Mastering BPR Redesign: Principles and Tactics for Efficiency

School

City University of Hong Kong**We aren't endorsed by this school

Course

IS 4636

Subject

Information Systems

Date

Dec 12, 2024

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Uploaded by MegaIron15823

IS4636 Business Process and Service Management Session 6 Redesign Principles and Tactics (II) Instructor: Mrs. Chiamin Fung

Agenda & Learning Objectives Review of last class ●BPR Redesign Principles and Tactics (I) Restructure & Reconfigure Informate - Digitize & Propagate Today’s topic●BPR Redesign Principles and Tactics (II) Informate Mind 2 IS4636 L06

Case 5-1: Order Fulfillment New system: Computers send orders directly to order fulfillment centers Each order broken down into component parts by IT Each component assigned to different pickers who is assigned to a particular physical area of warehouse Each picker places item on conveyor belt. Conveyor belt has bar code sensors to automatically sort orders and direct items to packing stations Order turnaround now 24 hours –previous up to 1~2 weeks 3 IS4636 L06 The picking part of the process has been restructured from a serial batch process into a continuous parallel process that is coordinated with the help of IT.

A Refined BPM Life Cycle 4 IS4636 L06 2. Process Identification & Project mobilization Existing? 3.1 As-Is Modeling 3.2 As-Is Analysis 3.3 Design of New Process Y New 4. Process Sourcing & Construction 5. Implementation, Deployment, & Execution 0. Process Monitoring 1. Visioning & Triggering (Problems & Opportunities) 3 Process (Re)Design

W5 Review: Class Discussion What is the difference between process parallelization and process integration? What is the difference between process-oriented and functional-oriented organization? What is a case manager in a closed loop? 5 IS4636 L06

Reengineering Principles Reconstructing & reconfiguring around processes Changing information flows around processes Changing knowledge management around processes TYPES 1.Lose Wait 2.Orchestrate 3.Mass Customize 4.Synchronize 5.Digitize & Propagate 6.Vitrify 7.Sensitize 8.Analyze & Synthesize 9.Connect, Collect, & Create 10.Personalize PRINCIPLES Source: El Sawy (2001), p.56-76 IS4636 L06 6 BPR Principles

Informate them! #6: VITRIFY (1 of 4) Common Tactics: 1. Provide on-demand tracking information for customers of the process 2. Provide reporting capabilities that provide on-the-fly analysis 3. Design standard partner interface processes for seamless exchange of information Essence: •Provide high visibility through fresher & richer information about the processes IS4636 L06 7

Informate them! #6: VITRIFY (2 of 4) Example: •Entity: OOCL •Process: Shipping •TO-BE: Provide vessel and rail tracking process service to customers on its website •Result: Higher customer satisfaction Common Tactics: 1. Provide on-demand tracking information for customers of the process 2. Provide reporting capabilities that provide on-the-fly analysis 3. Design standard partner interface processes for seamless exchange of information IS4636 L06 8

Informate them! #6: VITRIFY (3 of 4) Example: •Entity: Indian Railways •Process: Passenger reservation enquiry •TO-BE: Mobile users can access train-related information including train schedule, time table, and seat availability through Mobile SMS (Short Messaging Services) with Indian Railway •Result: Convenience to customers Common Tactics: 1. Provide on-demand tracking information for customers of the process 2. Provide reporting capabilities that provide on-the-fly analysis 3. Design standard partner interface processes for seamless exchange of information IS4636 L06 9

Informate them! #6: VITRIFY (4 of 4) Example: •Entity: Financial Institutions •Process: Electronic trading of financial products •TO-BE: The industry developed FpML (Financial products Markup Language) as the industry-standard XML protocol for complex financial products •Result: Easy communication Common Tactics: 1. Provide on-demand tracking information for customers of the process 2. Provide reporting capabilities that provide on-the-fly analysis 3. Design standard partner interface processes for seamless exchange of information IS4636 L06 10

Informate them! #7: SENSITIZE (1 of 4) Common Tactics: 1. Build in customer feedback loops to detect process dysfunction 2. Enable software smarts to trigger quick business reflexes 3. Attach environmental probes to the process to monitor change Essence: •Fit the process with vigilant sensors and feedback loops that can prompt action IS4636 L06 11

