Organization and Business Process
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  • Credit: Harvard Business Review http://hbr.org/1996/09/building-your-companys-vision/
  • http://www.inc.com/magazine/20110201/creating-a-company-vision.html
  • Now Disney mission has changed into “to be one of the world's leading producers and providers of entertainment and information. Using our portfolio of brands to differentiate our content, services and consumer products, we seek to develop the most creative, innovative and profitable entertainment experiences and related products in the world."

Organization and Business Process Organization and Business Process Presentation Transcript

  • Organization and Business Process Guest Lecture for Bina Nusantara University, June 26 2013 GoutamaBachtiar Advisor, Global Innovations and Technology Platform T: @goudotmobi
  • INTRODUCTION Introduction
  • Presenter Profile  15 years of working experience: 12 years of Training and Education, 8 years of IT Audit, 7 years of strategic partnership, 8 years of writing, 6 years of consulting, software development, project management and network administration  Advisor at Global Innovations and Technology Platform  Head of Information Technology at Roligio Group  Subject Matter Expert at ISACA International Chapter  Program Evaluator at Project Management Institute  Columnist and contributor at Asia Tech Site e27.co, Forbes Indonesia, The Jakarta Post, DetikINET and InfoKomputer among others
  • Today’s Agenda Organization Mission and Vision Organization Strategy and Design Business Activities Business Process Business Process Management Business Process Reengineering
  • Today’s Objectives Core business Business strategy and functions Customers Suppliers Partners Business process and activities
  • Vision Provides guidance about what core to preserve and what future to stimulate progress toward Consists of two major components Core ideology defines what we stand for and why we exist (values and purposes) The envisioned future is what we aspire to become, to achieve, to create—something that will require significant change and progress to attain (10-30 years of Big Goal w/ description)
  • Vision (cont’d)  Example of core ideology: Hewlett-Packard Code of ethics ‘HP Way’ has guided the company since its inception more than 50 years ago It includes a deep respect for the individual, a dedication to affordable quality and reliability, a commitment to community responsibility Packard himself bequeathed US$4.3 billion of his stock to a charitable foundation and a view that company exists to make technical contributions for advancement and welfare of humanity
  • Vision (cont’d)  Example of vision: Coca Cola People: Be a great place to work where people are inspired to be the best they can be Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value
  • Vision (cont’d) Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities Productivity: Be a highly effective, lean and fast- moving organization.
  • Vision (cont’d) Example of vision: Walt-Disney company Be the leader in the delivery of entertainment experiences Be the premier channel for sports experiences and information
  • Vision is also dynamic Example of vision: Walt-Disney company Be the leader in the delivery of entertainment experiences Be the premier channel for sports experiences and information
  • Mission It declares organization purpose A statement why an organization exists Serves as the standard against which the organization weigh their actions and decisions Short and very clear Walt Disney company "Make People Happy” It didn't say make it through animation, or theme parks, or interactive experiences
  • Mission (cont’d) Example: Coca Cola To refresh the world... To inspire moments of optimism and happiness... To create value and make a difference
  • Values Serving as compass for company actions and describe how they behave in the world Example: Coca Cola Leadership: The courage to shape a better future Collaboration: Leverage collective genius Integrity: Be real
  • Values (cont’d) Example: Coca Cola Accountability: If it is to be, it's up to me Passion: Committed in heart and mind Diversity: As inclusive as our brands Quality: What we do, we do well
  • Values (cont’d) Example: Hewlett-Packard Trust and respect for individuals Achievement and contribution Results through teamwork Meaningful innovation Uncompromising integrity
  • Company Objectives  Financial  Profit and Lost (P&L) Statement  Balance Sheet  Gross Profit, EBIT, EAT (Net Profit), ROI, ROA  Stock Price in stock exchange market  Non-Financial  Credibility  Contribution  IP
  • Company Objectives (cont’d) Hewlett-Packard as an example  Profit  Growth  Market leadership  Commitment to employees  Leadership capability  Global Citizenship
  • Core Business The primary area a company was founded on or focuses on in its business operations Even though leading the growth, market leaders usually opens their doors for new business opportunities
  • Core Business (cont’d) The primary area a company was founded on or focuses on in its business operations Even though leading the growth, market leaders usually opens their doors for new business opportunities
  • Core Business (cont’d) Key facts  Organization A US multinational company based in Palo Alto, California  Segment Consumer, commercial and enterprise  Industry Computer Hardware, Computer Software, Consulting, Information Technology and Services  Type: Public  Founded: 1939  Employees: 332,000
  • Core Business (cont’d) Key facts  Presence in 70 countries  Groups: Imaging and Personal Systems, Enterprise Business  Divisions: Financing, Hardware, Software, Services  Core Business: providing IT hardware, software, solution and services  Total Assets: US$109B  Total Equity: US$23B  Total Revenue: US$120B  Operating Income: (US$11B)  Net Income: (US$12.7B)
  • Organization Strategy How an organization needs to evolve over time to meet its objectives along with a detail assessment of what needs to be done First comparing its present state to its targeted state to define differences and then stating what is required for the desired changes to take place
