1. Intro to BP & Change: 2. Business Process Redesign
THE WORK SYSTEM: Prioritises human participation as part of the system BPTrends:
that generates business results. Made up of: Customers, products & services, 0: identify process 1. understand/ discover project (scope, PP, PC, BC, value
processes & activities, participants, information & technology. Redesign best chain) Analyse (AS-IS) Redesign (TO-BE) Implement (test, train) roll
practices align with the work system. out (manage transition, insights)
PROCESSES: Must cross organisational boundaries (go between sub Performance Gap: Difference btw. Current & desired performance levels.
units) AND be created from the internal or external customer’s perspective. Capabilities Gap: what capabilities and redesign features are needed to close
To IDENTIFY business processes, use a VALUE CHAIN. the performance gap.
Ie: Patient admission diagnose patient discharge hospital marketing SCOPING: Inputs, outputs, enablers, controls, process in middle, managing
health checks. | What we want to do the action needed to do it output steps (humans on the right).
sales and marketing servicing | Ie, student admission learning BUSINESS CASE ELEMENTS: Scope (outline what we analysing), problem
graduation market @ schools alumni (state the problem & opportunities), AS-IS measures, TO-BE measures,
THE 4 PROCESS TYPES: estimate of work: analysis time/effort, redesign time/effort, analysis
1. Core/ Primary | 2. Support processes | 3. Strategic Processes people/cost, redesign people/cost, project plan, risks, concerns of sponsors.
(strategic plans to meet objectives) | 4. Management Processes (processes REDESIGN BEST PRACTICES:
that plan, coordinate & control all the functions of a business). 1. CUSTOMER: Control relocation (make the customer do more work/control
Functional Area & Business Functions: ie, functional area: Marketing. more), contact reduction (decrease contact w customer & 3rd parties),
Business functions: advertising, customer support, sales forecasting. integration (integrate your process into that of the supplier/customer).
BUSINESS PROCESS WAVES: 1. Improvement – Small improvements in 2. BUSINESS PROCESS OPERATION: Task elimination (eliminate
existing process (use lean/ 6sigma). Focus on training PEOPLE to evolve the unnecessary tasks from the process), task composition (combine small tasks
process. | 2. Business Process Re-engineering – Radical change. Scrap the into composite tasks, big tasks into smaller).
process/ make new ones to support it. Don’t just automate it without 3. ORGANISATIONAL: Order assignment (let workers perform as many steps
improving it! (paving cowpaths). as possible), flexible assignment (assign resources smartly), split
3. Business Process Management: Ignore people, just automate alles. | 4. responsibilities (don’t assign tasks for a process to people in different units),
Outside in/ Customer experience – Look @ process from objective Numerical Involvement (minimise no. depts, group & people involved in a
customer perspective. What are their touch points? | 5. Transformative & process).
Explorative change – Being efficiency meets innovation & exploration. 3.1. POPULATION: Specialist-Generalist (ie, if you need someone that learns
Explore & exploit (community based innovation over boring structured fast to carry out the new process, use a specialist), empower, extra
approaches). Why model a process? : to describe a business process for resources.
training and legislative requirements, automation, improvement. 4. BUSINESS PROCESS BEHAVIOUR: Resequencing, parallelism, isolate
exceptions from normal flow.
5. INFORMATION: Control addition (check input is complete), buffering
6. TECHNOLOGY: Integral Technology (use tech to spend less time on tasks),
automation
7. EXTERNAL ENVIRONMENT: Outsource, interfaces, trusted parties.
3. ES Intro 4. Process Improvement
ES EVOLUTION Identifying, analysing and improving BPS (contd. improvement).
1. MRP: Materials Requirements Planning: Used to plan production & raw SIX SIGMA: Reduce VARIATION (inconsistencies). 1. Define (plan, PC, BC,
materials purchases. Create sales forecast, then production schedule, order requirements) 2. Measure 3. Analyse (root cause) 4. Improve (solutions,
materials based on the stock you already have & predict when the final plan, implement) 5. Control (validate benefits, monitor). Obj. is to produce
product will be finished. Inputs: supplier lead times & BOMs. uniform process output. Figure focused.
