Chapter 12.7, Problem 12.2ARQ

Explanation of Solution

Business Process:

In order to accomplish a business function, a network of activities such a preparing quotations, checking customer credit , roles, repositories, resources and data flows are required to interact, which is called Business Process.

Roles:

Roles are generally collection or set of activities.

Resources:

Resources are basically individuals or applications that are assigned to specific roles.

Data Flows:

Data flows generally outline the movement of data among activities.

Business Processes need to be managed:

One of the reasons business processes need to be managed because of the constant evolvement in the field of business processes.

Three reasons Business Processes need to be managed are:

• In order to improve process quality by improving efficiency in using resources and effectiveness to accomplish strategies.
• Changing technology and the need to adapt to changes.
• A substantial change in business formats need management of business processes.

Need for BPM:

The need for BPM (Business Process Management) can be summarized into the following points:

•  In order to improve process quality by improving efficiency in using resources and effectiveness to accomplish strategies.
• Changing technology and the need to adapt to changes.
• A substantial change in business formats need management of business processes.

The reason for which BPM is a cycle:

BPM contains activities such as creating, accessing and altering business processes, which are cyclical as each phase is interdependent on each other...