Better business it collaboration using a work system perspective - run it as a business oct 27 2015
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The document discusses how DHL Europe enhanced business-IT collaboration through a work system perspective amid technological modernization challenges. It outlines significant initiatives like the Convergence Program and a Clean Sweep for data warehouses that focused on legacy systems and strategic redesign to improve operational efficiency. The lessons learned emphasize the importance of collaboration between senior users and IT professionals in evaluating system capabilities and ensuring planned innovation cycles.
Better business it collaboration using a work system perspective - run it as a business oct 27 2015
- 1. Better Business/IT Collaboration: Empowering Users and Leveling the Playing Field Presentation for a “Running IT as a Business” Santa Clara, CA, Oct. 27, 2015 Steven Alter University of San Francisco alter@usfca.edu www.stevenalter.com
- 2. Outline of Session • How DHL Europe used a work system perspective to facilitate business/IT collaboration • Work system perspective – These ideas are the take-aways. • Discussion – Do your IT professionals share an organized approach for understanding systems in organizations (not just IT)? – Are their business peers empowered to collaborate knowledgably about system-related issues?
- 3. The DHL Story • Obsolete 1990s technology in a highly customized, mission-critical data warehouse. • New architecture and technology on the way • How to deal with users across Europe? – Mission-critical applications will be replaced. – How to assure that users will be happy? – How to assure that customers will be happy?
- 4. Detailed Tracking and Related Reporting • Track 150 million shipments per year --- 2.5 million customers • 33 process checkpoints for tracking: – A Piece is a uniquely identified part of a shipment that is packaged and handled separately. – A Shipment is all of the goods carried under the terms of a single transportation contract. – A Handling Unit is a process technology device that is used to transport goods or other handling units, and has been closed and uniquely identified during containerization. – A Movement is a single execution of a transport between two locations • Identify deviations ASAP • Warn customers ASAP of any problems. • Generate reports for major customers and DHL managers
- 5. DHL’s “Convergence Program” • New architecture – Global Application Platform with 148 applications. • Eliminate non-standard applications where possible. – Sometimes needed to support customers • Major IT initiative – Started in 2008 with 1400 applications – Fewer than 500 remain.
- 6. DHL’s “Clean Sweep” for its Data Warehouse • 4 separate projects, starting in 2011. • Project 1: legacy assessment – What do we have? • Project 2: Strategic design – How to handle each redundant or obsolete capability? • Project 3: Make it happen – Fit existing capabilities into enterprise architecture • Project 4: Clean up
- 7. Project 1: Legacy Assessment • Gather available documentation • Create initial overview • Conduct technical deep dive • Understand usage and value to business – 17 of 29 countries used the data warehouse – 12 of 20 capabilities were used – 9 of 42 tables were used – 215 of 308 reports were used – 253 of 308 reports were obsolete • Write-up
- 8. Project 2: Strategic Design • Joint decision making with senior users and other stakeholders • What to keep? – Many reports were customized to specific needs of large customers – Some calculations and reports were obsolete.
- 9. Collaborating with Managers and Key Users Koehler, T., Cameron, B. H., Sweeney, M., & Harrison, A. S. (2013) Strategic market-technology linking in Logistics Work Systems – Evidence from two longitudinal Enterprise Architecture case studies at Deutsche Post DHL. British Academy of Management, Proceedings of BAM2013 Conference, Sept. 12, 2013.
- 10. Lessons from the DHL Project • End of service scenarios can trigger planned innovation cycles. • Clean sweep approach works for infrastructure technologies. • Vendors dictate necessity and timing of clean sweep projects. • Senior users and executives need to collaborate in evaluating capabilities and deciding what to keep or improve. • Oversized systems are a costly burden. • Need to customize decision-related reporting
- 11. A Bridge between Business and IT Views of Systems …..Is this possible? • Rigorous enough to be useful • Reasonably easy to use • Requires no obscure terminology • Can be used by business professionals with or without help of IT professionals. • Can support collaboration between business and IT professionals
- 12. Look at Systems as Work Systems • Work system: A system in which human participants and/or machines perform processes and activities using information, technology, and other resources to produce product/services for internal or external customers. • Sociotechnical by default, but may be totally automated. • Typically uses IT but is not an IT system. • More than just a business process.
- 13. Examples of Work Systems Calculating rates for insurance renewals Managing software development projects Acquiring clients at a professional service firm Receiving materials at a large warehouse Approving real estate loan applications Planning and dispatching trucking services Performing pre- employment background checks Performing financial planning for wealthy individuals Scheduling and tracking health service appointments Operating an engineering call center Purchasing advertising services Determining salary increases Collecting and reporting sales data for a wholesaler Planning for outages in key real time information systems Invoicing for construction work (from analyses by employed MBA students in Atlanta)
- 14. Special Cases of Work System • Information system • Project • Supply chain • E-commerce • Service system • Totally automated work system
- 15. Work System Framework (static view – but assuming some on-going adaptation)
- 16. Work System Life Cycle Model (dynamic view - iterations including planned and unplanned change)
- 17. Work System Method • Apply work system perspective – Identify the smallest work system that presents an important problem or opportunity – Summarize and evaluate the “as is” work system – Analyze structure and performance as deeply as appropriate – Recommend a “to be” work system – Explain advantages of the improved version. – Explain why the change project is worth doing • Different versions of WSM for different purposes • Include any aspects of Six Sigma or other tools that are useful in the situation.
- 18. Work System Snapshot – a Basic Tool
- 20. Conclusion --- Better Business/IT Collaboration • DHL Europe focused on business/ IT collaboration • Work system perspective – Work system framework – Work system life cycle model – Work system method – Service value chain model – Etc …. Other extensions • Fostering collaboration by leveling the playing field – Do your IT professionals share an organized approach for understanding systems in organizations (not just IT)? – Are their business peers empowered to collaborate knowledgably about system-related issues?