2. MRP II: Manufacturing Resource Planning LEAN: reduce WASTE (only do activities the customer will pay for). 1. Specify
3. ERP “Back Office”: Has Modules such as: 1. Accounting value (what are the customer’s requirements for the final product) 2. Map
(Controlling/management accounting & FI (financial acc.)). | 2. Logistics value stream (analyse for waste and where bottlenecks occur) 3. Value flow
(Sales & dist. & MM). (tools needed to remove waste). 4. Pull (categorise tasks by complexity,
4. ERP II “Front Office”: User friendly, BI, PLM, CRM, SRM, SCM. allocate more time based on complexity. One task pulled at a time to
5. ERP III: Postmodern: Added social media, strong reporting + big data completion). 5. Perfection (cycle of continuous improvement). Focuses on flow
analytics, UX, Cloud options. Gartner: RPA, AI, Innovation. (& reducing flow time), waste removal = better performance.
6. ERP IV/ EBC (Enterprise Business Capabilities): AI drive, RPA, Tools for identifying waste: 1. Cause-effect diagram (identify categories
robotics, IoT. problems fall under, cause, cause of cause.), 2. 5 whys, 3. 8 wastes (used in
THE DIVIDED ERP LIFECYCLE: lean), 4. FMEAS(table with: variable, why it failed, effect, severity, cause,
ERP Vendor: requirements design build & test release Support occurrence, multiplied value).
Optimise. Releases the upgrades then adopter phase kicks in: ERP Adopter: WASTE: Absorbs resources but creates no value for the customer.
requirements design build & test Deploy Operate/ “Go Life” Obvious waste: easy to recognise (unstructured meetings, excessive paperwork)
Optimise. Then provides feedback (errors & development requests) back to Hidden waste: Needed for current process to function but would be eliminated if
the vendor. process is improved.
How it differs from custom software dev/waterfall: iterative, new Wastes: defects (incorrect data/ poor collection), over production, waiting, non-
upgrades, can influence the updates (logging & request), requires table utilised potential, transport, inventory, motion, extra processing.
config org data hard to change, dev environment can be used for 6. BUSINESS CASE
modifications. BENEFITS: A: 1. Operational (cost reduction, reduction of human errors,
ES DATA: 1. Organisational: structure of org (company code, purchasing increased salary, scalability). | 2. Managerial (Internal data integration,
group & org, plant, dist. channel) | 2. Master data: stored centrally & eliminate data redundancy, BI). | 3. Strategic (SCM, CRM, eCommerce, adhere
shared across BPs in a business across depts. (customers, suppliers, to standards). | 4.Development of IT Infrastructure | 5. Broader Org.
employees, inventory). | 3. BPS & Transactional Data: Data from BPs (empower emps, promote change).
stored within documents @ document level (POs, sales orders, goods B: INTEGRATION: 1. Application (fewer IT apps used, the better. Less
receipt). | 4. Reporting Data: secondary aggregated data (monthly no complex, cuts costs, less training & maintenance) | 2. Interface (keep em
sales per store). consistent. More interfaces = more emps. needed). | 3. Business
5. Human Impact Integration(real time transactions visible & available to all units. Need
Sociotechnical Perspective: Consider the technical artefacts & individuals CONSISTENT/SAME SOFTWARE installed across all systems though.) | 4. Data
that use the artefacts from a psychological, economic and cultural Integration (Master + org data stored in central database :. No data
perspective. Social + tech components need to be in harmony. Process redundancy). Used data from: MM in purchasing, invoice management,
Designer Sin #5 (Task Analysis): forgetting how the changes impact the production, planning, control, sales & dist. | 5. Global Distribution: support
people that have to work in the new process. Avoid this by: Know the numerous langs, currencies & policies.
business’ relationship w partners, clients, suppliers. HR needs. Take a human HOW ERPS IMPROVE BUS. PROCESSES: customisation, data integration &
centric approach (design work & processes that are meaningful = less protection, built in controls, reports, “best practices”, automation, business
uncertainty & complexity). integration.
