Week12 - Process Redesign(3)

Sources/References:
1) The Case for Custom Development
http://hk.search.yahoo.com/r/_ylt=Axt7wJUmiYpPVwMAxDizygt.;_ylu=X3oDMTByaWMyNWs2BHNlYwNzcgRwb3MDNgRjb2xvA2hrMgR2dGlkAw--/SIG=12pcspc39/EXP=1334507942/**http%3a//ecn.channel9.msdn.com/o9/te/NorthAmerica/2010/pptx/DPR202.pptx
2) Custom Application Development for Effective Business Solutions
http://www.ideamarketers.com/?articleid=1504572

3) 7 Steps to Practice for Quality Custom Application Development
http://www.ideamarketers.com/?articleid=1648622

Subject: Discussion on Custom Application Development

Response:

In this lecture, the evolving spectrum of IT Platforms for process integration has been taught. They are:

1. Custom Application Development
2. Workflow Engine
3. Enterprise Application Integration (EAI)
4. Specialized E-process Automation Software
5. XML-based Process Integration Suites for E-business

In this journal, the Custom Application Development will be discussed further of whether to buy or build a customized application development.

A company can integrate new processes into enterprise IT architectures through customized application development. Enterprises can develop their own piece of application software to execute the new business process which is the linking between the new process application software and the existing IT architecture.
Since the cost of developing a customized application development is very high and it takes a long time to build an error-less application, the risk of build it by oneself is very high.  Therefore, the company has to think carefully and decide whether customized application is a must or not.

First of all, the company has to clarify whether the task is a standard task or a unique task. It is because the less standard  the task, the more customization is required. The graph below shows the possible solutions to the respective feature of the task.

The next aspect is the upgrade challenge for customized packages. For those simple standard task, the company just have to simply buy the upgrade package of the existing  package they bought before. For those applications they build it wholly by themselves, they just have to modify the code by the IT team of the company. The most problematic situation is that the applications are a combination of application bought outside and application built by oneself. The company have to deal with the upgrade very carefully in order to make that both upgrade version of the applications are compatible with each other.

In order to build an error-less application, there are seven points to follow:

1. Specify quality needs to match custom application development needs: The company has to specify quality needs to match custom application development needs. The define of quality needs are essential to make sure that the application being built can meet the business requirements.
   
   
2. Publish Quality Standards:
   The quality standards of the application should be clearly understood by the developers. This can reduce the number of defects occurred.
   
   
3. Set team and individual goals with focus on quality:
   The goals on the quality and quantity of the application developed should be emphasized. The goals may set on a week basis or daily basis so that the  application development team will follow the schedule of the work and can ensure the quality of the application.
   
   
4. Asses proper project requirements:
   The  application development team should know what the application is meant, who is going to use it and how to use it clearly beforehand, otherwise, so that they can develop an application of what it should be.
   
   
5. Adapt brilliant testing methods:
   Testing of the application should carried out as early as possible, since a step by step development can easily find out the error and correct it quickly. If the testing is carried out at the end of the development, it takes long time find out a defect and correct which is ineffective.
   
   
6. Bug free designing and coding:
   The coding should be design in a clear and simple format in order to make the  work of debugging easier.
   
   
7. Improve and optimize testing tools:
   Developers can make use of some testing tools to automate some testing tasks and thus the testers can focus on the core parts of testing. This can save time and ensure better quality product development.

In conclusion, the company should think carefully about choosing Custom Application Development to integrate the process since it may be quite troublesome in applying it. However, the customization of application is still quite common nowadays.

Week11-Redesign Principle(2)

Source / Reference:
1) eStrategy for Development Principles & Tactics – Examples in PR
http://www.moe.org.ir/_ICT/Documents/Session6-7%20BPR%20Basics.pdf
2) Slice and dice
http://whatis.techtarget.com/definition/0,,sid9_gci212997,00.html
3) Groupon
http://www.groupon.hk/faq
4) Youtube
http://www.youtube.com/


Subject:Discuss on 'Minding the Process' of redesign Principles


Response:
The remaining type of redesign principles is the the 'minding the process' which refers to the changing knowledge management around the process. 
There are three principles in 'minding the process':

• Analyze and Synthesize
• Connect, Collect and Create
• Personalize

Principle #8 - Analyze and Synthesize

This principle refers to enhancing the interactive analysis and synthesis capabilities around a process to generate value added. Both executors and customers of the process become more knowledgeable and enable better outcome of the process.

