2012年2月28日 星期二

Week 5 - Business Process Re-engineering BPR

Reference:
2.          Lowell Greenberg,(1996), “BPR Introductory Article”, http://earthrenewal.org/bpr.htm
Subject: IT – a necessary tools for BPR implementation?
In Lecture 5, we have learned the basics of BPR, the definition, rationale, properties.  All these are really basic information of BPR, which can be found on web or reading extra materials. After the lecture, it gives me an insight that BPR is quite similar to the stuffs in business studies, where its objective is to enhance the efficiency, reduce cost, and add-value to the business products and services.  After a deep thought, the lecture has brought me a question, is IT a must in BPR? And to what extent does IT help?
Actually, I have found that most of the cases of BPR are with the assistance of IT, as this can be carry out holistically among all the business process.  However, there are still some cases which IT is not involved, while the change is still call BPR.   
Therefore, IT is not a must in BPR. 
 
For example, use a queuing system as an example.  Long time ago, Banks used one queue to handle all customers’ queries and requests, which mean all counters serve one queue. Since the time spent on each operation is uncertain, the average waiting time cannot be estimated and banks received many complaints for long waiting time. With Customer dissatisfaction, the banks change the queuing structure, where they divided the counters into different functions, such as normal class and advanced class.  This helps to reduce the waiting time for privileges, who have higher time cost.  The reengineering process does not incorporate with IT equipments, while it still can serve the purpose of BPR. 
However, with advanced technology nowadays, BPR which incorporated with IT can streamline the whole business process.  For example, the invoice system in a company may involve many sub-processes, such as backup, verification, cost analysis.  Since each process needs some time for process the invoice, one have to wait the other process before it can process the invoice.  If backing up the invoice needs 2 days, verification needs 4 days, cost analysis needs 4 days, then the total processing time will be 10 working days.  
(AS-IS)
As the work actually do not require such a long time, the 10 working days mainly involve the waiting time between each process.  Therefore, to carry out BPR by using an enterprise resource planning or database, the processes can work at the same time so that the time can be greatly reduced and reduce the probability in losing customers With the database and ERP assistance, the efficiency can be enhanced, the operating cost will be lowered, and fewer mistakes due to inconsistency during the processing.
(To-Be) 

2012年2月11日 星期六

Week 4 - Strategic Alignment Model


Reference:

In lecture 4, Helen mainly discuss about some alignment strategies which help to interwoven IT and business process.  It is known that nowadays peoples’ views are changing, and there are people think that IT/IS strategies can helps to improve the business operation and can be used as a driver in business strategy. 

There is one main question developed after the lesson, that is which alignment strategy in SAM model is the best? And why?
In my opinion, competitive potential model is the best because the business performance is assessed by business leadership such as market share, growth and new product introduction, where these figures are more objective.

In this competitive world, all enterprises need some business strategies to increase their profit and gain customers’ obedience. They can only survive if they can operate under low cost and high demands of their products.  However, only focusing on business strategies is insufficient, as a good business strategy can be developed with assistance in IT strategy.  

In 21st Century, computing technology has become matured, and the use of IT to support the main business is more ubiquitous.  By adopting the competitive potential model, a business can merge the contribution of IT capabilities with the business strategies.  

I prefer this model as it focuses on the outcome of business leadership, which I think it is of the paramount importance in doing business.  Business leadership can be revealed by the market share and growth, where all these are indirectly showing the business performance in all aspects.  Business growth meaning customer satisfaction as all sales revenue came from customers.  If customers do not satisfy the services or products, they won't come again.  Therefore I think this model perform the outcome of service level model as well.  

To conclude, market share and growth of a business is a good measurer of how well the businesses are doing.  And as business strategies are always the pivot of a business, IT strategies are just to streamline the final business strategies.  Therefore, I think competitive potential model is the best.