Is Disruption the new norm? A perspective from Operations ...

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IICMR International Research Journal I4,Vol.12, Issue 1,Feb 2018,ISSN No.0975 2757 SJIF 2016:4.8 Is Disruption the new norm? A perspective from Operations Management view in IT/ITES….. Page 20 Is Disruption the new norm? A perspective from Operations Management view in IT/ITES especially KPO/BPO Naresh Motiani 1 Dr. Abhay Kulkarni 2 ABSTRACT Current era of globalization and digitization is creating transformative forces and disruption in every industry. This paper depicts how this transformation presents both challenges and opportunities to operations managers within IT/ITES sector especially BO/KPO. Operations managers must be sensitized to the external forces to understand their impact on their customers. This can enable them to devise appropriate strategies to leverage these transformative forces and stay competitive. A fundamental shift is needed by Operations managers from a traditional inside out mindset to an outside in mindset. Using suitable strategies (lean, agile, six-sigma, etc.) they can align their operations to customer and business requirements. This paper explores use of lean operations management approach through case study method. Study of this approach in context of KPO/BPO (part of ITES) is not widely researched and published leading to incomplete understanding. Case demonstrates successful use of lean operations management model to improve and sustain a finance process. It reinforces the use of service operations theoretical framework with certain limitations. Keywords:Lean Operations Management, Operations Management Innovation and Digitization and, BPO and KPO, Case Study in KPO BPO, Service Operations Case Study I. INTRODUCTION Disruptive innovation and Digitization are the buzzwords and driving the transformation process in every industry in last few years (Denecken, 2016). Considering this, the role of operations managers is also evolving. This research paper explores the changing role of operations managers in context of service oriented BPO/KPO setting. Section 2 is a review of prevailing theories and practices in innovation and digital technology. Section 3 is a review of literature of service operations framework from an BPO/KPO service operations management view. Lastly, Section 4 is a case study involving a build-run cycle using a lean operations management model. Section 5 provides conclusions, limitations and future directions. II. WHAT IS INNOVATION AND DIGITIZATION? Christensen (Clayton, 1997) has defined three types of innovation in his research at Harvard a.)Disruptive Innovation b.)Sustaining Innovation c.)Efficiency Innovation a.) Disruptive Innovation deals with transformation of complicated expensive product into much more affordable product for people to use. It has three components i.e. viable technology that supports the product, innovative business model and clear value chain that exists to deliver product to its customers. Low end disruption (or disruptive innovation) is condition where incumbent organization create multiple customer segments by price band and profitability. The less profitable customer segments become target for the willing entrant. As new entrants gain knowledge and continuously improve they target more profitable customers. Different types of Innovation and interplay is depicted in Figure 1 (Clayton, 2003,2004, 2006) b.)Sustaining Innovation are incremental improvements to existing products that lead to new and refined functionalities to its core customers. e.g. a refrigerator 1. Research Scholar, Symbiosis International University, Pune, email: [email protected], +91 9922 983807 2. Research Guide and Director, IICMR, Nigdi, Pune, email: [email protected], +91 9822 950405

Transcript of Is Disruption the new norm? A perspective from Operations ...

IICMR International Research Journal I4,Vol.12, Issue 1,Feb 2018,ISSN No.0975 2757 SJIF 2016:4.8

Is Disruption the new norm? A perspective from Operations Management view in IT/ITES….. Page 20

Is Disruption the new norm? A perspective from

Operations Management view in IT/ITES

especially KPO/BPO

Naresh Motiani 1 Dr. Abhay Kulkarni 2

ABSTRACT

Current era of globalization and digitization is creating

transformative forces and disruption in every industry. This

paper depicts how this transformation presents both

challenges and opportunities to operations managers within

IT/ITES sector especially BO/KPO. Operations managers

must be sensitized to the external forces to understand their

impact on their customers. This can enable them to devise

appropriate strategies to leverage these transformative

forces and stay competitive. A fundamental shift is needed by

Operations managers from a traditional inside out mindset

to an outside in mindset. Using suitable strategies (lean,

agile, six-sigma, etc.) they can align their operations to

customer and business requirements. This paper explores

use of lean operations management approach through case

study method. Study of this approach in context of KPO/BPO

(part of ITES) is not widely researched and published

leading to incomplete understanding. Case demonstrates

successful use of lean operations management model to

improve and sustain a finance process. It reinforces the use

of service operations theoretical framework with certain

limitations.

