STEP 1: DEFINE THE NEW BUSINESS PROCESS

For a detailed step-by-step approach, you might consult a process improve-
ment book (see, for example, Lientz and Rea, 1998). Begin with a detailed
analysis of the business process. Your work should include shadow systems and
exceptions as well as the “run of the mill” work supported by the current system.
Your analysis must be carried out at the transaction level because benefits and
requirements build from here. Note that this approach is much more time
consuming than sitting down and making a feature list for new software —
thereby avoiding the process and focusing on the software. Until you define the
new process in detail, you really cannot build a feature or requirement list.
You can define the new process in terms of the dimensions listed as follows:
•
Organization.
Which organization will perform the new process? Will it be
the same department, another department, suppliers, customers, or anoutsourcing firm? The decision has an impact on the systems and
technology to be used. Wal-Mart transferred functions to suppliers as have
automobile manufacturers. Banks transferred functions to customers
through banking on-line and automated teller machines (ATMs).
•
Capture information.
How, when, and where will information be captured?
With a new process, consider capturing the data earlier in the process or at
the front end of the process. Perhaps, you can capture information through
electronic commerce, Electronic Data Interchange (EDI), or scanning and
imaging.
•
Output of process.
What happens to output from the new process? Don’t
restrict yourself to the current process and system. Be creative. Perhaps, if
the new system is based on a database management system or a Fourth-
Generation Language (4GL), you can cut down programmed reports.
Maybe you can establish an automated interface with later systems. Auto-
mated interfaces to following processes reduced data entry and errors by
more than 30% at Vision Insurance.
•
Who will do the work?
The first dimension determined the organization.
Here you define who will actually perform tasks in the process. If you are
thinking of providing a simpler, easier-to-use system, then you can lower
the personnel requirements.
•
Paper and tracking.
You should try to eliminate manual tracking and paper-
work in the new process. If the new system has work ow tracking when
you know where every transaction is, then you can cut out logs and forms
used to summarize production and track work.
•
Policies.
Every process is governed by policies of the organization. Policies
in turn affect the procedures, work ow, and systems. When defining a new
process, consider simplifying the policies. This will reduce your system
requirements and, perhaps, speed up implementation. Simplifying policies
also leads to eliminating exception transactions. In one bank, the policies
were changed so that 15% of the workload was reduced and the number of
exceptions reduced by 45%!
•
Location.
Where will the work be performed? Which offices and space will
be employed? How will the office space be laid out? In one case, the cur-
rent office space for data entry consisted of partitioned offices. It was too
hard to observe the work being done. This was replaced by open space with
the supervisors desk on a raised oor, allowing the supervisor to oversee
the work. Moving to a better location for a distribution firm reduced em-
ployee absenteeism and improved employee morale.
•
Systems and technology.
What new technologies are appropriate to perform
the internal work of the process? Can more of the process be automated
through these technologies? Such steps could eliminate some of the shadow
systems.