Critical incidents: Gap created by abrupt company change (system failure, COSTS: HIDDEN COSTS: Customisation + integration, change management,
financial crisis, staff leaving.) Put interventions in place to try remove these governance, pre-implementation, licenses, hosting, maintenance support.
gaps. Hardware: Network, cloud, laptops + servers & clients on servers. Software:
Job characteristics enrichment model: Aim for job enrichment + good ERP Licensing fees, maintenance, saaS, OS, DBMS, Upgrades. Implementation
psychological state. 1. Skill variety (engage in a wide range of activities). | 2. services: PMs, Devs, BAs. Broader Org Costs: have training & change
Task identify (complete a whole task from start to finish). | 3. Task management in place, as productivity decreases when new system gets
significance (meaningful tasks) | 4. Autonomy (Freedom in how they carry implemented.
out their work). | 5. Feedback. HOW TO REDUCE SOFTWARE COSTS: OSS, Off premise servers & cloud.
Job design & culture (sociotechnical approach): Must take a holistic REASONS FOR GOING OVERBUDGET: redesign, resistance to change,
view of entire job environment. A. a job must be demanding (variety), B. governance, costs underestimated.
Ongoing learning (feedback). C. Give workers recognition & social support 14. CUSTOMISING
(significance). D. Group autonomy. E. Relate to what they do (identity). Configuring the system parameters to reflect structure of bus. Rules for the org.
What impacts emotions? (increased workload, lack of support and Steps: 1. Config general data (cross client data – currency, country) | 2. Org.
training, learning). MANAGE EMOTIONS BY creating trustful spaces of data | 3. Customise bus. Rules & params. | 4. Mater Data | 5. Execute BP
interaction. (testing).
Org. Change Management (OCM): Main reason for ERP failure. MODIFICATION OPTIONS: 1. Code modification (change existing source
Resistance: intentional and unintentional (they forget to thing what code in ERP. Disadv: complicates future upgrades) | 2. Development/ create
happens to their job). Steps: 1. Determine the change (use SMART to own program codes (Own OOP, Classes, APIs). Adv: No upgrade issues. | 3.
identify what needs to be changed) | 2. Build excessive support (ensure Table Configuration: setting up params (vanilla implementation).
impacts are understood at exec. level)| 3. Communicate (comm. Strategy
to all stakeholders) | 4. Develop a plan (training, support & comm.) | 5.
Execute plan | 6. Persist through challenges (monitor stakeholder
emotions). | 7. Reinforce adoption (highlight+ acknowledge when people
are accepting the changes).
THE WORK SYSTEM: Prioritises human participation as part of the system BPTrends:
that generates business results. Made up of: Customers, products & services, 0: identify process 1. understand/ discover project (scope, PP, PC, BC, value
processes & activities, participants, information & technology. Redesign best chain) Analyse (AS-IS) Redesign (TO-BE) Implement (test, train) roll
practices align with the work system. out (manage transition, insights)
PROCESSES: Must cross organisational boundaries (go between sub Performance Gap: Difference btw. Current & desired performance levels.
units) AND be created from the internal or external customer’s perspective. Capabilities Gap: what capabilities and redesign features are needed to close
To IDENTIFY business processes, use a VALUE CHAIN. the performance gap.
Ie: Patient admission diagnose patient discharge hospital marketing SCOPING: Inputs, outputs, enablers, controls, process in middle, managing
health checks. | What we want to do the action needed to do it output steps (humans on the right).
sales and marketing servicing | Ie, student admission learning BUSINESS CASE ELEMENTS: Scope (outline what we analysing), problem
graduation market @ schools alumni (state the problem & opportunities), AS-IS measures, TO-BE measures,
THE 4 PROCESS TYPES: estimate of work: analysis time/effort, redesign time/effort, analysis
1. Core/ Primary | 2. Support processes | 3. Strategic Processes people/cost, redesign people/cost, project plan, risks, concerns of sponsors.
(strategic plans to meet objectives) | 4. Management Processes (processes REDESIGN BEST PRACTICES:
that plan, coordinate & control all the functions of a business). 1. CUSTOMER: Control relocation (make the customer do more work/control
Functional Area & Business Functions: ie, functional area: Marketing. more), contact reduction (decrease contact w customer & 3rd parties),
Business functions: advertising, customer support, sales forecasting. integration (integrate your process into that of the supplier/customer).