Keywords:Lean Operations Management, Operations

Management Innovation and Digitization and, BPO and

KPO, Case Study in KPO BPO, Service Operations Case

Study

I. INTRODUCTION

Disruptive innovation and Digitization are the

buzzwords and driving the transformation process in

every industry in last few years (Denecken, 2016).

Considering this, the role of operations managers is

also evolving. This research paper explores the

changing role of operations managers in context of

service oriented BPO/KPO setting. Section 2 is a

review of prevailing theories and practices in

innovation and digital technology. Section 3 is a review

of literature of service operations framework from an

BPO/KPO service operations management view.

Lastly, Section 4 is a case study involving a build-run

cycle using a lean operations management model.

Section 5 provides conclusions, limitations and future

directions.

II. WHAT IS INNOVATION AND

DIGITIZATION?

Christensen (Clayton, 1997) has defined three types of

innovation in his research at Harvard

a.)Disruptive Innovation

b.)Sustaining Innovation

c.)Efficiency Innovation

a.) Disruptive Innovation deals with transformation of

complicated expensive product into much more

affordable product for people to use. It has three

components i.e. viable technology that supports the

product, innovative business model and clear value

chain that exists to deliver product to its customers.

Low end disruption (or disruptive innovation) is

condition where incumbent organization create

multiple customer segments by price band and

profitability. The less profitable customer segments

become target for the willing entrant. As new entrants

gain knowledge and continuously improve they target

more profitable customers. Different types of

Innovation and interplay is depicted in Figure 1

(Clayton, 2003,2004, 2006)

b.)Sustaining Innovation are incremental improvements

to existing products that lead to new and refined

functionalities to its core customers. e.g. a refrigerator

1. Research Scholar, Symbiosis International University, Pune,

email: [email protected], +91 9922 983807

2. Research Guide and Director, IICMR, Nigdi, Pune, email:

[email protected], +91 9822 950405

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Is Disruption the new norm? A perspective from Operations Management view in IT/ITES….. Page 21

manufacturer comes out with better features that ensure

more shelves for better space utilization.

Fig 1 – Types of Innovation and their interplay,

(Clayton, 2003,2004, 2006)

c.) Efficiency innovation: is based on principle of

maximizing output for given input. It makes the

process more efficient and leads to reduced costs. e.g.

arrival of D-mart has big impact on surrounding

retailers and some may even go out of business.

However, from customer’s perspective it has made

retail chain much more efficient and reduced prices of

goods (Steve, 2015). Given scarce resources to

innovate managers are incentivized to choose

sustaining and efficiency innovation over disruptive

innovation.

2.1 Emerging Digital Technologies having potential of

Disruptive Innovation – Digitization means conversion

of analogue information into digital form. Table 1

gives details of various such digital technologies, new

jobs, real life impact and tools

Table 1: Table of disruptive technologies, their

impact and tools

Technology Example

of Jobs

Example of

Impact

New Tools

Virtual

reality

Computer

Vision

Engineer

Flight

Simulator, Air

Traffic Control

Simulator

Oculus Rift,

ProVR, Magic

Leap, Google

Glass

Internet of

things

Wireless

network

specialist

Amazon Echo

– Alexa,

AT&T -

Arduino,

Kinoma,

Eclipse IoT

connected car Project

Augmented

Reality

XML

Developer

, Python

programm

ing

IKEA AR

Catalogue

Layer SDK,

ARToolKit,

wikitude SDK

Big Data

Analytics

Data

Scientist

Network

Optimization,

AT&T

Dataminr,

DataRobot

Artificial

Intelligence

AI

Research

Scientist

Siri, Google

Now, and

Cortana

PowerBy.ai,

Fuzzy AI,

Exchange.ai,

Robotic

Process

Automation

RPA

Developer

Claims

processing

(Insurance),

Account Setup

(Energy),

Cards

Activation

(BFS)

UiPath. Blue

Prism.

