Steven Alter presented on Better Business IT Collaboration through the use of Work Systems in the second Run IT as a Business meeting (Oct 27, 2015). The concepts enables all parties to define the system without getting lost and solve for what the system is to produce.

1. Better Business/IT Collaboration:
Empowering Users and Leveling the
Playing Field
Presentation for a “Running IT as a Business”
Santa Clara, CA, Oct. 27, 2015
Steven Alter
University of San Francisco
alter@usfca.edu
www.stevenalter.com

2. Outline of Session
• How DHL Europe used a work system perspective to
facilitate business/IT collaboration
• Work system perspective
– These ideas are the take-aways.
• Discussion
– Do your IT professionals share an organized approach for
understanding systems in organizations (not just IT)?
– Are their business peers empowered to collaborate
knowledgably about system-related issues?

3. The DHL Story
• Obsolete 1990s technology in a highly
customized, mission-critical data warehouse.
• New architecture and technology on the way
• How to deal with users across Europe?
– Mission-critical applications will be replaced.
– How to assure that users will be happy?
– How to assure that customers will be happy?

4. Detailed Tracking and Related Reporting
• Track 150 million shipments per year --- 2.5 million customers
• 33 process checkpoints for tracking:
– A Piece is a uniquely identified part of a shipment that is packaged and
handled separately.
– A Shipment is all of the goods carried under the terms of a single
transportation contract.
– A Handling Unit is a process technology device that is used to transport
goods or other handling units, and has been closed and uniquely
identified during containerization.
– A Movement is a single execution of a transport between two locations
• Identify deviations ASAP
• Warn customers ASAP of any problems.
• Generate reports for major customers and DHL managers

5. DHL’s “Convergence Program”
• New architecture – Global Application
Platform with 148 applications.
• Eliminate non-standard applications where
possible.
– Sometimes needed to support customers
• Major IT initiative
– Started in 2008 with 1400 applications
– Fewer than 500 remain.

6. DHL’s “Clean Sweep” for its Data
Warehouse
• 4 separate projects, starting in 2011.
• Project 1: legacy assessment
– What do we have?
• Project 2: Strategic design
– How to handle each redundant or obsolete
capability?
• Project 3: Make it happen
– Fit existing capabilities into enterprise architecture
• Project 4: Clean up

7. Project 1: Legacy Assessment
• Gather available documentation
• Create initial overview
• Conduct technical deep dive
• Understand usage and value to business
– 17 of 29 countries used the data warehouse
– 12 of 20 capabilities were used
– 9 of 42 tables were used
– 215 of 308 reports were used
– 253 of 308 reports were obsolete
• Write-up

8. Project 2: Strategic Design
• Joint decision making with senior users and
other stakeholders
• What to keep?
– Many reports were customized to specific needs
of large customers
– Some calculations and reports were obsolete.

9. Collaborating with Managers and Key Users
Koehler, T., Cameron, B. H., Sweeney, M., & Harrison, A. S. (2013) Strategic market-technology linking in Logistics Work
Systems – Evidence from two longitudinal Enterprise Architecture case studies at Deutsche Post DHL. British Academy
of Management, Proceedings of BAM2013 Conference, Sept. 12, 2013.

10. Lessons from the DHL Project
• End of service scenarios can trigger planned
innovation cycles.
• Clean sweep approach works for infrastructure
technologies.
• Vendors dictate necessity and timing of clean
sweep projects.
• Senior users and executives need to collaborate
in evaluating capabilities and deciding what to
keep or improve.
• Oversized systems are a costly burden.
• Need to customize decision-related reporting

11. A Bridge between Business and IT Views
of Systems …..Is this possible?
• Rigorous enough to be useful
• Reasonably easy to use
• Requires no obscure terminology
• Can be used by business professionals with or
without help of IT professionals.
• Can support collaboration between business
and IT professionals

12. Look at Systems as Work Systems
• Work system: A system in which human
participants and/or machines perform processes
and activities using information, technology, and
other resources to produce product/services for
internal or external customers.
• Sociotechnical by default, but may be totally
automated.
• Typically uses IT but is not an IT system.
• More than just a business process.

13. Examples of Work Systems
Calculating rates for
insurance renewals
Managing software
development projects
Acquiring clients at a
professional service firm
Receiving materials at a
large warehouse
Approving real estate loan
applications
Planning and dispatching
trucking services
Performing pre-
employment background
checks
Performing financial
planning for wealthy
individuals
Scheduling and tracking
health service
appointments
Operating an engineering
call center
Purchasing advertising
services
Determining salary
increases
Collecting and reporting
sales data for a
wholesaler
Planning for outages in
key real time information
systems
Invoicing for construction
work
(from analyses by employed MBA students in Atlanta)

14. Special Cases of Work System
• Information system
• Project
• Supply chain
• E-commerce
• Service system
• Totally automated work system

15. Work System Framework
(static view – but assuming some on-going adaptation)

16. Work System Life Cycle Model
(dynamic view - iterations including planned and unplanned change)

17. Work System Method
• Apply work system perspective
– Identify the smallest work system that presents an
important problem or opportunity
– Summarize and evaluate the “as is” work system
– Analyze structure and performance as deeply as
appropriate
– Recommend a “to be” work system
– Explain advantages of the improved version.
– Explain why the change project is worth doing
• Different versions of WSM for different purposes
• Include any aspects of Six Sigma or other tools
that are useful in the situation.

18. Work System Snapshot – a Basic Tool

19. Service
Value Chain
Framework

20. Conclusion --- Better Business/IT Collaboration
• DHL Europe focused on business/ IT collaboration
• Work system perspective
– Work system framework
– Work system life cycle model
– Work system method
– Service value chain model
– Etc …. Other extensions
• Fostering collaboration by leveling the playing field
– Do your IT professionals share an organized approach for
understanding systems in organizations (not just IT)?
– Are their business peers empowered to collaborate
knowledgably about system-related issues?