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.