The common tactics are: 

1. Provide “what-if” capabilities to analyze decision options.
2. Provide “slice and dice” data analysis capabilities that detect patterns.
3. Provide intelligent integration capabilities across multiple information sources.

Case Study:

Citibank is an example to illustrate this principle, they provide investments service to the customers and there is a regular review to fine tune the strategy to help customers to achieve goals. There is what-if conditions included in evaluating the financial situation of the customers and help design a unique portfolio for the customers.

Principle #9 - Connect, Collect and Create

This principle refers to the Capture intelligent and reusable knowledge around the process through all who touch it. To be clear, the principle means 'Connect people, collect input and create new knowledge'.

The common tactics are:

1. Define procedures to collect this knowledge

• Create expertise maps & yellow-pages related to the project 
• Build knowledge repositories that can be reused to enhance the performance of the process

    2. Create physical/virtual spaces for storing this knowledge

• Develop FAQ database through process doers 
• Create knowledge sharing spaces for interactive dialogues around the process

Case Study:

Groupon is an example illustrating this principle, there is a FAQ function provided by the website, people can click on it and read those frequently asked question to search the answer of the problems he is facing. In fact, the FAQ is a pool of frequently asked questions asked by the customers, it is a FAQ database developed through collecting the questions.

Principle #10 - Personalize

Personalize is to make the process intimate with the preferences & habits 

of participants. By building a system or practice that can study the buying preference or habits such as a personal profile, the process can then be modified following the customers' behaviors in order to make the services more personalized.

The common tactics are:

1. Learn preferences of customers and doers of the process through profiling 
2. Insert business rules that are triggered by personal profiles 
3. Use collaborative filtering techniques
4. Keep track of personal process execution habits

Case Study:

Youtube is a good example illustrating the principle of personalize. When a person is watching a video. There is a list of recommendations that related to the video that the persona is watching, the audience can then quickly click on the related video to continue watching. This is a personalize service provided for the audience since it will give a recommendation based on the audience' interest.

In conclusion , there are many companies actually applying the redesign principles of minding the process in their business.

Week10-Redesign Principle(1)

Source / Reference:
1) eStrategy for Development Principles & Tactics – Examples in PR
http://www.moe.org.ir/_ICT/Documents/Session6-7%20BPR%20Basics.pdf


2)Business reengineering at CIGNA Corporation: experiences and lessons learned from the first five years. (CIGNA Corp.)http://www.cs.uta.fi/reports/dsarja/is/1994.pdf


Subject: Discussion on restructuring the processes of redesign       principles


Response:
In lecture10, design principles have been taught which is the second wave BPR. There are three types of redesign principle and tactics.They are stated as follows:

1. Restructuring the process ─Restructuring and reconfiguring the process
2. Informating the process ─Changing the information flows around the process
3. Minding the process ─Changing knowledge management around the process

Seven out of ten principles fromr restructuring the process and informating the process have been introduced in the lecture.

A case study of CIGNA is going to be implemented into the following principles.

First of all, a principle# 0 will be carry out first.

Principle #0 - Streamline the process

• Minimize waste
• Remove valueless complexities
• Obliterate unnecessary obsolete activities
• Consolidate similar activities

In the case of CIGNA, it has achieved the principle of streamlining the process as CIGNA has put their information on the internet. Staff can access and share the information via the internet at any time which reduce the time for searching it from the office and shorten their cycle time.

Restructuring the process

Principle #1 - Lose Wait

This principle aims to reduce the idle jobs from the whole processes since it is very time consuming when a certain process has to wait for another process to be completed, this may lead to delay of the whole processes as well as increasing time spent for accomplishment.

Therefore, there are several common tactics in dealing with this problem to have cost reduction.

In the case of CIGNA, it has already modified its working method into team-based management, different team will be served for different districts in US so that all the teams are responsible for one district and thus the team-based management enables to manage several cases concurrently.

