W11 - Redesign Principal and Tactics (2)

W11 - Redesign Principal and Tactics (2)

In this chapter, 3 types of redesign principles and tactics are mentioned and they are:
1. For restructuring and configuring around processes
    - Lose Wait
    - Orchestrate
    - Mass-Customize
    - Synchronize
2. For changing information flows around processes
    - Digitize and Propagate
    - Vitrify
    - Sensitize
3. For changing knowledge management around processes
    - Analyze and synthesize
    - Connect, collect and create
    - Personalize


In this article I would like to express my own opinion for the tactics of developing knowledge management.


- Analyze and synthesize


Interactive analysis and synthesis capabilities around a process should be enhanced so as to generate added- value. The implication is that both the executors and the customers of process would become more and more knowledgeable and better outcome of process is expected.
In many time, "what-if" analysis could generate combinations or possibilities that are not common to tell which is precious to think carefully. Good decisions are always generated by this way.

 - Connect, collect and create


Data and information could be found by uncountable ways around us. But capturing valuable, intelligent and reusable knowledge around processes is not an easy way. Thus firstly we need to define procedures to collect this kind of precious knowledge. For instance we could create expertise maps and yellow-pages related to the processes, or build knowledge repositories that can be reused to enhance the performance of the process.

- Personalize


It is about the preference and habits of participants in the processes. Knowledge management is initially constructed by capturing customers preference and the ways the staffs do in daily operation. So learning preference of customers and doers of a particular process through profiling could help.

W13 - Redesign Supply Chain Processes

Reference

http://help.sap.com/saphelp_nw70/helpdata/en/47/280426df448e4b9b9a70c5bdbad0b2/content.htm
http://test.b2blearningcenter.com/rosettanet-primer/rosettanetprimer-3.html
http://msdn.microsoft.com/zh-tw/library/aa475436(v=bts.10).aspx
......................................................................................................................
W13 - Redesign Supply Chain Processes

Brief Introduction of Ch13


This chapter mainly focus on the redesign of enterprise supply chain processes. It first defines Supply Chain as the the flow of materials, information, money, and services from raw material suppliers through factories and warehouses to the end customers .

The entire supply chain is formed by enormous number of enterprise with different level of production. For example, the direct supplier of a toy manufacturer are components manufacturer, plastic and box makers. Oil refinery, sheet metal and lumber company are the suppliers of components manufacturer, plastic and box makers respectively. Hence, you can see that the each companies form a bond to the their suppliers and buyers, and eventually form a supply chain with strong bonding.

With a such a long and sophisticated chain, misalignment no doubt exists as e-process, information and knowledge could not be transferred with zero error.  To tackle this, faster business process reconfiguration, faster business processes execution and faster learning processes should be achieved. 

Partner Interface Process (PIP) 

And by adopting Partner Interface Process (PIP), it could allow trading partners to improve communication with each other as well as offer more collaboration with the exchange of business information electronically. In particular, supply chain companies are able to facilitate speed, efficiency, and reliability, while reducing company costs. 

Also, through RosettaNet standards, these trading partners are able to realize gains associated with reducing inventory, improving order-processing time and customer satisfaction with regard to product cycle time-to-market.RosettaNet PIP Clusters are categorized into 8 main parts :

0) RosettaNet Support

1) Partner Product and Service Review

2) Product Information

3) Order Management

4) Inventory Management

5) Marketing Information Management

6) Services and Support

7) Manufacturing

W8 - Process Redesign

Reference:
http://www.igrafx.com/index.html
http://www-01.ibm.com/software/integration/wps/

.........................................................................................................................................................

BPR Software 

In lecture 8, The detailed steps and processes of Phase 3 Process Redesign are discussed and they are the followings :

1.Finding out the process scope,
2.Setting up process redesign goals with concrete process performance targets,
3.Defining process boundaries,
4.Identifying key process issues,
5.Collecting useful data, and
6.Business process reengineering software

This article will mainly discuss the

Why BPR Software?