AUTOMATIO

N

ANYWHERE

3D Printing 3D

Designer

Hearing aids,

automotive

brakes, engine

injectors

123D Design

(Autodesk),

Inventor, Rhini-

3D, Solidworks

Cloud

Computing

Cloud

Architect

Emails,

Storage

servers,

Software as

Services,

Platform as

Service

IaaS-Internet as

a Service (VM,

online Storage),

PaaS – Platform

as a service

(online

operating

system), SaaS –

Software as a

service

(software

rental)

Social and

Mobile

Android

App

Developer

WhatsApp,

Shareit,

Snapchat,

Instagram

Android SDK

platform, Xcode

for iOS

Block

Chain

Blockchai

n

Developer

Digital

Currency e.g.

Bitcoin and

Ethereum

Ethereum

Wallet,

BitCoin,Ripple,

Zcash

Given above digital technologies (Figure 3), we

present below four examples of how BPO/KPO

organizations are using these to drive innovation

Table 2: Example 1: Genpact

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Organization Genpact (Willmott 2017)

Initiative Lean Digital Approach called as Digital

and Design Thinking. Uses lean digital

approach called as Digital Design

Thinking to target 10X improvements

in their processes. This approach works

on designing processes that can deliver

to maximum potential rather than

matching current best in industry. One

of their key client – P&G agreed to

collaborate and set up a separate unit to

design and run the processing using

Digital Design Thinking.

Processes Order Management

Limitations 80% of current clients are satisfied with

current process performance and

sustained improvements. They do not

see value need to reach to redesign for

maximum potential

Tools Proprietary RPA and AI Tools not

disclosed publicly

Results Not publicly available

Table 3: Example 2

Organization HCL Technologies (Willmott 2017)

Initiative Based on 3-Level Approach of a.) Risk

Compliance, b.) Lean Six Sigma, c.)

RPA and AI.

Processes Areas covered are Finance and

Accounting and Contact Centre, Product

Support.

Trade Processing – derivatives, forex,

margin

Bank Process Automation for Card

Processes

Claims Processing

Limitations Not Known

Tools Automation Anywhere, Blue Prism,

UiPath, Workfusion, Proprietary AI Tool

called Exacto

Results Trade Processing – derivatives, forex,

margin with 99% accuracy

Bank Process Automation for Card

Processes using AI and RPA leading to

46% reduction in FTE

Table 4: Example 3

Organization WIPRO (Willmott 2017)

Initiative No specific initiative. Uses proprietary

AI tool called as Wipro Holmes.

Processes Banking Insurance: payments, new

account opening and maintenance

Capital Markets: payable charges, trade

verification and settlements, data

maintenance

Limitations Unknown

Tools Wipro Holmes – AI tool and other

proprietary RPA tools

Results 44 Clients onboarded for RPA and AI

Typical scale is to build 75-100 bots

(each both 2-3 FTE’s)

Australian Client’s Order Management

Lifecycle build 45 bots replacing 143

out of 330 FTE’s

US Bank’s account statement

reconciliation lead to 94% time saving

UK based telco’s order management

automation led to 1.4 million euro cost

reduction and 80% reduction in wait

time

Table 5: Example 4

Organization TCS (Willmott 2017)

Initiative In house AI tool Ignio which senses,

thinks, acts and learns.

