Process based management examples of information technology enablers
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The document discusses process-based management and examples of information technology enablers. It describes how IT can be used as "processware" to automate and integrate business processes. It provides the example of Ericsson Spain streamlining its procurement process through the implementation of SAP software. This allowed for decentralization of requisition management, use of catalogs, flexibility, automated approvals, and centralized negotiations. The document also covers topics like enterprise system characteristics, integration across company boundaries, and the vendor strategy of using a single provider versus best-of-breed systems.
![Enterprise Systems:
Mix of vendors
%
[only one provider] [one provider for each module]
Source:
Experiences and Success Factors in ERP Implementations in Spain and Latin America (Spanish)
Lorenzo, O. Diaz, A., and Claes B.
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1550284
2013 BPM - Oswaldo Lorenzo 14](https://image.slidesharecdn.com/process-basedmanagementexamplesofinformationtechnologyenablers-130228105326-phpapp02/85/Process-based-management-examples-of-information-technology-enablers-14-320.jpg)
Process based management examples of information technology enablers
- 1. Process-based Management: Examples of Information Technology Enablers Oswaldo Lorenzo Ochoa Professor, Author & Consultant Digital Strategies, Operations, Information Systems oswaldo.lorenzo@deusto.es Blog: www.longconversation.com @Lorenzooswaldo 2013 BPM - Oswaldo Lorenzo 1
- 2. Process & Technology Cross-functional Business Process: • Flows of Materials, Goods, Information Business Process: and Services. IT as processware • Long and complex • Dynamics: in response to the consumer demand • Mainly automated • Difficult to capture • Not documented • Coordination as their key role 2013 BPM - Oswaldo Lorenzo 2
- 3. TO-BE Analysis Process Innovation, Redesign Craft or Science? 2013 BPM - Oswaldo Lorenzo 3
- 4. Scientific Thinking Understand and measure the current processes (AS-IS Analysis) Actions: Identify •ELIMINATE WASTE and •AUTOMATE its causes Identify and Adopt •INTEGRATE (OfI) Process Enablers •COMBINE •SEPARATE •DECOUPLE (MODULES) •DISINTERMEDIATE Design and build a process prototype (TO-BE Design) 2013 BPM - Oswaldo Lorenzo 4
- 5. Process Enablers • Flow Design • Information Technology • Policies and Rules • Structure and Organization • Infrastructure 2013 BPM - Oswaldo Lorenzo 5
- 6. Information Technology 2013 BPM - Oswaldo Lorenzo 6
- 7. The first rule of any technology is that automation applies to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency. Bill Gates, Microsoft Corporation 2013 BPM - Oswaldo Lorenzo 7
- 8. Case: B2B procurement in Ericsson Spain Source: “Enterprise Systems as an Enabler of Fast-Paced Change: The Case of Global B2B Procurement in Ericsson.” Lorenzo, Oswaldo & Diaz, Angel. http://www.igi-global.com/chapter/enterprise-systems-enabler-fast-paced/18433 2013 BPM - Oswaldo Lorenzo 8
- 9. B2B Procurement Process: Best practices 1. Simplicity and friendliness 2. Requisition management responsibility decentralized to employees 3. Use of catalogued materials, with defined price and provider 4. Flexibility for purchase management of non-classified materials 5. Approval system based on workflow 6. Automatic invoice verification with the purchase order 7. Centralization of negotiations with vendors 2013 BPM - Oswaldo Lorenzo 9
- 10. Assignment questions 1. If you were one of the Ericsson’s upper managers, would you have supported the B2B procurement project for MRO materials? Why was this project relevant for the company? 2. Assess the selection process used for the B2B procurement system. Was the selection of SAP a good decision? 3. What were critical success factors for the implementation of this project? 4. With respect to the Future Alternatives (at the end of the case): Was there any other alternative? Which one of them all would imply greater benefits for ES? How could we prioritize them in time? How to assign teams and responsibilities? 5. Use the assessment form provided by the instructor to analyze the improvement process performed by Ericsson Spain for redesigning the purchase-to-pay process. 2013 BPM - Oswaldo Lorenzo 10
- 11. Enteprise System Characteristics • Transaction system supporting operations. • Integration • Commercial Software Packages • Evolution 2013 BPM - Oswaldo Lorenzo 11
- 12. End-to-end enterprise systems Supplier Company Intra-organizational Intra-organizational Integration Integration BI BI Clients ERP CRM ERP CRM Inter-Organizational Integration:B2B Source: Lorenzo & Diaz Source: Process gap analysis and modelling in enterprise systems Oswaldo Lorenzo, Angel Diaz. International Journal of Simulation & Process Modelling. 2013 BPM - Oswaldo Lorenzo 12
- 13. Enterprise Systems Vendor Strategy Best-of-Breed Integral BoB Choice Choice • Specialized modules • Simplified interfacing • Middleware • Single set of skills is • Example: Nestle – SAP for required by IT staff back-office and Manugistics • 100 % of business needs? for SCM • Example: Ericsson waiting SAP development in B2B Source: Experiences and Success Factors in ERP Implementations in Spain and Latin America (Spanish) Lorenzo, O. Diaz, A., and Claes B. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1550284 2013 BPM - Oswaldo Lorenzo 13
- 14. Enterprise Systems: Mix of vendors % [only one provider] [one provider for each module] Source: Experiences and Success Factors in ERP Implementations in Spain and Latin America (Spanish) Lorenzo, O. Diaz, A., and Claes B. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1550284 2013 BPM - Oswaldo Lorenzo 14
- 15. The case of Tesco & Mobile Let the store come to people http://www.youtube.com/watch?v=UlTMIFjK2ak 2013 BPM - Oswaldo Lorenzo 15
- 16. Reflection What is the contribution of IT and digital platforms (smartphones, QR, CRM) on the Tesco’s supply chain? http://www.youtube.com/watch?v=UlTMIFjK2ak 2013 BPM - Oswaldo Lorenzo 16
- 17. The case of ING Direct & Check Deposit App http://www.youtube.com/watch?v=-9kZxvAdAPk&feature=related 2013 BPM - Oswaldo Lorenzo 17
- 18. Thank you very much! oswaldo.lorenzo@deusto.es Blog: www.longconversation.com @Lorenzooswaldo 2013 BPM - Oswaldo Lorenzo 18