Lecture 11 - Redesign Principles (2)

Reference

[1] What – if analysis

   http://en.wikipedia.org/wiki/What-if_analysis

[2]Tirz-Carlton Hotel

http://www.ritzcarlton.com/en/Properties/HongKong/PhotoGallery.htm

[3] Redesigning enterprise processes for e-business

[4] Slice and dice

 http://whatis.techtarget.com/definition/0,,sid9_gci212997,00.html

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After Lecture 10, it continues the principles and tactics of process redesign. It relate to changing the knowledge management capabilities of the process by harnessing the collective intellectual assets around it. These enable the knowledge-creation capacity of the business process to expand.

Principle 8: Analyze and synthesize

There are 2 elements we need to do in this principle. First, analysis refers to dividing a whole into parts. Next, synthesis refers to the process of constructing a whole from an assortment of pieces. This process is to augment the interactive analysis and synthesis capabilities around a process to generate value added.

The tactics for this principle are providing “what-if” capabilities to analyze decision options, providing “slice and dice” data analysis capabilities that detect patterns and providing intelligent integration capabilities across multiple information sources. "Slice and dice" means that break a body of information down into smaller parts or to examine it from different viewpoints so that you can understand it better.

Principle 9: Connect, Collect, and create

A business process can be redesigned by intelligently growing knowledge around it through all the people who take part in the process. No matter they are the doers of the process or even the customers of the process.

A knowledge management infrastructure can be viewed as having three aspects: “connect” aspect, “collect” aspect, and “create” aspect.

Connect aspect: The connect aspect includes ways of mapping connection to sources of expertise and specific knowledge.

Collect aspect: The way of capture and organize knowledge so that it can be intelligently reused.

Create aspect: Set up technological platforms, institutional forms and physical or virtual space for shared knowledge creation.

Principle 10: Personalize

This principle is about making the process intimate with the preferences & habits of participants.

The tactics used in this principle is learning preferences of customers and doers of the process through profiling, inserting business rules that are triggered by personal profiles, using collaborative filtering techniques and keeping track of personal process execution habits.

Example:

Hong Kong Ritz-Carlton is a five-star hotel in HK. It provide customer service process includes institutionalized ways of learning about the preference of its customers through profiling and using that knowledge on subsequent customer service instances to tailor and personalize the service offerings. It trains all its service employees to record every preference or complaint that they can pick up form conversations with or observations of individual customer. Employees are provided with a guest preference pad for writing down these preferences. Preferences are entered into a profile database that can be accessed worldwide through the travel reservation system. And now, they have individual profiles on half a million guests, The customer service process can then be tailored to individual preference based on this knowledge, When the customer service process is initiated for a repeat customer at any hotel location, the process remembers and personalizes the offerings.

Lecture 10 - Redesign Principles and tactics

Reference:

[1] EL SAWY’S REDESIGN PRINCIPLES AND TACTICS

http://higheredbcs.wiley.com/legacy/college/turban/0471229679/add_text/ch09/el_sawy.pdf

[2] Redesigning farm strategies

http://aciar.gov.au/files/node/10143/CGW%20Paper%2014%20Michalk%20Principles.pdf

[3] HSBC HK Personal service

http://www.hsbc.com.hk/1/2/hk/personal/self-service

[4] WebCT history

http://en.wikipedia.org/wiki/WebCT

[5] Polyu WebCT

http://webct2.polyu.edu.hk/webct/public/home.pl

[6] Dell Computer

http://www.dell.com/

[7] UA online purchasing system

http://www.uacinemas.com.hk/chi/main/help.jsp

[8] Adobe

http://www.adobe.com/

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In this lecture, we learn how to use the principles and tactics to redesign the system. It also introduce that there are three generic ways for redesigning a business process, they are Restructuring the process, Informating the process, and minding the process. They have different meaning and function, but they have some common purpose. Firstly, they all are going to maximize the value adding content of a process. Secondly, they manage non-value adding activities. Lastly, they minimize all everything else such as waste, valueless complexities and similar activities.

