Business Transformation Proven Approach


  • I. Introduction
  • II. Organizational Approach
  • III Business Transformation Methodology
  • IV Project Teach Approach and Workplans
  • V Project Teach Approach and Project Management

I. Introduction

During the 1950s and 1960s, our most respected companies were manufacturers with names like General Motors, Ford, IBM, U.S. Steel, Boeing, G.E. Westinghouse, Caterpillar, and John Deere. In the Industrial Economy of the time, these companies epitomized good management and leading-edge practice. With the advent of the computer, these companies carried on their leadership tradition by being early adopters and aggressive investors in information technology (I/T).

Our business processes must be absent of waste to allow the information systems to function optimally. Our organization structure must be aligned around the business process and not by department. Our culture must be adaptive to advanced information and automated systems.

This guide “Business Transformation Methodology” describes how we can do this. It provides management with a frame of reference to view the business as an integrated enterprise. It identifies the various domains of change of a business. It describes the phases of the project and the step-by-step tasks that need to be conducted. It clearly identifies the deliverables and schedules. The following sections are included in this chapter:- A. Executive summary B. Background C. Understanding the objectives

II The Organizational Approach

The purpose of this chapter is to specifically state the benefits of working with a structured organizational approach. The organizational structure and roles/responsibilities is illustrated in Section V.

The full range of inter-related enterprise components that must be addressed in order to redesign the business processes and develop a clear and comprehensible business solution are represented by an in-house company core project team. The methods used to organize the program are discussed.

The following sections are included in this chapter:- A. A multi-disciplinary team approach B. A time efficient approach C. An approach that involves high management and employee participation D. The key result / an actionable plan E. The role of the consultant F. The role of the project leader G. The role of the steering committee H. The role of the project sponsor/authority

III The Business Process Transformation Methodology

This chapter presents a shared philosophy for and definition of Business Transformation.

The blueprint for transformation is detailed and comprehensive. It identifies and assesses the impact of redesigned processes on the people, structure, information, culture, technology and physical infrastructure of the organization.

“Business Process Transformation” is the process through which an organization is dramatically restructured in order to achieve greater cost-effectiveness, improved quality, enhanced customer service or a combination of all three. Existing assumptions governing the organization are challenged, paving the way for the radical redesign of how “the business” is conducted. This usually involves a fundamental reshaping of business philosophies, business processes, information technology, physical infrastructures, and reorientation of corporate values and culture. We define the phases of transformation.

The following sections are included in this chapter:- A. Business Process Transformation: the philosophy and commitment B. Business Process Transformation: a definition C. Business transformation is driven by a set of principles D. The framework is comprehensive but flexible and able to address different requirements E. Case studies

IV Project Team Approach And Work plans

This chapter presents the approach for conducting the work and outlines the detail workplans for each phase of business transformation. The project has been segmented into phases: Phase 1: Business Transformation Strategy Phase 2: Business Process Analysis Phase 3: Business Redesign and Infrastructure Alignment Phase 4: Continuous Process Improvement

Phase 1: Business Transformation Strategy

A. Project initiation
The purpose of the Project Initiation is to confirm and build on the team’s understanding of the project requirements, players and issues, and to use this enhanced understanding to make any required revision to the proposed work program. We explain the objectives, transformation, approach, workplan and deliverables.

B. Business direction
The primary purpose of this first phase of the business transformation exercise is to confirm, with precision, who the company will serve (i.e., its customers), the issues in delivering these products and services, and what services and products it currently delivers and will deliver in the future.

The key success factors that are paramount to the company achieving its objectives are identified at this point, as well as the associated measures of success. The organization will set transformation objectives for the transformation. We explain the objectives, approach, workplan and deliverables.

C. Education
The education phase will focus on the fundamentals of modern operations/production management. It will include material on the Business Transformation process itself, and on the elements of an Integrated Business System. We explain objectives, approach, workplan and deliverables in this phase.

Phase 2: Business Process Analysis
The primary objective of this phase is to select and define at a high-level the existing processes or focus areas for future process re-design, and to identify key potential opportunities for transforming the organization. This allows the work to focus exclusively on areas of the organization that have the greatest impact on its ability to achieve the business and performance objectives identified in the Business Direction phase. It also allows for the initial conception and testing of business enablers. We explain objectives, approach, workplan and deliverables in this phase.

Phase 3: Business Redesign and Infrastructure Alignment
In this section we identify five domains of change which need to be addressed in an integrated enterprise. All domains must be addressed to truly transform a business.

A. Business Process Domain
The objective of this sub-phase is to analyze and design the new work processes as identified and directed in the business process analysis phase. The essence or main activity of this phase, the design of work processes, is conducted in a series of creative, thought provoking and challenging work sessions. All existing assumptions and ways of doing business are challenged. We explain objectives, approach, workplan, and deliverables of the sub-phase.

B. Organization/Culture Domain

The objective of this task is to analyze and define the organizational and human resource implications of the business solution. This will include defining the organizational culture that is envisaged for the transformed organization and designing an organizational model that will support the effective delivery of the products and services as defined by the newly designed work processes. We explain objectives, approach, workplan and deliverables in this phase.

C. Computer/Technology Domain

The objective of this is to identify the new technology that will be required to achieve and maintain the business solution. Our definition of “technology” is broad in scope. It applies to all types of technology. This includes computer technology as well as other technologies, such as communications, telephones, etc. We explain objectives, approach workplan and deliverables in this phase.

D. Information/Knowledge Domain

The objective of this sub-phase is to identify how knowledge is applied, and how data is managed and utilized within the enterprise. Our objective is to organize data into information so that applied knowledge creates innovation.

The information domain is the relationship between knowledge, information data and how these are distributed throughout the enterprise. We explain objectives, approach workplan and deliverables in this phase.

E. Physical Infrastructure Domain

The objective of this principal structure is to determine the impact of the redesigned business processes, and subsequent changes to the organizational structure, technologies and staff requirements, on the organization’s physical infrastructure requirements. We explain objectives, approach workplan and deliverables in this phase.

F. Implementation planning and financing – the transition framework

The objectives of the Implementation Planning and Financing sub-phase are to:

  • Show how changes will be introduced into the organization in a way which maximizes early payback, and minimizes business disruption.
  • Outline and assess the options for financing the implementation of the business solution.

We explain objectives, approach workplan and deliverables in this phase.

G. Implementation

The objectives of the Implementation sub-phase are to:

  • Demonstrate short term successes early in the business process transformation initiative.
  • Perform pilot projects.
  • Successfully complete the detailed implementation projects.

We explain objectives, approach workplan and deliverables in this phase.

V. Project Team Approach and Project Management

This section describes the organization of the proposed project team, and the qualifications and experience of each of its members.

To conduct this project, a multi-disciplinary team should be formed with expertise in the following areas:

  • ERP/MRP II Implementation.
  • Virtual Product Development Environment
  • Manufacturing and Industrial Engineering.
  • Product Design.
  • Quality Management.
  • Operational and Organizational Design.
  • Human Resource Planning.
  • Cost Modeling.
  • Technology Assessment, Including Information Technology.
  • Capital Assets Management.
  • Strategic Planning.
  • Accommodation/Facilities Management.
  • Organizational Change Management.

We explain objectives, approach workplan and deliverables in this phase.