Principle #2 - Orchestrate

Orchestrate refers to that a group of enterprises can be collaborated for jointly executing and coordinating different parts of the process. To be simple, the processes are taken by different parties  based on their ability.
There are four common tactics to deal with it:

• Partnering
• Outsourcing
• In-sourcing: In-source a process back into the enterprise
• Routing through an Intermediary: Route the process through an intermediary

In the case of CIGNA, it has attained this principle, the chief information officer(CIO)and the management team has invited a new CIGNA re-engineering director into the company. It focused on operational improvement and help the organization cost structure to be in lined with the changing market conditions.

Principle #3 - Mass Customize

Mass Customize refers to flex the process for any time, any place, any way.

The common tactics are:

• Flexing Time: Flexible access by expanding the time window for the process.
• Flexing Space: Flexible access by creating more options for the physical space in which the process is executed.
• Modularity: Create modular process platforms
• Dynamic Customization: Enable dynamic customization of product offerings

In the case of CIGNA, a national database has been utilized in CIGNA to share data and information, so each staff with authentication is able to access the information freely. Flexibility is achieved here. 

Principle #4 - Synchronize

This principle refers to Synchronization of the physical and  virtual parts of the process.

Common tactics are:

• Match Offerings: Match the offerings on the physical and virtual parts of the channel.
• Common Process Platforms: Create common process platforms for physical and electronic processes.
• Track Movement: Track the movement of physical products electronically.

In the case of CIGNA,it has achieved this principle as well. CIGNA has applied Local Area Network(LAN)to link with 1000-person unit inside the company. Staff can then work together which is a common process platform.


In conclusion, CIGNA has achieved all principles of Restructuring the process of the redesign principle.

Week9 - Process Redesign (2)

Source / Reference: 
1) Business process management with IBM Holosofx
http://www.ibm.com/developerworks/ibm/library/i-holo/
2) IBM Holosofx Modeler  and Moni tor  Products V4.2 Help Moni tor  Complex Business Processes
http://www-01.ibm.com/common/ssi/rep_ca/6/897/ENUS202-326/ENUS202-326.PDF
3)Case Study:Workflow Performance Evaluation
http://www.dia.unisa.it/professori/dottorato/TESI/tesi-aiello.pdf


Subject: Discuss Holosofx Workbench

Response:

With respect to process redesign, the five steps are Scoping, Modeling, Analysis, Redesign and Integration.

In lecture 8, the focusing point of process redesign is on Scoping, so in lecture 9, Helen continued to discuss on  the part of Modelling and Analysis. In fact, this lecture teaches us the BPR workflow diagram. The business process will be transformed into a  workflow diagram in order to indicate a clear flow of the processes.

BPR Modelling and Analysis includes five essential steps:

• Building Block #1 - Structural elements of business process flow.
• Building Block #2 - Organizational resource links to business process flow.
• Building Block #3 - Rules of graphical connection.
• Building Block #4 – Methods of conditional concatenation of process parts.
• Building Block #5 - Process performance measurement.

Building Block #1- Structural elements of business process flow

It mainly refers to Activity Decision Flow Diagrams. There are three kinds of objects defined here, they are Activity objects, Decision objects and Flow objects. These objects will be represented by different shapes(Fig.1). The  business process flow will first be transformed into a flow diagram by those structural elements.

Fig.1

Building Block #2 - Organizational resource links to business process flow

Since model is not just a graphical representation, resources have to be linked to the tasks (activities). A defined resource type will then be allocated to the process objects that have already been defined in previous stage. A specification of which resources are linked with which tasks and the length of time is required.

Building Block #3 - Rules of graphical connection

At this stage, rules of the work flow and the inputs and outputs for a task should be defined and then connect all the objects graphically by using time line arrows from left to right so that  the ease of  manipulation can be attained.

Building Block #4 – Methods of conditional concatenation of process parts

Activity path management is important in this stage, the declaration of choices and decisions will be pointed to different paths and activities, so that different cases can be derived under different conditions. The probability of each path will be defined by the input percentage.

Building Block #5 - Process performance measurement

A simulation analysis will be taking part here, the business process performance can be measured by calculating the cycle and process time, cost, resources, probabilities of different cases and the weighted average.

