Business Process Analysis and Change: ITECH 5404 Sales Order Report

This report analyzes the sales order entry process within the context of Business Process Management (BPM). It begins with an introduction to BPM, outlining its life cycle and different types, and then explores the benefits of implementing BPM within an organization. The core of the report focuses on the sales order entry process, detailing its functions, including order taking, credit checks, and inventory management. It identifies control objectives, potential threats (such as inaccurate orders and credit risks), and corresponding procedures to mitigate these threats. The report includes a BPMN diagram to visually represent the process. Furthermore, it addresses business rules, organizational resources, and a process integration plan. The conclusion emphasizes the importance of BPMN for standardizing business processes, and the references provide a list of relevant sources. The assignment adheres to the guidelines provided, covering various aspects of business process analysis and design.

I T E C H 5 4 0 4
B U S I N E S S
P R O C E S S
A N A LY T I C S A N D
C H A N G E
N A M E O F T H E S T U D E N T
N A M E O F T H E U N I V E R S I T Y

INTRODUCTION:
• Management of the business procedures is a big challenge
in most of the organisations. The BPM (Business Process
Management) is basically a process of how the
organisations create, edit and analyze the processes that
are predictable.
• Each of the department in an organisation is having
responsibilities for taking some raw materials or data as
well as transforming that into something else.

BPM LIFE CYCLE:

STEPS OF BUSINESS PROCESS
MANAGEMENT:
• The steps of business process management are as
follows:
– Step 1: Designing
– Step 2: Modelling
– Step 3: Executing
– Step 4: Monitoring
– Step 5: Optimizeing.

TYPES OF BUSINESS
PROCESS MANAGEMENT:
• The BPM frameworks can be separated in the
basis of the purpose that they serve. Basically
there are three types of BPM. They are as follows:
Integration-Centric BPM
Human-Centric BPM:
Document-Centric BPM:

BENEFITS OF BUSINESS
PROCESS MANAGEMENT:
• There are some of the primary benefits of
utilizing business process management in the
business. They are as follows:
Gaining control of unwieldy processes.
Creating, mapping, improving and analyzing business
related processes.
Running everyday operations more efficiently.
Realizing huge organizational goals.
Tracking of individual items closely.

ORDER ENTRY SALES
PROCESS:
• The sales order entry is performed by the department
of sales order.
• This procedure is used for taking customer order.
• This process is able to improve the effectiveness as well
as the efficiency through routing the online order to the
warehouse directly for shipping and picking.
• It is used for checking customer credit.
• This process is used for checking availability of
inventory.
• The sales order entry process is also used for
responding to the inquiries of the customers.

CONTROL OBJECTIVES,
THREATS, AND PROCEDURES:
• In the revenue cycle, an AIS that is well designed
should offer an adequate control for ensuring that the
objectives have been met:
– All of the transactions are authorized properly.
– All of the transactions are accurately recorded.
– All of the disclosures are full as well as fair.

CONTINUED.
• There are various types of actions an organisation may
take with respect to any of the cycles for reducing the
threats of irregulations and errors. These are including:
– Using easy to complete and simple documents with an
instruction that is clear.
– Utilizing appropriate controls of application such as field
checks and validity checks.
– Restriction access to the blank documents.

THREATS IN SALES ORDER
ENTRY PROCESS:
• The major objectives of this procedure are as
follows:
Threat 1 — Inaccurate or Incomplete customer
orders.
Threat 2 — Sales to consumers with poor credit.
Threat 3 — Orders which are not legitimate.
Threat 4 — Carrying too much or too little
merchandise.

BPMN DIAGRAM:
• The BPMN (Business Process Model and
Notation) is basically a representation that is
used to specify the business relation processes
in BPM.
• The specification of BPMN also offers a mapping
that is among the notation as well as underlying
constructs of the execution languages.

BPMN DIAGRAM FOR ORDER
ENTRY SALES PROCESS:

BUSINESS RULES:
• The project manager will be having a proper
track over the entire business process.
• Data of the clients must be collected and stored
in a manner that will ensure that there is least
chances of data breach.
• Usage of GPS for faster shipping process also
acts important.

BUSINESS PROCESS
INTEGRATION PLAN:

LIST OF NEEDED ORGANIZATIONAL
RESOURCES:

CONCLUSION:
• Thus, it cant be concluded that the BPMN has been
designed for providing a standard notation which is
readily understandable by all of the business holders.
An interacting structure of the equipment, people and
activities as well as controls which is designed for
achieving certain goals. The main function is to make
flows information which support the repetitive work
routines of the credit, sales order and shipping
departments.

REFERENCES:
• Djatmiko, M. B., Husain, A., Maulani, G., & Nirmalasari, L. (2017). Analyze and Record a Series
of Corporate Sales Transactions On Web Based Accounting Online System. Aptisi Transactions
On Management, 1(2), 103-115.
• Kalenkova, A., Burattin, A., de Leoni, M., van der Aalst, W., & Sperduti, A. (2018). Discovering
high-level BPMN process models from event data. Business Process Management Journal.
• Ladleif, J., von Weltzien, A., & Weske, M. (2019). chor-js: A Modeling Framework for BPMN 2.0
Choreography Diagrams.
• Majuri, J. (2018). Development of programmable spare part quotation and sales order process.
• Mathrani, S. (2018, December). Using Enterprise Systems to Enhance Sales and Services
Agility in Manufacturing Firms. In 2018 5th Asia-Pacific World Congress on Computer Science
and Engineering (APWC on CSE) (pp. 57-64). IEEE.