Week 5 – Basics of BPR

Source / Reference:

1)      http://wiki.mbalib.com/zh-tw/BPR

2)      http://www.hitachiconsulting.co.uk/staging/0132.cfm

3)      http://www.ehow.com/list_6775695_success-factors-business-process-reengineering.html

4)      http://www.prosci.com/factors.htm

 Subject:
When BPR is needed? How to perform a successful BPR?

 Response:

Business Process Reengineering is the redesign of business processes to achieve great improvements in business performance. BPR involves the reduction of business cycle time, the improvement of customer services, the improvement of product qualities, the reduction of operating costs and the renovation of technology, etc. In order to reap the benefits of BPR, reconstruction of the organization may be required.

 

 

BPR is needed when a firm with the below characteristics.

1.      Recognize the competitive edges of main competitors is much stronger

2.      Recognize the technology of the firm is far behind the current market

3.      Core operational flow is based on outdated business assumption or technical establishment

4.      The objectives of the firm seems cannot be achieve

5.      Enhance the operational capability of new vision and strategy

BPR may help the company to release from the difficult position. BPR may also solve the potential problems that may threaten the core business. BPR help to increase the efficiency of business processes and improve the performance of a firm.

After recognizing is there any needs of performing BPR, the success factors of BPR will be introduced.

1.      Strong support from top managers. If managerial stuff do not provide money, resources, or leadership, the reengineering project properly cannot move forward and it will fail.

2.      Alignment of business goals and the strategy of reengineering project. If the strategic direction is not consistence, contradiction may occur and it can be counterproductive.

3.      Create a clear and well-documented business case for change. The business case should be simple and easily understandable. Furthermore, the business case can be modifying throughout the implement of the reengineering project.

4.      Appropriate change management. Leadership with concise and frequent communication is required to manage changes. If some members of BPR team disconnected with the changes and left out, unexpected delays may occur.

All the factors demonstrated above is essential and crucial to perform a successful BPR.

Week 3 - The strategic framework

Source / Reference:

1) Sullivan, "Systems Planning in the Information Age," Sloan Business Review, 1985
2) http://www.ownway.eu/academy/marketing/marketing-methods/swot-analysis/

 Subject:
The strategy development by applying PEST analysis and SWOT analysis

 Response:

PEST analysis and SWOT analysis are techniques that help to formulate the strategy.

PEST analysis mainly used to analyze the external environmental factors. It analyzes the external environment through 4 aspects, namely, political factors, economic factors, social factors, technical factors.

1.      Political factors include government regulations, policies and laws.

2.      Economic factors include the inflation, change of economic environment and the purchasing power of customers.

3.      Social factors mean the change of social activities that affecting the needs of customers. For example, ageing change the age distribution.

4.      Technological factors include the technological change and automation.

Strategy cannot be created by only using PEST analysis since it illustrates only the macro-environment. By emerging with SWOT analysis, the situation can be analyzed and a complete strategy can be developed.

SWOT analysis may analyze both internal and external business environment. Strengths and weaknesses contribute to the internal analysis while opportunities and threats are attributes of the external analysis.

  

1.      Strengths mean the merits of a firm that may help the business growth.

2.      Weaknesses mean the potential shortcomings of a firm that may badly affect the business activities.

3.      Opportunities denote the potential chances from external conditions that may help the business.

4.      Threats are the potential dangers from the external environment that may be the barriers of achieving the business goals.

By using SWOT analysis, the current state of company can be known. There are several strategies with respect to different state of the firm. The basic concept is shown below:

 

If a firm has more strengths than weaknesses and chances more than risks, MAX-MAX strategy can be used. It means to strengthen the merits of the firm and to get more opportunities in order to achieve the objective.

If there are many weaknesses but quite a lot of opportunities, MIN-MAX strategy should be used. This strategy is to reduce the weaknesses and to increase the chances to make the business run more smoothly.

If a firm has numerous strengths with many potential threats, MAX-MIN strategy could be applied. Enhancing the strengths and minimize the threats is the strategy that should be implemented.

In order to survive in the competitive market, a firm with many weaknesses and potential threats should execute MIN-MIN strategy. Correcting firms’ flaws and minimize the threats is the way to survive.

Week 4 - Strategic Alliance Model

Source / Reference:
1)  "Strategic Alignment: Leverage Information Technology for transforming organization" by J C Henderson and N Venkartraman 1993
http://search.proquest.com/docview/26252741/134A6C8B53F19A4F606/1?accountid=16210
2)  http://wiki.mbalib.com/zh-tw/%E6%88%98%E7%95%A5%E4%B8%80%E8%87%B4%E6%80%A7%E6%A8%A%E5%9%8B#SAM.E7.9A.84.E5.9B.9B.E5.A4.A7.E5.9F.9F.E5.8F.8A.E7.9B.B8.E4.BA.92.E5.85.B3.E7.B3.BB

Subject:
In Lect 4 - Which alignment strategy in SAM model is the best? and why?
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Response:

Four main alignment perspectives, namely strategy execution, technology transformation, competitive potential and service level have their own merits.

Strategy execution is the most common perspective used by traditional company since this perspective is the classic strategic management view. Both design of organizational and IT infrastructures are drive by business strategy. The performance is mainly assessed by financial parameters.

For technology transformation, this perspective is using IT strategy and IT infrastructure to support the chosen business strategy. Benchmark test is used to assess the performance.

Unlike the previous perspectives, competitive potential considered IT strategy as driver instead of the business strategy. This perspective seeks to identify the best business strategy and organizational infrastructure based on the IT strategy. Business leadership with some measurements such as market share and growth is used to assess the performance.

Service level is to ensure the effective use of IT in order to adapt the fast-changing needs of customers. Measurements like end-user-needs surveying is used to get to know about the customer satisfaction in order to assess the performance.

From my point of view, there is NO the best alignment perspective. According to different situations, the best alignment perspective with respect to that particular circumstance should be different. It depends on both external and internal factors.

For example, large size companies which directly provide services to customers may focus more on the level of customer satisfaction. Besides, large size companies have adequate capital to invest more on IT development and to improve the current IT strategy and system to ensure the effective use of IT. Therefore, service level maybe the best alignment perspective for this kinds of companies.

Another example is that for the large companies that manufacturing products instead of providing services, competitive potential maybe the best alignment perspective. These kinds of companies may focus more on the product leadership. Large companies also have better IT capabilities to associate with the business strategy.

To conclude, the best alignment perspective can be found based on the analysis of the firm's situation. There is no one general best alignment perspective.