These five essential steps can be realized as the Holosofx Workbench. A typical Holosofx software is the IBM Holosofx. Nowadays, enterprises will use the Holosofx Workbench to help transform the business process content into graphical content and vice versa. IBM Holosofx Workbench provides functionality for process and enterprise modelling, business process analysis and workflow translation. Unlike the other business process modelling, IBM Holosofx Workbench not only provides the flow diagram development or maps processing, it also extends the functionality to the aspects of analysis, redesign, application development and automation. 

An example of using IBM Holosofx Workbench.

In fact, IBM Holosofx Workbench is worked with the IBM Holosofx Monitor and the IBM Holosofx Workbench Server which is used for monitoring processes in real time and to share process information via the internet respectively. This constitudes an IBM Holosofx Business Process Management (BPM) Suite. Holosofx has a very comprehensive integration strategy which creates the following advantages:

• allows the business requirements and system goals to be defined by the software developers and business professionals.
  ài.e.Flexibility
• allows the business-software systems to be modeled in UML
• allows UML models mapped to BPM process models 
  àenhance the maintainability, traceability and scalability of both UML modles and BPM  process modles
• allows transformation of common elements between UML models and business process models
  àsave cost, time and minimize mistakes

To conclude,the Holosofx software helps divide business logic which forms an extensible business-process layer that helps manage the integration, execution, and monitoring of business processes across IT and business professionals and enterprise boundaries.

Case Study:Workflow Performance Evaluation
The main process of granting a certificate of the University of Salerno is representaed graphically by applying IBM Holosofx Workbench.

This is an illustration of the whole processes( request à analysis à control à release)

Please refer to p.117 of the above case for more information.

Week5 - Business Process Re-enginerring

Source / Reference:
1)BPR implementation process: an analysis of key success and failure factors
http://www.bus.iastate.edu/nilakant/MIS538/Readings/BPR%20success%20and%20failure%20factors.pdf
2)Reengineering Success Factors : BPR Principles
http://www.prosci.com/factors.htm


Subject: 
Lect 5 -What are the factors that affecting the success of BPR implementation?


Response:

By definition, Business Process Re-enginerring (BPR) refers to the fundamental re-thinking and radical re-design of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed (Michael Hammer & James Champy, 1993) which means that BPR requires radical transformation as opposed to incremental change. BPR will be implemented when an organisation' s current processes are irrelevant or broken or the organisation is experiencing desperation or crisis that there is a must to have a radical change in order to survive. However,to ensure a successful BPR implementation, the company should focus on the factors that affecting it.

In fact, the factors leading to the success of BPR can be divided into five dimensions, including Change of Management Systems Factors, Management Competence Factors, Organizational Structure Factors, BPR Project Management Factors and IT Infrastructure Factors.

Change of Management Systems Factors

1.  Revision of Motivations and Rewards Systems

     Since the existing reward systems may no longer appropriate for the new work environment, a new remuneration or reward system should be developed in order to cope with the BPR implementation and thus increase the staff motivation as well as their working incentive. This can maintain a smooth insertion of the new processes in the workplace.

2.   Effective Communication

     Effective communication is crucial for the success of BPR since a better communication between superiors and juniors can enhance the transmission of information which can improve the collaboration in work process.

3.  Empowerment

     BPR promotes the decentralization of power and right to lower levels so that the junior colleagues can have the right of decision making which will enhance their sense of work direction and engagement into the process. This can definitely increase their responsibility and accountability in work which is very essential in BPR implementation.

4. Training and Education

    An organization should offer a special training to the employees so that they can have both interpersonal and IT skills to cater with the process re-engineering.

Management Competence Factors

1. Committed strong Leadership

    Leadership has to be effective in order to have a clear vision of the business future. The vision must be widely spread throughout the organization so that every employee can be involved and motivated in the process re-engineering.

2. Championship and Sponsorship

  Champion is the one who persuade the top management of the need to change the organization, therefore the champion should be able to continually push the efforts of change in the re-engineering process.

Organizational Structure Factors

1.  Adequate Job Integration Approach

     The organization should match the work that fits to the employee which is called job labour integration. The employees can work more efficiently when they work in the area of their specialty and thus product quality, time and cost can be greatly improved.

