Showing papers in "Business Process Management Journal in 2004"

Enterprise resource planning: An integrative review

Abstract: Enterprise resource planning (ERP) system solutions are currently in high demand by both manufacturing and service organisations because they provide a tightly integrated solution to an organisation's information system needs. During the last decade, ERP systems have received a significant amount of attention from researchers and practitioners from a variety of functional disciplines. In this paper, a comprehensive review of the research literature (1990‐2003) concerning ERP systems is presented. The literature is further classified and the major outcomes of each study are addressed and analysed. Following a comprehensive review of the literature, proposals for future research are formulated to identify topics where fruitful opportunities exist.

Enterprise systems and ongoing process change

Abstract: Enterprise systems packages have long been associated with process change. However, it was assumed that most organizations would simultaneously design and implement process change while implementing the systems. A survey of 163 organizations and detailed interviews with 28 more suggests that enterprise systems were still being implemented even among early adopters of the technology, and that process change was being undertaken on an ongoing basis. After the prerequisites of time, critical mass of functionality, and significant expenditures were taken care of, the factors most associated with achieving value from enterprise systems were integration, process optimization, and use of enterprise‐systems data in decision making.

Intellectual capital – defining key performance indicators for organizational knowledge assets

Abstract: Measuring intellectual capital is on the agenda of most 21st century organisations. This paper takes a knowledge‐based view of the firm and discusses the importance of measuring organizational knowledge assets. Knowledge assets underpin capabilities and core competencies of any organisation. Therefore, they play a key strategic role and need to be measured. This paper reviews the existing approaches for measuring knowledge based assets and then introduces the knowledge asset map which integrates existing approaches in order to achieve comprehensiveness. The paper then introduces the knowledge asset dashboard to clarify the important actor/infrastructure relationship, which elucidates the dynamic nature of these assets. Finally, the paper suggests to visualise the value pathways of knowledge assets before designing strategic key performance indicators which can then be used to test the assumed causal relationships. This will enable organisations to manage and report these key value drivers in today's economy.

Enterprise resource planning systems’ impact on accounting processes

Abstract: The advent of the IT‐led era and the increased competition have forced companies to react to the new changes in order to remain competitive. Enterprise resource planning (ERP) systems offer distinct advantages in this new business environment as they lower operating costs, reduce cycle times and (arguably) increase customer satisfaction. This study examines, via an exploratory survey of 26 companies, the underlying reasons why companies choose to convert from conventional information systems (IS) to ERP systems and the changes brought in, particularly in the accounting process. The aim is not only to understand the changes and the benefits involved in adopting ERP systems compared with conventional IS, but also to establish the best way forward in future ERP applications. The empirical evidence confirms a number of changes in the accounting process introduced with the adoption of ERP systems.

Structure, speed and salience: performance measurement in the supply chain

Abstract: The supply chain presents many challenges for management and for the design of performance measurement systems. It is possibly one of the final structural areas of business in which significant savings are to be made, and it is becoming an increasingly important strategic tool as trade becomes global in perspective. To assess the problems faced in the supply chain, this paper begins with an overview of where we are in terms of the development of performance measurement theory. It then highlights two key issues that the supply chain raises in measuring performance in an intra‐organisation scenario before identifying no fewer than nine preconditions necessary for effective and dynamic performance measurement within supply chains.

ERP implementation factors

Abstract: Past research has identified factors that are important to the successful implementation of enterprise resource planning (ERP) systems. However, the identification of these factors has often been based on the perceptions of senior members within organizations that are implementing these systems. In this study, the perceptions of managers and end‐users on selected implementation factors are compared. Understanding if differences exist in the perceptions of different groups within an organization and the nature of these differences can help implementers develop appropriate intervention mechanisms such as training and communication that can lead to successful ERP implementation.

Systems thinking for the integration of management systems

Abstract: This paper discusses how a systems approach to management can be used to facilitate the development and implementation of an integrated management system (IMS) in an organization. It is argued that any solution to address the rapidly growing need for the integration of function‐specific management systems requires two elements: a conceptual model and a supporting methodology. While the research on IMS modelling is fairly advanced, evidenced by a number of existing models that would probably qualify to provide the basis for integration, development of methodologies to achieve fully‐integrated systems is still lacking. This paper therefore provides a set of criteria for selection of the most appropriate IMS model, followed by a discussion of one such model based on the systems approach. The presented model can be used to integrate the requirements of existing and upcoming function‐specific management system standards, and provide a foundation for the top‐down integration of internal systems that these standards describe. Subsequently, a short discussion on the issue of the IMS methodology is given, and the paper concludes with a list of questions that will help researchers design a comprehensive IMS methodology.