Informate them! #7: SENSITIZE (2 of 4) Example: •Entity: AC Nielsen •Process: Conducting marketing survey among individuals •TO-BE: The company conducts online surveys at its website. Some questions are added at the end of the questionnaire to collect customers’ feedback on the interface of the questionnaires. •Result: Improved quality of the survey Common Tactics: 1. Build in customer feedback loops to detect process dysfunction 2. Enable software smarts to trigger quick business reflexes 3. Attach environmental probes to the process to monitor change IS4636 L06 12

Informate them! #7: SENSITIZE (3 of 4) Example: •Entity: Hong Kong Exchanges and Clearing Limited •Process: Trading in the stock market •TO-BE: It launches the Automatic Order Matching and Execution System which allows automatic matching of stocks based on the orders •Result: Efficient stock trading Common Tactics: 1. Build in customer feedback loops to detect process dysfunction 2. Enable software smarts to trigger quick business reflexes 3. Attach environmental probes to the process to monitor change IS4636 L06 13

Informate them! #7: SENSITIZE (4 of 4) Example: •Entity: California Department of Transportation •Process: Collecting Traffic Data •TO-BE: Instead of using cameras to capture real-time images of highways, the Mobile Millennium Project collects anonymous speed and location readings sent from GPS-equipped cell phones (with a particular software installed) of drivers of vehicles passing specific spots (http://www.traffic.berkeley.edu/) Common Tactics: 1. Build in customer feedback loops to detect process dysfunction 2. Enable software smarts to trigger quick business reflexes 3. Attach environmental probes to the process to monitor change IS4636 L06 14

Case 6-1: Sales & Marketing Process Marshall Industries Distributor of industrial electronic components and production supplies USD1.2 billion, distributes 125,000 different products manufactured by over 100 major suppliers to over 30,000 business customers Network of 38 sales and distribution branches in North America Acquired by Avnet in 1999 15 IS4636 L06 http://avnet.com/

Case 6-1: Sales & Marketing Process Old processes: Mass ads distributed to potential customers Field salespersons fly to interested customers Presentation Waiting for requests from customers or sample request Prepare offer Negotiation Fly to customers customization close deal Procurement/Production Delivery …At least six months 16 IS4636 L06

Customers conducted global sourcing of components Time-based competition and short time-to-market were compressing product life cycles, some as short as 3 months: much faster response from distributors Became crucial to share information rapidly along supply chains and develop effective coordination –Internet and WWW Case 6-1: Sales & Marketing Process 17 The Problem: IS4636 L06

Case 6-1: Sales & Marketing Process Discussion: How to improve/redesign? 18 IS4636 L06

Case 6-1: Sales & Marketing Process 19 IS4636 L06

Case 6-1: Sales & Marketing Process 20 IS4636 L06

Mind them! #8: ANALYZE & SYNTHESIZE (1 of 4) Common Tactics: 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 Essence: •Enhance the interactive analysis and synthesis capabilities around a process to generate value added IS4636 L06 22 Adding analysis capabilities to generate knowledgethat can become a major part of the deliverable to the customer.

Mind them! #8: ANALYZE & SYNTHESIZE (2 of 4) Example: •Entity: HSBC •Process: Advising on Mortgage Enquires •To-Be: A potential property owner can use the online mortgage planning tool to estimate what his monthly payments will be by keying in some values in the programme •Result: Branch financial advisors are freed from low value-adding calculation work and they can focus on introducing financial products suitable for the potential client Common Tactics: 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 IS4636 L06 23 https://www.hsbc.com.hk/mortgages/borrowing-calculator/

Mind them! #8: ANALYZE & SYNTHESIZE (3 of 4) Example: •Entity: Purdue Pharma, a pharmaceutical company in Canada •Process: Collection of sales data •TO-BE: Replace the paper-based sales reporting system with a computer-based system, which enables its sales force to analyze data according to various criteria •Result: Better knowledge of the market Common Tactics: 1.Provide “what-if” capabilities to analyze decision options 2.Provide “slice and dice” data analysis capabilities that detect patterns E.g., Google Analytics 3.Provide intelligent integration capabilities across multiple information sources . IS4636 L06 24

