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Process based management examples of information technology enablers

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2013 BPM - Oswaldo Lorenzo 1 Process-based Management: Examples of Information Technology Enablers Oswaldo Lorenzo Ochoa Professor, Author & Consultant Digital Strategies, Operations, Information Systems [email protected] Blog: www.longconversation.com @Lorenzooswaldo
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Page 1: Process based management examples of information technology enablers

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

Page 2: Process based management examples of information technology enablers

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

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Business Process:IT as processware

BPM - Oswaldo Lorenzo 22013

Page 3: Process based management examples of information technology enablers

TO-BE Analysis

Process Innovation, Redesign

Craft or Science?

BPM - Oswaldo Lorenzo 32013

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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)

BPM - Oswaldo Lorenzo 4

Scientific Thinking

2013

Page 5: Process based management examples of information technology enablers

BPM - Oswaldo Lorenzo 5

• Flow Design• Information Technology• Policies and Rules• Structure and Organization• Infrastructure

Process Enablers

2013

Page 6: Process based management examples of information technology enablers

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Information Technology

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Page 7: Process based management examples of information technology enablers

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

BPM - Oswaldo Lorenzo 72013

Page 8: Process based management examples of information technology enablers

Case:B2B procurement in Ericsson

Spain

BPM - Oswaldo Lorenzo 8

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

2013

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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

Page 10: Process based management examples of information technology enablers

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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.

2013

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Enteprise System Characteristics• Transaction system supporting operations.

• Integration

• Commercial Software Packages

• Evolution

BPM - Oswaldo Lorenzo 112013

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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

BPM - Oswaldo Lorenzo 13

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

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Enterprise Systems:Mix of vendors

%

[only one provider] [one provider for each module]

BPM - Oswaldo Lorenzo 14

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

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http://www.youtube.com/watch?v=UlTMIFjK2ak

Let the store come to people

BPM - Oswaldo Lorenzo 15

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

BPM - Oswaldo Lorenzo 162013

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http://www.youtube.com/watch?v=-9kZxvAdAPk&feature=related

The case of ING Direct & Check Deposit App

2013

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18BPM - Oswaldo Lorenzo

Thank you very much!

[email protected]: www.longconversation.com

@Lorenzooswaldo

2013


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