22. Business Process Design [1] (1)
Transcript of 22. Business Process Design [1] (1)
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22. Business Process Design [1]
DE + IA (INFO 243) - 7 April 2008
Bob Glushko
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Plan for Today's Class
Some alternative process modeling metamodels and approaches
"Service Blueprinting"
"Business Artifacts: Operational specification"
Overview of Patterns in Process Design
Adopting, Adapting, Inventing, Implementing Patterns
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Service Blueprinting
Blueprinting is a service design methodology for "systematically
managing the customer experience" and "promotes a conscious
decision on what consumers see and which employees should be in
contact at each moment of truth"
It is a design methodology for services that have an interface with an
actual customer through technology or interpersonal interactions, but
doesn't seem appropriate for purely computational services
Appropriate for services that are "dynamic, unfolding over time through
a sequence or constellation of events and steps"
Allows firms to visualize their service processes, points of customer
contact, and the physical evidence associated with their services from
their customers' perspective
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Service Blueprint for Overnight Hotel Stay
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Blueprinting Methodology: Activities
Identify customer types
For each customer, specify customer actions
Specify the "contact employees" and their activities
Add links that connect the customer to contact employee activities and
to needed support functions
(For services that do not have any onstage contact employee activities,
replace the employee action row and replace it with an onstage
technology row)
Add physical evidence
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Blueprinting Methodology: "Metamodel"
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"As Is" and "To Be" Blueprints
For a new service, the blueprint should specify the desired service
For an existing service, it is useful to blueprint how the service is
currently being offered -- to identify those touch points where service
failure can occur
Also useful to create blueprints for your competitors' services, because
this makes it easy to see "service gaps" where your offerings are
inferior
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Blueprint Case Study - Lake Powell Houseboat Experience
Compare the blueprint for a quality hotel/resort experience with the
Lake Powell As-Is experience
The Lake Powell experience required the customers to do lots of hard
work to secure provisions and get them to the boat and then to handle
the boat
Solution was to offer a range of "concierge" and onboard support
services (boat captains, chefs) so that customers could select a high
quality experience if they wanted it
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Business Artifacts
All businesses produce records or artifacts...
that are "concrete, identity able, self-describing chinks of business
information
that are the evidence that the business is "working" to produce what
customers value
Other less essential artifacts are derived from these
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Operational Specification
The "operational specification" depicts how the artifacts are created
and manipulated in the course of doing business
Can we have a notation for "following business artifacts" that is intuitive
for a business person but formal enough to be computable?
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Business Artifacts in the Restaurant
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Business Artifacts -- Transformed View
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Why We Use Patterns
Assist in analysis
Expose inefficiencies
Simplify/ consolidate / remove redundancies
Encourage best practices
Enable transparent substitution
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How We Use Patterns
Adopt pattern (it already fits what I do)
Adapt to pattern (change what I do to fit pattern)
Adapt pattern (change the pattern to fit what I do)
Invent new pattern (no pattern fits)
Instantiate the adopted/adapted/new pattern
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Patterns in Document Engineering
The essence of Document Engineering is its systematic approach for
discovering and exploiting the relationships between patterns of
different types
Working from the top down to connecting a business model to the
document/process and information component level can ensure that a
business model is feasible
Working from the bottom up to establish a business model context on
transactions and information exchanges can ensure that we are
designing and optimizing the activities that add the most value
These relationships between patterns "bridge the gap between strategy
and implementation"
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Patterns in the "Model Matrix"
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The "Pattern Compass"
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The Abstraction Hierarchy in the RosettaNet Process Pattern Repository
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Contextualizing Patterns
If you are in a context where there are no existing processes or
solutions, you will probably identify goal-oriented processes and more
general constraints
Your challenge will be to contextualize these general or abstract
processes by identifying and applying the constraints in your target
context(s)
You have a strategic opportunity to analyze a range of potentially
appropriate process patterns and select the one(s) that best satisfy the
abstract goals of your business model
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Contextualization and Innovation
So Contextualization == Innovation because you will have to make
choices about how to frame the context and satisfy abstract constraints
with specific instances
The pattern you choose will reinforce the context by emphasizing some
requirements and rules more than others
One pattern may better describe the As-IS model, but another might
provide more insight, and a better roadmap, for getting to a TO-Be
model
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Generalizing Patterns
In contrast, if you are evaluating or re-engineering existing processes
or solutions, you will probably identify transactional processes and
specific constraints on information components created or consumed
by the processes
To generalize is to take a more abstract view of something by
eliminating requirements or constraints, creating a less contextualized
perspective
If generalize = de-contextualize, then we can generalize by
"unapplying" the "context dimensions" from Chapter 8 and assessing
whether we can ignore the requirements they had imposed
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The Context "Stack" in Document Models
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Generalizing Business Model Patterns
You can identify business model patterns inductively, by looking at
specific examples of businesses and factoring out repeating elements to
identify the pattern:
Bank in supermarket
Fast food franchise in supermarket
Post office in supermarket
==> Complementary product or service for supermarket customers
"plugged into" supermarket
==> Complementary product or service for customers of business type
X plugged into type X establishment
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Conceptual Model Innovation vs Physical Model Innovation
This kind of innovation through generalization is most effective when
done at the conceptual, pre-implementation phases of a project
When it comes to implementation, you find that lots of application
software is optimized for very concrete business models. So you'll find
software for running book stores, department stores, movie theaters,
not "software for selling" -- the contextualization is built in and not
easily removed
But on the other hand, it is usually easier to see the contextualization in
the physical model if you compare different implementations
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(Cooking) Recipe Patterns
A recipe describes both objects and structures (ingredients) and the
processes (cooking instructions) for creating a food dish
Recipes are typically written with narrow scope to describe how to
make specific dishes
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Pizza Patterns
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Using Pizza Patterns
What granularity of a pizza recipe is best for teaching new employees
at a pizza franchise?
