1. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen Business Process Management in the Laboratory Ari Heiskanen University of Oulu Department of Information Processing Science, Kajaani unit eGovernment Working Group Helsinki November 9th, 2006

2. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen AH’s Background MSc in computer science and applied mathematics 1971 assistant professor in the computer science department of Helsinki University during the 1970’s a short visit as a senior lecturer to Joensuu University in 1982 -1984 Chief Information Systems Officer (administration) of Helsinki University during the 1980’s and 1990’s –actively involved in about 30 major IS projects, all of them have been used as research material (shallow/overview or very deep) –systems of different size: a couple of dozens users to tens of thousands of users doctoral thesis in information systems in 1994 –Reflective IS Practice (RISP): the decentralization of student record data processing, theory based partly on author’s understanding of Schön and Argyris acting IS professor in Oulu University 2001 – 2004, nominated full professor 10/2004 ->

3. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen Outline of the presentation Background –Department of Information Processing Science, University of Oulu –Business Process Re-engineering The laboratories –The CreaProc Process Laboratory –The Joint Authority of Kainuu Region

4. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen Mission of the Department The department conducts high-quality, scientific research and academic education on information systems and software engineering The research and education focus is human-centered and organization- oriented not technology driven

5. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen History and Background of the Department Founded 1969 as an independent department, joined Faculty of Science in 1987 1970´s emphasis in information systems 1980´s emphasis in software engineering 1990´s rapid growth and extension to digital media, software business as well as embedded software and telecommunication

6. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen Basic facts about the Department Total number of students over 1400 New students yearly app. 200 Personnel 130 Total number of MSc thesis over 600 MSc degrees 52(2004), 74(2005), 80(2006) Ph.D.’s 5-7 (estimated yearly) 2004 permanent unit started in Kajaani 2004 office in Petrozavodsk

7. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen Specialization areas and general aspects of the studies http://www.tol.oulu.fi/english/studies.html Orientations: In Oulu:In Kajaani: –Digital media- Software engineering –Mobile services - Software business –Software business –Software engineering –Information systems

8. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen Information Processing Science as regional education Master programmes in 6 towns:  Software engineering  Mobile services  Information security (Sweden, Russia, Czech Republic …) Open university teaching:  from 1985, now in 6 towns Polytehnics collaboration 2nd grade collaboration Kuusamo OULU Raahe Kajaani University Center Haapavesi Ylivieska

9. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen Research Major themes of research Information systems Software engineering

10. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen Information systems Major themes: E-commerce and hypermedia systems Research of design, production and theories of computer games and their applications -specializing on experimental game productions and tailored game-oriented virtual environments User interfaces and usability, distributed teamwork Information systems security Information systems and knowledge work

11. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen Software production Major themes: Software quality and quality techniques Software process capability, assessment and improvement of software production processes Software business Future telecommunication products and services

12. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen Videoconferencing is our normal way of learning The support for technology and video servers The transfer of voice and picture using video conferencing technologies Quality surveillance The use of Netmeeting, WebOffice and video conferencing in the distribution of digital learning material The use of web radio and screen capturing over Internet

13. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen Document camera Touch screen PC Kamera Video screen from Oulu Weboffice / PC A view of Kajaani classroom

14. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen c h a p t e r 10 REDESIGNING THE ORGANIZATION WITH INFORMATION SYSTEMS Laudon&Laudon: Management Information Systems

15. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen SPECTRUM OF ORGANIZATIONAL CHANGE AUTOMATION: Using technology to perform tasks efficiently / effectively RATIONALIZATION OF PROCEDURES: Streamline SOPs; eliminate bottlenecks BUSINESS REENGINEERING: Radical redesign of processes to improve cost, quality, service; maximize benefits of technology PARADIGM SHIFT *

16. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen PARADIGM SHIFT PARADIGM: A complete mental model of how a complex system functions A PARADIGM SHIFT: Involves rethinking the nature of the business, the organization; a complete reconception of how the system should function *

17. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen BUSINESS PROCESS REENGINEERING (BPR) REENGINEERING: Redesigning business processes to lower cost, speed development WORK-FLOW MANAGEMENT: Streamlining process to move documents easily, efficiently *

18. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen Two main approaches to explain the effects of ICT on organisations Variance or factor approach –Reality described with variables –ICT activities in a black box –Outcome is an equation that relates dependent variable(s) with independent variables Process models –Reality described as a series of actions and events

19. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen Factor or Variance Models Black Box: ISD Process Unknown Use of system Satisfaction Investment Rtn User Invlmnt Top mnt supp Experience Independent Variables Dependent Variables Little or no context: Ahistorical, snapshot. Statistics: Correlations, R**2 InputOutput

20. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen The General Structure of a Process Model Event 1Event 2Event NEvent N+1 Environment A sequence of events related to information system evolution Antecedent conditions Outcomes

21. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen Parallel Process Models (Single case study, multiple subjects, multiple, parallel processes) Path dependent trajectory. Single, Interpretive, Longitudinal Case Study. Ev- ent 1.1 Ev- ent 2.1 Ev- ent 1.2 Ev- ent 2.2 Ev- ent 1.3 Ev- ent 2.3 Ev- ent 1.4 Ev- ent 2.4 AntecedentConditionsAntecedentConditions Outcomes CONTEXT (Organization and beyond)

22. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen Example of Parallel Processes (Heiskanen, Newman and Simila 2000) Internal User- developer relationship Development trajectory 1981 | 1982 | 1983 | 1984 | 1985 | 1986 | 1987 | 1988 | 1989 | 1990 Acceptance Equivocation Rejection External Client- vendor relationship Development trajectory 1985 | 1986 | 1987 | 1988 | 1989 | 1990 | Market Hybrid Hierarchy PC –version/CCC VAX-version/CCC 2 1 3 45 6 7 1 23 4 5 6 7

23. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen CreaProc Process Laboratory Research project in the Kajaani Unit of the Information Processing Department of Oulu University First phase (1.5.2006 – 31.12.2007) funded by Tekes Planned to be a continuing activity in Kajaani CreaProc – Feel at Home with the Process Tekes is the main public funding organisation for research and development in Finland. Tekes funds industrial projects as well as projects in research organisations, and especially promotes innovative, risk-intensive projects. Tekes offers partners from abroad a gateway to the key technology players in Finland.

24. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen CreaProc - motivation ICT increases productivity an average of 8 – 20% when it is combined with organisational and process changes and data communications (ETLA 2003, OECD 2003) Mobile communications can increase productivity an average of 40% (ETLA 2004) ICT applications analysed (Martikainen 2006) –E-mail 15-40% –Mobile phone 15% –Structural changes (e.g. e-services supporting the mobile care of elderly people ) 30-100% –Radical changes (e.g. augmented reality support in design and construction) 50-200% What is the anatomy of productivity increase? Etla (The Research Institute of the Finnish Economy) is a private independent non-profit research organisation that produces economic forecasts and carries out research in economics, business administration and social policy

25. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen CreaProc - challenges Quite often the outcome of an ICT based process renewal is the result of many reasons and happenings –The consequences of the renewal may be visible after a long time, several years typically The over-all effect of ICT upon society is sometimes paradoxical

26. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen Examples of paradoxical consequences of ICT Time: ICT should help in work but everybody seems to be in more hurry Space/Place: ICT should make it possible to work anywhere, but people seem to concentrate in metropoles Employment: ICT makes some professions obsolete while it creates need for new jobs ICT may lead to centralisation or decentralisation of organisational decision making

27. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen CreaProc Process Laboratory - Activities Visualisation of organisational processes – computer game techniques Formal modelling and analysis of organisational processes First analyses Planning business activities in process modelling International cooperation A databank of modelled and analysed processes National and international seminars Preparation of further research projects

28. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen

29. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen

30. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen

31. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen

32. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen Changing the (former) independent municipalities of Kainuu into a unified regional body

33. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen

34. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen

35. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen

36. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen

37. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen Hannu Leskinen, Executive Director:

38. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen Kainuu and ICT Technical platform Organisation, transformation to new form Experiences eServices for the citizens? –Work to be done, only some minor steps taken

39. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen KAINUUN ALUEVERKKO ATM/ethernet-kytkinratkaisu hajautetulla reitityksellä Suomussalmi Vaala Kajaani Vuolijoki Paltamo Ristijärvi Hyrynsalmi INTERNET Verkonhallintaohjelma+tietokone FireWall Kass Sotkamo Kuhmo Puolanka ATM 622M Kajaanin Puhelinosuuskunnan Kainuun ATM-alueverkko ATM 34/155M KAUPUNGIN LAN ATM, ETHERNET, GIGAETHERNET KUNNAN LAN ATM, ETHERNET, GIGAETHERNET KUNNAN LAN ATM, ETHERNET, GIGAETHERNET KUNNAN LAN ATM, ETHERNET, GIGAETHERNET KUNNAN LAN ATM, ETHERNET, GIGAETHERNET KUNNAN LAN ATM, ETHERNET, GIGAETHERNET TERV. HOID. LAN ATM, ETHERNET, GIGAETHERNET KUNNAN LAN ATM, ETHERNET, GIGAETHERNET KUNNAN LAN ATM, ETHERNET, GIGAETHERNET KAUPUNGIN LAN ATM, ETHERNET, GIGAETHERNET KUNNAN LAN ATM, ETHERNET, GIGAETHERNET JOKAISESSA KUNTA- KESKUKSESSA CISCO LS 1010 ATM-KYTKIN ja PALOMUURI Lähde: Laurikainen 2004 Kainuu regional data transmission network

40. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen Wireless wideband in Kainuu

41. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen Kainuu ICT organisation ICT personnel were gathered to a single unit from Kainuu municipalities 26 persons working now in the centralised ICT unit 6200 workstations, 160 servers Organisational transformation was done by own forces, no external consultants Integration of central hospital IT system to basic social and health care IT, different systems from two (powerful) vendors

42. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen Kainuu ICT experiences Tight schedules, e.g. production use of regional health care information system started when the system was partly untested Costs are in better control Lack of comprehensive standards makes it difficult to transfer data between the systems Was the ICT transformation process success or failure? –Differing viewpoints

43. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen Arto Laurikainen (Chair of Kainuu ICT board) : One year is too short a time for evaluation, problems because of untested systems, as a whole it can be considered to be a surprising success

44. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen Ministry of internal affairs, first interim evaluation report of Kainuu experiment

45. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen Best in Kainuu experiment: cooperation, common practices, common will, enthusiasm

46. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen Worst in Kainuu experiment: technical problems, especially in information technology and economy administration

47. DEPARTMENT OF INFORMATION PROCESSING SCIENCE, UNIVERSITY OF OULU, KAJAANI UNIT Ari Heiskanen Future activities in Kainuu Living Lab Analysis of selected social welfare and health care processes Research on how to use ICT in the service of sparsely populated areas (or ICT for distantly located partners) –Industry: clients far away all over the world –Social welfare and health care: citizen scattered around the wide province –Education and (organisational) learning: enhancing the usability of distant learning techniques –International working seminar in spring 2008?