The challenge historically has been how to get IT and business professionals working together on this task. Developers and their business counterparts speak different languages, use different terminologies, and have different knowledge backgrounds. While business uses business-process models, IT uses UML (Unified Modeling Language) models. Integration and transformation between the UML and BPM models guarantee good communications, avoid costs associated with miscommunication, and reduce a project's duration.

Therefore, A tool is needed to narrow the language gap to guarantee successful communication.
And BPR software plays the role.




The following 2 example shows the features of BPR Software.

IBM Business Process Manager - WebSphere Process Server

Both the business process models and UML transformer activity model the business environment, but utilize two different notations and differ in their focus and the elements of relevance.

While the UML model's focus is on software systems, the ingredients and components, BPM process models' foci are the business goals and how these goals can be accomplished. However, both UML models and business process models do share common elements. The WebSphere , working with the UML Transformer, has the capability to address these common elements and transforming them between the two applications.

iGrafx Process for Enterprise Modeling


To help organizations achieve business process excellence,  a powerful process diagramming and enterprise modeling software that addresses the complete range of visual communications is needed.  iGrafx Process could facilitate
the process modeling and simulation functionality.

With the hierarchical process description, communication between processes could be managed and amendment could be flexibly arranged.

Summary

The existence of language gap between IT and business professionals when working together on one task is not a news. In recent years WebSphere Process Server developed by IBM and iGrafx are powerful tools that assist animated simulation, case generation and analysis and graphical representation of process timeline.

W6 - BPR Methodologies

From the previous blog, definition of BPR, the processes and critical success and failure factors have been gone through. In this article, the whole framework to derive ways for problem solving during the BPR process - BPR methodologies would be discussed. The 5 steps are the followings:

Visioning: It starts with the discovery of poor performance, no matter the communication between staffs or the efficiency of work.
Mobilizing: The way that different department and stakeholders are grouped together to form several project teams.
Process redesign: This is the planning stage that how modified business processes could work in a smooth way.
Implementation: This is the execution stage that proposed IS strategies are worked out with the implementation of IT infrastructure and business processes reengineering .
Monitoring and maintaining: Supervisors should keep track on the reformation of the businesses processes as well as the IT infrastructure.

A more detailed analysis of the 5 steps would be discussed.


Visioning:


When things go wrong, you would find out the reason behind. This is also true when poor performance, such as work progress could not be traced back simultaneously or lack of collaboration between staffs and departments, is discovered by the managers. In fact, there are many 'triggers' that could raise up the question of 'why it works terribly?'.
For example, many manual mistakes made such that errors are made in the sales order. Over-rely on paper documentation leads to missing of important information. 
When managers notice the abnormal performance, they would consider the sequential order of  process reformation. And the Matrix of Customer impact with Improvement Opportunity is used to evaluate the priority. When decision is made, this will trigger to the next stage - mobilization.


Mobilization


When decision has been made, managers should think about how could  achieve the objective. Defining core BPR team, selecting project leader, making preliminary assessment of IT infrastructure and calculating the existing resources to implement the regineering are the most important criteria to be considered in this stage.
As almost all of the staffs participate in the BPR Project, sophisticated planning should be made before the implementation.

Process redesign


AS-IS process model is used for analysis of the process redesign stage. Then TO-BE design is analysed and their relative performance are compared. This follows the steps of process redesigning: Scoping, modeling, analysis, redesign and integration.

Implementation


The IT infrastructure, the organization and people's skill are adjusted to fit the TO-BE process. The focus is on the design of the IS that support the TO-BE process.

Monitoring and maintaining


The new process is monitored on a continuous basis and modified if required. The TO-BE process and new IT infrastructure should be robust.

W5 - Business Process Reengineering BPR

Reference:

Crowe, T.J., Fong, P.M. and Zayas-Castro, J.L. (2002),

“Quantative risk level estimation of business process reengineering efforts”, Business Process Management Journal, Vol. 8 No. 5,

pp. 490-511.

