Enterprise business management system came into existence in the 90's and has become so popular today that almost every organization uses one. Recent years have seen increased usage on this management system, but sadly not all organizations implement it. Analysts and scholars have long since studied these systems in a bid to provide explanations for the complexity and failure of implementation attempts.
This project therefore focuses on the benefits of Enterprise Business Process Management and its applications. The main purpose of the work is to establish a set of 'best practices' that must be considered or executed in order to secure a successful organization rich in values. In order to achieve the main goal of this work, many case studies have been inferred. Mainly scientific research techniques which comprise new and innovated approaches are used and some valuable conclusions are drawn from the analyzed data.
The critical points that are worth considering during EBM implementation include: Strategic Cross-Functional Management, System Thinking, Corporate growth perspective, focusing on core competencies, Innovative business models and creating Customer value.
An effective way of transforming the conventional frame of mind is by bringing in the process oriented thinking of enterprise business and to execute the practices of enterprise business management. Practices. Enterprise system and business will form a major relationship when enterprise system tends to support business strategy, goals and requirements. Enterprise systems will enable the organizations to enhance their efficiency, quality, competition level and productivity.
"Process is a revolution in thought that leads to changes in business."
In most of the organizations, senior management's conventional and functional oriented frame of mind will act as a major barrier for change to happen. In fact , one can say that this traditional mindset has been a disturbing factor for customer focused business improvement for more than twenty years.
This method of thinking will act as a hindrance for the executives to improve the natural flow of cross-functional activities which is a major producer of consistent values for customers. It promotes the type of thinking that stops the proper arrangement of enabling information technology. 'silo behavior' and turf protection, are promoted within the organization . This mindset will result in the distorted believes like as it was somehow possible to properly define the boxes on the organizational chart, and fill in the names of the "right" people in the key boxes - then the organization's performance will automatically improve. Yet, little is further from the truth. Further, it will lead to a fabricated result of measuring the performance and reward schemes, drifting the focus away from the correct measures such as the timeliness and quality of services offered to customers,
It also repeats a task focus and also control over behavior, where questions concerning the scope of one's responsibility, key subordinates who can help us are very primary and most important. Apart from this, traditional thinking has also led to outdated management policies in areas like goal setting , problem solving and innovation of new ideas. Now the question is what can be done about it? How to bring about a change in the conventional mindset so that an organization is made much more easier for customer to carry on business with us and also how to make the employees work more efficiently and can serve the customers in a professional manner.
ENTERPRISE BUSINESS MANAGEMENT
EBM, is the one stop solution to all, is "a deliberate and collaborative approach to systematically manage all of a company's business processes.
EBM addresses the urgent need of the new knowledge-driven economy to integrate business process thinking with strategy, organizational structure and people issues. It requires that your executive team lead manages things differently and look more systemically about your business.
Mostly multiple value chain participants must collaborate to deliver value; they must all participate in process analysis and design and achieve team learning. Only with the direction provided by process management can end-to-end processes be understood, anomalies spotted, redundancy eradicated and inefficiencies eliminated.
Process management integrates everyone and everything once; thereafter, design, transformation and experience take place freely and continuously, not as a series of infrequent, long-winded, piecemeal and distracting "integration projects" for each new process design. In this way, participants truly learn about the process and their side effects.
Enterprise-wide Business Process Management (EBPM)
- Look at the business from the outside-in, from the customer's perspective, as well as from the inside-out.
- Integrate strategy with enterprise business processes.
- Transform strategy to inspire, from the classroom to the lunchroom.
- Design enterprise business processes to deliver on strategic goals.
- Ensure that organization design provides clarity such that enterprise business process is executed.
- Deploy enabling technology based on the value added to enterprise business process performance.
- Integrate the enterprise performance measurement system to budgets and operating reviews.
- Sustain focus and alignment.
Cross-functional management came into existence from the following two of the basic needs:
- A need for top management to clarify its queries on quality, cost, and delivery goals and deploy them to all sectors, and
- A need to establish a system of nexus among different departments.
Cross-functional management (CFM) takes control of various business processes across the traditional boundaries of the functional areas. CFM relates to coordinating and synergizing the activities of different levels for realizing the superordinate cross-functional goals and policy deployment. It is concerned with building a better system for achieving such goals such as innovation, quality, cost, and delivery.Case in Point - Toyota
Toyota was considered as the first and the foremost company in Japan with cross-functional management
At Toyota, every single member of the cross -functional committee are board members representing areas like quality or delivery.. The goals and measures defined by the committee carry almost the same weight as those coming from the board. Each committee has about 10 members and is headed by a top official appointed by the president.Strategic Cross-Functional Management
Peter Drucker likes today's executive and his strategic plan to the symphony conductor with a complex musical score to direct. The conductor cannot be an expert when it comes to playing each instrument as well as the specialized symphony members can, and so those experts are left alone to perfect their individual contributions. However, the conductor finds an interpretation of the score and effectively communicates to the orchestra and provides an overall vision for how the piece should finally come out like. Similarly, without executive leadership and direction the company process would be in total confusion.
