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Enterprise Design Process: Business Processes

Discover the framework of Enterprise Design as a structured system of interacting parts, aimed at fulfilling an overarching business purpose. This design approach is distinct from conglomerates and financial holdings, focusing instead on optimizing relationships, structures, and processes within an organization. It emphasizes the integration of linked processes, not merely functional divisions, to enhance efficiency and effectiveness. By identifying key processes for redesign and leveraging information technology, businesses can achieve substantial outcomes and better meet customer needs through strategic process re-engineering.

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Enterprise Design Process: Business Processes

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  1. Enterprise Design Process: Business Processes Johan Strümpfer

  2. Enterprise Design Tool 1/ View 1

  3. ENTERPRISE • PARTS INTERACTING AROUND AN OVERARCHING BUSINESS PURPOSE • NOT A CONGLOMERATE • NOT NECESSARILY A GROUP WITH PARTS MORE OR LESS IN THE SAME BUSINESS • NOT A FINANCIAL HOLDING • A SYSTEM

  4. ENTERPRISE DESIGN • THE DELIBERATE ARRANGEMENT OF FACTORS INTO A SYSTEM • THE INTEGRATION OF INTERACTIONS INTO A REGULATED WHOLE

  5. SYSTEM • A regulated set of relationships • Interacting and interrelated parts • Parts organised for a purpose • a Whole with novel features

  6. SYSTEM FACETS STRUCTURE PROCESS REGULATION FUNCTION

  7. DEFINITION OF STRUCTURE • Relationships that remain unchanged • Duration of interest • Stability and relative change

  8. Process View Process View

  9. Process view: PURPOSE • INTRODUCES CONCEPT OF ENTERPRISE AS SYSTEM AS LINKED PROCESSES • BROADENS SCOPE OF POSSIBLE INTERVENTIONS • STAGE 1 OF ENTERPRISE DESIGN

  10. DEFINITION OF PROCESS • Altering or changing of relationships • Time frame of interest • Flows and transformations of Matter, Energy & Information (MEI) • Internal to systems boundary, Input & Output • Structure: static; Process: Dynamic

  11. SYSTEM I O T PROCESS VIEW OF SYSTEM • INPUT • TRANSFORMATION • OUTPUT

  12. CLASSIC ORGANISATIONAL STRUCTURE Lines of authority, responsibility, accountability

  13. PROCESS ORGANISATIONAL VIEW “Manage the white spaces”

  14. BASES OF DIFFERENTIATION AND INTEGRATION • Classical • Functional division • The whole is integrated at the top • Optimisation of the parts yields optimisation of the whole • Process • Process division • The whole is integrated at the bottom • Optimisation of the whole is different from optimisation of the parts

  15. and BASES OF DIFFERENTIATION AND INTEGRATION-2 • Systemic • Differentiation & Specialisation • Integration & Synthesis • System development • Integrate AND Differentiate • All bases of division or

  16. PROCESS REDESIGN • Develop Process Objectives • Identify Processes to be Redesigned • Understand and Measure Existing Processes • Identify IT levers • Design and Build Prototype Process • Davenport & Short (1990)

  17. PROCESSES • Logically related tasks to achieved defined business outcome • Have customers, i.e. defined business outcomes • Cross organisational [functional] boundaries • Davenport & Short (1990)

  18. RE-ENGINEERING • Organise around outcomes, not tasks • Let output consumers produce output • Integrate information processing with real work producing the information • Place decision making where work is performed and build control into process • Treat geographically dispersed resources as centralised • Link parallel activities instead of integrating results • Capture information once and at source • M Hammer, HBR ,1990

  19. CHARACTERISTICS OF BUSINESS RE-ENGINEERING • Re-work the transformation, not the output. • Singular (insular) view (process) of the organisational structure • Substitution of one basis for organisation for another • Heavy dependence on IT perspective • Patchwork of (some good) concepts; lacks rigour • Design orientation • Transcends current boundaries • Promotes questioning --- What framework? • Stretches value chain thinking

  20. DISCUSSION • Relate your own experiences and understanding of business re-engineering

  21. ...OF BIRDS AND BEES... • Biomatrix • Teleon • Doublet • Telentropy • Sub-teleon • Sub-doublet • Endo, Exo, Centro-teleon • ..... • Gyuri Jaros & Anakrion Cloete

  22. Woven mat of processes: • Sets of connected activities aimed at purpose • Interlinked and intersecting processes • Production processes • Support processes

  23. PROCESS CHARACTERISTICS • INPUT, TRANSFORMATION, OUTPUT • HAS PURPOSE AND GOALS • STRUCTURE • REGULATED ACTIVITIES • MEASURES OF PERFORMANCE • TELENTROPY • RIGIDITY, FLEXIBILITY & REDUNDANCY

