Aims

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BMIBT CM322 INTERNET TECHNOLOGY, BUSINESS PROCESS
MODELLING and PROCESS RE-ENGINEERING Adapted for
self study from a presentation by Dr. Geoff Cutts
(CMS)
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This self study material concentrates on the
potential of technology in modern organisations
and provides and insight into Process Modelling,
Business Process Re-Design and potential roles
for Intranet Technology. It supplements the
lectures last week and this week on the Business
Modelling and should be useful for the
Individual Assessment you will do later in the
unit.
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Background
In the constantly growing and changing world,
companies must keep pace with new technologies to
provide a competitive solution for their
customers. Merely changing along with the growth
of technology, however, is not enough. Truly
successful organisations are those who continue
to adapt, to their new environment, calling on
new technology and integrating it in new ways to
better serve their customers. Such is the case
with information technology. By keeping large
quantities of information in a central location,
and making it available to many points throughout
the enterprise, many companies are able to reduce
costs. But at the same time, even though the cost
of the hardware is significantly less, the cost
of the software and services required to
implement even a small application remains high
this is changing with the growth of Internet
Technology. Innovative use of enabling
technologies gives high-impact,
technology-enabling solutions in ever shorter
timescales.
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Key Point - Every business is unique

• Traditional development approaches and uses of
  technology have often failed to recognise this.
  While typically 80 of an organisation's business
  processes are common, for example Purchase Order
  Administration, the remaining 20 are unique and
  drive the organisation's competitive advantage.
• In the past a concentration on
  supporting/improving standard business
  activities.
• Tendency to replicate or reinforce how things
  are done now.

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Business Process Redesign

• In business process redesign each business
  process is analysed, documented and redesigned
  to include only those tasks that add value to the
  organisation.
• Tasks are linked into end to end processes that
  often lead to a need to redesign the
  organisation's structure.

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Typical Business Process
Take Order
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Business Process Redesign

• Business process redesign involves the design of
  new end to end business processes, supported by
  people, systems and IT (increasing importance of
  Internet Technology).
• The objectives of business process redesign
  include -
• streamlined, flexible, responsive processes
• the elimination of unproductive activity
• improved collaboration
• improved resource utilisation
• strengthened synergy, and improved decision
  making.

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The Functional View focus on departments
Customer
Dept A
Dept E
Dept D
Dept C
Dept B
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The Process View focus on how things could be
done)
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Business Process Reengineering and Technology
Integration With reengineering, a company can
eliminate many of the antiquated methods of doing
business which were developed with antiquated
technology. They can apply the latest
technologies and perform much more efficiently
and effectively. Typically, the primary
technology needed to be incorporated into
business is the computerisation of information
many ways to do this). A reengineered company can
be accomplished by the simple application new
software products, deployment of network
technology or the strategic use of internet
technology (see precious papers on smart/virtual
organisations).
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Business Process Reengineering and Technology
Integration Business Process Reengineering and
Technology Integration is a technique of business
enhancement that essentially recreates the means
of doing business using the latest technology
available. Internet Technology a Key Enabler in
this In essence, reengineering is the process
of questioning why a process is done, how a
process is done, and can the process be
eliminated or combined with another process.
Reengineering is a critical means of enhancing
the effectiveness of a business. With the
increased competitiveness in industry today, many
businesses are finding that they either have to
reengineer or go out of business.
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Evolution of Business Improvement

The Whole Business
People, roles, culture, structure, beliefs,
rules, measures (Bus. Reeng)
Cross-functional
Process Design
(BPR)
Individual /
Intra-departmental processes
Departmental
Jobs
efficiencies
Roles
(TQM)
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PROCESS SIMPLIFICATION

• Eliminate non value adding steps
• Exploit any inherent parallelism of the system
• Perform any validation once and at the earliest
  opportunity
• Provide the shortest possible route from customer
  requirements to customer satisfaction

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PROCESS SIMPLIFICATION

• Information is gathered only once and at the
  earliest opportunity
• It should be possible to track the progress of
  the transaction at any time
• It should be possible to force through a
  transaction subject to controls
• Eliminate bottlenecks, black holes, buck passing.

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Potential Areas for Improvement

• Finance / Accounting
• Sales and Distribution
• Budgeting and Planning
• Human Resource / personnel
• Fixed assets
• Materials management and Inventory Control
• Master scheduling
• Works order management
• Logistics and Warehouse management
• Purchasing / Sourcing

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Levels of Internet Exploitation

• Lower Level
• Localised exploitation is the use of standard IT
  applications within departments or sections
  without any commensurate change in the business
  processes.
• Internal integration is the integration of IT
  and business to achieve maximum efficiency within
  the current organisation.
• These first two levels really only represent the
  rectification of current weaknesses.

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Levels of Internet Exploitation

• Higher Levels
• To exploit the capabilities of IT organisations
  need to redesign their business processes,
  redesign their business networks and to redefine
  their business scope.
• Potential to change the way they work and the
  organisations structure.

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Business Network Redesign

• Reaching out to suppliers, clients, contractors
  and in the case of multi-nationals reaching out
  to group companies is the goal of network
  redesign. The use of IT to create the virtual
  organisation is a challenge being taken up.
  Networking technology allows the right data to be
  at the right place at the right time. World-wide
  networks with adequate bandwidth which support
  concurrent databases, client server computing,
  multi-media applications, electronic mail and
  much more are available and demonstrable.

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Improvement can be continuous/radical sort/long
term

Discontinuous, unpredictable
Quantum Strategically Managed
Balanced formal and informal
Process owner sponsorship
Improvement
Radical

• Continuous, predictable
• Incremental
• Tactically Managed
• Focused on procedures
• Local Sponsored

Continuous
Time
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Summary Enterprise Wide Information Systems
Reaching
out to customers and suppliers
Value Chains
Todays Degree

Reality of Business
Transformation End to End Processes

Internal Integration
Rectification

of current Localised
Exploitation
Weaknesses
Range of Potential Benefits