Business Process Analysis: Optimizing Management Accounting Services with IT and Re-engineering

Business Process Analysis
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Table of Contents
Introduction....................................................................................................................................3
1. Identify participants, inputs, and outputs............................................................................4
2. Develop the current business process model and explain it step by step..........................7
3. Identify current strengths and inefficiencies that exist in the current system..................9
4. Explain the ways in which the business process inefficiencies can be corrected through
the use of IT and process re-engineering...................................................................................12
5. Suggest the ways in which technology can improve the business process.......................15
6. Describe the proposed business process model and explain how the new re-engineering
system would operate..................................................................................................................17
Conclusion....................................................................................................................................20
References.....................................................................................................................................21
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Introduction
The above report aims to analyze as well as articulate business processes. Besides, it aims to give
the reader the understanding of the necessity and importance of management accounting system
in any business organization, be it a manufacturing concern or service-oriented industry.
Accordingly, there must be a proper business process model in every industry. There must be a
concept of business process re-engineering whose main purpose is to evaluate and monitor
existing business process model being followed at present.
The given report deals with a situation in which a particular or specified business organization
used to follow an outdated business process model which needs to be modified to cater the needs
and requirements of the current environment. As a result, an attempt has been made to carefully
analyze and interpret the existing business model and the requirement to switch over the new and
upgraded business process model.
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1. Identify participants, inputs, and outputs.
Participants:
The various participants included in the outsourced management accounting services are those
persons or corporates that are included in the formulation and implementation of such
management accounting services or those professionals that are not included in its
implementation but will get affected by its formulated or implementation in any manner. As
such, they are also participants.
Image 1: Participants of proposed business process
Source: By Author, 2018
From the above diagram, the reader or user of the report will get an idea about the various
participants of the proposed business model.
1. Small & medium enterprises or organizations: These are the organizations or business
enterprises that are will formulate and implement the proposed business process in the business
organization. These organization will have to confirm themselves whether it will be beneficial
for them to apply such business process in their organizational structure.
2. Personnel or employees of entities: It is the employees working thereunder who will actually
work in such a manner that any or new business process will be implemented. As such, it is the
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Competitors
Small &
medium
businesses
Several pilot
clients
Personnel or
employees of
entities

next step after the final decision of the management of the concerned business regarding the
implementation of the business process.
3. Pilot clients: Since the business process is in the pilot phase, it is under testing phase and as
such, several and various pilot clients used to perform various operations and tasks thereon.
4. Competitors: After the implementation of the business process, the competitors of the
concerned business enterprise will also get affected. Since they want to retain market share, they
will also try to implement and imply such business process in their organization as well.
Inputs:
The inputs to business process are some transactions or documents that need to be uploaded to
the business process and accordingly, they will be processed and at the end, the final outcome
will be derived.
The basic and prominent inputs required in the business process can be explained below in the
form of a diagram:
Image 2: Inputs required in the management accounting system
Source: By Author, 2018
It can be observed from the above diagram that there are various inputs that are required in the
management accounting system. It is important to note that the above inputs are exhaustive and
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Accounts receivable
copies Customer information
Supplier information Details regarding
creditors payment
Inputs required in the
business process

as such there can be other inputs as well. Since the accounting software is in the pilot phase,
there cannot be any specific list depicting all the possible lists of inputs.
Outputs:
By properly and adequately inserting and applying the inputs, the required and desired outputs
can be achieved. The outputs can be defined or expressed in many terms or ways including
quantitative and qualitative terms. For the better result, everyone must apply inputs keeping into
consideration the outputs that it wants from the management accounting system.
Accordingly, the outcomes or outputs that can be obtained from the management accounting
system can be listed below:
 Proper recording of data
 Updated data regarding the amount to be paid to the creditors
 Correct processing of invoices
 Suitable and correct expense claim processing
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