Business Process Management- Test 1 Solved

Order-to-cash - ANSWER This is a process that starts when a customer places an order to purchase a product or service, and ends when the product or service in question has been delivered and the corresponding payment has been received. This process encompasses activities such as purchase order verification, shipment (in the case of physical products), delivery, invoicing, payment receipt and acknowledgment. Quote-to-order - ANSWER This process typically precedes the order-to-cash process. It starts from the point when a "request for quote" is received from a customer, to the point when the customer places a purchase order. The order-to-cash process takes the relay for that point one. The combination of this process and the corresponding order-to-cash process is called a quote-to-cash process. Procure-to-pay - ANSWER This is a process that starts when a stakeholder within an organization-- typically an employee-- determines that a given product or service has been delivered and paid for. This process includes activities such as approving the purchase, obtaining quotes, selecting a supplier, issuing a purchase order, receiving the goods (or consuming the service), checking and paying the invoice. This can be seen as the dual of quote-to-cash in the context of business-to-business interactions. For every of this process there is a corresponding quote-to-cash process on the supplier's side. Issue-to-resolution - ANSWER This is a process that starts when a customer raises a problem, such as a complaint related to a defect in a product or an issue encountered when consuming a service. The process continues until the customer, supplier, or preferably both of them, agree that the issue has been resolved. A variant of this process can be found in insurance companies that have to deal with "insurance claims." This variant is often called claim-to-resolution. The BMP Lifestyle - ANSWER 1. Process identification 2. Process discovery 3. Process analysis 4. Process redesign 5. Process implementation 6. Process monitoring and controlling Business Process - ANSWER Collection of related events, activities, and decisions that involve a number of actors and resources, and that collectively lead to an outcome that is of value to an organization or its customers. emph{outcomes} - ANSWER These deliver emph{value} to the key actors involved in the process. When the value is not achieved or is only partially achieved, that is a emph{negative outcome} as opposed to a emph{positive outcome} that delivers value to the actors involved. Fault-to-resolution - ANSWER BPM - ANSWER the art and science of overseeing how work is performed in an organization in view of ensuring consistent outcomes and identifying and taking advantage of improvement opportunities. BPM is not about improving the way individual activities are performed, but rather, it is about managing entire chains of events, activities, and decision that ultimately add value to the organization. BPM regroups a body of methods for managing business operations on the basis of process models. Process models - ANSWER represent the understanding that people in the organization have about how work is done or should be done. They act as bridges between business operations and IT systems. They allows us to understand how IT systems contribute to adding value to the organization by streamlining its work practices. Bill Gates's quote related to BPM - ANSWER "The first rule of any technology used in business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficency." Why BPM? - ANSWER BPM provides a natural ground for bridging IT and business, because many (perhaps most) IT projects in enterprises are ultimately aimed at improving a business process. IT does not yield business value. It enables process change that yields business value.