ELEC2017 1.1 r. king - how lean and digital capability can work together
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This document discusses how lean thinking and digital capabilities can be combined to create innovative solutions for businesses. It advocates using an "ideal state" approach to redesign processes and services, bringing in digital technologies where relevant. The document provides examples of how organizations have used this approach to dramatically improve processes like supplier services, travel and expense claims, and social housing lettings. It emphasizes starting with the ideal customer experience rather than technology, and involving frontline teams in co-creating new solutions.
ELEC2017 1.1 r. king - how lean and digital capability can work together
- 1. HOW LEAN & DIGITAL CAPABILITY CAN WORK TOGETHER TO CREATE UNTHINKABLE SOLUTIONS FOR TODAY’S BUSINESS ENVIRONMENT 8th November 2017 RYAN KING
- 2. MARKET LEADING BRANDS HAVE BEEN CREATED RAPIDLY IN RECENT YEARS 2 THE WORLD IS CHANGING FAST! What are some of the similarities between these organisations?
- 3. THE DISRUPTORS HAVE A NUMBER OF COMMON FACTORS 3 SERVICE DELIVERY CHARACTERISTICS • A unique (game changing) digital solution at the core of the service delivery • No or little human involvement in the service delivery • Instantaneous (in many cases) service delivery • Service available to customers 24/7 and 365 days per year • No paper documentation distributed • Available to customer’s globally in multiple languages • Minimal physical stock held Why might this be relevant to a Lean Practitioner who works on internal process improvement?
- 4. BUILDING ON LEAN THINKING NOT REPLACING 4 TRADITIONAL LEAN SERVICE VS INNOVATE Traditional Lean Service / Kaizen Innovate Approach Identify value through customer interaction/feedback Identify core purpose of the service and innovate on value Identify waste in the current process and seek to eliminate Design for zero waste & failure demand and work backwards from an idealised design Work through a current state analysis, design a future state process and implement Work through a current state analysis, design an ideal state concept utilising service delivery technologies, use innovation to create a prototype and implement Use a facilitator and subject matter experts (front-line employees & managers) from the process to redesign their process to create ownership Use a facilitator, individuals with digital capabilities alongside subject matters experts (front line employees & managers) to redesign a new service Use continuous improvement team ways of working to monitor and improve ongoing performance Use continuous improvement team ways of working to monitor and improve ongoing performance
- 5. WE ARE ABLE TO GET CLOSER TO IDEAL STATE SOLUTIONS THAN EVER BEFORE 5 IDEAL STATE THINKING • Idealised design is not a new concept, although the acceleration of digital solutions enables us to get ever closer to ‘Ideal State’. (*Always start with idealised design without a digital solution in mind) • Thinking without boundaries can enable individuals to come up with innovative ideas to deliver core value • It’s unlikely Netflix mapped Blockbuster’s end to end value stream to come up with their business model. They designed a service which gives customers the chance to browse films/ programmes and watch instantly whenever they wish • Ideal state thinking can be used for internal business process redesign as well as the core delivery to end customers
- 6. OUR INNOVATE WORKSHOPS UTILISE LEAN THINKING, DIGITAL CAPABILITY & IDEALISED DESIGN 6 LINKING IDEALISED STATE WITH DIGITAL CAPABILITY PRE-WORKSHOP IDEALISED DESIGN PULL IN DIGITAL CAPABILITY CREATE SOLUTIONS MAKE IT HAPPEN - Meet the front-line teams (go and see) - Understand current state: • Demand types and volumes (both value & failure) • Map the current process end-to-end • Analyse current end-to- end service delivery capability - Define the core service and the high level need of customers - Draw the perfect service from the customer’s perspective in whatever format the group like - Review and build the service characteristics of the design - Group present ideas to individuals with digital experience & capabilities (impartial) - Interactive sessions building on idealised concepts with numerous options for future process - Potential prototyping (if digital solution is relevant) - Detailed end-to-end service delivery design - Owned by the operations team - Using PDCA cycle - Agile (if implementing an IT solution ACTIVITIES INNOVATE WORKSHOP DELIVERPLAN
- 7. ENHANCEMENT IN RECENT YEARS HAS BEEN RAPID 7 DIGITAL TECHNOLOGIES As Lean Practitioners we can embrace the use of new technologies alongside Lean Thinking. We as individuals do not need to be digital experts but we can collaborate with technology professionals as part of future design. The key is creating a solution as close to perfect state as possible. The following technology areas that may be able to support this include: • The creation of Mobile Apps (typically created in days not weeks) • Robotic Process Automation • Artificial Intelligence • Web-based workflow tools • Cloud based software
- 8. SOME POINTS TO CONSIDER BASED ON EXPERIENCE 8 COMMON PITFALLS • Never start with a solution! – Technology sales people will sell their product whether it is optimum for your future design or not. Only use impartial technology professionals in your workshops • There doesn’t have to be a technological solution – We have run Innovate workshops, where the future design involved no new technology at all • Be careful of the latest new craze • As with any change involve the management and front-line employees all the way through - It’s their solution • New solutions involving technology can be continuously developed and released over time – We often don’t necessarily need full functionality from day 1 (Agile vs Waterfall)
- 9. VARIED EXAMPLES OF SERVICES, THE INNOVATE APPROACH HAS SUPPORTED THROUGH TO IMPLEMENTATION 9 INNOVATE EXAMPLES Value Stream in Focus and the Core Purpose of the service Initial Service Delivery Design Solution Implemented Supplier Services (Finance) - Provide up to date and accurate finance information to the supplier base Suppliers log a request through a service desk. Agent looks into their request and provides a response to the question with a 3 day SLA. Each and every question results in a wait for information from the agent which is emailed through an internal system. Queries can be escalated to higher management if not resolved An updated system giving suppliers access to information they are likely to require e.g. status of all invoices, goods receipting and payment dates. (Reduced failure demand by 89% on these queries) Dramatically lower resource costs to answer queries Travel and Expenses – Reimburse travel and expenses to employees Laptop based claim form completed. Claimant completes claim form seeking data from receipts, booking confirmations etc and manually types information into system. One auto email sent to Line Manager for sign off. Payment runs are twice weekly. New bespoke app created and launched. Links bookings for hotels, trains, taxis & flights. Gives automatic notifications to line managers for sign offs. App reads photos of receipts and populates claim form. Large time savings for claimants (up to 30 mins quicker), quicker signoffs and quicker payments (daily payment runs). Claim to repayment now 98% within 2 days compared to over 90% of claims paid > 7 days Local Authority Social Housing - Lettings New tenants arrange to meet representatives from the council to review and sign a large bundle of paperwork ahead of letting a property. This meeting is time consuming for all parties involved, but also the sheer volume of paperwork is costly and unnecessary An eSign process was designed & implemented to allow remote sign-ups to take place. This was offered as an alternative channel, however as many as 70% of new tenants took up the service. This reduced the cost of this element of the process by 60% and drove up customer satisfaction significantly.
- 10. Copyright 2015-2016 by Reinvigoration Limited. All rights reserved. Confidential and proprietary. A Reinvigoration Ltd Landore Court 49 Charles Street (3rd floor) Cardiff CF10 2GD T +44 (0) 800 028 6703 | E info@reinvigoration.co.uk | W www.reinvigoration.co.uk Ryan King Partner Ryan.King@Reinvigoration.co.uk