Lecture Work Book 1 35 - Fundamentals of Business Process Outsourcing 102 PDF

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Fundamentals of Business Process Outsourcing 102...

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FUNDAMENTALS OF BUSINESS PROCESSES OUTSOURCING 102

Junah Belle M. Rosales, MIS

Learning module designed for BS Info Tech Third Year students of the Aklan State University-College of Industrial Technology for the Second Semester of Academic Year 2017-2018

FUNDAMENTALS OF BUSINESS PROCESSES OUTSOURCING 102

by Junah Belle M. Rosales, MIS

The course provides an introduction to fundamental business process outsourcing concepts via an understanding of the techniques for using business practices and methods to create and improve business processes. The foundational study of business processes provide a basis by which performance improvements are identified and implemented across business organizations. Business process outsourcing is introduced as a natural evolution of business process management. The student is exposed to a set of qualitative and quantitative topics aimed to enhance process-¬oriented thinking, in order to develop the knowledge and skills necessary to appreciate and implement programs of process reengineering, management, and excellence in organizations Credit: 3 units 3 hours Lecture per week Pre-Requisite: SMFBPO1

DISCLAIMER This document does not claim any originality and cannot be used as a substitute for prescribed textbooks. The information presented here is merely a collection by the compiler for her respective teaching assignments. Various textbooks as well as freely available material from internet were consulted for preparing this document. The ownership of the information lies with the respective authors or institution.

Republic of the Philippines AKLAN STATE UNIVERSITY College of Industrial Technology TECHNOLOGY DEPARTMENT/INFORMATION & COMMUNICATIONS TECHNOLOGY Kalibo, Aklan

CERTIFICATE OF REVIEW The instructional material entitled “SMFBPO2 Fundamentals of Business Processes Outsourcing 102” compiled by JUNAH BELLE M. ROSALES was evaluated by the College of Industrial Technology – Technology Department/Information & Communications Technology Instructional Material Development Review and Evaluation Committee.

__________________________________________ Chair, CIT- Technology Department/Information & Communications Technology Instructional Material Development Review and Evaluation Committee

________________________________________ Member, CIT- Technology Department/Information & Communications Technology Instructional Material Development Review and Evaluation Committee

________________________________________ Member, CIT- Technology Department/Information & Communications Technology Instructional Material Development Review and Evaluation Committee

Republic of the Philippines AKLAN STATE UNIVERSITY College of Industrial Technology TECHNOLOGY DEPARTMENT/INFORMATION & COMMUNICATIONS TECHNOLOGY Kalibo, Aklan November 6, 2017

CERTIFICATION This is to certify that this instructional material entitled “SMFBPO2 - FUNDAMENTALS OF BUSINESS PROCESSES OUTSOURCING 102” was prepared by JUNAH BELLE M. ROSALES. This has been used in IT class this second semester, academic year 2017-2018. This certification was issued to JUNAH BELLE M. ROSALES relative to her claim for authorship of the instructional material which will be included in her documents for NBC 461.

_______________________________ Member, ICT IPR/IMDC

_______________________________ Member, ICT IPR/IMDC

______________________________ Chair, ICT IPR/IMDC

_______________________________ Department Chair, Technology Department/ Information & Communications Technology

Republic of the Philippines AKLAN STATE UNIVERSITY College of Industrial Technology TECHNOLOGY DEPARTMENT/INFORMATION & COMMUNICATIONS TECHNOLOGY Kalibo, Aklan

ACKNOWLEDGMENT This is to acknowledge that we received the Learning module of SMFBPO2. Name 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40

Signature

Date Received

For further reading: Duening, Thomas N. et. al. (2005). Essentials of Business Process Outsourcing ISBN 0471-70987-5 Halvey, John K. et. al. Business Process Outsourcing- Process, Strategies, and Contracts Second Edition. Copyright 2007 by John Wiley & Sons, Inc. SBN:978-0-470-04483-4 Freelancing in America: 2017 (September 2017). Edelman Intelligence. Online References: Andrew Kokes (2014). Sitel Global retrieved from Top 5 Reasons Companies Outsource at https://www.sitel.com/wpcontent/uploads/2014/01/WHITEV0001TOP5.pdf on November 18, 2017 Blog article retrieved from Infinit-O website at http://www.blog.infinito.com/quality-vs-quantity-in-the-bpo-industry/ on November 18, 2017 7 Facts and Forecasts: The BPO Industry in the Philippines by USource Team (March 12, 20015) retrieved from USource website at https://www.usource.me/7-facts-and-forecasts-the-bpo-industry-in-thephilippines/ on November 18, 2017 Marty Pine (October 9, 2017). The Balance website on US Economy retrieved from Learn Why Companies Outsource at https://www.thebalance.com/why-docompanies-outsource-2553035 on November 18, 2017 Online file retrieved from Deloitte Consulting LLP at https://www2.deloitte.com/content/dam/Deloitte/us/Documents/process-andoperations/us-sdt-oascompendium-vol1-022515.pdf on November 18, 2017 Online file of Navarro Amper & Co. retrieved from Deloitte Southeast Asia at https://www2.deloitte.com/content/dam/Deloitte/ph/Documents/aboutdeloitte/ph-about-doing-business-in-the-philippines-jan2015-issue3.pdf on November 18, 2017 Online presentation on Future Workforce Report: How Companies Embrace Flexible Teams to Get Work Done retrieved from Upwork slideshare at https://www.slideshare.net/upwork/future-workforce-report-how-companiesembrace-flexible-teams-to-get-work-done on November 19, 2017 Report on the on-going process towards developing the Philippine Labor and Employment Plan (ELP) 2017-2022 retrieved from http://www.ilo.org/wcmsp5/groups/public/---asia/---ro-bangkok/---ilomanila/documents/genericdocument/wcms_523524.pdf on November 18, 2017

