Organization and Business Process
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Transcript of Organization and Business Process
Organization and Business Process
Guest Lecture for Bina Nusantara University, June 26 2013
Goutama Bachtiar
Advisor, Global Innovations and Technology Platform
T: @goudotmobi
INTRODUCTION
Introduction
Presenter Profile 15 years of working experience: 12 years of Training and Education, 8
years of IT Audit, 7 years of strategic partnership, 8 years of writing, 6 years of consulting, software development, project management and network administration
Advisor at Global Innovations and Technology Platform
Head of Information Technology at Roligio Group
Subject Matter Expert at ISACA International Chapter
Program Evaluator at Project Management Institute
Columnist and contributor at Asia Tech Site e27.co, Forbes Indonesia, The Jakarta Post, DetikINET and InfoKomputer among others
Today’s AgendaOrganization Mission and Vision
Organization Strategy and Design
Business Activities
Business Process
Business Process Management
Business Process Reengineering
Today’s ObjectivesCore business
Business strategy and functions
Customers
Suppliers
Partners
Business process and activities
VisionProvides guidance about what core to preserve and what future to stimulate progress toward
Consists of two major componentsCore ideology defines what we stand for and why we exist (values and purposes)
The envisioned future is what we aspire to become, to achieve, to create—something that will require significant change and progress to attain (10-30 years of Big Goal w/ description)
Vision (cont’d)Example of core ideology: Hewlett-Packard
Code of ethics ‘HP Way’ has guided the company since its inception more than 50 years ago
It includes a deep respect for the individual, a dedication to affordable quality and reliability, a commitment to community responsibility
Packard himself bequeathed US$4.3 billion of his stock to a charitable foundation and a view that company exists to make technical contributions for advancement and welfare of humanity
Vision (cont’d)Example of vision: Coca Cola
People: Be a great place to work where people are inspired to be the best they can be
Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs
Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value
Vision (cont’d)Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities
Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities
Productivity: Be a highly effective, lean and fast-moving organization.
Vision (cont’d)Example of vision:
Walt-Disney company
Be the leader in the delivery of entertainment experiences
Be the premier channel for sports experiences and information
Vision is also dynamic
Example of vision:
Walt-Disney company
Be the leader in the delivery of entertainment experiences
Be the premier channel for sports experiences and information
MissionIt declares organization purpose
A statement why an organization exists
Serves as the standard against which the organization weigh their actions and decisions
Short and very clear
Walt Disney company "Make People Happy” It didn't say make it through animation, or theme parks, or interactive experiences
Mission (cont’d)Example: Coca Cola
To refresh the world...
To inspire moments of optimism and happiness...
To create value and make a difference
ValuesServing as compass for company actions and
describe how they behave in the world
Example: Coca Cola
Leadership: The courage to shape a better future
Collaboration: Leverage collective genius
Integrity: Be real
Values (cont’d)Example: Coca Cola
Accountability: If it is to be, it's up to me
Passion: Committed in heart and mind
Diversity: As inclusive as our brands
Quality: What we do, we do well
Values (cont’d)Example: Hewlett-Packard
Trust and respect for individuals
Achievement and contribution
Results through teamwork
Meaningful innovation
Uncompromising integrity
Company ObjectivesFinancial
Profit and Lost (P&L) StatementBalance SheetGross Profit, EBIT, EAT (Net Profit),
ROI, ROAStock Price in stock exchange market
Non-FinancialCredibilityContributionIP
Company Objectives (cont’d)
Hewlett-Packard as an example
Profit
Growth
Market leadership
Commitment to employees
Leadership capability
Global Citizenship
Core BusinessThe primary area a company was founded on or focuses on in its business operations
Even though leading the growth, market leaders usually opens their doors for new business opportunities
Core Business (cont’d)The primary area a company was founded on or focuses on in its business operations
Even though leading the growth, market leaders usually opens their doors for new business opportunities
Core Business (cont’d)
Key factsOrganization
A US multinational company based in Palo Alto, CaliforniaSegment
Consumer, commercial and enterpriseIndustry
Computer Hardware, Computer Software, Consulting, Information Technology and Services
Type: PublicFounded: 1939Employees: 332,000
Core Business (cont’d)Key factsPresence in 70 countriesGroups: Imaging and Personal Systems, Enterprise Business Divisions: Financing, Hardware, Software, ServicesCore Business: providing IT hardware, software, solution and
servicesTotal Assets: US$109BTotal Equity: US$23BTotal Revenue: US$120BOperating Income: (US$11B)Net Income: (US$12.7B)
Organization StrategyHow an organization needs to evolve over time to meet its objectives along with a detail assessment of what needs to be done
First comparing its present state to its targeted state to define differences and then stating what is required for the desired changes to take place
Organization DesignAligning organizational and position
structures with organization strategic mission and objectives
Review and analyze organization’s mission, functions, strategic objectives, work processes, and workloads
