The document discusses process-based management and examples of information technology enablers. It describes how IT can be used as "processware" to automate and integrate business processes. It provides the example of Ericsson Spain streamlining its procurement process through the implementation of SAP software. This allowed for decentralization of requisition management, use of catalogs, flexibility, automated approvals, and centralized negotiations. The document also covers topics like enterprise system characteristics, integration across company boundaries, and the vendor strategy of using a single provider versus best-of-breed systems.

1. Process-based Management:
Examples of Information Technology Enablers
Oswaldo Lorenzo Ochoa
Professor, Author & Consultant
Digital Strategies, Operations, Information Systems
oswaldo.lorenzo@deusto.es
Blog: www.longconversation.com
@Lorenzooswaldo
2013 BPM - Oswaldo Lorenzo 1

2. Process & Technology
Cross-functional
Business Process:
• Flows of Materials,
Goods, Information
Business Process: and Services.
IT as processware • Long and complex
• Dynamics: in response
to the consumer
demand
• Mainly automated
• Difficult to capture
• Not documented
• Coordination as their
key role
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3. TO-BE Analysis
Process Innovation, Redesign
Craft or Science?
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4. Scientific Thinking
Understand and measure the current processes
(AS-IS Analysis)
Actions:
Identify
•ELIMINATE
WASTE and
•AUTOMATE
its causes Identify and Adopt •INTEGRATE
(OfI) Process Enablers
•COMBINE
•SEPARATE
•DECOUPLE (MODULES)
•DISINTERMEDIATE
Design and build a process prototype
(TO-BE Design)
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5. Process Enablers
• Flow Design
• Information Technology
• Policies and Rules
• Structure and Organization
• Infrastructure
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6. Information Technology
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7. The first rule of any technology is that automation
applies to an efficient operation will magnify the
efficiency.
The second is that automation applied to an
inefficient operation will magnify the inefficiency.
Bill Gates, Microsoft Corporation
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8. Case:
B2B procurement in Ericsson Spain
Source:
“Enterprise Systems as an Enabler of Fast-Paced Change:
The Case of Global B2B Procurement in Ericsson.”
Lorenzo, Oswaldo & Diaz, Angel.
http://www.igi-global.com/chapter/enterprise-systems-enabler-fast-paced/18433
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9. B2B Procurement Process: Best practices
1. Simplicity and friendliness
2. Requisition management responsibility
decentralized to employees
3. Use of catalogued materials, with defined
price and provider
4. Flexibility for purchase management of
non-classified materials
5. Approval system based on workflow
6. Automatic invoice verification with the
purchase order
7. Centralization of negotiations with vendors
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10. Assignment questions
1. If you were one of the Ericsson’s upper managers, would you have supported
the B2B procurement project for MRO materials? Why was this project relevant
for the company?
2. Assess the selection process used for the B2B procurement system. Was the
selection of SAP a good decision?
3. What were critical success factors for the implementation of this project?
4. With respect to the Future Alternatives (at the end of the case): Was there any
other alternative? Which one of them all would imply greater benefits for ES?
How could we prioritize them in time? How to assign teams and
responsibilities?
5. Use the assessment form provided by the instructor to analyze the
improvement process performed by Ericsson Spain for redesigning the
purchase-to-pay process.
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11. Enteprise System Characteristics
• Transaction system supporting operations.
• Integration
• Commercial Software Packages
• Evolution
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12. End-to-end enterprise systems
Supplier Company
Intra-organizational Intra-organizational
Integration Integration
BI BI
Clients
ERP CRM ERP CRM
Inter-Organizational
Integration:B2B Source: Lorenzo & Diaz
Source:
Process gap analysis and modelling in enterprise systems
Oswaldo Lorenzo, Angel Diaz. International Journal of Simulation & Process Modelling.
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13. Enterprise Systems
Vendor Strategy
Best-of-Breed Integral
BoB Choice Choice
• Specialized modules • Simplified interfacing
• Middleware • Single set of skills is
• Example: Nestle – SAP for required by IT staff
back-office and Manugistics • 100 % of business needs?
for SCM • Example: Ericsson waiting
SAP development in B2B
Source:
Experiences and Success Factors in ERP Implementations in Spain and Latin America (Spanish)
Lorenzo, O. Diaz, A., and Claes B.
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1550284
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14. Enterprise Systems:
Mix of vendors
%
[only one provider] [one provider for each module]
Source:
Experiences and Success Factors in ERP Implementations in Spain and Latin America (Spanish)
Lorenzo, O. Diaz, A., and Claes B.
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1550284
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15. The case of Tesco & Mobile
Let the store come to people
http://www.youtube.com/watch?v=UlTMIFjK2ak
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16. Reflection
What is the contribution of
IT and digital platforms
(smartphones, QR, CRM) on
the Tesco’s supply chain?
http://www.youtube.com/watch?v=UlTMIFjK2ak
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17. The case of ING Direct & Check Deposit App
http://www.youtube.com/watch?v=-9kZxvAdAPk&feature=related
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18. Thank you very much!
oswaldo.lorenzo@deusto.es
Blog: www.longconversation.com
@Lorenzooswaldo
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