Mind them! #8: ANALYZE & SYNTHESIZE (4 of 4) Example: •Entity: N.Y.-based insurance company •Process: provide customer service agents with quick access data from disparate IT systems •TO-BE: employ mash-up technology which handles diverse XML data together in one browser. •Result: brings fast, simultaneous access to claims, policy and other data to the computer screens Common Tactics: 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 Travelocity and VacationCoach Inc.IS4636 L06 25

Common Tactics: 1. Create a community of practice around the process 2. Create expertise maps and “yellow pages” related to the process 3.Build knowledge repositories that can be reused to enhance the performance of the process 4.Develop a FAQ database through the doers of the process 5. Embed knowledge-sharing spaces for interactive dialogues around the process Essence: •Capture intelligent & reusable knowledge around the process through all who touch it Connect: employing ways of mapping connections to sources of expertise and specific knowledge Collect: using ways of capturing and organizing knowledge so that it can be intelligently reused Create: setting up technological platforms, institutional forms, and physical or virtual spaces for shared knowledge creation IS4636 L06 26 Mind them! #9: CONNECT, COLLECT & CREATE (1 of 6)

Example: •Entity: Xerox Corp. •Process: Maintenance and repairing equipment at customer sites •TO-BE: Developed Eureka system to support a group of service technicians in capturing, annotating, sharing, and updating knowledge about fixing equipment in the field •Result: Parts and labour cost US$3M every year Source: Turban (2008), p. 394 Common Tactics: 1. Create a community of practice around the process 2. Create expertise maps and “yellow pages” related to the process 3.Build knowledge repositories that can be reused to enhance the performance of the process 4.Develop a FAQ database through the doers of the process 5. Embed knowledge-sharing spaces for interactive dialogues around the process IS4636 L06 27 Mind them! #9: CONNECT, COLLECT & CREATE (2 of 6)

Example: •Entity: US Commercial Service Division, Dept of Commerce •Process: Providing counseling services to US corporation •TO-BE: The expertise location system helps advisers to find live experts in additional to relevant documents to answer a question •Result: 1000 man-hours in the first 9 months Source: Turban (2008), p. 399 Common Tactics: 1. Create a community of practice around the process 2. Create expertise maps and “yellow pages” related to the process 3.Build knowledge repositories that can be reused to enhance the performance of the process 4. Develop a FAQ database through the doers of the process 5. Embed knowledge-sharing spaces for interactive dialogues around the process IS4636 L06 28 Mind them! #9: CONNECT, COLLECT & CREATE (3 of 6)

Example: •Entity: GE Aircraft Engines •Process: Information collection for internal training •TO-BE: Created OnPoint Solutions •Result: Better customer relationship thru its ability to predict when an engine part needs replacement Source: Turban (2008), p. 716 Common Tactics: 1. Create a community of practice around the process 2. Create expertise maps and “yellow pages” related to the process 3.Build knowledge repositories that can be reused to enhance the performance of the process 4. Develop a FAQ database through the doers of the process 5. Embed knowledge-sharing spaces for interactive dialogues around the process IS4636 L06 29 Mind them! #9: CONNECT, COLLECT & CREATE (4 of 6)

Example: •Entity: Inland Revenue Department, HK Gov’t•Process: Citizens managing tax affairs •TO-BE: eTax with FAQs, online demo and help desk www.gov.hk/en/apps/irdetax.htm •Result: High customer satisfaction Common Tactics: 1. Create a community of practice around the process 2. Create expertise maps and “yellow pages” related to the process 3.Build knowledge repositories that can be reused to enhance the performance of the process 4. Develop a FAQ database through the doers of the process 5. Embed knowledge-sharing spaces for interactive dialogues around the process IS4636 L06 30 Mind them! #9: CONNECT, COLLECT & CREATE (5 of 6)

Example: •Entity: 3M •Process: Customer phone enquiry handling •TO-BE: Agents receiving customer enquiries search for answer or post questions in the Remedy Action Request and System, in which engineers keep the knowledge base current. •Result: 95% of the customers are satisfied with the enquiry results Source: http://www.cio.com/article/142151/What_s_Your_Problem_/ Common Tactics: 1. Create a community of practice around the process 2. Create expertise maps and “yellow pages” related to the process 3.Build knowledge repositories that can be reused to enhance the performance of the process 4.Develop a FAQ database through the doers of the process 5. Embed knowledge-sharing spaces for interactive dialogues around the process IS4636 L06 31 Mind them! #9: CONNECT, COLLECT & CREATE (6 of 6)