Senses – data absorption from both

internal and external sources and

structured and unstructured data

Thinks – identifies trends and patterns

and estimates risk

Act – executes context specific action

Learn – improving from past

Processes PTP, OTC, IT Operations (10

organizations) currently use Ignio

Limitations Not known

Tools Proprietary in-house AI tool Ignio

Results PTP, OTC, IT Operations (10

organizations) currently use Ignio

Feature of Ignio Store: skills based

domain that can be downloaded. Some

basic skills are pre-build

From above examples: Over period, most of work is

getting replaced by RPA BOT’s or Chat BOTS with

Artificial Intelligence (AI). Few questions that emerge,

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how will operations managers handle these new

situations? What kind and level of technology skills

they need to have? How they can manage information

technology assets such as BOT’s and VM’s? Some key

learnings from operations management view are

mentioned below:

Agility towards customer feedback and rapid

alignment of operations

Digital Technology and People complement

each other

Digital Technology will spread across

enterprise

Future jobs will need new skills along with

ability to manage people change building

Use of digital technology to implement

operating systems

III. BPO/KPO Service Operations framework.

Operations managers need to manage complexities

arising from supply chain, demand, workforce,

information, products and quality. Using VRIO

(valuable, rare, inimitable, and exploited by

organization) and systems thinking of Deming

(Babbitt, 2010) operations managers can gain

competitive edge. (Barney, 1991). (Gong, Y, 2013)

have discussed key operational elements in services

that impact performance outcomes. E.g. customer

touchpoints.

Service Operations Management Framework for

KPO/BPO: Based on seminal work around service

concept and service delivery done by Sasser et al

(1978) and Mintzberg (1978). Concept of Service

Architecture towards services operations management

is developed by Roth, (2003). Challenges in study of

services operations management are interdisciplinary

nature, lack of one common structure, difficulty to

arrive at analytical models, multiple theories,

fragmented nature of sub disciplines within services.

(Roth, 2003) (Hayes, 2000) has dealt with the need of

service architecture as an organizing framework

consisting of structural, infrastructural and integrative

needs of service setup. Output of this framework is

service realization (organization) and service

perception (customer). The gap between service

realized and perceived is an important area and

Parasuraman et. al (1988) have studied this by

SEVQUAL i.e. Service Gap Model to measure various

gaps. The Service Operations Framework (see figure 2)

is adopted in for KPO/BPO setting in context of digital

innovation e.g. facilities and layout – digital layout

In figure 3, Architecture for Service Delivery System

in context of technology is adopted from (Roth, Manor

2003). Among many themes discussed we pick theme

related to service technology and e-services.

Fig: 2 Service Operations Framework (Roth, 2003)

Fig: 3 Conceptual view of technology mediated

customer contact (Roth, 2003)

IV. Case Study BPO/KPO service operations

management

Case study: Operations Management at BPO

Case: Operations manager and Operating Model

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Case setting: A refunds team (size ten) of Order to

Cash Finance Process in a Captive BPO Service

Centre. Operationally led by a team leader and a

managed by a manager who has other order to cash

processes spanning one region .

Operations manager: is responsible for business

outcomes resulting from managing the process (e.g.

order to cash, procure to pay etc.) and deliver expected

process outputs. Operations manager can be leader or

leaders or have direct reporting team members.

Operating model: is a lean operations model that will

enable structured process management.

Theory Build up: definition of terms, variables, domain

– setting to apply theory, set of relations and

predictions

Research Questions:

Theme # 5 (Roth and Menor, 2003): Issues in

Implementing Service Technology and E-services.

Below are theories this case attempts to find out

answers especially in the context of BPO/KPO

operations managers using lean operations

management model.

Theory 1 (T1): How do operations managers use

technology to deliver and improve processes managed

by them?

Theory 2 (T2): Can a lean operations management

model enable in delivering and improving process

performance?

Theory 3 (T3): What are the key requirements that will

help operations managers to run the operations

management framework?

Method of Case Study is direct observation over a

period of about seven months. As a project coach the

researcher had access to all stakeholders and

documents related to project.

Limitation: Since researcher was also coaching,

interventions as coach will tend to have an indirect

influence on the case. Presence of a Green Belt (expert

on operations management framework) has a

moderating effect on the case i.e. probability of

operations manager using lean operation management

framework.

