Enterprise Design

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Enterprise Design Process Business Processes
Johan Strümpfer
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Enterprise Design

• Tool 1/ View 1

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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

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ENTERPRISE DESIGN

• THE DELIBERATE ARRANGEMENT OF FACTORS INTO A
  SYSTEM
• THE INTEGRATION OF INTERACTIONS INTO A REGULATED
  WHOLE

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SYSTEM

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

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SYSTEM FACETS
STRUCTURE
PROCESS
REGULATION
FUNCTION
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DEFINITION OF STRUCTURE

• Relationships that remain unchanged
• Duration of interest
• Stability and relative change

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Process View
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Process view PURPOSE

• INTRODUCES CONCEPT OF ENTERPRISE AS SYSTEM AS
  LINKED PROCESSES
• BROADENS SCOPE OF POSSIBLE INTERVENTIONS
• STAGE 1 OF ENTERPRISE DESIGN

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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

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PROCESS VIEW OF SYSTEM

• INPUT
• TRANSFORMATION
• OUTPUT

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CLASSIC ORGANISATIONAL STRUCTURE
Lines of authority, responsibility, accountability
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PROCESS ORGANISATIONAL VIEW
Manage the white spaces
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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

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BASES OF DIFFERENTIATION AND INTEGRATION-2

• Systemic
• Differentiation Specialisation
• Integration Synthesis
• System development
• Integrate AND Differentiate
• All bases of division

or
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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)

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PROCESSES

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

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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

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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

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DISCUSSION

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

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...OF BIRDS AND BEES...

• Biomatrix
• Teleon
• Doublet
• Telentropy
• Sub-teleon
• Sub-doublet
• Endo, Exo, Centro-teleon
• .....
• Gyuri Jaros Anakrion Cloete

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Woven mat of processes

• Sets of connected activities aimed at purpose
• Interlinked and intersecting processes
• Production processes
• Support processes

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PROCESS CHARACTERISTICS

• INPUT, TRANSFORMATION, OUTPUT
• HAS PURPOSE AND GOALS
• STRUCTURE
• REGULATED ACTIVITIES
• MEASURES OF PERFORMANCE
• TELENTROPY
• RIGIDITY, FLEXIBILITY REDUNDANCY

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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

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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

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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

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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

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DESIGN PROCESS

• STAKEHOLDER VIEW
• OUTPUTS REQUIRED
• PROCESS DEFINITION
• PROCESS MODELLING
• COMPARISON
• ORDERING ACTIVITIES

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

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STAKEHOLDER

• Stakeholders view of the enterprise
• Stakeholders logic, rationale and value systems
• Stakeholders choice to be stakeholder

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STAKEHOLDERS

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

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EXPECTATIONS

• What should the purpose be, from the clients
  (beneficiarys) perspective?
• What should (are) the clients measures of
  performance?
• What are the underlying worldview assumptions
  that makes this meaningful to the client?

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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?

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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?

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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

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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?

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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

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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

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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

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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