Preface This lecture workbook is created by the author to introduce a

different perspective of Business Process Outsourcing (BPO) in the future of work for the BS Information Technology students. Also, to prepare them in building a career while enjoying their time and manage their finances while working.

This course is designed not only to introduce BPO environment

but also the freelancing platform to train the students in the different skills that most likely needed by the client. This will give the students an opportunity to earn additional income if they want to while continuing their bachelor’s degree.

The author also shares her journey in juggling the day job and the online night job shift that changes her standard in terms of quality output and her perspective of lifelong learning in the field of information and communication technologies.

TABLE OF CONTENTS

SMFBPO2 by J.B. Rosales

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Cover Page

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Course Description

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Disclaimer

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Certificate of Review

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Acknowledgment of Utilization

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OBE Course Syllabus

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Course Outcomes

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Module 1

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Module 2

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Module 3

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Module 4

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Capstone Project 16

Course Outcomes By the end of the course, the students will be able to: CO1

CO2

CO3

CO4

CO5

CO6

SMFBPO2 by J.B. Rosales

Conceptualize organizations as compendiums of processes;

Analyze business operations as processes and understand their value contribution to business performance; Improve process documentation, modeling, and quantitative analysis methods; Understand basic process operation management, process improvement methodologies, and core concepts of process quality; Recognize interdependencies of business processes across organizational boundaries; and Identify the role and value-add information technology to business process efficiency management.

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Lecture 1: Organization as compendiums of processes This lecture will have the following structure:

Typical Organizational Process Negotiating Process in the context of (Business Process Outsourcing) BPO

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Lecture 1: Organization as compendiums of processes Learning objective of topics After completing this lecture, you will

SMFBPO2 by J.B. Rosales

1

2

Distinguished the typical organizational process from negotiating process in the context of BPO

Conducted study on the BPO opportunities as a service provider through freelancing platforms

Student benefit from topic 1

Student benefit from topic 2

Become aware of the differences between typical organizational process and negotiating process in the context of BPO as a service provider.

Formulate study on the BPO opportunities as a service provider through freelancing platforms and how it works for them.

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Lecture 1: Organization as compendiums of processes Topic 1 Typical Organizational Process This topic will help you familiarize the typical organizational process observed in the government and even in private sectors. The resource content below retrieved from the lecture hand-outs of Dr. Vinayshil Gautam from London, a Founder Director IIM K and a Leader Consulting Team IIM S.

Perspective The processes within an organization can be classified using various criteria as they vary from: • Decision making; • Planning; • Organization Design and Structuring; • Staffing; • Directing, Motivating and Communicating; and • Controlling. All of which are totally different but equally significant as a process within an organization.

Organizational Design Organization design involves the creation of roles, processes, and formal reporting relationships in an organization. It can also be defined as: Developments in or changes to the structure of organizations SMFBPO2 by J.B. Rosales

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One can distinguish between two phases in an organization design process: • Strategic grouping, which establishes the overall structure of the organization (its main sub-units and their relationships); and •

Operational design, which defines the more detailed roles and processes.

A framework for Organization design: Aligning Structures Environment

People

Strategy

Organizational Design aligns structures with situational contingencies

Size

Technology

There are four factors that impact on the design of an organization. Since the structure is designed to achieve objectives, and because these objectives flow from the overall strategy, it makes sense that structure and strategy are closely linked. If a company has developed a strategy to compete more aggressively on a world market, then it will need to be more flexible to respond to various external factors.

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The larger an organization is, the more bureaucratic it tends to become. There is more division of labor, rules and regulations. Generally speaking, the more routine the technology is within the productive capacity of the firm, the more standard and simple is the structure.

The last element to consider is the degree of environmental uncertainty facing the organization. Simply put, the more uncertain the environment, the more flexible and adaptable the structure needs to be to respond effectively. We’ll now look at a number of specific organizational designs that incorporate the various elements we have been discussing.