Case 6-2: Customer Support Storage Dimensions •Manufacturer of disk and storage systems •Aimed at mission critical applications for data protection and available 24 hours a day. •Customers are large companies in information-intensive industries such as airlines, financial services and retail stores •Acquired by Maxtor (later again by Seagate) Storage products operate in multivendor environments with compatibility issues as products are upgraded. Customers dispersed geographically and in different time zones. Identified exceptional customer support as a critical success factor 32 IS4636 L06

Case 6-2: Customer Support Problems: Too slow - up to 2 to 3 hours to return a phone call in some circumstances Too haphazard - no organized on-line knowledge base for repeat problem solutions Too expensive –repeat problems frequently escalated to development engineers Stressful to both support personnel (overload) and manager (little visibility for the what, who, why, when) 33 IS4636 L06

Case 6-2: Customer Support Discussion: How to improve/redesign? 34 IS4636 L06

Case 6-2: Customer Support 35 IS4636 L06

Case 6-2: Customer Support 36 IS4636 L06

Mind them! #10: PERSONALIZE (1 of 5) Common Tactics: 1. Learn preferences of customers and doers of the process through profiling 2. Insert business rules in process that are triggered based on dynamic personal profile 3. Use automatic collaborative filtering techniques 4. Keep track of personal process execution habits Essence: •Make the process intimate with the preferences and habits of participants IS4636 L06 37

Mind them! #10: PERSONALIZE (2 of 5) Example: •Entity: Harrah’s Entertainment, USA •Process: Customer profiling •TO-BE: It launches the Winner's information network (WINet), a national database of operational customer data which connects and consolidates customer information from all of the company's transactional, slot machine, hotel management and reservation systems •Result: Personalized services Common Tactics: 1. Learn preferences of customers and doers of the process through profiling 2. Insert business rules in process that are triggered based on dynamic personal profile 3. Use automatic collaborative filtering techniques 4. Keep track of personal process execution habits IS4636 L06 38

Mind them! #10: PERSONALIZE (3 of 5) Example: •Entity: Hong Kong Public Libraries •Process: Renewal of library materials •TO-BE: Patrons can renew library materials online 24 hours a day •Result: A rule is added to prevent any patrons from holding library materials for too long time by disallowing online renewal of library materials repeatedly for 5 times Common Tactics: 1. Learn preferences of customers and doers of the process through profiling 2. Insert business rules in process that are triggered based on dynamic personal profile 3. Use automatic collaborative filtering techniques 4. Keep track of personal process execution habits IS4636 L06 39

Mind them! #10: PERSONALIZE (4 of 5) Example: •Entity: Amazon.com •Process: Customers buying books online •TO-BE: Generate book recommendations for every customer (i.e., customers who bought this also bought…) by matching the customer profile with similar customer profiles •Result: Cross-selling opportunities Common Tactics: 1. Learn preferences of customers and doers of the process through profiling 2. Insert business rules in process that are triggered based on dynamic personal profile 3. Use automatic collaborative filtering techniques 4. Keep track of personal process execution habits IS4636 L06 40

Mind them! #10: PERSONALIZE (5 of 5) Example: •Entity: McDonald’s at Japan•Process: Placing orders and paying •TO-BE: Customers can order food and pay using their mobile phones, which are equipped with RFID technology and a special programme •Result: It can send Kazasu Coupons (contactless coupons) and campaigns directly to customer’s phones according to their preferences and purchase history Common Tactics: 1. Learn preferences of customers and doers of the process through profiling 2. Insert business rules in process that are triggered based on dynamic personal profile 3. Use automatic collaborative filtering techniques 4. Keep track of personal process execution habits IS4636 L06 41

Next Session BPM Methodology (III) In-class exercise during the first hour ●Case Study: Zyco Auto InsuranceProgress report feedback and consultation (if time permits) 43 IS4636 L06

Discussion Questions (Optional) The key messages you’ve learned, some critical thinking about the topic of the lecture, & experiences/examples sharing ● Interesting examples or ideas in “Informate” & “Mind” business processes, etc. 44 IS4636 L06