Week 11 - Redesign Principles (2)

Reference:

1.     "The compelling case for insourcing" 2008
http://www.mpmagazine.com/xq/asp/txtSearch.Information+Techonology/exactphrase.1/sid.0/articleid.0EE11681-6505-4BF0-892C-B2A060BB54BE/qx/display.htm

2.     Hammer, M., & Champy, J. 1993. Reengineering the corporation: A manifesto for business revolution. New York: Harper Business.

3.     "Focusing the Power of Six Sigma in the Healthcare Insurance Industry:  Lowering Medical Costs while Improving Patient Service and Outcomes" by Leslie Behnke & Forrest Breyfogl 2004

4.     http://www.dell.com/us/p/?scat=root&cs=19&s=dhs

Introduction

In Lecture 11, the remaining parts of business process redesign principles (principle 8,9,10) have been discussed. With the support of business cases, the following will discuss about the real life implementation examples of the principle of analyze and synthesize, principle of Connect, Collect & Create and principle of. Personalize.

1.     Analyze and Synthesize

This principle allows businesses to develop better outcome by flooding the subordinates with sufficient information and knowledge.  To follow this redesign principle, the company can provide what-if capabilities to analyze decision choices, provide slice and dice data analysis capabilities that detect patterns and provide intelligent integration capabilities across multiple information sources.

2.     Connect, Collect & Create

This principle means create new knowledge by connect people and collecting information.  Businesses are required to define procedures for collecting the information and create physical and virtual storage for storing the knowledge.

Example:

HSBC can be regarded as the company to achieve this principle.  In recruiting process, HSBC offers questionnaire for all interview candidate after the completion of interview and ask for improvement on the overall procedures.  In Investment context, HSBC requires the investors to fill in basic information and questionnaire about the personal investment mindset for further analysis.  This helps HSBC to generate the investing behavior and provide suitable advices or measures to different groups of investors by segmentation.

3.     Personalize

This principle is to encourage businesses to understand specific humans’ wants and provide the personalized service to customers.
This principle can be achieved by learning the customers’ preferences though daily activity, adjusting the business rules according to the personal profiles, using collaborative filtering techniques and keeping track on the buying processes.

Examples:

Dell can be regarded as an example in fulfilling the principle of personalizes. Instead of selling all the computers in a same package, they allow customers to personalize their computer.  Customers can select the components according their different needs and allow different combination.

 

To conclude, these successful business cases revealed that the redesign principles can really be applied in real-life as these principles have supported the basic business operation in different processes.

Week 10 - Redesign principles (1)

Reference:

1.        Hammer, M., & Champy, J. 1993. Reengineering the corporation: A manifesto for business revolution. New York: Harper Business.

2.        Kavanagh, John, Challenge for Company Culture - Business Reengineering: The Need for Totally New Thinking, The Financial Times, March 23, 1993, Survey of Information and Communications Technology (19); Pg. IX.

In Lecture 10, the business process redesign principles have been introduced.  In the following, I will discuss about the real life implementation example of following the redesign principles.

Redesign Principles

Example 1: HSBC

Principle 1: Lose wait

To reduce the average waiting time for high demand of banking operations, HSBC has segmented several accounts such as basic account, HSBC advance and HSBC premier.  The different queues offer different services.  Since the complexity of the operations might be different for different types of account, HSBC can then allocate optimum resources to different counter according to the demand.  This can increase the efficiency and reduce waiting time.

Principle 4: Synchronize

Due to the trend of online banking, HSBC develops well-coordinate online platform to cope with the demand of the customers.  Customers could check their accounts thorough the web.  The data is synchronized as the information is retrieve in the centralize database.  Customers can check the immediate updates at anytime conveniently. In recent years, HSBC also introduced the smart phone apps for customers to check the accounts with their smart phones.

Principle 7: Sensitize

HSBC focuses a lot in customer satisfaction and continue improvement.  Therefore, after the fund/stock transactions are completed, the customer service will provide a feedback opportunity for customers to voice out their comments on their services.  The follow up action has increased the customers’ satisfaction and loyalty.

Principle 2: Orchestrate

Since the security of a bank of paramount importance, HSBC needs a experience security team so guard the branches. As HSBC does not specialize in training and developing the security team, to reduce the opportunity cost, HSBC outsources the security service to the security company.  This allows HSBC to allocate resources to their main business.

Example 2: NIKE

 

Principle 3: Mass Customize

To follow the trend of creativity and unique customer demand, NIKE has organized a DIY(do it yourself) campaign to let customers to design their own shoes.  Through the use of the computer technology, NIKE allows customers to select the desire materials, color and design at NIKEiD Studio.

Principle 5: Digitize and Propagate

Apart from visiting the NIKEiD Studio to design own shoes, Nike also provide a online platform for design and order.  Customers can register and create the desire shoe at home, and order through the web.  The design will sent to the centralize database for production.  The digitalization increase the convenience and increase the customers satisfaction.