2.  Effective BPR teams

    Cross functional team should be formed across departments to form a core powerful BPR team to supervise and monitor the progress of the process re-engineering in order to ensure the success of BPR implementation.

BPR Project Management Factors

1. Alignment of BPR Strategy with Corporate Strategy

    Since corporate strategy determines the objectives of the organization, while BPR strategy guides the tasks, processes, flow of people and information, etc. Therefore, there should be a careful alignment of corporate strategy with BPR strategy. 

2. Effective Process Redesign

    An effective process redesign is vital in BPR implementation such as process orientation, selection of core process, etc.

IT Infrastructure Factors

1.   Alignment of IT Infrastructure and BPR strategy

     IT strategic alignment is the integration of business strategy and IT strategy, which means re-engineering goals should be tied to the business objectives with the company strategic direction. Therefore, there are consistent strategies throughout the organization to ensure the success of implementing BPR.

In conclusion, the above factors are the key factors that affecting the success of BPR implementation, an organization should check these factors in order to have a successful approach of BPR.

Week4 - Strategic Alliance Model

Source / Reference:
1)  "Strategic Alignment: Leverage Information Technology for transforming organization" by J C Henderson and N Venkartraman 1993
http://search.proquest.com/docview/26252741/134A6C8B53F19A4F606/1?accountid=16210
2) Strategic Alignment: Analysis of Perspectives
http://sais.aisnet.org/2006/Coleman-SAIS2006-paper.pdf


Subject: 
In Lect 4 - Which alignment strategy in SAM model is the best? and why?


Response:
There are four alignment perspectives in SAM model which includes strategic execution, technology transformation, service level and competitive potential. These four dominant alignment perspectives emerged when both strategic fit and functional integration are being assessed simultaneously. However, there is no single alignment strategy that is universally superior. It depends on the company situation or industry nature.

Perspective one: Strategy Execution
This alignment perspective is the classic view of strategic management. Critical success factors, business system planning and enterprise modeling are the analytical methodologies that support this perspective. This perspective is formed when the business strategy is already articulated and thus it becomes the driving force of both organizational design and IT infrastructure design. The performance is assessed by the evaluation of a cost/service center.

Perspective two: Technology Transformation
This alignment perspective seeks to identify the best possible IT competencies which are not constrained by the current organization design. The development of the IT strategy is driven by the business strategy and the IT infrastructure will be the impacted domain. This perspective focuses on the performance of technology leadership to assess the position of the company in the IT market.
A typical example of this perspective is the American Express Travel Related Services Co.Inc., whose business strategy aims to provide quick approval of purchase made by charge card and return copies of receipts to the cardholder. This business strategy then become the major driving force to develop IT strategy and finally produced two IT infrastructures, i.e. Authorizer's Assistant and ECCB (Enhanced Country Club Billing) to help achieve the plan of the business strategy.

Perspective three: Service Level
This alignment strategy helps ensure the effective use of IT. An IT infrastructure will be created by the driven of IT strategy and impacted on organizational infrastructure. It focuses on customer satisfaction level as a performance criterion. This perspective is most suitable in servicing industry. For example, many cosmetic companies will issue a VIP card (supported by its IT system) to their honorable customers. The card will convert the consumption amount into points which the customers can use these points to redeem limited edition gift. Also, the VIP card allows the customers to have certain discount when they purchase again. This IT strategy can enhance the customer retention rate and increase the level of customer satisfaction.

Perspective four: Competitive Potential
This alignment perspective is formed by the emerging IT capabilities which affect the business strategy and eventually impacted on organizational infrastructure, which means the company seeks to identify a best strategy through IT. The performance criterion of this alignment perspective is the assessment of business or product leadership such as market share, growth and new product invention. The spring up of Federal Express Corp. is a result of introducing a new standard for overnight deliver through its COSMOS/PULSAR system. This example proves that an effective IT positioning helps create new and better business strategies and thus enhance business leadership.

To conclude, each alignment perspective has its own merits, no alignment strategy is the best, which perspective should be used depends on the industry nature and company situation. Nowadays, many companies will apply fusion perspectives (a combination of some perspectives) to deal with their companies weaknesses.