Activity‐based costing for logistics and marketing

Abstract: Activity‐based costing (ABC) is gradually being utilized as more of a decision‐making tool than an accounting tool. This paper investigates how, after almost a decade of slow growth, ABC is gaining acceptance as a tool to determine the true costs of marketing and logistics activities. How ABC provides managers with considerable insights into how various products, territories, and customers play major roles in logistic and marketing activities and, consequently, drive total costs is discussed. The advantages of the ABC model in terms of providing the right information to marketing managers with regard to which products, customers, or territories are more important and which could be eliminated without affecting the overall objectives of the firm are presented. The paper concludes by identifying ABC's shortcomings and the promise it holds for the modern enterprise.

Business renovation: business rules (still) the missing link

Abstract: The main aim of this paper is to present the characteristics of business renovation efforts and research into some aspects of the business process and information modelling. Different business‐rule categories are discussed and the relationships that exist between business rules and other business‐related concepts are presented. The paper also introduces a business activity meta‐model as an integration link between business and information modelling. Its motivation is to help establish an environment in which business rules can be traced from their origin in the business environment through to their implementation in information systems.

From process measurement to performance improvement

Abstract: This paper uses basic principles from complexity theory, psychology and management theory to demonstrate that many traditional methods of identifying performance measures may not result in improvements in overall performance. In order to illustrate this, the paper first identifies the answers to six fundamental questions that are critical to the success of Process measurement, if it is to move away from just measuring performance to a fully integrated approach to improving process performance. The paper then addresses a final question on the type of measurement approach that is most likely to improve organizational performance. The answers to these seven questions make a compelling argument for a reassessment of many different established approaches to measurement. However, rather than proposing yet another, different approach, it outlines the steps that integrate other approaches into a single, unified measurement approach to improving process performance.

Key success factors in implementation of process‐based management: A UK housing association experience

Abstract: This paper explores the implementation of a process‐based management system within a service organisation that has recently achieved certification of its quality management system to the ISO 9001:2000 requirements. Many academics and business people alike consider process‐based management as a fundamental requirement of certification to ISO 9001:2000 quality management systems. Hence, this paper discusses the definition of a process‐based management system and also considers, through a literature review, theories relating to the topic. Consequently, a theoretical model is proposed that outlines the factors affecting successful implementation of a process‐based management system. The paper demonstrates that the theoretical model has been assessed within a UK housing association enterprise case study organisation. The case study organisation presented in this paper, shows the potential barriers of implementation of a process‐based management system.

A framework for the sustainability of e‐marketplaces

Abstract: Electronic marketplaces have promised many benefits to participants, and hence have aroused considerable interest in the business community. However, the failure of some marketplaces and the success of others have led business managers to question which marketplaces will be successful in the future, and even whether the entire idea is viable. This question is particularly pressing for those considering sponsoring or participating in a marketplace. This exploratory study seeks to address these issues by proposing a framework of the factors that help explain the sustainability of e‐marketplaces. The framework proposed is based upon the findings of interviews carried out with 14 managers based in 11 companies active in the field of e‐marketplaces, and findings from the current literature from this domain. The framework proposed identifies seven factors that can be categorised according to three levels of influence, i.e. the macroeconomic/regulatory level, the industry level, and the firm level. Further work to validate the proposed framework would provide practitioners with additional insight to apply to their e‐marketplace strategies.

What strategic alignment, process redesign, enterprise resource planning, and e‐commerce have in common: enterprise‐wide computing

Abstract: Unlike other purchases of information technology that have failed to deliver measurable improvements in corporate performance, enterprise‐wide information systems in the manufacturing industry have immediate and positive impact on the bottom line. The transition from strategic alignment as the basis for IT investment, to redesigned business processes as the critical elements of organizational strategic planning to which IT investments must be targeted, to the integration of these processes into enterprise‐wide systems, to e‐commerce is examined. With supply chain collaboration, information systems have exited corporate boundaries.