What granularity is best for differentiating pizza varieties and
recognizing possibilities for new ones?
What granularity is most likely to reveal that making pizza and making
bread have something in common, yielding the hybrid model of
focaccia?
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Following Recipes Exactly:Implementations as Patterns
Sometimes we want to replicate a process exactly as it has been
implemented somewhere else
This means we want to apply a physical model rather than a
conceptual one and will use the same implementation technology and
the specific values that fill the roles and activities in the source process
When would we want to do this?
What are the costs and benefits of using implementations as patterns?
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"Process Rituals" and "Document Relics"
At the time it is done, exact copying can seem easy because it isn't
necessary to understand the underlying requirements and conceptual
models embodied in the solution being copied
But when the copied implementation needs to change, as it inevitably
does, this lack of understanding of "what's really going on" makes it
harder to know how to revise and improve it
So sometimes processes and information models persist even though
they are no longer serving much purpose
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The Flavor Principle Cookbook (aka "EthnicCooking")
The "flavor principle cookbook" by Elisabeth Rozin, who analyzed 30
cultures and sub-cultures to determine what patterns of flavors and
spices characterize different cuisines, presents "recipes" at an abstract
level to guide experimentation and culinary innovation
e.g., Oriental cooking dominated by soy sauce (China, Japan, Korea,
Indonesia) and fish sauce (Vietnam, Laos, Thailand, Burma)
Indonesia: soy sauce, brown sugar, peanut, chile
Provence: olive oil, thyme, rosemary, marjoram, sage, tomato
Northeast Africa: garlic, cumin, mint
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Adopting Patterns
"If a pattern fits, use it" sounds like reasonable advice
But how do we assess the "fit" of a pattern?
Is it easier to adopt a pattern if there is no "As-Is" model?
How does the abstractness of the pattern affect its applicability and fit?
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Model from Scratch, or Adapt a Pattern?
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The Process of Pattern Selection
Choosing a pattern is an iterative process
Whenever there is "business" going on almost by definition that means
there are buyers and sellers, or producers and consumers. So we can
apply that pattern to almost every situation to gain insights.
Who has the power, the buyer or seller?
Who can set standards or terms/conditions in the relationships? (who
can choose the pattern?)
Who is the authoritative source of the information involved?
What kinds of products or goods are being "sold"
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Applying Patterns to Achieve Insight
Sometimes we can get new insights about a business problem or
inefficiency by trying to apply a pattern to a context substantially
different from its usual one
We aren't likely to find a pattern that can serve as a To-Be model,
because we might have to make analogical or even metaphorical
assignments of activities and roles
This is a brainstorming or "thinking outside the box" technique
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Different Ways to Frame the Application of Patterns
SELECT A PATTERN – "here are some observations about the
university - classes and majors are oversubscribed, some classes are
underenrolled... how could you eliminate or reduce these problems?"
INSTANTIATE A PATTERN – "how is the university like a supply chain
and marketplace?"
EVALUATE AN INSTANTIATED PATTERN – "can the university be
viewed as a marketplace operator that indirectly distributes degrees
manufactured by a school or department?"
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Adapting to Patterns
If a pattern almost fits, you can change the pattern slightly so it fits your
specific requirements or you can change your requirements so that the
pattern fits exactly
How do you decide?
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The Cost of Adaptation
"Differentiation that does not drive customer preference is a liability"
What are the costs for employees if a pattern is adapted?
What are the costs for customers if a pattern is adapted?
how do these costs change over the life cycle of the
product/service/process?
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Adapting a Pattern
A pattern might be specified in terms of roles or elements that can be
instantiated in different ways
When does an adaptation become a pattern in its own right?
We might adapt a recipe by applying a different set of flavor principles
to an old one
We would be inventing a new recipe if we were to come up with a new
combination of spices to create a new flavor principle
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Summary
Best practices in Document Engineering require and reinforce the
identification and reuse of patterns of information exchange of different
levels of granularity and abstraction
Patterns can be reused exactly, adapted to, adapted, or changed
significantly in their application
Each of these approaches has its benefits and liabilities
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Readings For April 9
Some Reading TBD about the Design Structure Matrix
"RosettaNet for Intel’s Trading Entity Automation" J. Cartwright, J.
Hahn-Steichen, J. He and T. Miller. Intel Technology Journal (August
2005)
"Combining RFID Technology and Business Intelligence for Supply
Chain Optimization – Scenarios for Retail Logistics." Henning Baars,
Hans-Georg Kemper, Heiner Lasi, and Marc Siegel. Proceedings of the
41st Hawaii International Conference on System Sciences (January
2008)
"Personalization Technologies: A Process-Oriented Perspective"
Adomavicius, G. & Tuzhulin, A. Communications of the ACM 48(10)
(October 2005.)