Yin, (1994) has recommended that case study is good

tool to test and develop theories. Research questions in

the form of ―How‖ and ―Why‖ can be better

understood using case method. Researcher need not

have control over behavioral events. Four

recommended tests for Validity and Reliability are

detailed (see table 6):

Table 6: Tests as listed by (Yin, 1994)

There was high customer dissatisfaction due to long

time and multiple communications taken to process

customer refunds that were already agreed. Scope of

project was Finance Order to Cash process. The project

impact at the team, customer and process was by a.)

Giving the team visibility to operational performance

b.) develop process aligned to customer and

management policies for refund process c.) run a stable

process to verify refund eligibility, secure approvals for

eligible refunds, initiate payment of refunds to

customer and communicate refunds that are ineligible

with explanation. There was also a need to stabilize

processes.

The overall lean operations management model follows

a project approach and an improvement cycle

Mobilize, Analyse, Envision, Realise, Stabilize and

Kaizen.

Mobilize: Project charter detailing purpose, business

case, scope, project milestones, enablers, dependencies,

project resources and time commitment, budget cost

was built. SIPOC was used to map high level process

journey from supplier to customer. It highlighted that

the process touched five different teams. Data

collection was designed to capture time stamps of

various steps in refund process. Baseline data showed

almost half (46.63%) of refunds to be on hold due to

Tests (Yin,

1994)

Purpose How it is planned

for this Case?

Construct

validity

Correct operational

measures for

concepts being

studied

Direct data on

case

Interviewing and

discussions

Internal

validity

To establish causal

relationship Explanation

building of case

Time series

tracking of case

External

validity

Generalization of

findings

Replication to

similar processes

Reliability Doing the same

case over again

Various

Knowledge assets

and guidelines

(case study

database) that

will aid in

repeatability

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various reasons. This was leading to dissatisfied

customers and escalations to management. Further

more than one-fourth (27.47%) of refund cases were on

hold in 3-6-month bracket (also see Table 7). Further a

project Gantt chart plan was prepared with milestones.

Weekly project team meeting and fortnightly review

with sponsor was formed as part of project plan.

Table 7: Baseline measurements

Analyse: phase is used to understand the process and

understand sources of waste and variation. Tools such

as integrated flow chart is used. Project team mapped

the process and validated with business process owner

and global blueprint (if it exists). Quality concerns

were listed down e.g. huge variation from global blue

print, incomplete information to process refund,

incorrect sequence of steps, issues with payment

application, etc. Pareto analysis of data showed major

reasons e.g. insufficient balance, detention issues

(container sitting with customer beyond free time), etc.

Fishbone analysis reconfirmed earlier findings and

gave new info on key process gaps causing delays in

processing refunds. Impact-Control Matrix was used to

categorize internal and external root causes. Next, team

brainstormed on top root causes.

Envision: is used to develop theories, prioritize and test

for results. Brainstormed solutions were prioritized

using Effort-Impact matrix. The teams tested solutions

in two phases. Phase 1 solutions were directly in teams

control and Phase 2 solutions depended on other teams.

Solutions details can be seen in Figure 7. With Phase 1

the refund processing time was reduced to under 11

days (Figure 5). Phase 2 involved more cross

functional changes and further reduction of processing

time to under 2 days (figure 6). In Phase 2 customer

segmentation as low risk, medium risk and high risk

basis business volume, partnership in years, customer

risk. The risk scale was developed and tested for

customer segmentation using discriminant analysis and

statistically validated. Sales managers were calibrated.

Proactive refund processing of low risk customers was

also tested. Solutions arrived adopted, adapted or

abandoned.

