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12013 BPM - Oswaldo Lorenzo
Process-based Management: Examples of Information Technology Enablers
Oswaldo Lorenzo OchoaProfessor, Author & Consultant
Digital Strategies, Operations, Information Systems
[email protected]: www.longconversation.com
@Lorenzooswaldo
Process & TechnologyCross-functional Business Process:
• Flows of Materials, Goods, Information and Services.
• Long and complex
• Dynamics: in response to the consumer demand
• Mainly automated
• Difficult to capture
• Not documented
• Coordination as their key role
Sale
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Marke
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War
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Manuf
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Accou
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Purc
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Accou
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Gener
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Finan
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Business Process:IT as processware
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TO-BE Analysis
Process Innovation, Redesign
Craft or Science?
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Understand and measure the current processes(AS-IS Analysis)
Design and build a process prototype(TO-BE Design)
Identify and Adopt Process Enablers
Actions:
•ELIMINATE
•AUTOMATE
•INTEGRATE
•COMBINE
•SEPARATE
•DECOUPLE (MODULES)
•DISINTERMEDIATE
Identify WASTE and its causes (OfI)
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Scientific Thinking
2013
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• Flow Design• Information Technology• Policies and Rules• Structure and Organization• Infrastructure
Process Enablers
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Information Technology
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The first rule of any technology is that automation applies to an efficient operation
will magnify the efficiency.
The second is that automation applied to an inefficient operation will magnify the
inefficiency.
Bill Gates, Microsoft Corporation
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Case:B2B procurement in Ericsson
Spain
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Source:“Enterprise Systems as an Enabler of Fast-Paced Change: The Case of Global B2B Procurement in Ericsson.”Lorenzo, Oswaldo & Diaz, Angel.
http://www.igi-global.com/chapter/enterprise-systems-enabler-fast-paced/18433
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B2B Procurement Process: Best practices
1. Simplicity and friendliness2. Requisition management
responsibility decentralized to employees
3. Use of catalogued materials, with defined price and provider
4. Flexibility for purchase management of non-classified materials
5. Approval system based on workflow6. Automatic invoice verification with
the purchase order7. Centralization of negotiations with
vendorsBPM - Oswaldo Lorenzo 92013
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Assignment questions
1. If you were one of the Ericsson’s upper managers, would you have supported the B2B procurement project for MRO materials? Why was this project relevant for the company?
2. Assess the selection process used for the B2B procurement system. Was the selection of SAP a good decision?
3. What were critical success factors for the implementation of this project?
4. With respect to the Future Alternatives (at the end of the case): Was there any other alternative? Which one of them all would imply greater benefits for ES? How could we prioritize them in time? How to assign teams and responsibilities?
5. Use the assessment form provided by the instructor to analyze the improvement process performed by Ericsson Spain for redesigning the purchase-to-pay process.
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Enteprise System Characteristics• Transaction system supporting operations.
• Integration
• Commercial Software Packages
• Evolution
BPM - Oswaldo Lorenzo 112013
End-to-end enterprise systems
ERP CRM
SupplierIntra-organizationalIntegration
BI
Company
ERP CRM
BI
Intra-organizationalIntegration
Clie
nts
Inter-Organizational Integration:B2B Source: Lorenzo & Diaz
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Source:Process gap analysis and modelling in enterprise systems
Oswaldo Lorenzo, Angel Diaz. International Journal of Simulation & Process Modelling.
2013
Enterprise SystemsVendor Strategy
IntegralChoice
Best-of-BreedBoB Choice
• Simplified interfacing• Single set of skills is
required by IT staff• 100 % of business
needs?• Example: Ericsson
waiting SAP development in B2B
• Specialized modules• Middleware• Example: Nestle – SAP for
back-office and Manugistics for SCM
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Source:Experiences and Success Factors in ERP Implementations in Spain and Latin America (Spanish)Lorenzo, O. Diaz, A., and Claes B.http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1550284
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Enterprise Systems:Mix of vendors
%
[only one provider] [one provider for each module]
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Source:Experiences and Success Factors in ERP Implementations in Spain and Latin America (Spanish)Lorenzo, O. Diaz, A., and Claes B.http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1550284
2013
http://www.youtube.com/watch?v=UlTMIFjK2ak
Let the store come to people
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The case of Tesco & Mobile
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Reflection
What is the contribution of IT and digital platforms (smartphones, QR, CRM) on the Tesco’s supply chain?
http://www.youtube.com/watch?v=UlTMIFjK2ak
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http://www.youtube.com/watch?v=-9kZxvAdAPk&feature=related
The case of ING Direct & Check Deposit App
2013
18BPM - Oswaldo Lorenzo
Thank you very much!
[email protected]: www.longconversation.com
@Lorenzooswaldo
2013