  24. TELENTROPY • INVERSE OF LIKELIHOOD OF ACHIEVING ITS GOAL • Low telentropy = good chance of achieving goal • High telentropy = low chance of achieving goal • TELENTROPY “=“ STRESS • TELENTROPY TRANSFERABLE

  25. EXERCISE • List 2-3 major processes in your personal life • List 3-5 major processes in your organisation • USE PROCESS CHARACTERISTICS CHECKLIST TO DEFINE PROCESSES

  26. PURPOSE OF DESIGN PROCESS • DESIGN A DESIGN: Model of what ought to be • CRITICAL REFLECTION: Template for questioning design and reality • ALIGNMENT: Building up SHARED model of how business works • PARTICIPATION: Framework for participative design

  27. PROCESS VIEW DESIGN PRINCIPLES • Outward - Inwards design, not reactive: Holistic • Actively searches out multiple viewpoints • Structures and supports a group learning process: Participative • Uses a formal systems model as design template • Uses a systems approach to structure design process • Integrated with overall enterprise design process

  28. DESIGN PROCESS • STAKEHOLDER VIEW • OUTPUTS REQUIRED • PROCESS DEFINITION • PROCESS MODELLING • COMPARISON • ORDERING ACTIVITIES

  29. PROCESS DESIGN PROCESS STAKEHOLDERS? EXPECTATIONS? OUTPUTS? PROCESS ID & DEFINITION COMPARISON MONITORING & CONTROL ? TRANSFORMATION ACTIVITIES? CATEGORISE IT ROLE?

  30. SOURCES • ACKOFF: Redesigning the Future & Creating the Corporate Future • Gharajedaghi: Towards a Systems Theory of Organization & Unpublished material • Mason & Mitroff: Various on Stakeholders • Churchman: Design of Inquiring Systems, Systems Approach and Its Enemies • Checkland et al: Soft Systems Methodology

  31. STAKEHOLDER* • Stakeholder’s view of the enterprise • Stakeholder’s logic, rationale and value systems • Stakeholder’s choice to be stakeholder

  32. STAKEHOLDERS • Who should be served? • Who should (are) the stakeholders? • Who should (are) the clients/beneficiaries?

  33. EXPECTATIONS • What should the purpose be, from the client’s (beneficiary’s) perspective? • What should (are) the client’s measures of performance? • What are the underlying worldview assumptions that makes this meaningful to the client?

  34. WHAT ARE THE OUTPUT GOALS? • What should be produced to satisfy the expectations of the particular client/stakeholder? • What are the tangible and intangible deliverables? • What are time related requirements to satisfy the expectations?

  35. PROCESS DEFINITIONChecklist • What is the input, output and transformation? • Who is the client/customer? • Who are the actors in the transformation? • Who are the owners of the transformation? • Who are the decision makers of the process? • Why is this transformation assumed to be meaningful? • What is the purpose of this transformation? • What are its measures of performance? • What environmental factors impact directly on this transformation?

  36. PROCESS ACTIVITY MODEL • One process definition and model per output • Set of logically linked activities required to perform the transformation • Elements of model are verb phrases: Activities • ONLY activities that can be related to definition may be included • 5-12 activities per model

  37. MONITORING AND CONTROL ACTIVITIES • Expand model to include monitoring and control of process within process • Efficacy, efficiency and effectiveness: • Efficacy: Does the process achieve its goals (output, time)? Telentropy: Likelihood of achieving goals • Efficiency: Resources used per production unit. • Effectiveness: Do the goals satisfy the (longer term) purpose and expectations? • What should be measured for efficacy monitoring? • What should be measured for efficiency monitoring? • What should be monitored for effectiveness? • Required reporting (including telentropy) and control activities?

  38. ROLE OF INFORMATION TECHNOLOGY AND SYSTEMS? • What should be done differently because of enabling technologies? • How should activities be done making use of IT/IS? • Specialist input required • Refer guidelines

  39. IT/IS GUIDELINES FOR “INFORMATIONALISING”: • Mass customisation • Rapid, real time response • Manufacture at point of delivery • Shrinking Overhead, Inventory, Working Capital • Direct customer access & service levels • Interlinking organisations • Logistics and globalisation • Stan Davis & Bill Davidson: Vision 2020, Future Perfect

  40. COMPARISON • Activity models reflects designed ideal • Reflect on requirements for rigidity vs. redundancy and flexibility • Use models as basis for critical reflection on what is and should be implemented • Cultural issues, value changes • Human dimension (training, competencies) • Political feasibility • Impact dynamics • Group debate and design of implementation: Interaction

  41. ORDERING OF ACTIVITIES ACROSS ALL PROCESSES • CATEGORIES OF ACTIVITIES: • Monitoring and Auditing • Co-ordinating activities • Control activities • Primary production activities. • Support process activities • Common, shared activities

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