Defining a Business Process Optimization Project

Contents

Introduction. 3

Business Process Optimization. 4

Conclusion. 8

Glossary. 9

Bibliography. 10

Introduction

Traditional business has realized that “faster”, “better”, “cheaper” are not the only variables consumers weigh when making buying decisions. Superior product service has become a key business process. Companies such as General Electric, led by Jack Welch, have evolved from a product-based company into a services company that makes high quality, innovative products. To dominate an industry, an organization must continually create innovations and remain agile in order to respond quickly to change and effectively execute any changes. They need to have the ability to pursue strategic initiatives with confidence including alliances, acquisitions, outsourcing, and global expansion. They also need the means to consolidate their business during economic downturns, using cost effective new tools for business process integration. Achieving these outcomes first requires equipping executive management with process controls and accurate information to make educated decisions for strategic course corrections and realignment. Once decisions are made, these Business Process Optimization projects require an organization to examine and pursue opportunities to reduce costs, cycle times, while increasing service levels or product quality.

Business Process Optimization

Defining a Business Process Optimization Project

Business process optimization initiatives depend on the competitive environment an organization faces within their industry. For example, customer service value chain processes are very important in the financial services and government sectors where interaction with the customer is a main concern. Customer friendly applications to enable the access to information, manage finances and buy financial products are important features for financial service providers such as banks, insurance companies, and brokerage houses. Conversely, the top priorities facing many manufacturing companies focus toward supply chain programs and customer demand for self-service and access to information.

Regardless of the industry, a company’s process optimization project must identify ways to make their business processes manageable, with formalized, actionable information about how, and how well, the process is executing. Not unlike any other project, a business process optimization project must define the scope of the process to eliminate confusion and set the project boundaries. It will identify the process improvement goals such as cycle time reduction, customer service improvement, and/or cost reduction, etc. It will identify the deliverables such as process maps, time studies, systemic enhancement opportunities, to name a few. Additionally, it will allocate the required resources including subject matter experts to define existing process strengths, weaknesses, opportunities, and threats. And, it will set a timetable for the development and execution of process optimization enhancements.

Date: 2015-12-24; view: 889