BUSINESS PROCESS WAVES: 1. Improvement – Small improvements in 2. BUSINESS PROCESS OPERATION: Task elimination (eliminate
existing process (use lean/ 6sigma). Focus on training PEOPLE to evolve the unnecessary tasks from the process), task composition (combine small tasks
process. | 2. Business Process Re-engineering – Radical change. Scrap the into composite tasks, big tasks into smaller).
process/ make new ones to support it. Don’t just automate it without 3. ORGANISATIONAL: Order assignment (let workers perform as many steps
improving it! (paving cowpaths). as possible), flexible assignment (assign resources smartly), split
3. Business Process Management: Ignore people, just automate alles. | 4. responsibilities (don’t assign tasks for a process to people in different units),
Outside in/ Customer experience – Look @ process from objective Numerical Involvement (minimise no. depts, group & people involved in a
customer perspective. What are their touch points? | 5. Transformative & process).
Explorative change – Being efficiency meets innovation & exploration. 3.1. POPULATION: Specialist-Generalist (ie, if you need someone that learns
Explore & exploit (community based innovation over boring structured fast to carry out the new process, use a specialist), empower, extra
approaches). Why model a process? : to describe a business process for resources.
training and legislative requirements, automation, improvement. 4. BUSINESS PROCESS BEHAVIOUR: Resequencing, parallelism, isolate
exceptions from normal flow.
5. INFORMATION: Control addition (check input is complete), buffering
6. TECHNOLOGY: Integral Technology (use tech to spend less time on tasks),
automation
7. EXTERNAL ENVIRONMENT: Outsource, interfaces, trusted parties.
3. ES Intro 4. Process Improvement
ES EVOLUTION Identifying, analysing and improving BPS (contd. improvement).
1. MRP: Materials Requirements Planning: Used to plan production & raw SIX SIGMA: Reduce VARIATION (inconsistencies). 1. Define (plan, PC, BC,
materials purchases. Create sales forecast, then production schedule, order requirements) 2. Measure 3. Analyse (root cause) 4. Improve (solutions,
materials based on the stock you already have & predict when the final plan, implement) 5. Control (validate benefits, monitor). Obj. is to produce
product will be finished. Inputs: supplier lead times & BOMs. uniform process output. Figure focused.
2. MRP II: Manufacturing Resource Planning LEAN: reduce WASTE (only do activities the customer will pay for). 1. Specify
3. ERP “Back Office”: Has Modules such as: 1. Accounting value (what are the customer’s requirements for the final product) 2. Map
(Controlling/management accounting & FI (financial acc.)). | 2. Logistics value stream (analyse for waste and where bottlenecks occur) 3. Value flow
(Sales & dist. & MM). (tools needed to remove waste). 4. Pull (categorise tasks by complexity,
4. ERP II “Front Office”: User friendly, BI, PLM, CRM, SRM, SCM. allocate more time based on complexity. One task pulled at a time to
5. ERP III: Postmodern: Added social media, strong reporting + big data completion). 5. Perfection (cycle of continuous improvement). Focuses on flow
analytics, UX, Cloud options. Gartner: RPA, AI, Innovation. (& reducing flow time), waste removal = better performance.
6. ERP IV/ EBC (Enterprise Business Capabilities): AI drive, RPA, Tools for identifying waste: 1. Cause-effect diagram (identify categories
robotics, IoT. problems fall under, cause, cause of cause.), 2. 5 whys, 3. 8 wastes (used in
THE DIVIDED ERP LIFECYCLE: lean), 4. FMEAS(table with: variable, why it failed, effect, severity, cause,
ERP Vendor: requirements design build & test release Support occurrence, multiplied value).
Optimise. Releases the upgrades then adopter phase kicks in: ERP Adopter: WASTE: Absorbs resources but creates no value for the customer.
requirements design build & test Deploy Operate/ “Go Life” Obvious waste: easy to recognise (unstructured meetings, excessive paperwork)
Optimise. Then provides feedback (errors & development requests) back to Hidden waste: Needed for current process to function but would be eliminated if
the vendor. process is improved.
