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© Vlerick Business School
PROCESS INNOVATION: REDESIGNING AN
ENTERPRISE BACKBONE SYSTEM
JOACHIM VAN DEN BERGH
PROF DR STIJN VIAENE
MEET BELGACOM MOBILE




3   © Vlerick Business School
MOBILE BUSINESS: A TURBULENT ENVIRONMENT

 Market Leader vs Challengers



 Fast development of new technologies and
  platforms



 Price wars


  © Vlerick Business School
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 much
Mid-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
SIM CARD PURCHASING ORDER MANAGEMENT
SYSTEM: 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 Manager

6   © Vlerick Business School
SIM CARD PURCHASING ORDER MANAGEMENT
SYSTEM: AS IT HAD TO BECOME

 Stable and scalable IT-supported backbone
  process (core)


1. Integration of the involved departments and
business partners
2. Reducing manual operations
3. Standardization
4. Decreasing total lead time
5. Increasing production process capacity

7   © Vlerick Business School
IT-ENABLED PROCESS INNOVATION



                                              Process
 Information                    Process
                                           Flexibility and
 Technology                   Innovation
                                             Scalability




  © Vlerick Business School                    IT impact on process innovation (adapted from Davenport, 1993)
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
ORCHESTRATION




  © Vlerick Business School
SPOMS LEVEL 0 PROCESS




  © Vlerick Business School
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
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
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
THANK YOU!
JOACHIM VAN DEN BERGH
PROF STIJN VIAENE

VLERICK BUSINESS SCHOOL; WWW.VLERICK.COM

FOLLOW US:
@VLERICKBT
@DESTIVIA

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Process Innovation Redesigning an Enterprise Backbone System

  • 2. PROCESS INNOVATION: REDESIGNING AN ENTERPRISE BACKBONE SYSTEM JOACHIM VAN DEN BERGH PROF DR STIJN VIAENE
  • 3. MEET BELGACOM MOBILE 3 © Vlerick Business School
  • 4. MOBILE BUSINESS: A TURBULENT ENVIRONMENT  Market Leader vs Challengers  Fast development of new technologies and platforms  Price wars © Vlerick Business School
  • 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 much Mid-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. SIM CARD PURCHASING ORDER MANAGEMENT SYSTEM: 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 Manager 6 © Vlerick Business School
  • 7. SIM CARD PURCHASING ORDER MANAGEMENT SYSTEM: AS IT HAD TO BECOME  Stable and scalable IT-supported backbone process (core) 1. Integration of the involved departments and business partners 2. Reducing manual operations 3. Standardization 4. Decreasing total lead time 5. Increasing production process capacity 7 © Vlerick Business School
  • 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. 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. ORCHESTRATION © Vlerick Business School
  • 11. SPOMS LEVEL 0 PROCESS © Vlerick Business School
  • 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. 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. 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
  • 15. THANK YOU! JOACHIM VAN DEN BERGH PROF STIJN VIAENE VLERICK BUSINESS SCHOOL; WWW.VLERICK.COM FOLLOW US: @VLERICKBT @DESTIVIA