E‐marketplaces and the future of supply chain management: opportunities and challenges

Abstract: E‐marketplaces are one of the relatively new trends that are affecting buyer‐supplier relationships. Although there have been several failures in the e‐business arena, whether it is business‐to‐business (B2B) or business‐to‐consumer (B2C) e‐commerce, there is no doubt that the Internet has changed the way that business is done in several ways. It has been shown that electronic commerce can fundamentally change the inter‐organizational processes involving buyer‐supplier relationships. It reshapes these buyer‐supplier relationships, improves a business's core processes, and helps reach new markets or segments through the electronic medium. This paper discusses the opportunities and challenges facing e‐marketplaces today, and also the concerns facing potential participants in these e‐marketplaces who are trying to weigh the risks presented by such participation and the possible benefits that can be reaped by streamlining supply chain processes. Some of the major concerns facing existing and potential buyers and suppliers that are discussed in this paper include integration issues, security issues and antitrust issues.

Evaluating business process‐integrated information technology investment

Abstract: Because of increasing competition and limited capital budgets, firms need to carefully assess every information technology (IT) opportunity to ensure that their resources are spent judiciously. Conventional wisdom holds that IT has enormous potential. However, organizations continue to question the benefits of IT in conjunction with new corporate initiatives such as business process re‐engineering, e‐commerce, and enterprise resource planning. Despite the potential benefits derived from IT investment, traditional capital budgeting models have failed to estimate true IT values due to their inability to measure complex interactions between IT and organizational performance. This paper presents a business process integrated IT evaluation methodology that integrates business strategy, business process design, and supporting IT investment. The evaluation methodology consists of four phases: strategic analysis; business process design; IT configuration; and performance evaluation. The empirical evidence and computational study strongly suggest that measuring cycle time impact on customers' repurchasing decisions is critical in evaluating the potential value of business‐process‐driven information technology investment.

Business analysis metrics for business process redesign

Abstract: In the existing BPR methodologies there exists a big division in business analysis techniques due to the black and white approach used in most cases. In some of them, cost is the central issue, in others generic management or the successful use of IT. As a result business analysis techniques are directed towards this central issue ignoring any other means of analysis. Agent relationship morphism analysis (ARMA) is a BRP methodology that applies different analysis techniques from various disciplines in different perspectives. These techniques are influenced from organizational theories, IS development and existing work in BPR giving business analysis a more holistic approach. The main focus of business analysis in ARMA is the analysis of the business models with a view of developing solutions for the subsequent stage of redesign. The emphasis is on why the operations and processes of the organization are performed the way they are performed. The aim is to develop solutions that enhance the levels of effici...

Business process development in project‐based industry: A case study

Abstract: The strategic focus of organisations today is on the customer and internal and external processes. This paper presents a systematic approach to project process development and identifies key aspects of long‐term process evaluation. A framework for process development is presented with special emphasis on value‐adding activities in engineering, procurement, and construction (EPC) projects. The framework provides a better understanding of the dynamic processes and critical interfaces in inter‐organisational networks. The choice of concepts and final construction of the framework is informed by an empirical research of EPC projects, and a case study of the power division of Wartsila Corporation is analysed. Empirical findings are gathered through the Delphi method and the use of personal group interviews with the key actors involved. A model for process development is developed, linking interest groups to the development of their targets, information, and knowledge sharing. The emphasis is on the right place, the right actors, the right resources, and the right time.

An information systems perspective of supply chain tool compatibility: the roles of technology fit and relationships

Abstract: Among the primary tools of collaborative commerce are information technologies that are designed to improve flows along the supply chain. However, supply chain management software is not providing organizations with all its potential benefits. This study looks at three information technologies (i.e. group decision support systems, EDI and e‐commerce) that can be used to improve information flows and the factors that affect their adoption and use. These factors are divided into those related to the information technology itself and those related to maintaining the relationships that are important in managing supply chain linkages. Factors related to the technology fit such as return on investment, fit with users' needs, affordability of the technology and ability to secure the technology were found to be important in the use of these tools. The ability to secure SCM technologies currently appears to substitute for some level of trust from an information systems perspective. In the case of the most mature technology (i.e. EDI), the results show that trust is related to fit with user needs. The implications of these findings for managers who wish to adopt and implement these SCM tools are discussed. Further study of these factors is suggested, particularly as SCM tools become increasingly more collaborative.