Neda Abdolvand, Amir Albadvi and Zahra Ferdowsi (2008), “Assessing readiness for business process reengineering”,

        Business Process Management Journal, Vol. 14 No. 4, 2008, pp. 497-511

Varun Gover, Manoj K. Malhotra (1996)

“Business process reengineering: A tutorial on the concept, evolution, method, technology and application”

        Journal of Operations Management 15 (1997) 193-213

Valimaki, J. and Tissari, T. (1997) “Risk management focus in business reengineering initiatives”,

Proceeding of the IPMA Symposium on Project Management: Managing Risks in Projects,

        E & FN Spon, London, pp. 232-42

Grant, D.(2002), “A wider view of business process reengineering”,

Communications of the ACM, Vol. 45 No.2, pp. 84-92

................................................................................................................................

The critical factors that cause high failure rate of BPR

Background

The seemingly high failure rate of BPR has always been one of the major obstacles in convincing organization to commit to BPR effort (Crowe, 2002). According to a 1995 study bu the Standish Group International (USA) consisting of 8380 BPR projects at 365 companies, projects failure rate is 84 percent and most of them at least experienced some major problems (Valimaki and Tissari, 1997). As a top-manager of an organization with decreasing profit rate, implementing BPR is a difficult and unconvinced decision when facing such a high-failure-rate figure.

Scope

Hence, it is worthy to have an in-depth analysis for critical factors that caused failure of BPR so that managers could be more vigilant when making BPR-related decisions. Many scholars conceived different perspectives and LEE’s conclusion was widely accepted and quoted. He finalized 4 components that measure the level of employee resistance (Lee, 1995):

1.      Middle management fear of losing authority;

2.      Employees’ fear of losing job;

3.      Skepticism about project results; and

4.      Feeling uncomfortable with new working environment.

Middle management fear of losing authority

        Human resources are the primary decision makers and essential ingredients of all human activity system (Grant, 2002). Without the commitment of top and middle management, any organizational strategies would not be successfully implemented. Radical change for business processes is an inevitable step and minimizing the number of processes is always the scene. As a result, conflict of interest between managers exists since that reducing processes leads to demotion or even termination of some managers. This resistance is especially familiar in family-based enterprise. Managers are always the family members and stabilizing the organizational structure is the scene they desire to see.

Employees’ fear of losing job

        To obtaining quantum leap improvements demands from BPR efforts, it demands radical changes in employees’ behavior at work. It is instinctive reaction to resist changes instituted by BPR efforts because of the human nature to develop inertia. The level of resistance is especially high among employees who are directly affected by the changes. Uncertain future initiated by BPR changes would also leads the increase of anxiety level of employees.

Skepticism about project results

        No one could guarantee the success of BPR. Imagine that you are the general manager of an organization; serious hand-off problem and low knowledge-creating capacity jeopardize the future of the company. You propose a huge reform project to the board of directors. The most probable response would be: could you guarantee the changes are profitable? If not, just put it aside and this would not be the first priority in our agenda.

Feeling uncomfortable with new working environment

        Employees are unfamiliar with the radical changes made by BPR efforts. New education and training programs, new empowerment structure and reward systems lead employees feel hard and stressful to follow. Poor performance and low morale among the employees are expected.

Week 4: Sustainable Strategic Alignment Model(COMPLUSORY)

With the proliferation of Information Technology, IT is no longer an afterthought in forming business strategy. It has evolved from traditional orientation of administrative support towards the actual cause and driver of macro business strategy. The Strategic Alignment Model (SAM) tries to answer the question of how to strategically align the business goals and the IT, which is a headache of every corporate.  

The 4 fundamental domains of strategic choice,  

Business strategy,
IT strategy,
Business Infrastructure and
IT Infrastructure, 

form 4 cross-domain and multivariate relationships, they are:

Strategic Execution,
Technology Transformation,
Competitive Potential and
Service Level.

