Quiz 3

Transform-the-business metric definition

new horizons - new markets, new products or new business models - that affect the entire organization

BPR Complementarities

(e.g., what has to be in place in the organization for the BPR to succeed) A corporate strategic goal to provide customer oriented services Groupware, intranets Measurements of customer outcomes Empowered employees: " to make decisions and do ALL activities to meet a VARIETY of customer needs working within teams with the right info, tools, training, environment & authority" IT to provide information and tools to employees to make decisions on the spot for customer Processes more important than functions

process rationalization

(making sure process flows in the most rationale order): Introduce parallelism, Introduce largest termination early, Group together interdependent activities (invoicing & ordering) so the worker can decide which task to do in what order Isolate exceptions as a different process flow

Elements in a change management plan

(organizational issues) Revise management policies, asses costs and benefits, motivate adoption, conduct training

Business Process Redesign Heuristics

1. Increase customer satisfaction 2. Reduce non-value-added activities 3. Process Rationalization 4. Add automation ONLY if it DOES NOT reduce flexibility

conditions under which to use BPR

1. Lots of non-value added activities in as-is: 2. Sequence of activities can be assigned to a single cross-functional team 3. Ambitious outcomes possible 4. Willingness to rethink how business should be done

Non-value added vs value-added

An activity that, if NOT done, will harm the ability to meet customer requests or organizational needs Record keeping can be value-added to the COMPANY; so value-added means with respect to CUSTOMER OR COMPANY Always remember big picture (3-5 business requirements and business value); otherwise pull out non-value-added for no reason (if you are deleting the whole subprocess

BPI vs BPR

BPR requires the following conditions and will make substantial changes: 1. Lots of non-value added activities in as-is: AND 2. Sequence of activities can be assigned to a single cross-functional team AND 3. Ambitious outcomes possible AND 4. Willingness to rethink how business should be done

Example of BPR in loan processing

From three different departments (requiring customers to make three different inquiries): Loan application New Accounts ATM Cards To: "one stop service for all three inquires"

Conversion modules

How a system is installed

Reengineering

Is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance such as cost, quality, service and speed.

Conversion Location

Refers to the parts of the organization that are converted. what work groups are converted at what time

empowering people for BPR

To make decisions and do ALL activities to meet a VARIETY of customer needs working within teams with the right info, tools, training, environment & authority

Run-the-business metric definition

improve the desired balance among cost, quality, and risk for essential and nondifferentiated business processes by using the metric to justify which course of action provides best balance

Characteristics of best-practice Business value for IT-enabled initiatives

always measured in improved business performance; examples are NOT features, but better output, quality, revenue growth, market share; one compelling value statement; includes a viable correlation between cause and effect by linking changes to process, capability, worker behaviors, etc and ultimately linking to business and operational measures recognized by the business; need not be strictly financial but may be based on observable activities or outcomes

Handover

an activity in which work flow for a document switches from one swim lane to a different one

Grow-the-business metric definition

examining an entire value chain of a business to find operational improvements with a direct link to business growth

Business Case

report indicating the business value, risks, and alternatives for the proposed BPM change

Components of a business case

risk assessment, executive summary, purpose, approach, project description and objectives, stakeholders, strategic alignment, options assessed by costs and benefits, recommendations

Data conversion

the last and most technically difficult step in the conversion plan moving from as-is to to-be and store in files and databases.

Conversion Style

the way users are switched between the old and new systems. Split in direct and parallel