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Enterprise Design Process: Business Processes. Johan Strümpfer. Enterprise Design . Tool 1/ View 1. ENTERPRISE. PARTS INTERACTING AROUND AN OVERARCHING BUSINESS PURPOSE NOT A CONGLOMERATE NOT NECESSARILY A GROUP WITH PARTS MORE OR LESS IN THE SAME BUSINESS NOT A FINANCIAL HOLDING

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Enterprise Design Process:

Business Processes

Johan Strümpfer


Enterprise design

Enterprise Design

Tool 1/ View 1


ENTERPRISE

  • PARTS INTERACTING AROUND AN OVERARCHING BUSINESS PURPOSE

  • NOT A CONGLOMERATE

  • NOT NECESSARILY A GROUP WITH PARTS MORE OR LESS IN THE SAME BUSINESS

  • NOT A FINANCIAL HOLDING

  • A SYSTEM


ENTERPRISE DESIGN

  • THE DELIBERATE ARRANGEMENT OF FACTORS INTO A SYSTEM

  • THE INTEGRATION OF INTERACTIONS INTO A REGULATED WHOLE


SYSTEM

  • A regulated set of relationships

  • Interacting and interrelated parts

  • Parts organised for a purpose

  • a Whole with novel features


SYSTEM FACETS

STRUCTURE

PROCESS

REGULATION

FUNCTION


DEFINITION OF STRUCTURE

  • Relationships that remain unchanged

  • Duration of interest

  • Stability and relative change


Process view

Process View

Process View


Process view purpose
Process view: PURPOSE

  • INTRODUCES CONCEPT OF ENTERPRISE AS SYSTEM AS LINKED PROCESSES

  • BROADENS SCOPE OF POSSIBLE INTERVENTIONS

  • STAGE 1 OF ENTERPRISE DESIGN


Definition of process
DEFINITION OF PROCESS

  • Altering or changing of relationships

  • Time frame of interest

  • Flows and transformations of Matter, Energy & Information (MEI)

  • Internal to systems boundary, Input & Output

  • Structure: static; Process: Dynamic


Process view of system

SYSTEM

I

O

T

PROCESS VIEW OF SYSTEM

  • INPUT

  • TRANSFORMATION

  • OUTPUT


Classic organisational structure
CLASSIC ORGANISATIONAL STRUCTURE

Lines of authority, responsibility, accountability


Process organisational view
PROCESS ORGANISATIONAL VIEW

“Manage the white spaces”


Bases of differentiation and integration
BASES OF DIFFERENTIATION AND INTEGRATION

  • Classical

    • Functional division

    • The whole is integrated at the top

    • Optimisation of the parts yields optimisation of the whole

  • Process

    • Process division

    • The whole is integrated at the bottom

    • Optimisation of the whole is different from optimisation of the parts


and

BASES OF DIFFERENTIATION AND INTEGRATION-2

  • Systemic

    • Differentiation & Specialisation

    • Integration & Synthesis

  • System development

    • Integrate AND Differentiate

    • All bases of division

or


Process redesign
PROCESS REDESIGN

  • Develop Process Objectives

  • Identify Processes to be Redesigned

  • Understand and Measure Existing Processes

  • Identify IT levers

  • Design and Build Prototype Process

    • Davenport & Short (1990)


Processes
PROCESSES

  • Logically related tasks to achieved defined business outcome

  • Have customers, i.e. defined business outcomes

  • Cross organisational [functional] boundaries

    • Davenport & Short (1990)


Re engineering
RE-ENGINEERING

  • Organise around outcomes, not tasks

  • Let output consumers produce output

  • Integrate information processing with real work producing the information

  • Place decision making where work is performed and build control into process

  • Treat geographically dispersed resources as centralised

  • Link parallel activities instead of integrating results

  • Capture information once and at source

    • M Hammer, HBR ,1990


Characteristics of business re engineering
CHARACTERISTICS OF BUSINESS RE-ENGINEERING

  • Re-work the transformation, not the output.

  • Singular (insular) view (process) of the organisational structure

  • Substitution of one basis for organisation for another

  • Heavy dependence on IT perspective

  • Patchwork of (some good) concepts; lacks rigour

  • Design orientation

  • Transcends current boundaries

  • Promotes questioning --- What framework?

  • Stretches value chain thinking


Discussion
DISCUSSION

  • Relate your own experiences and understanding of business re-engineering


Of birds and bees
...OF BIRDS AND BEES...

  • Biomatrix

  • Teleon

  • Doublet

  • Telentropy

  • Sub-teleon

  • Sub-doublet

  • Endo, Exo, Centro-teleon

  • .....