This article I will concentrate on a question: Which alignment perspective is the best?
The answer in my opinion should be: There does not exist a universal superior perspective at all.

Stance

Henderson and Venkatraman, scholars first discussed the SAM, defined IT strategy within SAM as involving choices that position the firm in the global information technology market (Henderson and Venkatraman, 1991, p.74). In an era with rapid economic change, both IT strategy or business strategy are constructed in accordance with the market trend, the IT development and macro-economy. Hence so-called ‘superior’ or ‘universal’ business strategy and alignment perspective does not exist for sure.

Instead, choosing the most appropriate strategic alignment perspective in respect to the recent situation and constraints is told to the best solution. Companies or industries which are suited to the relative alignment perspective are discussed with reasons in the followings.

Strategy Execution

            This alignment perspective perhaps is the most common and widely understood perspective corresponding to the classical strategy management (Henderson and Venkatraman, 1993). As organizations assessed IT performance by cost-centered financial parameters, the common strategy is to integrate internal IS strategies, infrastructure and processes with internal organizational requirement as a response to business strategies, which is a old-fashion business philosophy. This alignment perspective is still used by industry with stable structure and less competitive market environment.

For example, the characteristics of high barriers to entry (sophisticated and expensive machinery are always needed) and unique competitive criteria (possessing latest chemical formula) lead pharmaceutical industry treat IT as tools to improve efficiency of routine work only.

Technology Transformation

            Companies adapted this alignment perspective perceive IT strategy as a tool to enhance competitive advantage in the industry. As a result, top managers would always think in this way: with the given business strategies, how the recent IT strategy of our company achieves those strategies?  A precise IT strategy could reduce TRANSACTION COSTS of the company and customers, and eventually increase the competitiveness.

            For example, UPS has used the same strategy, providing ‘best service with lowest rates’, for 90 years. One of the most visible aspects of technology is the customer’s ability to track his/her package via the UPS Web site. To maintain the best service with lowest rates, UPS invest heavily in advanced information technology to maintain leadership in small-package delivery services.  In short conclusion, added value provided by the advanced information technology system of UPS integrates closely with the basic business processes. Thanks to the synergy effects, UPS could provide instant information to customers with relative low prices.

Service level

            Companies with IT-driven business model are suited to apply this alignment perspective as IT strategy is of fundamental importance for these companies to give directions for business strategy.

            For example, Facebook’s theory is that people have real connections in the world.To achieve, Zuckerberg and his team force provide new functions for users so as to broaden the user base. The launch of ‘News Feed’ in 2006 and the launch of ‘Time Line’ in 2011 are the examples. In the foreseeable future Facebook would focus on realizing its utility components and make something new for internet to provide efficient communication for mankind.

Competitive potential

“IT needs to become part of the business rather than passively aligned with business… defining business opportunities and not simply the builders of other managers’ solution…”   (Sauer and Yetton, 1997). Companies that emphasize on the relationship between IT strategies and business opportunities are suited to this alignment perspective.

Conclusion

Choosing the most appropriate strategic alignment perspective in respect to the recent situation, business model and constraints is told to the best solution. With different internal factors (organizational culture, resources allocated to IT development and emphasis on IT) and external factors (industry structure, market demand and trend, macro economy) could affect the adpotion of differnet strategic alignments.

.....................................................................................................................................

Reference

Henderson J.C and Venkatraman, N. (1991),

“Understanding strategic alignment”,

Business Quarterly, Vol. 55 No. 33, pp.72-9.

Henderson J.C and Venkatraman, N. (1993),

“Strategic alignment: Leveraging information technology for transforming organization”,

Sauer, Cand Yetton, P. (1997), Steps to the Future.

            Fresh Thinking on the Management of IT-based Organizational 
           Transformation.

            Josset-bass Publishers, San Francisco, CA.