Strategic cross-functional management is a central force when it comes to capitalizing on functional excellence. They must arrive at a broader approach of their functions and come to a conclusive understanding of how they fit into the web of the organizational processes and, ultimately, into the overall strategy.Systems Approach to Management
The concept and practices of cross-functional management were devised to meet the specific needs for systems approach to achieve the cross-functional goals of quality, cost and delivery.
Within this concept:
Quality is very much related to building a better system to ensure quality assurance.
Cost is inter related to building a system for identifying cost factors and with reducing costs
Delivery is related to a better system for both scheduling and quantity.
The payoffs of process mastery can be breathtaking. Costs melt away, quality goes through the roof, and time spans shrink to a fraction of what they were. Going by the information in 1999 ,,Hammer and Company has influenced many of the companies that had adopted the process approach to work and business.
In order fulfillment, cycle times had typically decreased by 40% to 70% "Perfect orders" had increased by 25% The cost of doing particular transactions had been cut down by more than 80% As far as the product development is concerned, the percentage of successful launches rose from thirty to fifty percentages. When it comes to the time required to bring a new product to market, it was shortened by 50% to 75% These improvements in the process oriented performance paid off in the enterprise currencies of customer satisfaction, and customer profits. The best part is that these improvements are nonconforming. In fact, they are the norm. The part which I felt difficult is that arriving at them requires a wholehearted commitment to process.
A system is a group of interacting or interdependent entities forming an integrated whole.Systems Thinking
Systems thinking is our ability to see things holistically. Systems thinking is usually done in a sequential manner.Demand for Systems Thinking
Today's business process is very challenging. To cope with the challenges people should be very articulate. Creative thinking is hampered by ingrained business practices, rigid scripts and structured input-output work, few professionals have a wide-angle view of, or experience dealing with, end-to-end business processes.Goal of Systems Thinking
The goal of systems thinking is to bring clarity and conviction in the worlds of business and technology. The task of a top notch architects is to create systems, with structured business, that empowers employees and enables people to achieve productivity and competitiveness.Focus of Systems Thinking
Systems' thinking focuses on the complete system and not on the fragments. It concentrates on connections and arrangement, on the potential for holistic systems to achieve results that are greater than the sum of the parts. We have to master systems thinking by overcoming the major obstacles in process-managed enterprise.Systems Thinking and Modern Management
System thinking is practiced in many of the world's leading executives. It is a formal discipline pattern of management science that deals with the business system and in terms of the interconnections and interactions of its parts.
Many managers are found to be penny wise and pound foolish. Human mind cannot predict possible outcomes. Systems thinking is a process of seeing today with tomorrow's eyes. It's more than a methodology. It helps people to be prepared for the repair job ahead.NLP Solutions
Neuro Linguistic Programming (NLP) helps us to analyze things and look at the different elements in a situation as parts of a system which functions for good or ill. This system involves people and a sequence of events, thoughts, feelings, actions and interactions. Once you understand how the system is working - for or against you - you have a means of structuring things differently in the future.Complex System Rules of Thumb
- Everything is connected to everything else.
- You can never do just one thing
- There is no "away."
- There aren't such things as a free lunch.
- Nature knows best.
- "Obvious solutions" do more harm.
- Look for high valued points.
- Nothing grows forever.
- Don't stand against positive feedback; help negative feedback instead.
- Don't try to control the players, just change the process.
- Don't make rules that can't be followed.
- No simple solutions are available. Everyone needs to earn it.
- Good intentions are not enough.
- High morality depends on correct prophecy.
- If you can't make people self-sufficient, your are heading in a wrong direction.
- There are no final solutions.
- Each and every solution creates new problems.
- Don't be fooled by traditional system cycles.
- Remember the Golden Mean.
- Beware the empty compromise.
- Competition is often the stimulant to success.
- Bad boundaries create bad Organizations.
- Foresight is the Success formula.
6W's Of Corporate Growth
I kave six honest serving-me; Their names are What and Why and When And How and Where and Who."Know Why
Start a business when you have a commitment for something and want to develop something that you can be proud of. Inspire your people with clarity. Define shared values and let values rule. Nurture your distinctive corporate capabilities to achieve competitive advantage.Know What
Exploring the right balance in your business will help you define your goals and eradicate flaws. Organizations grow by achieving strategy through balancing the four major:
- Process; and
Always make sure to spot the problem. This could prevent loss of time. Planning is the key ingredient in this process. Rehash the process when it is completed to eradicate errors.Know When
Timing the crux and you have to know not only how to make a move, but when. "The value of actions lies in their timing," said Lao Tzu. Customer value is achieved from timely delivery. Change is vulnerable, but if you can anticipate it and understand business cycles, you can ride with change instead of being run over.Know Who
Management can be written in 3 words: people, product, and profits. People come first. Your organization vision is worthless, strategies powerless and shared values are corrupt without the right people to execute.Know How
Manage the processes and not on people. Focus not on what they do, but on how they do it. Establish a synergistic enterprise-wide and an end-to-end coordination of work activities that create and deliver value to customers.