What is a workflow system? Bridge between “real world” and “virtual world” Real world - contains the organization’s structure, physical goods, employees, and other organizations The virtual world contains the organization’s computerized infrastructure, including its applications and databases. Workflow - The computerized facilitation or automation of a business process, in whole or part. Workflow Management System - A system that completely defines, manages and executes “workflows” through the execution of software whose order of execution is driven by computer representation of the workflow logic. Workflow models represent the organization’s design in a visible way. The workflow runtime interprets the workflow design. The combination of model visibility and organizational execution tied to the model facilitates both a top-down and a bottom-up evolution of the organization’s computerized infrastructure. SMFBPO2 by J.B. Rosales

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Workflow models tie the data flow, organizational charts, and flowcharts together. Workflow models are also defined across organizational boundaries to facilitate trading between organizations.

Nature of Organizations Rational - Collective oriented to pursuit of relatively specific goals and exhibiting relatively highly formalized social structures (e.g., a business). Natural - Collective whose participants share a common interest in the survival of the system and who engage in collective activities, informally structured, to service this end (e.g., a religion or charity). Open - Coalition of shifting interest groups that develops goals by negotiation; the structure of the coalition, its activities, and its outcomes are strongly influenced by environmental factors (e.g., a standards organization).

Continuum of Workflow Systems Messages are the means of communication between the organizational employees, and between the organization and its customers and suppliers. Work items coordinate the receipt of the message with the organizational employee who carries out the work specified by the message. Business rules automate the decision process used in assigning and executing a work item.

Flowcharts specify the organizational plan for how work flows through an organization.

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Work Flow Analysis Managers perform work flow analysis in order to examine how work creates or adds value to the ongoing processes in a business.

Work flow analysis looks at how work moves from the customer (the demand source) through the organization to the point at which the work leaves the organization as a product or service for the customer (to meet the demand). Work flow analysis often reveals that some steps or jobs can be combined, simplified, or even eliminated. In other cases, it results in the reorganization of work so that teams rather than individual workers are the source of value creation.

Work Flow Analysis: Business Process Reengineering Business Process Reengineering (BPR) is different from restructuring in that its focus is not just on eliminating layers of management, but rather a fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in costs, quality, service, and speed. Uses work flow analysis to identify a company’s core processes involved in producing its product or delivering its service to the customer. Then the company organizing its human resources around those core processes to improve organizational performance. Through this analysis, jobs are identified that can be eliminated or recombined to improve company performance.

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Business process reengineering Steps in reengineering core processes: •

Identify core processes.

• • • •

Map core processes in respect to workflows. Evaluate all tasks for core processes. Search for ways to eliminate unnecessary tasks or work. Search for ways to eliminate delays, errors, and misunderstandings. Search for efficiencies in how work is shared and transferred among people and departments.

•

Work Flow Analysis: Business Process Reengineering Proponents- Allows for reinventing a company by making it ‘lean and mean’ Critics- Hammer of ‘Champy and Hammer’ actually says "don't automate; obliterate." To many critics, reengineering’s greatest weakness is its lack of a human side, or its depersonalization.

Work Items A work item specifies a task that needs to be carried out by an organizational worker. The worker is identified by his or her role Work item is identified by a message The role is identified by a queue The system initiates the work item and usually waits until its completion. • A workflow system’s task is to coordinate with all the outstanding work items • • • •

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Tasks Synchronizing - Multiple work items are usually modeled as a parallel split and a parallel join Timeouts - Workflow instances can wait forever for the completion of a work item Managing workflow instance memory - A workflow system is simultaneously processing a large number of workflow instances

Work Flow Diagrams Model Internal and external entities and flow of data (typically in documents) between them. It is a simple technique for identifying the overall system, the major entities in the system Workflows are allowed between internal entities and between internal and external entities. All workflows must be labeled. Many workflows are documents, in either soft or paper forms. No workflows are allowed between external entities.

Case Study #1 Delta Products Corporation is a major vendor of office supplies, furniture and equipment. Delta’s sales representatives call on customers to take orders. The sales rep write up the orders and turn them in to a sales order processing (SOP) clerk at the regional center. If the order items are in stock, the SOP clerk prepares a picking slip and packing list for each order. If any of the ordered items are out of stock, the SOP clerk completes an out of stock Notice forms, which notes the number of customer requiring the items and forwards it to Purchasing. A Purchasing clerk then completes a purchase order, which is mailed to a supplier. SMFBPO2 by J.B. Rosales

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Case Study #1 continuation The SOP clerk notes back-ordered items on the customer’s order and forwards a copy of annotated customer order to Accounts receivable, where a A/R clerk prepares an invoice and sends it to the customer. The SOP clerk also forwards a picking slip and packing list to the warehouse, where stock price pickers fill the order, placing ordered items into boxes along with the packing list. The boxed items and packing list are held for delivery, usually via UPS.

Learning Assessment Draw a diagram presenting the Delta Products WFD business process .

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Topic 2 Negotiating Process in the context of BPO The business process outsourcing (BPO) contract provides the framework pursuant to which the outsourcing vendor assumes responsibility for, and manages on an ongoing basis, all or part of a customer’s business processes, including the applicable scope, performance requirements, and compensation schedules. As discussed in earlier chapters, business processes that are frequently targeted for outsourcing include human resources (HR), finance and accounting (F&A), procurement, logistics, data management, claims management, customer care or call centers, and asset management.

Negotiatio...