Alaska Airlines

1. Alaska Airlines Exercise Introduction Coordination Dependencies Alaska Airlines Representation Specialization Innovation Summary Process analysis tools January 1999

2. Alaska Airlines Exercise Alaska Airlines: introduction Introduction Coordination Dependencies • A simple process example In this exercise we are working backwards from a solution. The article describes technology-enabled solutions with which Alaska Air is experimenting. We will investigate the process implications of these solutions. Representation Specialization Innovation Summary

3. Alaska Airlines Exercise Process analysis for Alaska Air Introduction Coordination Dependencies • A simple approach • Describe (or represent) the process • Analyze (or diagnose) its variety • Consider process dependencies to understand potential business innovations Representation Specialization Innovation Summary

4. Alaska Airlines Exercise Review: a perspective on coordination Introduction Coordination Dependencies • What is coordination? • A business can be described as a series of steps that repeat over and over … i.e., a process • Some steps produce a product or service • The remainder coordinate production • Simplified, coordination: • delivers the right thing • at the right time • to the right place • …and is another way of talking about management Representation Specialization Innovation Summary

5. Deliver the right thing Usability Make sure that the product or service is “usable” (i.e., what the customer wants, profitable for the company, legal, within regulatory guidelines etc.) At the right time Prerequisites or Sequencing Make sure that the product or service is produced or created in the appropriate order -- so that things which must come before others occur reliably in sequence. To the right place Accessibility or Transfer Make sure that the product or service is delivered to where it is needed. Note that the prerequisite/sequencing idea focuses on delivery at the right time. Alaska Airlines Exercise Review: Coordination Introduction Coordination = managing dependencies among activities Coordination Coordination Term Explanation Dependencies Representation Specialization Innovation Summary These characteristics describe how one activity in a business process depends on others that occur around it. You will hear us refer to these as dependencies between process activities.

6. Alaska Airlines Exercise Alaska Airlines activity decomposition Introduction Alaska Airlines Coordination Dependencies Strategic goal Name this step to define the strategic goal of the business • In groups, take 10 minutes to develop an activity decomposition hierarchy. • Save your work in the directory k:\temp\!!!!DOIT • Be prepared to present your results. Representation Specialization Innovation Summary Perform mid-level analysis to define the components of the business Define the steps in the process by naming the activities below Step1 Step2 Step3 Step4 Step5 Step6

7. Alaska Airlines Exercise Alaska Airlines specialization analysis Introduction Coordination Alaska Airlines Dependencies …how? • In groups, take 10 minutes to develop a specialization analysis. • Save your work in the directory k:\temp\!!!!DOIT • Be prepared to present your results. Representation Specialization Innovation Summary …who? Consider the different ways in which this process varies. See FedEx example For each variation, consider how subactivities compare and contrast. Finally, consider key dimensions of specialization.

8. Collect at FedEx office Collect how? Use FedEx Ship Collect package Move package Deliver package Receive delivery information Receive package Move to truck Collect at FedEx office Use FedEx Ship Check delivery data Input bar-code Move to truck Input delivery data Glance at insert Move to truck Alaska Airlines Exercise Analyzing a Process - Specializations Introduction • The idea of process specializations assists in understanding major variations that exist within a business • For example, consider the different ways in which people may want to submit FedEx packages • • some customers may wish to go to a FedEx office • • others may wish they didn’t have to Coordination Dependencies Representation Specialization Innovation Summary Federal Express Transport package

9. Alaska Airlines Exercise Process innovation - Dependency analysis Introduction • You can use the idea of dependencies to focus on potential business innovations. • For example, consider different ways to • • manage usability • • manage prerequisites or sequencing • • manage (information) accessibility Coordination Dependencies Representation Specialization Innovation Summary Alaska Airlines Trade-off matrix Usability Prerequisites Accessibility Specialization 1 Specialization 2

10. Alaska Airlines Exercise Summary Introduction Coordination Dependencies • This exercise had three parts: • Representing and describing the process • Diagnosing process specializations • Analyzing process dependencies to understand potential business innovations • I hope it has provided a useful hands-on introduction to the process perspective used by this course. Representation Specialization Innovation Summary