Reengineering of the quotation process: application of knowledge based systems

Abstract: Is it possible to support the engineering processes with intelligent product models when the knowledge and information work is very complex? This paper describes how IT‐supported product configuration can support the complex engineering activities carried out in the quotation processes. The research has been carried out at the Centre for Product Modelling at the Technical University of Denmark in co‐operation with F.L. Smidth, a Danish cement plant manufacturer with a world‐wide leading position. The redesign of the quotation process lasted three years but, as the paper illustrates, remarkable results have been accomplished. The lead‐time for making quotations was reduced from two to four weeks to one to two days. A better quality of quotes was obtained, and the direct consumption of engineering resources for making quotations was reduced from five man‐weeks to one to two man‐days.

Modelling the strategy management process: An initial BPM approach

Abstract: Businesses face increasing competition in local, international and global markets where responsiveness to changes within these markets is the key to success and survival. Consequently business strategies need to be consistently re‐defined to effectively reflect the different requirements of customers and to respond to changes in the business environment. The process of generating strategies is not always a simple decision‐making task and revised business and corporate strategies are often generated without considering the structure of the business, particularly at operational level. Furthermore, there is considerable vagueness in the literature and in practice about what constitutes strategy management. This paper reviews the diverse literature in strategy management and presents a business process model of the strategy generation process to ensure consistent generation and communication of strategy throughout an organisation. The performance of a business strategy can then be measured against a model of initial alignment and effective implementation.

Business development with electronic commerce : refinement and repositioning

Abstract: Electronic commerce enables business development for marketing channel intermediaries and strengthens their existing operations and strategic management. This research shows that electronic commerce provides stepwise business development refinement and repositioning in the form of process change and increased customer service. Based on marketing and logistics literature, a business development model with three developmental phases is proposed in this paper. The findings are based on the electronic commerce development of three intermediaries providing industrial products and services in the northern European market. Refinement is achieved through a focus on activities for internal efficiency, and through changing processes for increased integration, shorter time and lower costs. Repositioning involves extended focus on service improvements, image and customer tailored services. It is found that electronic commerce has not radically reshaped and developed the role of marketing channel intermediaries. Instead, it has strengthened existing business. Future electronic commerce efforts need to be viewed in a business wide development context, including structural change and reaching new segments or markets, to utilise fully the development potential of electronic commerce.

Best practices in e‐business process management: Extending a re‐engineering framework

Abstract: In formulating e‐business strategies enabled by the Internet and WWW, parallels can be drawn from the viewpoint on process enabled by desktop and centralized computing in the 1990s, and that of present day. In this paper, the cornerstone of 1990s thinking on process, Hammer and Champy's nine best practices, are analyzed to apply for e‐business process management (e‐process management). For instance, Hammer and Champy's first principle is re‐stated as “[o]rganize around business rules (some combined tasks can be performed by stakeholders using interfaces accessed via the WWW)”. One finding is that checks and controls may not need to be reduced – as Hammer and Champy espouse – if they are perceived as valuable and can be performed inexpensively using Internet technologies. This work evolves the traditional re‐engineering framework to use in current e‐business realities; it can be applied to formulate e‐business strategies that are rooted in more traditional, and vetted, management thinking.

A success factor model for electronic markets: Defining outcomes based on stakeholder context and business process

Abstract: Although many electronic markets have opened up, adoption of electronic marketplaces worldwide has been lower than expected. It is still unclear what the exact effects of electronic markets are, how they emerge, and what markets will eventually turn out to be the most successful in the industry. Several consultancy firms, e.g. Forrester, Merrill Lynch, and Morgan Stanley, have made statements on success factors of electronic markets, such as acquiring domain expertise, and a critical mass of users. However, none of those has been empirically studied. Because of the high failure rate of electronic markets, this research tries to identify specific factors that might be crucial for electronic market success. Through a literature review of previous research, an exploratory research model is developed to specify the success factors. Case study examples are used to assess the validity of the research model and illustrate the economic effects that could be experienced by both the electronic market itself, and by buyers and sellers, focusing on the conditions under which electronic markets are likely to fail or are likely to be a success.

