Redesigning for EBusiness

1
Redesigning for E-Business

• Discuss waves of business process improvement
• Describe major issues and characteristics of
  business process reengineering for e-business
• Describe principles and tactics for IT-enabled
  business process reengineering

2
Redesigning for E-Business

• Business Process Reengineering for E-Business
  involves rethinking and redesigning business
  processes at both the enterprise and supply chain
  level to take advantage of Internet connectivity,
  simple universal interface and new ways of
  creating value
• Involves IT, business processes, people and
  organizational forms
• In 1994 survey, 67 judged as producing marginal
  or failed results
• failed projects less depth and less breadth

3
Design Issues
Business Strategy
Business Processes
IT
4
Waves of Business Process Improvement
Knowledge Management
Web-enabled e-business
1st Wave BPR
TQM
5
Waves of Business Process Improvement
6
Waves of Business Process Improvement
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Process Redesign for E-Business

• Customer-facing
• Cross-functional, cross-departmental,
  cross-enterprise (integrate front- and back-end)
• E-business project for process carried out across
  a supply chain across enterprises is more complex
  than process within the same enterprise
• agreement on interfaces
• multiple political and organizational challenges
• underlying IT infrastructures
• Cross-enterprise resign has largest potential
  pay-off

8
Bridging Business and Technology

• Consider who owns customer data customer and
  internal owner
• Customer Profiles (customer-facing)
• Business Rules (I.e., rules for good customers)
• Business Events (places where systems interact)
• Business Objects (e.g., customer, account, order)

9
Critical Questions

• What is the typical scope of a BPR project?
• Which business processes need to be re-engineered
  the most?
• Add the most value
• Importance of project to companys strategic
  intent
• 50 - order fulfillment and customer service
  process

10
Critical Questions

• What is the relationship between BPR and Supply
  Chain Management?
• What is the influence of Packaged ERP software
  (COTS) on BPR?
• Guiding template of best practices
• Forced cross-functional reengineering
• Each company division operates in the same way
• Will BPR for e-business be different for
  brick-and-mortar than for internet-only
  enterprises?

11
Generic IT-Enabled BPR Streamlining the Business

• Redesigning Enterprise Processes for e-Business,
  Omar El Sawy, 2000
• Restructuring and Reconfiguring Processes
  (Restructure It)
• Changing Information Flows around Processes
  (Informate It)
• Changing Knowledge Management around Processes
  (Mind It)

12
Principles and Tactics for Restructuring
(Restructure It)

• Lose wait -squeeze out waiting time
• redesign time-sequential activities to be
  executed concurrently
• design for continuous flow rather than stop-start
  batches
• modify upstream practice to relieve downstream
  bottlenecks
• Orchestrate - let the swiftest and most able
  enterprise execute
• Partner or outsource a process to another
  enterprise
• Insource where needed (Fender in Europe)
• Use infomediaries (exchanges)

13
Principles and Tactics for Restructuring
(Restructure It)

• Mass-Customize - flex the process for any time,
  any place, one way
• Flex access by expanding the time window for
  process
• Flex access by migrating the physical space where
  process happens (Sunglass Hut)
• Push customization to occur closest to the
  customer
• Synchronize -synchronize the physical and virtual
  parts of the process
• Match offerings in physical and virtual parts of
  channel (Borders)
• Track the movement of physical products
  electronically

14
Principles and Tactics for Changing Information
Flows

• Digitize and Propagate - capture information
  digitally at the source and propagate throughout
  the process.
• Shift data entry to customers and digitize it.
• Strive for paperless process.
• Microsoft receives 750 applications daily
• 1997 6 submitted electronically
• 1999 - 70 submitted electronically
• Make information more easily accessible to those
  who need it (upstream and downstream)
• Wal-Mart and PG

15
Principles and Tactics for Changing Information
Flows

• Vitrify - provide glass-like visibility through
  fresher and richer information on process
• On-demand tracking
• Reporting capabilities for ad hoc analysis
• Sensitize - fit the process with vigilant sensors
  and feedback loops that prompt action
• Customer feedback loops to detect process
  dysfunctions
• Software to trigger quick business reflexes
  (Hertz and prices)
• Environmental probes to monitor change

16
Principle Tactics for Changing Knowledge
Management

• Analyze and Synthesize - augment the interactive
  analysis and synthesis capabilities around a
  process to generate value added (these arent
  cheap and require planning ahead)
• what-if capabilities (Merrill Lynch)
• slice and dice data analysis to detect patterns
• Connect Collect and Create - grow intelligently
  reusable knowledge around the process through all
  who touch it (fostering community)
• Community of practice- Engineering Book of
  Knowledge
• FAQ database
• Expertise maps and yellow pages

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Principle Tactics for Changing Knowledge
Management

• Personalize - make the process intimate with the
  preferences and habits of participants
  personalize interactions
• Learn preferences of customers and doers of the
  process through profiling (American Airlines,
  Ritz-Carlton Hotels)
• Insert business rules in process that are
  triggered based on dynamic personal profile
• Use automatic collaborative filtering techniques
  (BarnesNoble)