The document provides an overview of organization and business process concepts from a guest lecture. It introduces the presenter's background and outlines the agenda which includes organization mission/vision, strategy/design, core business, customers/suppliers/partners, and business processes. Business processes are defined as sets of tasks to achieve outcomes. The document also discusses business functions, activities, and the use of systems to manage operations. Finally, it covers business process management, reengineering, and drivers for process improvement.
1. Organization and Business Process
Guest Lecture for Bina Nusantara University, June 26 2013
GoutamaBachtiar
Advisor, Global Innovations and Technology Platform
T: @goudotmobi
3. Presenter Profile
15 years of working experience: 12 years of Training and
Education, 8 years of IT Audit, 7 years of strategic partnership, 8
years of writing, 6 years of consulting, software
development, project management and network administration
Advisor at Global Innovations and Technology Platform
Head of Information Technology at Roligio Group
Subject Matter Expert at ISACA International Chapter
Program Evaluator at Project Management Institute
Columnist and contributor at Asia Tech Site e27.co, Forbes
Indonesia, The Jakarta Post, DetikINET and InfoKomputer among
others
4. Today’s Agenda
Organization Mission and Vision
Organization Strategy and Design
Business Activities
Business Process
Business Process Management
Business Process Reengineering
6. Vision
Provides guidance about what core to preserve
and what future to stimulate progress toward
Consists of two major components
Core ideology defines what we stand for and
why we exist (values and purposes)
The envisioned future is what we aspire to
become, to achieve, to create—something that
will require significant change and progress to
attain (10-30 years of Big Goal w/ description)
7. Vision (cont’d)
Example of core ideology: Hewlett-Packard
Code of ethics ‘HP Way’ has guided the company since its
inception more than 50 years ago
It includes a deep respect for the individual, a dedication
to affordable quality and reliability, a commitment to
community responsibility
Packard himself bequeathed US$4.3 billion of his stock to
a charitable foundation and a view that company exists
to make technical contributions for advancement and
welfare of humanity
8. Vision (cont’d)
Example of vision: Coca Cola
People: Be a great place to work where people are
inspired to be the best they can be
Portfolio: Bring to the world a portfolio of quality
beverage brands that anticipate and satisfy people's
desires and needs
Partners: Nurture a winning network of customers and
suppliers, together we create mutual, enduring value
9. Vision (cont’d)
Planet: Be a responsible citizen that makes a
difference by helping build and support sustainable
communities
Profit: Maximize long-term return to shareowners
while being mindful of our overall responsibilities
Productivity: Be a highly effective, lean and fast-
moving organization.
10. Vision (cont’d)
Example of vision:
Walt-Disney company
Be the leader in the delivery of entertainment
experiences
Be the premier channel for sports experiences
and information
11. Vision is also dynamic
Example of vision:
Walt-Disney company
Be the leader in the delivery of entertainment
experiences
Be the premier channel for sports experiences
and information
12. Mission
It declares organization purpose
A statement why an organization exists
Serves as the standard against which the
organization weigh their actions and decisions
Short and very clear
Walt Disney company "Make People Happy” It
didn't say make it through animation, or theme
parks, or interactive experiences
13. Mission (cont’d)
Example: Coca Cola
To refresh the world...
To inspire moments of optimism and
happiness...
To create value and make a
difference
14. Values
Serving as compass for company actions and
describe how they behave in the world
Example: Coca Cola
Leadership: The courage to shape a better future
Collaboration: Leverage collective genius
Integrity: Be real
15. Values (cont’d)
Example: Coca Cola
Accountability: If it is to be, it's up to me
Passion: Committed in heart and mind
Diversity: As inclusive as our brands
Quality: What we do, we do well
19. Core Business
The primary area a company was
founded on or focuses on in its
business operations
Even though leading the
growth, market leaders usually
opens their doors for new business
opportunities
20. Core Business (cont’d)
The primary area a company was
founded on or focuses on in its
business operations
Even though leading the
growth, market leaders usually
opens their doors for new business
opportunities
21. Core Business (cont’d)
Key facts
Organization
A US multinational company based in Palo Alto, California
Segment
Consumer, commercial and enterprise
Industry
Computer Hardware, Computer
Software, Consulting, Information Technology and
Services
Type: Public
Founded: 1939
Employees: 332,000
22. Core Business (cont’d)
Key facts
Presence in 70 countries
Groups: Imaging and Personal Systems, Enterprise Business
Divisions: Financing, Hardware, Software, Services
Core Business: providing IT hardware, software, solution and
services
Total Assets: US$109B
Total Equity: US$23B
Total Revenue: US$120B
Operating Income: (US$11B)
Net Income: (US$12.7B)
23. Organization Strategy
How an organization needs to evolve over
time to meet its objectives along with a detail
assessment of what needs to be done
First comparing its present state to its targeted
state to define differences and then stating
what is required for the desired changes to
take place
24. Organization Design
Aligning organizational and position structures with
organization strategic mission and objectives
Review and analyze organization’s
mission, functions, strategic objectives, work
processes, and workloads
Determine skills mix (occupational types, grade
levels, and numbers of positions in each
occupational category) required to achieve
