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Enterprise Design Process: Business Processes

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

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  1. Enterprise Design Process: Business Processes Johan Strümpfer

  2. Enterprise Design Tool 1/ View 1

  3. 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

  4. ENTERPRISE DESIGN • THE DELIBERATE ARRANGEMENT OF FACTORS INTO A SYSTEM • THE INTEGRATION OF INTERACTIONS INTO A REGULATED WHOLE

  5. SYSTEM • A regulated set of relationships • Interacting and interrelated parts • Parts organised for a purpose • a Whole with novel features

  6. SYSTEM FACETS STRUCTURE PROCESS REGULATION FUNCTION

  7. DEFINITION OF STRUCTURE • Relationships that remain unchanged • Duration of interest • Stability and relative change

  8. Process View Process View

  9. Process view: PURPOSE • INTRODUCES CONCEPT OF ENTERPRISE AS SYSTEM AS LINKED PROCESSES • BROADENS SCOPE OF POSSIBLE INTERVENTIONS • STAGE 1 OF ENTERPRISE DESIGN

  10. 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

  11. SYSTEM I O T PROCESS VIEW OF SYSTEM • INPUT • TRANSFORMATION • OUTPUT

  12. CLASSIC ORGANISATIONAL STRUCTURE Lines of authority, responsibility, accountability

  13. PROCESS ORGANISATIONAL VIEW “Manage the white spaces”

  14. 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

  15. and BASES OF DIFFERENTIATION AND INTEGRATION-2 • Systemic • Differentiation & Specialisation • Integration & Synthesis • System development • Integrate AND Differentiate • All bases of division or

  16. 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)

  17. PROCESSES • Logically related tasks to achieved defined business outcome • Have customers, i.e. defined business outcomes • Cross organisational [functional] boundaries • Davenport & Short (1990)

  18. 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

  19. 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

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

  21. ...OF BIRDS AND BEES... • Biomatrix • Teleon • Doublet • Telentropy • Sub-teleon • Sub-doublet • Endo, Exo, Centro-teleon • ..... • Gyuri Jaros & Anakrion Cloete

  22. Woven mat of processes: • Sets of connected activities aimed at purpose • Interlinked and intersecting processes • Production processes • Support processes

  23. PROCESS CHARACTERISTICS • INPUT, TRANSFORMATION, OUTPUT • HAS PURPOSE AND GOALS • STRUCTURE • REGULATED ACTIVITIES • MEASURES OF PERFORMANCE • TELENTROPY • RIGIDITY, FLEXIBILITY & REDUNDANCY

  24. 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

  25. 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

  26. 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

  27. 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

  28. DESIGN PROCESS • STAKEHOLDER VIEW • OUTPUTS REQUIRED • PROCESS DEFINITION • PROCESS MODELLING • COMPARISON • ORDERING ACTIVITIES

  29. PROCESS DESIGN PROCESS STAKEHOLDERS? EXPECTATIONS? OUTPUTS? PROCESS ID & DEFINITION COMPARISON MONITORING & CONTROL ? TRANSFORMATION ACTIVITIES? CATEGORISE IT ROLE?

  30. 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

  31. STAKEHOLDER* • Stakeholder’s view of the enterprise • Stakeholder’s logic, rationale and value systems • Stakeholder’s choice to be stakeholder

  32. STAKEHOLDERS • Who should be served? • Who should (are) the stakeholders? • Who should (are) the clients/beneficiaries?

  33. 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?

  34. 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?

  35. 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?

  36. 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

  37. 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?

  38. 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

  39. 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

  40. 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

  41. 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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