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Process Innovation Redesigning an Enterprise Backbone System


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Joachim Van Den Bergh, Stijn Viaene, Process Innovation: Redesigning an Enterprise Backbone System

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Process Innovation Redesigning an Enterprise Backbone System

  1. 1. © Vlerick Business School
  3. 3. MEET BELGACOM MOBILE3 © Vlerick Business School
  4. 4. MOBILE BUSINESS: A TURBULENT ENVIRONMENT Market Leader vs Challengers Fast development of new technologies and platforms Price wars © Vlerick Business School
  5. 5. IT BUSINESS PURPOSES  Run the Business: This is an indicator of how much of the IT resource is consumed and focused on the continuing operation of the business. This covers largely maintenance, Short-term renewal, and capacity-related expenditure  Grow the Business: This is an indicator of how much of the IT resource is consumed and focused on developing and enhancing IT systems in support of business growth (typically organic growth). New projects are captured in this category.  Transform the Business: This is an indicator of how muchMid-long of the IT resource is consumed and focused on term implementing technology systems that support new business models, structurally reduce total cost of ownership and create sustained efficiencies. © Vlerick Business School Source: Mr Scott Alcott, former Belgacom Executive VP Operations
  6. 6. SIM CARD PURCHASING ORDER MANAGEMENTSYSTEM: AS IT WAS IT-supported backbone process (core) System breakdown risk Lots of manual operations Work-arounds and exceptions Limited process capacity Extensive lead-time “We were facing a serious risk of business continuity failure. At the time, the market was growing and customers were becoming more demanding in terms of lead time. Frankly, I do not think we would have been able to cope much longer. We simply could not scale, let alone be more flexible.” Supply Chain Manager6 © Vlerick Business School
  7. 7. SIM CARD PURCHASING ORDER MANAGEMENTSYSTEM: AS IT HAD TO BECOME Stable and scalable IT-supported backbone process (core)1. Integration of the involved departments andbusiness partners2. Reducing manual operations3. Standardization4. Decreasing total lead time5. Increasing production process capacity7 © Vlerick Business School
  8. 8. IT-ENABLED PROCESS INNOVATION Process Information Process Flexibility and Technology Innovation Scalability © Vlerick Business School IT impact on process innovation (adapted from Davenport, 1993)
  9. 9. CORE PROJECT PRINCIPLES Making the solution flexible to allow for adaptation to future requirements and reuse of existing components using the principles of Service-Oriented Architecture (SOA), web services and object-oriented programming where possible. Centralized approach to process governance and ownership, using a dashboard to act as a „process orchestrator‟. Making the processes product independent, thus building a product factory, to allow flexibility in designing © Vlerick Business School
  10. 10. ORCHESTRATION © Vlerick Business School
  11. 11. SPOMS LEVEL 0 PROCESS © Vlerick Business School
  12. 12. ACCOMPLISHMENTS Increased SIM card production capacity Shorter lead time from purchase order creation until ready for delivery to the market Shorter total lead time of marketing actions, from defining a new card layout until ready for delivery to the market Reduction of workload in the Supply Chain Department “The result is a truly versatile and solid new business process supported by tools that enable the front-line staff to provide the efficiency and flexibility our markets require. This IT-enabled business process innovation is actually the result of a combination of end-to-end thinking, team work, results orientation and, last but not least, an architectural approach to support not just sustainability of a technical solution but also design freedom for product managers.” © Vlerick Business School
  13. 13. LESSONS LEARNED Lesson 1: The Product Factory for Process Flexibility Lesson 2: Combining Process Thinking (BPM) and Architecture (SOA) for IT-enabled Process Innovation Lesson 3: Excellent Project Management © Vlerick Business School
  14. 14. ACKNOWLEDGEMENTS We sincerely thank the following people for their input:  Johan Verbeeck  Pascal Masuit  John-David Hendrickx  Scott Alcott  Laurent Claus  Bert Van Genechten © Vlerick Business School