strategic objectives
25. Organization Design (cont’d)
Identify functional interrelationships
Identify workflow and work process bottlenecks
and inefficiencies
Recommend work process and workflow
reengineering
Develop organizational structure and staffing
models that facilitate efficient and effective
achievement of strategic objectives
26. Customers
Individual or other organization willing to pay for our
products, either goods or services (differs it with
member, user, consumer)
Consumer (for daily activities perusal:
student, housekeeping wife, white-collar worker)
Corporate (for professional and Small Medium
Business (SMB) perusal:
staff, officer, supervisor, manager, director, CxO)
Enterprise (for companies perusal, in particularly big
companies)
27. Suppliers
Other type of organization that our organization or
company obtain their raw material, work-in-
process, finished good, product, or services:
Principal (hundred of OEMs:
AOC, Innolux, Samsung)
Vendor
Distributor
Manufacturer (Foxcon)
28. Partners
Other type of organization that our
organization or company deliver
finished good, product, or services:
Principal
Vendor
Distributor
(Datamation, TechKing, TixPro, Samafi
tro)
Manufacturer
29. Partners (cont’d)
Reseller (as Business Partners:
Asterindo, MDP, GadingMurni)
Systems Integrator (as Service
Partner: AGIT, BHP, MII)
Service Provider (as Support
Partner:
Infokomputra, Harrisma, Cahaya
Surya)
30. Business Process
A set of logically related tasks performed to achieve
a defined business outcome
Business outcome
Measureable with numbers and figures, usually
represented in financial terms
Business objective
Formed by business outcome. Maximizing value to
the company stockholders, financially and non-
financially
31. Business Process (cont’d)
1. Market-research process
2. New product offering realization process
3. Customer acquisition process
4. Customer relationship management
5. Order-fulfillment management process
6. …
32. Business Function
A process/operation performed routinely to carry
out a part of the mission of an organization
A description of work that is performed to
accomplish one or several business unit's
responsibility
In concrete, it’s pooled into department such as
Marketing, Finance, Human Resources, Logistics
Examples: delivering raw materials, paying
bills, receiving of cash and inventories
33. Business Activities
Any activity that is engaged in for
the primary purpose of making a
profit
Include things like
operations, marketing, production
and administration
Also known as "business
operations”
34. Business Activities (cont’d)
Business process that is a series of
activities spanning multiple
systems and applications
For example: implementing SAP
with Ariba, Oracle Database and
other applications (in-house or off-
the-shelf)
35. Business Activities (cont’d)
Needs computerized systems to monitor, manage
and provide real time info on status and results of
operations, processes, and transactions to
middle and upper management:
Business Activities Monitoring (BAM)
Enterprise Architecture (EA)
Business Process Management (BPM) in the later
stage
36. Rehearsing BPM
Strategic management approach to align
organization business processes aligned
with customer needs
Bringing in business effectiveness and
efficiency while striving for
innovation, flexibility and integration with
technology
Continuous process optimization process
37. Rehearsing BPM (cont’d)
Efficient, effective and more capable of
change
Influenced by Total Quality
Management (TQM) or Continuous
Improvement Process methodologies
Key drivers: People and (supported by)
Technology
38. BPM Business Drivers
Managing end-to-end, customer-facing
processes
Consolidating data and increasing visibility
into and access to associated data and
information
Increasing the flexibility and functionality of
current infrastructure and data
39. BPM Business Drivers
Integrating with existing systems and
leveraging emerging Service-
Oriented Architecture (SOA)
Establishing a common language for
Business-IT alignment
40. BPM Practice These Days
Focusing on objective to optimize a domain
identified as an area for improvement
In financial sector,itis critical to make sure the
system delivering quality service while
maintaining regulatory compliance
Shared/Dedicated Resource for BP or BPM
(governance, Chief Business Process Officer)
41. BPM Practice These Days
International standards limited to IT sector:
ISO/IEC 15944 covering operational aspects of
the business
Other standards
BPMN
Enterprise Architecture
Business Motivation Model
42. Commencing Business Process
Engineering
Known as Business Process Redesign, Business
Transformation and Business Process Change
Management
Business management strategy focusing analysis
and design of workflow and process
Helping organization to rethink their work to
improve customer service, operational cost to
become world-class corporation
43. Commencing Business Process
Engineering (cont’d)
60% Fortune500 companies have done it or
plan to do so
Comprehensive focus on business objectives
Radically restructuring their organizations
through ground-up design of business
processes
Full scale recreation of processes
44. Commencing Business Process
Engineering (cont’d)
Reengineering as an pretext to downsize
their companies dramatically
Earned a reputation for being synonymous
with downsizing and layoffs
Assumed the factor limiting an organization
performance is process ineffectiveness
45. Commencing Business Process
Engineering (cont’d)
Offered no means of validating the
assumption
Assumed the need to start the process of
performance improvement with a clean
state
Doesn’t focus on improvement in
organization constraint
Now Disney mission has changed into “to be one of the world's leading producers and providers of entertainment and information. Using our portfolio of brands to differentiate our content, services and consumer products, we seek to develop the most creative, innovative and profitable entertainment experiences and related products in the world."