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Assessing the impact of e-business in business processes : a simulation approach

Assessing the impact of e-business in business processes : a simulation approach. Pável Albores Peter D. Ball Jillian MacBryde. Agenda. Research Need Project Aims/Plan Project Elements Project Framework Pilot Case Study Conclusions and Future Work. E-business involvement by sector.

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Assessing the impact of e-business in business processes : a simulation approach

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  1. Assessing the impact of e-business in business processes :a simulation approach Pável Albores Peter D. Ball Jillian MacBryde

  2. Agenda • Research Need • Project Aims/Plan • Project Elements • Project Framework • Pilot Case Study • Conclusions and Future Work

  3. E-business involvement by sector Source: Farish 2001,Engineering

  4. Drivers and issues of e-business Key issues in developing an e-business strategy Key business drivers for e-business Source: PMP Conspectus Dec 2001

  5. Research Need • Reduce uncertainty of e-business implementation in manufacturing companies • Need to understand the dynamics of processes and their interaction • Evaluate the real benefit of e-business • Speed-up adoption of e-business

  6. Project aims • To investigate the suitability of simulation as a technique to analyse the effects that e-business has on the business processes of manufacturing companies. • To develop e-business templates of different e-business scenarios in the manufacturing sector. • To develop the methodology for the use of these tools and techniques.

  7. Project plan • First Year • Literature Review • Gap analysis • Software analysis • Pilot Study • Second Year • Theoretical Templates development • Validation of the templates (Case Studies) • Analysis of the data obtained from the Case Studies • Third Year • Review of Templates • Formalisation of implementation methodology • Thesis writing

  8. Contributions • Use of simulation in a new context • e-process templates • Methods and procedures for integration of tools and techniques

  9. Project Elements • E-business • Demand is erratic and difficult to predict • Last-second orders and expectation of overnight fulfilment • Internet as a complement to, not a cannibal of, traditional ways of competing • Business Processes Modelling • Well established methodology • CIMOSA BP model: Operate, Manage and Support • Simulation work in BPR

  10. Project Elements • Simulation • Mimics the behaviour of a real system, generally with a computer and appropriate software • Decision support tool (“What-if” Scenarios) • Applications: Design, optimisation, training, risk reduction • Allows the study of the system under specific conditions. • Has the ability to model the behaviour of a system as time progress.

  11. e-FACTORY FRAMEWORK E-business Scenarios Traditional Business Processes DTO MTO MTS B2B B2C • Business • Performance Measures • Strategic Priorities • Strategic Options e- business process templates Methods and Procedures for integration of tools and techniques Simulation • Visualisation of dynamic interactions • Effect on internal resources • - People, Machines • Effect on external resources • - Suppliers, subcontractors, distributors • Planning and control implications Confident adoption of e-business strategies

  12. Pilot Case Study • Highland Spring. • Leading UK water bottling company • Approx. 250 employees • ERP system in place • Order processing • Telephone • Fax • EDI • Process of interest: Purchase order for haulier

  13. Process Map • Comparison of current process • Vs e-enabled process

  14. Conclusions • A methodology to adopt e-business is required • Strategic and operational considerations should be addressed by the models. • Simulation has been applied to BPR efforts, reducing the uncertainty of implementation. Can it be applied to e-business? • Eureka

  15. Future Work • Theoretical templates development • Case Studies • Data analysis • Validation/Review of templates • Simulation workshop / Tools comparison

  16. Questions? Pavel Albores pavel.albores@strath.ac.uk http://www.dmem.strath.ac.uk/csm/pavel

  17. Research Approach • Research Methodology • Case Study • Action Research • Modelling methodology • Simulation (General purpose tool) • Interviews • ERP system data

  18. E-process templates

  19. POH Experiment Results • Average of 10 iterations of 1 month, considering 8 hours shifts. • Cost base £30/hour salary

  20. Project Scope OPERATE PROCESSES Develop Product Electronic Commerce impact Generate Order Fulfil Order Support Product Current Simulation research Integrated approach needed: E-business + Simulation

  21. General Purpose Arena Witness Simul8 Extend ServiceModel Ithink Business process Work Flow Modeler Simprocess Process Charter Igrafx Processmodel Showflow Evaluated Simulation Tools

  22. Performance Measurement • “...is the process of quantifyingpurposeful action where the process of quantification is measurement and purposeful action equates with performance”. Neely et al (1996) • Quantification and comparison  simulation model. • Finding the "purposeful actions" business process management.

  23. Process Map

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