Page 114 - CITP Review

 Improve processes. Select the optimal solution and implement that improvement.
 Control processes. Monitor the improvement in real time, feed results back to simulation model, and
use for next iteration of improvement (often user-defined dashboards).
 Reengineer processes. When necessary, revamp the process completely from scratch.

The BPrM life cycle uses similar activities and terms (see exhibit 3-9).

The design phase identifies existing processes, and describes the “to be” processes. The process flow is
documented along with the relevant actors, alerts, standard operating procedures (SOP), service level
agreements (SLA), and manual movement mechanisms.

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Exhibit 3-9 — BPrM life cycle

 The modeling phase uses the theoretical design described and introduces new combinations of
variables. “What if” analysis is performed on those “to be” processes.
 In the execution phase, the entity either develops or purchases a solution that is best suited to
execute the required steps of the process determined in the model phase.
 The monitoring phase can take place in real time, a reasonable time frame, or ad hoc. Monitoring
encompasses observation of the individual processes that result in accurate performance statistics;
those measures could include cycle time, defect rate, and productivity.
 The optimization phase includes gathering process performance information from the modeling and
monitoring phases. That information is used to identify potential or actual problem areas, such as
bottlenecks, and potential opportunities for efficiencies or effectiveness improvements.
 The design phase iterates any improvements recognized in the optimization phase.

Business processes that affect financial data
The CITP will be particularly interested in business processes associated with the initiation, authorization,
processing, and reporting of financial data, and the processes included in financial reporting functions.

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Image taken from http://en.wikipedia.org/wiki/Business_process_management, accessed September 3, 2019.

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