Fig 4: Potential Solutions for Refund Process

Fig 5: Phase 1 Trendline before and after for Refund

Process TAT

OBJECTIVE

MEASURES

FREQUE

NCY BASLINE GOAL

TAT AR-

Refund Process

– Phase 1

Weekly 45 days

Less

than 10

days

TAT AR-

Refund Process

– Phase 2

Weekly 11 days

Less

than 3

days

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Fig 6: Phase 2 Trendline before and after for Refund

Process TAT

Realise: is full scale implementation of adapted or

adopted solutions. The solutions are monitored for

longer period time (e.g. 8 weeks) to ensure stable

implementation. As an additional benefit, waste

elimination also yielded 1 FTE gain as process was

streamlined.

Stabilize: is used to standardize and document the

process. SOP’s are revised, checklists and

process maps prepared. Approvals are initiated and

changes are communicated to all stakeholders as per

RACI. Operating system is developed basis standard

framework.

Operating System Framework: is based on lean process

management. (Figure 7). Brief explanation follows in

Table 8

Fig 7: Lean Operations Management Model for Refund

Process

Table 8: Details of Lean Operations Management

Model for Refund Process

Elements of

Operating

System

Purpose Responsible

Operating

System

Provide framework to

manage operations at

team member, team

leader and manager

roles. It involves

planning, executing

and reviewing at

various levels.

Management

(function

head)

Daily

Management

Provides visibility to

overall team and

individual for

capacity and demand

for the team.

Team Leader

Visual

Management

System

Provides visibility to

process performance.

It also ensures signals

are highlighted and

actions taken to

mitigate risks to

service delivery.

Manager

Gemba Practice of ―Go-See‖

where actual work

happens for process

confirmation and

opportunities for

improvement.

All Leaders

Continuous

Improvement

Practice of improving

process performance

(sustaining

innovation) and

process efficiency

(efficiency

innovation)

All teams

Project Medium/Large

projects needing

management support

All Leaders

Kaizen Small projects done

by team members

Team

member

Standard

Work

To ensure consistency

and rhythm into the

process to deliver

uniform output

All teams

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Fig 8: VMS and Daily Management Structure

Fig 9: Actual VMS and Daily Management Boards

Developed

Visual Management System Guidelines: VMS is way

to make performance visible and transparent so the

whole team have a common information and shared

view of KPI progress and what improvement actions

have to be taken. A good VMS should in 2 minutes, to

a outsider conveys a.) Current demand; b.)

Performance of the team against target; c.) Major

issues, their Countermeasures and when they are

expected to be completed. Figure 8 shows VMS

structure and Figure 9 shows actual picture of a VMS

and Daily Management.

Standard Work: Leader standard work is a documented

process script carried by managers to timetable their

day. Standard work is also understood well as ―Putting

the Big Rock First in the Jar‖ See Figure10

Fig 10 : Standard Work Depiction

Key measurement Status at end of stabilize phase are

shown in Table 9

Table 9: Baseline and Actual measurements post

Phase 1 and 2

Objective

Measures Frequency Baseline Actual Goal

TAT

AR-

Refund

Process –

Phase 1

Weekly 45 days 11

days

Less

than

10

days

TAT

AR-

Refund

Process –

Phase 2

Weekly 11 days 2 days

Less

than

3

days

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Fig 11: Kaizen Form in lean operations management

model

Kaizen: Small continuous improvements done by team

members. See Kaizen form (figure 11)

Tools and methods used during case study are shown in

Table 10. Note the placement lean operations

management model. It can be part of improvement

model or encompass improvement model itself.

Table 10:Tools used during refund process

improvement project

Mobilize Project Charter

SIPOC

Baseline Measurements

Contract

Project Plan

Analyse Integrated Flowchart

8 Types of Waste

Data collection form

Fish bone diagram

Discriminant analysis

Prioritization matrix

Run chart

Envision Brainstorming

Impact effort matrix

PDSA Test plan

Kano model

Risk analysis

Gantt chart

Communication Plan

Run chart

Realize Implementation Plan

Run chart

Stabilize Communication Plan

SOP

Control Plan

Lean Operations management model

Final Project Review Document

Kaizen Communication Plan

Scope for replication. With same process across

operations network spread across 140 countries, the

solution was replicated to other countries to improve

the refund process. Lean operating system model

enabled sustaining and continuously improve. Teams

further improvements by processing funds

electronically for all customers, auto refund for low

risk customers and establish e-VMS to provide direct

visibility to management to track process.