  • Organization Design  Aligning organizational and position structures with organization strategic mission and objectives  Review and analyze organization’s mission, functions, strategic objectives, work processes, and workloads  Determine skills mix (occupational types, grade levels, and numbers of positions in each occupational category) required to achieve strategic objectives
  • Organization Design (cont’d)  Identify functional interrelationships  Identify workflow and work process bottlenecks and inefficiencies  Recommend work process and workflow reengineering  Develop organizational structure and staffing models that facilitate efficient and effective achievement of strategic objectives
  • Customers Individual or other organization willing to pay for our products, either goods or services (differs it with member, user, consumer)  Consumer (for daily activities perusal: student, housekeeping wife, white-collar worker)  Corporate (for professional and Small Medium Business (SMB) perusal: staff, officer, supervisor, manager, director, CxO)  Enterprise (for companies perusal, in particularly big companies)
  • Suppliers Other type of organization that our organization or company obtain their raw material, work-in- process, finished good, product, or services: Principal (hundred of OEMs: AOC, Innolux, Samsung) Vendor Distributor Manufacturer (Foxcon)
  • Partners Other type of organization that our organization or company deliver finished good, product, or services: Principal Vendor Distributor (Datamation, TechKing, TixPro, Samafi tro) Manufacturer
  • Partners (cont’d) Reseller (as Business Partners: Asterindo, MDP, GadingMurni) Systems Integrator (as Service Partner: AGIT, BHP, MII) Service Provider (as Support Partner: Infokomputra, Harrisma, Cahaya Surya)
  • Business Process  A set of logically related tasks performed to achieve a defined business outcome  Business outcome Measureable with numbers and figures, usually represented in financial terms  Business objective Formed by business outcome. Maximizing value to the company stockholders, financially and non- financially
  • Business Process (cont’d) 1. Market-research process 2. New product offering realization process 3. Customer acquisition process 4. Customer relationship management 5. Order-fulfillment management process 6. …
  • Business Function  A process/operation performed routinely to carry out a part of the mission of an organization  A description of work that is performed to accomplish one or several business unit's responsibility  In concrete, it’s pooled into department such as Marketing, Finance, Human Resources, Logistics  Examples: delivering raw materials, paying bills, receiving of cash and inventories
  • Business Activities Any activity that is engaged in for the primary purpose of making a profit Include things like operations, marketing, production and administration Also known as "business operations”
  • Business Activities (cont’d) Business process that is a series of activities spanning multiple systems and applications For example: implementing SAP with Ariba, Oracle Database and other applications (in-house or off- the-shelf)
  • Business Activities (cont’d) Needs computerized systems to monitor, manage and provide real time info on status and results of operations, processes, and transactions to middle and upper management: Business Activities Monitoring (BAM) Enterprise Architecture (EA) Business Process Management (BPM) in the later stage
  • Rehearsing BPM Strategic management approach to align organization business processes aligned with customer needs Bringing in business effectiveness and efficiency while striving for innovation, flexibility and integration with technology Continuous process optimization process
  • Rehearsing BPM (cont’d) Efficient, effective and more capable of change Influenced by Total Quality Management (TQM) or Continuous Improvement Process methodologies Key drivers: People and (supported by) Technology
  • BPM Business Drivers Managing end-to-end, customer-facing processes Consolidating data and increasing visibility into and access to associated data and information Increasing the flexibility and functionality of current infrastructure and data
  • BPM Business Drivers Integrating with existing systems and leveraging emerging Service- Oriented Architecture (SOA) Establishing a common language for Business-IT alignment
  • BPM Practice These Days Focusing on objective to optimize a domain identified as an area for improvement In financial sector,itis critical to make sure the system delivering quality service while maintaining regulatory compliance Shared/Dedicated Resource for BP or BPM (governance, Chief Business Process Officer)
  • BPM Practice These Days International standards limited to IT sector: ISO/IEC 15944 covering operational aspects of the business Other standards BPMN Enterprise Architecture Business Motivation Model
  • Commencing Business Process Engineering  Known as Business Process Redesign, Business Transformation and Business Process Change Management  Business management strategy focusing analysis and design of workflow and process  Helping organization to rethink their work to improve customer service, operational cost to become world-class corporation
  • Commencing Business Process Engineering (cont’d) 60% Fortune500 companies have done it or plan to do so Comprehensive focus on business objectives Radically restructuring their organizations through ground-up design of business processes Full scale recreation of processes
  • Commencing Business Process Engineering (cont’d) Reengineering as an pretext to downsize their companies dramatically Earned a reputation for being synonymous with downsizing and layoffs Assumed the factor limiting an organization performance is process ineffectiveness
  • Commencing Business Process Engineering (cont’d) Offered no means of validating the assumption Assumed the need to start the process of performance improvement with a clean state Doesn’t focus on improvement in organization constraint
  • Q & A 29 June 2013
  • THANK YOU!