Enterprise Resource Planning Building the e-business Backbone:
Process Innovation Redesigning an Enterprise Backbone System
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Transcript of Process Innovation Redesigning an Enterprise Backbone System
© Vlerick Business School
PROCESS INNOVATION: REDESIGNING AN ENTERPRISE BACKBONE SYSTEM
JOACHIM VAN DEN BERGHPROF DR STIJN VIAENE
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MEET BELGACOM MOBILE
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MOBILE BUSINESS: A TURBULENT ENVIRONMENT
Market Leader vs Challengers
Fast development of new technologies andplatforms
Price wars
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IT BUSINESS PURPOSES
Run the Business: This is an indicator of how much of the IT resource is consumed and focused on the continuing operation of the business. This covers largely maintenance, renewal, and capacity-related expenditure
Grow the Business: This is an indicator of how much of the IT resource is consumed and focused on developing and enhancing IT systems in support of business growth(typically organic growth). New projects are captured in this category.
Transform the Business: This is an indicator of how much of the IT resource is consumed and focused on implementing technology systems that support new business models, structurally reduce total cost of ownership and create sustained efficiencies.
Short
-term
Mid
-long
term
Source: Mr Scott Alcott, former Belgacom Executive VP Operations
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SIM CARD PURCHASING ORDER MANAGEMENT SYSTEM: AS IT WAS
IT-supported backbone process (core)
System breakdown risk
Lots of manual operations
Work-arounds and exceptions
Limited process capacity
Extensive lead-time
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“We were facing a serious risk of business continuity failure. At the time, the market was growing and customers were becoming more
demanding in terms of lead time. Frankly, I do not think we would have been able to cope much longer. We simply could not scale, let alone be
more flexible.” Supply Chain Manager
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SIM CARD PURCHASING ORDER MANAGEMENT SYSTEM: AS IT HAD TO BECOME
Stable and scalable IT-supported backbone process (core)
1. Integration of the involved departments and business partners
2. Reducing manual operations
3. Standardization
4. Decreasing total lead time
5. Increasing production process capacity
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IT-ENABLED PROCESS INNOVATION
Information Technology
ProcessInnovation
ProcessFlexibility and
Scalability
IT impact on process innovation (adapted from Davenport, 1993)
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CORE PROJECT PRINCIPLES
Making the solution flexible to allow for adaptation to future requirements and reuse of existing components using the principles of Service-Oriented Architecture (SOA), web services and object-oriented programming where possible.
Centralized approach to process governance and ownership, using a dashboard to act as a „process orchestrator‟.
Making the processes product independent, thus building a product factory, to allow flexibility in designing
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ORCHESTRATION
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SPOMS LEVEL 0 PROCESS
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ACCOMPLISHMENTS
Increased SIM card production capacity
Shorter lead time from purchase order creation until ready for delivery to the market
Shorter total lead time of marketing actions, from defining a new card layout until ready for delivery to the market
Reduction of workload in the Supply Chain Department
“The result is a truly versatile and solid new business process supported by tools that enable the front-line staff to
provide the efficiency and flexibility our markets require. This IT-enabled business process innovation is actually the result of a combination of end-to-end thinking, team work, results orientation and, last but not least, an architectural approach to support not just sustainability of a technical solution but also design freedom for product managers.”
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LESSONS LEARNED
Lesson 1: The Product Factory for Process Flexibility
Lesson 2: Combining Process Thinking (BPM) and Architecture (SOA) for IT-enabled Process Innovation
Lesson 3: Excellent Project Management
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ACKNOWLEDGEMENTS
We sincerely thank the following people for theirinput:
Johan Verbeeck
Pascal Masuit
John-David Hendrickx
Scott Alcott
Laurent Claus
Bert Van Genechten
THANK YOU!
JOACHIM VAN DEN BERGHPROF STIJN VIAENE
VLERICK BUSINESS SCHOOL; WWW.VLERICK.COM
FOLLOW US:@VLERICKBT@DESTIVIA