Saturday, October 31, 2009

Business Process Management Example: Selling cars at a dealer’s auction.

This is an example of business process management and shows a snapshot of a software tool that is used. One of the companies that are a subsidiary for the company that I work for is responsible for auctioning off cars. So for the example of business process management I will discuss the business process in getting that car from the lot to the auction block. This explanation will be very high level as to provide the important details in the process and will not cover the intricate details of every step necessary to sell the car. So the steps I provide may not be the exact steps that the company takes (and the software tool is not used by the particular company), but the purpose is to illustrate how business process management works. I will use the term ‘Company’ to refer to the business responsible for auctioning off the car.

At the beginning of the process the car will be received from an auto salvage shop location. Once the car is delivered to the Company it will be necessary to take pictures and collect information about the car to place into the Company’s records. This information will contain data such as the make, model, year, color, and any other important information about the car history. After the information is recorded the next step is to prepare the car to be sold at the auction. This may require repainting, dent removal, or even significant body work (or course the car should be sellable at a value higher than the work performed). All of this information is recorded and the car is then passed off to the necessary departments to have the work done. After all the work is done and the car is ready to be placed on the auction block another set of pictures is taken and entered into the Company’s records. These pictures will be the one made available to dealerships that may be interested in purchasing the car. The car is then shipped off to the location of the auction and on the day of the auction the car is sold (hopefully!). Once the car is sold there is another set of paperwork done to record buyer and price information as well as any other pertinent information about the trade. This information also needs to be entered into the Company’s records. That is the last piece of information that is collected in the Company’s records about the car.

The software that I used to illustrate the process is called Stellent Imaging and Business Process Management (IBPM) that can be used to facilitate this process. The tool that is used is called Process Builder and you can read more detailed information by clicking here (starting on page 423). The software allows a lot of powerful functionality and for the sake of time and understanding I have only designed a simple diagram that illustrates the business process. I have listed come reference URLs at after the picture for additional information.



(click on image above to enlarge)

References:

Oracle Imaging and Process Management (Stellent IBPM)

Oracle Business Process Management Suite

Oracle/Stellent Documentation

7 comments:

  1. Great example MO

    Thanks for sharing this. This example makes Business Process Management concept pretty easy to understand.

    I read somewhere that BPM includes features such as Change capability, Continuous improvement etc. I believe that these are the implicit attributes in the process and we might wanna refine our process to make it more efficient as the time passes by and our model matures.

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  2. Great example of both a real world business scenario, as well as a relevant software tool. I totally agree with Avinash, the continuous improvement aspect of BPM is central to the concept of "lessons learned". Many, if not most IT efforts are project based. Once the project concludes, the lessons learned in the recently completed project can be applied to future efforts.

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  3. Very true (and thank you).
    The continuious improvement (or continuous innovation) of current business processes that you speak fo Avinash is what gives companies a competitve edge. Like you said Steve the knowledge that is gained from one project can serve as a baseline to begin that innovative thinking.

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  4. I like it too. I may ask your permission to use or reference it in the future. Nice post. Blog mo.

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  5. Thanks for sharing this.

    I think the tools and software used to manage business processes have become very important in today's fast changing business environment with fast changing customer's needs and expectations.Incorporating process and using tools have become specially essential in corporations operating in tough market environment. Process is a core element of any business operation which keeps changing and needs to be aligned with the business strategy. So usage of BPM has become essential to adopt continuous change to meet market requirements.

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  6. I like it too.. I like if somebody shares their experiences which gives clear understanding of a topic and it is easy to retain experiences in mind when compared to normal facts...

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  7. This is a great inspiring article.I am pretty much pleased with your good work.You put really very helpful information. Keep it up. Keep blogging. Looking to reading your next post. Buy salvage car

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