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

2. INTRODUCTION
Introduction

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

5. Today’s Objectives
Core business
Business strategy and functions
Customers
Suppliers
Partners
Business process and activities

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

16. Values (cont’d)
Example: Hewlett-Packard
Trust and respect for individuals
Achievement and contribution
Results through teamwork
Meaningful innovation
Uncompromising integrity

17. Company Objectives
 Financial
 Profit and Lost (P&L) Statement
 Balance Sheet
 Gross Profit, EBIT, EAT (Net Profit), ROI, ROA
 Stock Price in stock exchange market
 Non-Financial
 Credibility
 Contribution
 IP

18. Company Objectives (cont’d)
Hewlett-Packard as an example
 Profit
 Growth
 Market leadership
 Commitment to employees
 Leadership capability
 Global Citizenship

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

46. Q & A
29 June 2013

47. THANK YOU!