How it differs from custom software dev/waterfall: iterative, new Wastes: defects (incorrect data/ poor collection), over production, waiting, non-
upgrades, can influence the updates (logging & request), requires table utilised potential, transport, inventory, motion, extra processing.
config org data hard to change, dev environment can be used for 6. BUSINESS CASE
modifications. BENEFITS: A: 1. Operational (cost reduction, reduction of human errors,
ES DATA: 1. Organisational: structure of org (company code, purchasing increased salary, scalability). | 2. Managerial (Internal data integration,
group & org, plant, dist. channel) | 2. Master data: stored centrally & eliminate data redundancy, BI). | 3. Strategic (SCM, CRM, eCommerce, adhere
shared across BPs in a business across depts. (customers, suppliers, to standards). | 4.Development of IT Infrastructure | 5. Broader Org.
employees, inventory). | 3. BPS & Transactional Data: Data from BPs (empower emps, promote change).
stored within documents @ document level (POs, sales orders, goods B: INTEGRATION: 1. Application (fewer IT apps used, the better. Less
receipt). | 4. Reporting Data: secondary aggregated data (monthly no complex, cuts costs, less training & maintenance) | 2. Interface (keep em
sales per store). consistent. More interfaces = more emps. needed). | 3. Business
5. Human Impact Integration(real time transactions visible & available to all units. Need
Sociotechnical Perspective: Consider the technical artefacts & individuals CONSISTENT/SAME SOFTWARE installed across all systems though.) | 4. Data
that use the artefacts from a psychological, economic and cultural Integration (Master + org data stored in central database :. No data
perspective. Social + tech components need to be in harmony. Process redundancy). Used data from: MM in purchasing, invoice management,
Designer Sin #5 (Task Analysis): forgetting how the changes impact the production, planning, control, sales & dist. | 5. Global Distribution: support
people that have to work in the new process. Avoid this by: Know the numerous langs, currencies & policies.
business’ relationship w partners, clients, suppliers. HR needs. Take a human HOW ERPS IMPROVE BUS. PROCESSES: customisation, data integration &
centric approach (design work & processes that are meaningful = less protection, built in controls, reports, “best practices”, automation, business
uncertainty & complexity). integration.
Critical incidents: Gap created by abrupt company change (system failure, COSTS: HIDDEN COSTS: Customisation + integration, change management,
financial crisis, staff leaving.) Put interventions in place to try remove these governance, pre-implementation, licenses, hosting, maintenance support.
gaps. Hardware: Network, cloud, laptops + servers & clients on servers. Software:
Job characteristics enrichment model: Aim for job enrichment + good ERP Licensing fees, maintenance, saaS, OS, DBMS, Upgrades. Implementation
psychological state. 1. Skill variety (engage in a wide range of activities). | 2. services: PMs, Devs, BAs. Broader Org Costs: have training & change
Task identify (complete a whole task from start to finish). | 3. Task management in place, as productivity decreases when new system gets
significance (meaningful tasks) | 4. Autonomy (Freedom in how they carry implemented.
out their work). | 5. Feedback. HOW TO REDUCE SOFTWARE COSTS: OSS, Off premise servers & cloud.
Job design & culture (sociotechnical approach): Must take a holistic REASONS FOR GOING OVERBUDGET: redesign, resistance to change,
view of entire job environment. A. a job must be demanding (variety), B. governance, costs underestimated.
Ongoing learning (feedback). C. Give workers recognition & social support 14. CUSTOMISING
(significance). D. Group autonomy. E. Relate to what they do (identity). Configuring the system parameters to reflect structure of bus. Rules for the org.
What impacts emotions? (increased workload, lack of support and Steps: 1. Config general data (cross client data – currency, country) | 2. Org.
training, learning). MANAGE EMOTIONS BY creating trustful spaces of data | 3. Customise bus. Rules & params. | 4. Mater Data | 5. Execute BP
interaction. (testing).
Org. Change Management (OCM): Main reason for ERP failure. MODIFICATION OPTIONS: 1. Code modification (change existing source
Resistance: intentional and unintentional (they forget to thing what code in ERP. Disadv: complicates future upgrades) | 2. Development/ create
happens to their job). Steps: 1. Determine the change (use SMART to own program codes (Own OOP, Classes, APIs). Adv: No upgrade issues. | 3.
identify what needs to be changed) | 2. Build excessive support (ensure Table Configuration: setting up params (vanilla implementation).
impacts are understood at exec. level)| 3. Communicate (comm. Strategy
to all stakeholders) | 4. Develop a plan (training, support & comm.) | 5.
Execute plan | 6. Persist through challenges (monitor stakeholder
emotions). | 7. Reinforce adoption (highlight+ acknowledge when people
are accepting the changes).
