Business Process & Business Models with reference to MIS

Anne Siddiqui Anil Kumar Babbar Aditi khanna Deepenshu Dua Anurag Gambhir 1

Management information system (MIS)

A management information system (MIS) provides information that organizations need to manage themselves efficiently and effectively Management information system are typically computer systems used for managing three primary components: technology, people (individuals, groups, or organizations), and data (information for decision making).
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Academically, the term is commonly used to refer to the study of how individuals, groups, and organizations evaluate, design, implement, manage, and utilize systems to generate information to improve efficiency and effectiveness of decision making, including systems termed decision support systems, expert systems, and executive information systems A management information system gives the business managers the information that they need to make decisions.

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An MIS supports a business' long range plans, providing reports based upon performance analysis in areas critical to those plans, with feedback loops that improve guidance for every aspect of the enterprise, including recruitment and training. MIS not only indicates how various aspects of a business are performing, but also why and where

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Originally, the term "MIS" described applications providing managers with information about sales, inventories, and other data that would help in managing the enterprise. Over time, the term broadened to include: decision support systems, resource management and human resource management, enterprise resource planning (ERP), enterprise performance management (EPM), supply chain management (SCM), customer relationship management(CRM), project management and database retrieval applications.
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Business process or Business method It is a collection of related, structured activities or tasks that produce a specific service or product (serve a particular goal) for a particular customer or customers. It often can be visualized with a flowchart as a sequence of activities with interleaving decision points as a sequence of activities with relevance rules based on the data in the process.

Types of business processes

Management processes, the processes that govern the operation of a system. Typical management processes include "Corporate Governance" and "Strategic Management". Operational processes, processes that constitute the core business and create the primary value stream. Typical operational processes are Purchasing, Manufacturing, Advertising and Marketing, and Sales. Supporting processes, which support the core processes. Examples include Accounting, Recruitment, Call center, Technical support.

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A business process begins with a mission objective and ends with achievement of the business objective. A business process can be decomposed into several subprocesses, which have their own attributes, but also contribute to achieving the goal of the super-process. The analysis of business processes typically includes the mapping of processes and sub-processes down to activity level. Business Processes are designed to add value for the customer and should not include unnecessary activities. The outcome of a well designed business process is increased effectiveness (value for the customer) and increased efficiency (less costs for the company).

Business process management (BPM)

Business process management (BPM) has been referred to as a "holistic management" approach to aligning an organization's business processes with the wants and needs of clients. Promotes business effectiveness and efficiency while striving for innovation, flexibility, and integration with technology.

BPM tools allow users to

vision - strategize functions and processes define - baseline the process or the process improvement model - simulate the change to the process analyze - compare the various simulations to determine an optimal improvement improve - select and implement the improvement

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Control - deploy this implementation and by use of user-defined dashboards monitor the improvement in real time and feed the performance information back into the simulation model in preparation for the next improvement iteration Re-engineer - revamp the processes from scratch for better results

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BPM life-cycle

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Design
Process Design encompasses both the identification of existing processes and the design of "to-be" processes. Areas of focus include representation of the process flow, the factors within it, alerts & notifications, escalations, Standard Operating Procedures, Service Level Agreements, and task hand-over mechanisms. Good design reduces the number of problems over the lifetime of the process. Whether or not existing processes are considered, the aim of this step is to ensure that a correct and efficient theoretical design is prepared.
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Modeling

Modeling takes the theoretical design and introduces combinations of variables (e.g., changes in rent or materials costs, which determine how the process might operate under different circumstances). It also involves running "what-if analysis" on the processes: "What if I have 75% of

resources to do the same task?" "What if I want to do the same job for 80% of the current cost?".
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Execution

One of the ways to automate processes is to develop or purchase an application that executes the required steps of the process; however, in practice, these applications rarely execute all the steps of the process accurately or completely. Another approach is to use a combination of software and human intervention; however this approach is more complex, making the documentation process difficult. As a response to these problems, software has been developed that enables the full business process (as developed in the process design activity) to be defined in a computer language which can be directly executed by the computer.

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Monitoring

Monitoring encompasses the tracking of individual processes, so that information on their state can be easily seen, and statistics on the performance of one or more processes can be provided. An example of the tracking is being able to determine the state of a customer order (e.g. order arrived, awaiting delivery, invoice paid) so that problems in its operation can be identified and corrected.
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Optimization

Process optimization includes retrieving process performance information from modeling or monitoring phase; identifying the potential or actual bottlenecks and the potential opportunities for cost savings or other improvements; and then, applying those enhancements in the design of the process. Overall, this creates greater business value

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Re-engineering
When the process becomes too noisy and optimization is not fetching the desired output, it is recommended to re-engineer the entire process cycle. BPR has become an integral part of organizations to achieve efficiency and productivity at work.
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Business model

A business model describes the rationale of how an organization creates, delivers, and captures value (economic, social, cultural, or other forms of value). The process of business model construction is part of business strategy. Business models as the design of organizational structures to enact a commercial opportunity
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Whenever a business is established, it either explicitly or implicitly employs a particular business model that describes the architecture of the value creation, delivery, and capture mechanisms employed by the business enterprise.

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The essence of a business model is that it defines the manner by which the business enterprise delivers value to customers, entices customers to pay for value, and converts those payments to profit: it thus reflects managements hypothesis about what customers want, how they want it, and how an enterprise can organize to best meet those needs, get paid for doing so, and make a profit
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