Principles and Tactics of Process Redesign for eBusiness

1
Principles and Tactics of Process Redesign for
e-Business

• The e-Business Speed Loop for the Enterprise
• Redesign Principles and Tactics
• Restructuring and Reconfiguring Processes
  (Restructure It)
• Changing Information Flows around the Process
  (Informate IT)
• Changing Knowledge Management around he Process
  (Mind IT)

2
e-Business Speed Loop

• Second wave BPR combines
• Supply-chain management
• Fast response management
• Knowledge management
• Leveraging Internet technologies
• Driven by
• Competitors
• Customers
• Suppliers
• Partners

3
Strategic Forces
Suppliers
Competitors
Customers
Partners
Learn Faster through processes
The enterprise as a set of processes
Reconfigurebusiness processes faster
Executebusiness processes faster
4
Strategic Capabilities

• The capability to reconfigure business processes
  faster
• The capability to execute business processes
  faster
• The capability to learn faster through processes

5
Factors Interacting With Business Process Change
IT Use
Organizational Form
BusinessProcesses
RequisitePeople Skills
6
Restructure IT

• Lose Wait
• Orchestrate
• Mass-Customize
• Synchronize

7
Lose Wait

• Squeeze out waiting time in process links to
  create value
• Product or service in a process is receiving
  value less than 5 of the time, remaining 95 is
  waiting
• Hand-offs
• Tactics
• Concurrent execution
• Closed loop teams
• Gate activities
• Continuous flow
• Modify upstream practice to relieve downstream
  bottlenecks

8
Concurrency

• Manual processes often involved sequential
  processing, IT enabled processes can be
  concurrent
• Loan approval process
• Product / tooling design

9
Closed-Loop

• Team involves all the people needed to complete
  the process
• Flagstar Bank, home mortgage approval

10
Not Gating Main Process

• Support and management activities should not hold
  up or delay the core value-added process
• Scheduling customer shipment and credit check

11
Continuous Flow

• Much more efficient than batch processes
• Places additional requirements on the underlying
  systems

12
Upstream Relieves Downstream

• Bottlenecks can be reduced by modifying the
  process upstrweam of the bottleneck
• Shelf stocking at supermarket

13
Orchestrate

• Let the swiftest and most able enterprise execute
• Collaborative efforts of multiple enterprises
• Outsourcing
• Insourcing
• Infomediary
• Tactics
• Partner a process with another enterprise
• Outsource a process to another enterprise
• Insource a process
• Route a process through an infomediary

14
Mass-Customize

• Flex the process for any time any place any way
• Efficient as mass-production
• Nearly as responsive as personalization
• Tactics
• Flex access by expanding the time window for the
  process
• Flex space by migrating the physical space
• Push customization to occur closes to the
  customer
• Enable dynamic customization of offerings

15
Synchronize

• Synchronize the physical and virtual parts of the
  process
• Tactics
• Match the offerings on the physical and virtual
  sides of the channel
• Create common process platforms for physical and
  electronic processes
• Track the movement of physical products
  electronically

16
Informate It

• Digitize and Propagate
• Vitrify
• Sensitize

17
Digitize and Propagate

• Capture information digitally at the source and
  propagate throughout the process
• Tactics
• Shift the data entry to the customers and
  digitize it
• Make the process as paperless as possible as
  easily as you can
• Make information more easily accessible upstream
  and downstream to those who need it
• Shrink the distance between the information and
  the decision

18
Vitrify

• Provide glass-like visibility through fresher and
  richer information about process status
• Tactics
• Provide on-demand tracking information for
  customers of the process
• Provide reporting capabilities that allow
  on-the-fly analysis
• Design standard partner interface processes for
  seamless exchange of information

19
Sensitize

• Fit the process with vigilant sensors and
  feedback loops that can prompt action
• Tactics
• Build in customer feedback loops
• Enable software smarts to trigger quick business
  reflexes
• Attach environmental probes to the process to
  monitor change

20
Mind It

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

21
Analyze and Synthesis

• Augment the interactive analysis and synthesis
  capabilities around a process to generate value
  added
• Tactics
• Provide What-If capabilities to analyze
  decision options
• Provide Slice and Dice data analysis
  capabilities that detect patterns
• Provide intelligent integration capabilities
  across multiple information sources

22
Connect, Collect, and Create

• Grow intelligently reusable knowledge around the
  process through all who touch it
• Tactics
• Community of practice
• Expertise maps, yellow pages
• FAQ database
• Knowledge sharing spaces

23
Personalize It

• Make the process intimate with the preferences
  and habits of participants
• Tactics
• Profiling of customers and doers
• Dynamic business rules triggered by personal
  profile
• Automatic collaborative filtering techniques
• Track personal process execution habits