An empirical study of business processes across Internet‐based electronic marketplaces: A supply‐chain‐management perspective

Abstract: After the dot‐com breakdown in 2001, Internet‐based electronic marketplaces (IEMPs) continue to be the most promising interorganizational information systems allowing firms to integrate with suppliers and customers. They have emerged in various industries, supporting the exchange of goods and services of different kinds, within and across supply chains, and are following different architectural principles. The paper discusses the use of IEMPs to manage processes across the supply chain based on a critical literature review and a case study research approach. In order to illustrate different views within an IEMP supply‐chain network, three industry case studies – the chemical, retail and maritime industries – were conducted. Several interviews with both IEMP users and market makers were completed. The outcome gives a state of the art of IEMP usage for managing business processes across the supply chain, discloses gaps and describes different IEMP industry approaches.

Elusive challenges of e‐change management in developing countries

Abstract: This paper identifies key hurdles to implementing e‐commerce and information technology in developing countries with special focus on three crucial vectors of an organization – people, process, and technology. Since it is imperative to switch to an e‐commerce model from the traditional business one, this paper examines essential ingredients of re‐engineering and uncovers various hidden impediments prevailing in a typical organisation of developing countries. Extensive online research with comparative analysis, a venture to launch an “e‐commerce enterprise management programme” in Bangladesh, an attempt to start e‐commerce from the home country, consultancy and probing the latest e‐commerce books, magazines, the international network of membership organisations and 25 years of living and working experience in developing countries have made this critical expedition possible. The research finds that human condition, political aspects and environmental issues are serious factors for any meaningful development. While re‐engineering demands cohesive and holistic management of the vital three vectors and their alignment with corporate strategy, organisations of developing countries are miserably lagging behind for such radical transition. The endangered future of nearly 5 billion people sends a strong red signal of the turbulent future of the global economy and even more!

General process‐oriented management principles to manage supply chains: theoretical identification and discussion

Abstract: Academic discussion in the field of supply chain management is influenced by descriptive, case‐oriented and consultancy‐driven research outcomes. The debate is often limited to the search for valid definitions and models of observable facts. The present research makes an alternative effort. This article deals with the question of whether there are any common suggestions that can be condensed to nine process‐based principles that contribute to the management of such chains. The applicability of these principles was evaluated using Thomas and Tymon's notions of “necessary properties of relevant research”.

Optimisation of the determinants of e‐service operations

Abstract: E‐service operations that attract and influence customers to buy products and/or services from specific sites is a complex process involving service design, marketing, and delivery, and encompass a number of essential determinants. Determinants that integrate all the three service processes form the basic framework on which a survey was conducted involving e‐service companies, and their views were ascertained on those determinants affecting e‐service operations. The aim of this paper is to provide a specific solution that isolates the critical determinants for e‐service operations. This paper demonstrated the usability of optimisation technique in isolating critical determinants based on companies’ responses. It was found that optimisation technique works well and is able to isolate optimum number of key determinants that are critical to e‐service operations. Pareto analysis and statistical significance test were also used to explore the relative importance of the determinants; however, it was found that they failed to identify specific and optimum number of critical determinants. The rationale and limitations of each technique and their applicability were also critically assessed.

Extracting value from data – the performance planning value chain

Abstract: Focuses on the performance planning value chain (PPVC). The PPVC is the latest thinking in the field of Performance Measurement developed by the Centre for Business Performance, Cranfield School of Management. It provides a systemic process for using data to enhance decision‐making, bringing together a vast array of tools to extract value from data and focus efforts on what will add real value to the organisation.

Measuring employee assets – The Nordic Employee IndexTM

Abstract: Based on a review of the literature within the field of job satisfaction and organizational commitment this paper proposes a generic model for measuring employee perceptions. The model consists of seven latent constructs operationalised through 29 manifest indicators. This model is subsequently tested on data from a questionnaire survey to which approximately 9,600 employees from the Nordic countries responded. The statistical technique applied for this analysis is partial least squares (PLS), which is well suited for structural equation modelling when the focus is on prediction. The results support the structure of the suggested generic model but reveals differences between the Nordic countries with regard to strength of the relationships as well as the average case value of the seven latent constructs.