Determine skills mix (occupational types, grade levels, and numbers of positions in each occupational category) required to achieve strategic objectives
Organization Design (cont’d)Identify functional interrelationships
Identify workflow and work process bottlenecks and inefficiencies
Recommend work process and workflow reengineering
Develop organizational structure and staffing models that facilitate efficient and effective achievement of strategic objectives
CustomersIndividual or other organization willing to pay for
our products, either goods or services (differs it with member, user, consumer)
Consumer (for daily activities perusal: student, housekeeping wife, white-collar worker)
Corporate (for professional and Small Medium Business (SMB) perusal: staff, officer, supervisor, manager, director, CxO)
Enterprise (for companies perusal, in particularly big companies)
SuppliersOther type of organization that our organization or company obtain their raw material, work-in-process, finished good, product, or services:
Principal (hundred of OEMs: AOC, Innolux, Samsung)
Vendor
Distributor
Manufacturer (Foxcon)
PartnersOther type of organization that our organization or company deliver finished good, product, or services:
Principal
Vendor
Distributor (Datamation, TechKing, TixPro, Samafitro)
Manufacturer
Partners (cont’d)Reseller (as Business Partners: Asterindo, MDP, Gading Murni)
Systems Integrator (as Service Partner: AGIT, BHP, MII)
Service Provider (as Support Partner: Infokomputra, Harrisma, Cahaya Surya)
Business ProcessA set of logically related tasks performed to
achieve a defined business outcome
Business outcome
Measureable with numbers and figures, usually represented in financial terms
Business objective
Formed by business outcome. Maximizing value to the company stockholders, financially and non-financially
Business Process (cont’d)
1. Market-research process
2. New product offering realization process
3. Customer acquisition process
4. Customer relationship management
5. Order-fulfillment management process
6. …
Business FunctionA process/operation performed routinely to
carry out a part of the mission of an organization
A description of work that is performed to accomplish one or several business unit's responsibility
In concrete, it’s pooled into department such as Marketing, Finance, Human Resources, Logistics
Examples: delivering raw materials, paying bills, receiving of cash and inventories
Business ActivitiesAny activity that is engaged in for the primary purpose of making a profit
Include things like operations, marketing, production and administration
Also known as "business operations”
Business Activities (cont’d)Business process that is a series of activities spanning multiple systems and applications
For example: implementing SAP with Ariba, Oracle Database and other applications (in-house or off-the-shelf)
Business Activities (cont’d)
Needs computerized systems to monitor, manage and provide real time info on status and results of operations, processes, and transactions to middle and upper management:
Business Activities Monitoring (BAM)
Enterprise Architecture (EA)
Business Process Management (BPM) in the later stage
Rehearsing BPMStrategic management approach to align organization business processes aligned with customer needs
Bringing in business effectiveness and efficiency while striving for innovation, flexibility and integration with technology
Continuous process optimization process
Rehearsing BPM (cont’d)
Efficient, effective and more capable of change
Influenced by Total Quality Management (TQM) or Continuous Improvement Process methodologies
Key drivers: People and (supported by) Technology
BPM Business DriversManaging end-to-end, customer-facing processes
Consolidating data and increasing visibility into and access to associated data and information
Increasing the flexibility and functionality of current infrastructure and data
BPM Business DriversIntegrating with existing systems and leveraging emerging Service-Oriented Architecture (SOA)
Establishing a common language for Business-IT alignment
BPM Practice These DaysFocusing on objective to optimize a domain identified as an area for improvement
In financial sector, it is critical to make sure the system delivering quality service while maintaining regulatory compliance
Shared/Dedicated Resource for BP or BPM (governance, Chief Business Process Officer)
BPM Practice These DaysInternational standards limited to IT sector: ISO/IEC 15944 covering operational aspects of the business
Other standards
BPMN
Enterprise Architecture
Business Motivation Model
Commencing Business Process EngineeringKnown as Business Process Redesign,
Business Transformation and Business Process Change Management
Business management strategy focusing analysis and design of workflow and process
Helping organization to rethink their work to improve customer service, operational cost to become world-class corporation
Commencing Business Process Engineering (cont’d)60% Fortune500 companies have done it or plan to do so
Comprehensive focus on business objectives
Radically restructuring their organizations through ground-up design of business processes
Full scale recreation of processes
Commencing Business Process Engineering (cont’d)Reengineering as an pretext to downsize their companies dramatically
Earned a reputation for being synonymous with downsizing and layoffs
Assumed the factor limiting an organization performance is process ineffectiveness
Commencing Business Process Engineering (cont’d)
Offered no means of validating the assumption
Assumed the need to start the process of performance improvement with a clean state
Doesn’t focus on improvement in organization constraint
Q & A
April 12, 2023
THANK YOU!