V. CONCLUSIONS

Drawing up inferences from the case it is seen that a

lean operations management model incorporating an

improvement model was used to solve a business

problem and a critical customer issue. To assess how

operations managers in BPO/KPO setting are adapting

to new digital technologies (Theme # 5 (Roth and

Manor, 2003): Issues in Implementing Service

Technology and E-services) and able to innovate, the

case highlights important conclusions.

Theory 1 (T1): How do operations managers use

technology to deliver and improve processes managed

by them? Case showed that that technology can play a

mediator role. If we look at the Figure 8, showing the

conceptual view of technology mediated customer

contact. Part A shows no role of technology i.e. direct

manual interaction with customer and Part E shows

completely technology driven customer self service

interface. One can infer from the case discussed that

process moved from B-technology assisted to C-

Technology facilitated where operations manager was

able to use technology to segment customers using

multiple factors and develop a risk profile. One would

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also argue that the business can be use technology to

monitoring business volume and do proactive

processing of refunds i.e. possibly part D. Technology

such as RPA can also automate processing, testing with

low risk customers.

Theory 2 (T2): Can a lean operations management

model enable in delivering and improving process

performance? It has been demonstrated that using a

lean operations management model along with

improvement model, the process was improved and

stabilized using a visual management system and daily

management. The daily management ensures that daily

fluctuations in demand are managed well through

planning and certain actions e.g. overtime. Managing

breaks, etc. Planning is enabled by structured daily

huddle (part of standard work) at board between team

members and team leader. Further VMS provides

platform to highlight signals of abnormality e.g.

exceptions and escalations. These are channelled to

right levels, discussed (through standard work), actions

and tracked for progress. However, there was a

condition that an expert (Green Belt) guided the

operations manager through the above process and it

seems to play a moderating role. This can be a

limitation for replication. Further the sustainability of

the lean model needs to be monitored as there are

behavioural aspects within the team that are not

considered in the case.

Theory 3 (T3): What are the key requirements that will

help operations managers to run the lean operations

management framework? Some key requirements that

enabled implementation of lean operations

management model are:

•Top down approach/customer driven need

•Operations management expert guidance (Green Belt

– knowing both lean model and improvement project

cycle)

•Enabling technology support

Finally, while behaviours were not part of study but it

was clearly felt that operations managers must develop

and exhibit key behaviours to help drive lean

operations management model. Key behaviours are

customer & process focus, believe in data, coach and

empower team members, and problem solving mindset.

Above conclusions are important for researchers and

operations managers who want to study and take this

research further.

Future Scope of Study: Given the dominance of

technology in the area of KPO/BPO service operations

management, there are multiple dimensions that can be

further investigated through experiential methods.

Since the above study was done in a captive KO/BPO

setting, it may be interesting to see this in 3rd party

KPO/BPO setting, where multiple clients need to be

catered to. Need of lean operations management model

seems obvious in such setting. The quantitative study

can be further extended to academicians and industry

practitioners

Abbreviations

AI – Artificial Intelligence

BI&A – Business Intelligence and Analytics

BOT – Robot

BPO/KPO – Business Process Outsourcing/

Knowledge Process Outsourcing

CAD – Computer Assisted Drawing

FTE – Full time equivalent

IT/ITES – Information Technology/

Information Technology Enabled Services

IoT – Internet of Things

OTC – Order to Cash Cycle

PDSA – Plan Do Study Act

RACI – Responsible Accountable Consulted

Informed

RPA -- Robotics Process Automation

SIPOC – Supplier Input Process Output and

Customer

SOP – Standard Operating Process

TAT – Turn Around Time

VM – Virtual Machines

VMS – Visual Management System

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