W10 - Redesign Principles and Tactics (1)

Source/Reference:

“eStrategy for Development Principles & Tactics - Examples in PR” by Dr A. Albadvi 2004

http://www.moe.org.ir/_ICT/Documents/Session6-7%20BPR%20Basics.pdf

Subject:

Review : Redesign Principles and Tactics(1)

Rsponse:

        In this lecture, I have learned the redesign principles and the tactics. It is important as principles and tactics can be used as a checklist to suggest ways and trigger ideas. Before introducing what they are, let us first see the driving assumptions of those principles.

There are 3 driving assumptions of redesign principles and tactics:

        -Maximize the value adding content of a process

        -Manage non-value adding activities

-Minimize everything else such as waste, valueless complexities.

These Assumptions allow us to expect what to be occur after redesigning process.

There are also 3 types of redesign principles and the tactics:

-Restructuring the process - Restructuring and reconfiguring the process

-Informating the process - Changing the information flows around the process

-Minding the process - Changing knowledge management around the process

       

         Only the first 2 type of principles and tactics are introduced in this lecture. The minding type would be included in the next lecture.

Principle #0: Streamline

This is the principle of removing waste, simplifying and consolidating similar activities. The principle is the most fundamental one.

Restructuring

Principle #1: Lose Wait

The principle is to reduce waiting time in process links to create value. There are 5 common tactics:

 

Concurrency

        This tactic aims to design time-sequential activities to be executed concurrently. The partitionable tasks can be broken down into components and completed in parallel by using this tactics. Also it can avoid the communication losses. It can be used by providing groupware or database with multiple parties work.

 

Closed-Loop

        For closed- loop, it is to create closed-loop teams for quicker flexible interaction. By using this tactics, integration and coordination would be improved with the people needed to complete the process

Not Gating Main Process

        The third tactic requires a company not allowing a support activity or management activity to delay a core value adding process. After implementing the tactic, efficiency of the process would be improved.

Continuous Flow

 

This requires the company to design for continuous flow rather than stop-start batches. Efficiency would be improved such as the figure shown.

Upstream Relieves Downstream

        The last tactic aims to modify upstream practice to relieve downstream bottlenecks.

Principle #2: Orchestrate

This means letting the swiftest and most able enterprise execute. Of course there are different areas in a business. Letting expert to perform different areas is one clever way to improve efficiency. There are 4 common tactics:

 

Partnering

 

Partner is a process with another enterprise, which means cooperate with it to complete a process.

Outsourcing

Outsource a process to another enterprise, which means getting service from other companies. One example is the HK government, which outsources the cleaning service to private companies.

 

In-sourcing

Insource a process back into the enterprise. Insourcing is the opposite of outsourcing, which means the delegation of operations or jobs from production within a business to an internal entity that specializes in that operation.

Routing through an intermediary

Route the process through an intermediary. One example is Chemdex, which is the middleman that brings together buyers and sellers.

 

Principle #3: Mass-customize

This principle is to flex the process for any time, any place, any way. There are 4 common tactics:

Flexing Time & Space

They means flexible accessible by expanding the time window for the process, and flexible access by creating more options for the physical space in which the process is executed. To achieve these tactics, online purchasing system can be created.

Modularity & Dynamic Customization

Modularity aims to create modular process platforms, which break a process into modules. Dynamic Customization enables dynamic customization of product offerings. For example, Dell Corporation allows different process outcomes to be generated through a common process platform. It is suitable for highly customized or low volume products.

Principle #4: Synchronize

This principle aims at synchronizing the physical & virtual parts of the process. There are 3 common tactics:

Match Offering

 

It means that the offerings on the physical and virtual parts of the channel should be matched. Therefore, the online shop should be similar as the physical shop.

 

Common Process Platforms

It is to create common process platforms for physical and electronic process. To achieve this, company should have integration between the online and offline stores.

Track Movement

        It tactic aims to allow business tracks the movement of physical products electronically.

Informating

Principle #5: Digitize and Propagate

        This principle aims to capture information digitally at the source & propagate it throughout the process. There are 4 common tactics:

Digitize at source

The data entry work should be shifted to customers. Thus, the work of staff members would be reduced.

Make the process paperless

Companies should make the process as paperless as possible and as early as the they can. One example is Microsoft.

 

Make information accessible upstream and downstream

This tactic aims to make the information easily accessible upstream and downstream to those who need it throughout the business process. Using EDI in order process is an example.

 

Shrink the distance between the information and the decision

 

Process can be executed more much faster by redesigning the information capture and access, so that information needed for decisions in the process is directly accessible.

Principe #6: Vitrify

 

This principle provides glass like visibility through fresher & richer information about the process. There are 3 common tactics:

On-demand information tracking

On-demand tracking information services for customers of the process should be provided by a company

On-the-fly reporting and analysis

 

        It is the capabilities that provide on-the-fly analysis. Rapid feedback about process is avaiable.

 

Standard partner interface

 

Companies should design standard partner interface processes for seamless exchange of information

Principle #7: Sensitize

 

This principle requires that process should fit with sensors and feedback loops to prompt action. There are 2 common tactics:

Process dysfunction loop

This tactic can be achieved by building in customer feedback loops to detect process dysfunction. For example, a company can create a discussion forum for customers, which allows customers to discuss everything about the company.

Monitor environmental change

This tactic aims to require company to enable software smarts which trigger quick business reflexes. Also, environmental probes monitoring change should be attached.

Conclusion

There are so many principles for every enterprise to improve their business performances. In fact, the reason why companies should apply those principles is that the old methods are not suitable for today’s business environment anymore.

                  In my thinking, different principles aim at different objectives, but they are all the tactics which help the company to survive in today’s business world. For example, “Mass customization” is the method replacing mass production, which is no longer suitable for the rapidly evolving markets in the internet. Also, “lose wait” reduces the wait time of customer which matches today’s “fast food culture” requiring fast in every aspect. “Orchestrate” just like the division of labor based on specialization. “Synchronize” can help to manage the physical and virtual parts of business. “Digitize and Propagate” is the trend of today’s information world helping business to manage information, while “Vitrify” helps customers to track their information on-demand. Lastly, “Sensitize” makes companies to be sensitive to the change of business environment.

               Although there are many advantages of these principles, companies should aware their own business nature and prioritize these principles in order to make a best use in business redesigning process.