success.

Exhibit 23: Steps in process management