Information Architecture and Business Process Re-engineering CMPT 455/826 - Week 4, Day 1 (Based on Kettinger) Sept-Dec 2009 – w4d11

Processes Warning: –This discussion involves all kinds of processes Processes (in the abstract) Business Processes Business Process Re-engineering Processes IT Processes IA Processes Process Assessment Processes Meta-processes etc. etc. etc. (we should identify and define them when we are all done and can better recognize them) –It is important that you consider which processes are really being discussed at any time regardless of whether they are made explicit or not Sept-Dec 2009 – w4d12

Consider the Introduction BPR is justified in terms of past (current) issues –Causes include: downsizing, mergers, buyouts done at the strategic organizational level –Desire for: increased processing speed reduced cost improved speed improved quality increased revenue done at the tactical organizational level –All these examples are largely looking to the past Sept-Dec 2009 – w4d13

And consider the actual present In bad financial times, such as we currently have, –there is even more focus on these backward looking issues While it is important to understand the past –to avoid reliving its mistakes If the past didn’t provide the right answers –we really need to look somewhere else Besides everyone else is also looking in the past –so that won’t give us a competitive advantage Sept-Dec 2009 – w4d14

Recognizing what BPR is about Who uses BPR? –Remember the distinctions between strategic management and tactical management (future focused) vs (current focused) When will the re-engineered processes take effect? –It takes time to change processes so BPR should be future focused –Major changes take the approval of senior management so BPR should fit their needs as well as the needs of any tactical managers who might recommend it (in some organizations, BPR is considered part of strategic planning) Sept-Dec 2009 – w4d15

Making BPR effective We need to focus on more than just the past and present We need to consider the needs of the future What are some forward looking strategic goals that should also be considered by BPR? Sept-Dec 2009 – w4d16

Putting BPR in context A historical note: –remember that the paper was published in 1996 –back then organizations were still struggling to integrate their corporate databases –so they needed to start with the past and present A hysterical note: –A paper published recently –“Information flows and business process integration” –in the Business Process Management Journal Vol. 15 No. 1, 2009 recommended four principles for BPR (as if this were a new revelation): 1.timeliness; 2.accessibility; 3.transparency; and 4.granularity. They look a lot like some of the principles that led to databases! Sept-Dec 2009 – w4d17

The BPR Process Fig.4 focuses on 4 legacy-oriented sub-processes of planning: –(of course planning is a BPR process) –Identification of Business Processes relative the businesses products, services and support resources –Prioritization of these (Business) Processes (essential or desirable) –Establishing (Business) Process Performance Measures –Modeling of (Business) Processes But there is only so much you can do with old processes –What future looking activities should be added? –What kind of information is needed to make them successful? Sept-Dec 2009 – w4d18

Process Performance Measures The paper discusses potential problems –e.g. lawsuits of inappropriate measures –e.g. billing quotas leading to unnecessary repairs How can we determine whether a performance measure is appropriate or not? Sept-Dec 2009 – w4d19

Performance The section on “Performance Measures” –focuses on effectiveness and efficiency –but introduces satisfaction in its example ISO Guidance on Usability defines usability as –effectiveness, efficiency, and satisfaction –in a context of use How might satisfaction be important to BPR? How can context of use be considered in BPR? Sept-Dec 2009 – w4d110

IA and BPR There’s a more fundamental relationship than this paper on IA and BPR acknowledges that is between –information and processes What is it? Sept-Dec 2009 – w4d111

Processes A process can’t exist on its own: Sept-Dec 2009 – w4d112 Process

Processes A process can’t exist on its own, it needs data Sept-Dec 2009 – w4d113 Process Inputs Outputs

Processes A business process can’t exist on its own: Sept-Dec 2009 – w4d114 Business Process Business Inputs Business Outputs

Processes As data passes through business processes, some is captured and reused: Sept-Dec 2009 – w4d115 Business Process Business Inputs Business Outputs Data Business Data

Processes Captured data can provide business information: Sept-Dec 2009 – w4d116 Business Process Business Inputs Business Outputs Data Business Data Business Information

Processes Captured data can also be used to control business processes: Sept-Dec 2009 – w4d117 Business Process Business Inputs Business Outputs Data Business Data Business Information Information to control and modify the Business Process

And What about IT Processes? Please note: –The preceding consideration of Processes holds true, whether or not IT is involved (the Data pictured in the diagram, could be in any form, including in the mind of an employee) –IT Processes can help capture and process data related to Business Processes (Data Processing) evaluate this data (Information Processing) forecast future data scenarios (Decision Support processing) automate Business Processes model and BPR Business Processes (and IAs as well) modify / adapt Business Processes Sept-Dec 2009 – w4d118

Now Lets create a taxonomy: Processes (in the abstract) –Basic processes (fulfilling some concrete business goal) Business Processes IT Processes (support Business Processes) –Meta-processes (in the abstract) Business Process Re-engineering Processes IA Processes Process Assessment Processes Sept-Dec 2009 – w4d119

Some further thoughts from: Alan Eardley, Hanifa Shah and Andrea Radman “A model for improving the role of IT in BPR”, Business Process Management Journal, Vol. 14 No. 5, 2008, pp Sept-Dec 2009 – w4d120 Role of ITCharacteristics of the role Constraint Legacy IT systems dominate main business processes. Inflexible IT infrastructures. Lack of skill and/or investment in new IT. Business processes embedded in existing IT systems. Lack of potential for investment in IT due to budgetary factors. Lack of perception of the potential of IT by management. Strategic alignment is low Catalyst New IT has been acquired. Changes in the business have been made that favour the use of IT. New management that sees the potential of IT in business change. New relationship developed with IT vendor, consultant, or service provider. Strategic alignment at crucial stage Neutral Lack of IS applications and IT infrastructure in the organisation. No IS or IT strategy in place. Business change targets are not well defined. The business is in an industry with low information intensity or little competition through IT. Strategies and infrastructures are in alignment Driver The business has technological capability and seeks to exploit it through business opportunities. Possibly a new business or a technological innovation. Sufficient investment is available and IT development is not a limiting factor. Strategic alignment process is proceeding rapidly Enabler IT is a key performance factor and a “competitive arena” in the industry. Management has a clear business vision and a future change plan. Business change targets are well defined. Sufficient investment is available and IT development not a limiting factor. Strategic alignment in process Proactive Management has a clear business vision and future change plan. The IS and IT infrastructure are well developed. There are few constraints on IT development. Management sees the potential of IT. Strategies and infrastructure are in alignment