Principle 1: Lost wait

Lost wait means squeezing out the unnecessary inefficient waiting in a process.

The tactics here is to allow for concurrent execution of time-sequential activities and set up closed-loop teams that cross specializations (case work) so that the core value-adding process will not be delayed.

1.          Redesigning time-sequential activities to be executed concurrently

2.          Creating closed-loop teams for quicker flexible interaction

3.          Not allowing a support activity to gate a core value-adding process

4.          Designing for continuous flow rather than stop-start batches

5.          Modifying upstream practice to relieve downstream bottlenecks.

For example, HSBC uses many ATM to create a closed loop. Some of the machines can help customer to store the money into the bank account. Comparing with Bank of Communications, it requests customer to save their money through the counter. HSBC can create a closed loop that let the customer to store their money directly and make a shorter waiting time for customer and reduce the work load for staff.

Principle 2: Orchestrate

This means choosing the swiftest and most able enterprise to execute the business process, no matter it is the company itself or other companies.  The main point here is that usually only the non-core business processes will not be outsourced to other companies so as to avoid the leaking of the secret business intelligence.

Common Tactics:

1.          Partner a process with another enterprise

2.          Outsource a process to another enterprise

3.          Insource a process back into the enterprise

4.          Route the process through an informatory

For example, Polyu WebCT system is an example of Outsource a process to another enterprise. WebCT was originally developed at the University of British Columbia by a faculty member in computer science, Murray Goldberg. It can provide some services such as downloading the notes, submitting assignment, etc. After purchasing WebCT, Owner can maintain the system and have different setting based on the student / teacher need.

Principle 3: Mass-customize

This means making the process highly flexible in terms of place, time and the way. In other words, it is a process can be redesigned to allow flexibility of interaction options and product offerings for different customer segments. The business is designed to be as efficient as mass production and nearly as responsive to customers as personalization.

Common Tactics:

1.          Flex access by expanding the time window for the process

2.          Flex access by migrating the physical space in which the process happens

3.          Create modular process platform

4.          Push customization to occur closest to the customer

5.          Enable dynamic customization of product offerings

For example, Dell is providing a online shop system which allows the customers can choose or modify the hardware components of their products. Also, there is one more example that, Students can shift their place of learning to their home through videoconferencing and online access.

Principle 4: Synchronize

Synchronize the physical and virtual parts of the process. Most of the enterprise wants to move into e-business, but they typically do not disband the bricks-and-mortar side of the business. If the business use this method to redesign the business processes to take advantage of both the physical and electronic parts of the process.

1.          Match the offerings on the physical and virtual parts of the channel

2.          Create common process platforms for physical and electronic processes

3.          Track the movement of physical products electronically

For example, UA is a cinema that using Match Offerings. Customer can use credit card the buy the ticket through their website or iPhone Apps. Also, they keep a typical selling way to sell the ticket in front of the cinema.

Principle 5: Digitize and Propagate

A business process can be redesigned by modifying the information flows around it so that information is captured as early as possible in digital electronic form.

Common Tactics

1.          Shift data entry to customers and digitize it

2.          Make the process as paperless as possible as early as you can

3.          Make information more easily accessible upstream and downstream to those who need it

4.          Shrink the distance between the information and the decision

For example, 15 years ago, some software such as windows office are needed to buy in a computing store. Customer need to buy a disk and back home to install the software. But, nowadays, customer can pay and download the software online, such as Adobe Photoshop.

Principle 6: Vitrify

Vitrify is to make something as transparent as glass. A business process can be redesigned by improving its transparency and real time visibility while it is in progress through fresher and richer information.

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

Principle 7: Sensitize

This is accomplished by building in feedback loops that easily allow the customer of the process to provide feedback on how well the processes are working.

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