    • Gyuri Jaros & Anakrion Cloete


Woven mat of processes
Woven mat of processes:

  • Sets of connected activities aimed at purpose

  • Interlinked and intersecting processes

  • Production processes

  • Support processes


Process characteristics
PROCESS CHARACTERISTICS

  • INPUT, TRANSFORMATION, OUTPUT

  • HAS PURPOSE AND GOALS

  • STRUCTURE

  • REGULATED ACTIVITIES

  • MEASURES OF PERFORMANCE

  • TELENTROPY

  • RIGIDITY, FLEXIBILITY & REDUNDANCY


Telentropy
TELENTROPY

  • INVERSE OF LIKELIHOOD OF ACHIEVING ITS GOAL

    • Low telentropy = good chance of achieving goal

    • High telentropy = low chance of achieving goal

  • TELENTROPY “=“ STRESS

  • TELENTROPY TRANSFERABLE


  • Exercise
    EXERCISE

    • List 2-3 major processes in your personal life

    • List 3-5 major processes in your organisation

    • USE PROCESS CHARACTERISTICS CHECKLIST TO DEFINE PROCESSES


    Purpose of design process
    PURPOSE OF DESIGN PROCESS

    • DESIGN A DESIGN: Model of what ought to be

    • CRITICAL REFLECTION: Template for questioning design and reality

    • ALIGNMENT: Building up SHARED model of how business works

    • PARTICIPATION: Framework for participative design


    Process view design principles
    PROCESS VIEW DESIGN PRINCIPLES

    • Outward - Inwards design, not reactive: Holistic

    • Actively searches out multiple viewpoints

    • Structures and supports a group learning process: Participative

    • Uses a formal systems model as design template

    • Uses a systems approach to structure design process

    • Integrated with overall enterprise design process


    Design process
    DESIGN PROCESS

    • STAKEHOLDER VIEW

    • OUTPUTS REQUIRED

    • PROCESS DEFINITION

    • PROCESS MODELLING

    • COMPARISON

    • ORDERING ACTIVITIES


    Process design process
    PROCESS DESIGN PROCESS

    STAKEHOLDERS?

    EXPECTATIONS?

    OUTPUTS?

    PROCESS ID &

    DEFINITION

    COMPARISON

    MONITORING &

    CONTROL ?

    TRANSFORMATION

    ACTIVITIES?

    CATEGORISE

    IT ROLE?


    Sources
    SOURCES

    • ACKOFF: Redesigning the Future & Creating the Corporate Future

    • Gharajedaghi: Towards a Systems Theory of Organization & Unpublished material

    • Mason & Mitroff: Various on Stakeholders

    • Churchman: Design of Inquiring Systems, Systems Approach and Its Enemies

    • Checkland et al: Soft Systems Methodology


    Stakeholder
    STAKEHOLDER*

    • Stakeholder’s view of the enterprise

    • Stakeholder’s logic, rationale and value systems

    • Stakeholder’s choice to be stakeholder


    Stakeholders
    STAKEHOLDERS

    • Who should be served?

    • Who should (are) the stakeholders?

    • Who should (are) the clients/beneficiaries?


    Expectations
    EXPECTATIONS

    • What should the purpose be, from the client’s (beneficiary’s) perspective?

    • What should (are) the client’s measures of performance?

    • What are the underlying worldview assumptions that makes this meaningful to the client?


    What are the output goals
    WHAT ARE THE OUTPUT GOALS?

    • What should be produced to satisfy the expectations of the particular client/stakeholder?

    • What are the tangible and intangible deliverables?

    • What are time related requirements to satisfy the expectations?


    Process definition checklist
    PROCESS DEFINITIONChecklist

    • What is the input, output and transformation?

    • Who is the client/customer?

    • Who are the actors in the transformation?

    • Who are the owners of the transformation?

    • Who are the decision makers of the process?

    • Why is this transformation assumed to be meaningful?

    • What is the purpose of this transformation?

    • What are its measures of performance?

    • What environmental factors impact directly on this transformation?


    Process activity model
    PROCESS ACTIVITY MODEL

    • One process definition and model per output

    • Set of logically linked activities required to perform the transformation

    • Elements of model are verb phrases: Activities

    • ONLY activities that can be related to definition may be included

    • 5-12 activities per model


    Monitoring and control activities
    MONITORING AND CONTROL ACTIVITIES

    • Expand model to include monitoring and control of process within process

    • Efficacy, efficiency and effectiveness:

      • Efficacy: Does the process achieve its goals (output, time)? Telentropy: Likelihood of achieving goals

      • Efficiency: Resources used per production unit.

      • Effectiveness: Do the goals satisfy the (longer term) purpose and expectations?

  • What should be measured for efficacy monitoring?

  • What should be measured for efficiency monitoring?

  • What should be monitored for effectiveness?

  • Required reporting (including telentropy) and control activities?


  • Role of information technology and systems
    ROLE OF INFORMATION TECHNOLOGY AND SYSTEMS?

    • What should be done differently because of enabling technologies?

    • How should activities be done making use of IT/IS?

      • Specialist input required

      • Refer guidelines


    It is guidelines for informationalising
    IT/IS GUIDELINES FOR “INFORMATIONALISING”:

    • Mass customisation

    • Rapid, real time response

    • Manufacture at point of delivery

    • Shrinking Overhead, Inventory, Working Capital

    • Direct customer access & service levels

    • Interlinking organisations

    • Logistics and globalisation

      • Stan Davis & Bill Davidson: Vision 2020, Future Perfect


    Comparison
    COMPARISON

    • Activity models reflects designed ideal

    • Reflect on requirements for rigidity vs. redundancy and flexibility

    • Use models as basis for critical reflection on what is and should be implemented

      • Cultural issues, value changes

      • Human dimension (training, competencies)

      • Political feasibility

      • Impact dynamics

  • Group debate and design of implementation: Interaction


  • Ordering of activities across all processes
    ORDERING OF ACTIVITIES ACROSS ALL PROCESSES

    • CATEGORIES OF ACTIVITIES:

      • Monitoring and Auditing

      • Co-ordinating activities

      • Control activities

      • Primary production activities.

      • Support process activities

      • Common, shared activities


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