So the message to SMEs would be: to be customer focused; value creation is a continuous process; transform business processes into digital form; start small, build on success, and learn.
Trang 1Step 1
R & D
Step 2
P ro d u ct
Step 3
M a rke tin g /S a le s
Step 4
S e rvice
C o m p a n y IC T a n d In te rn e t in fra stru ctu re
H u m a n re so u rce s
P rim a ry A ctivitie s
S u p p o rt A ctivitie s
Traditional Value Chain
What customers want? What is e-business vision? After sale service?
Information, Communication, Feedback?
Becomes primary activity
Figure 2 Traditional value chain design (Source: Hill and Jones, 1998)
T im e
Y o u a re h e re
A n d n e xt ye a r?
A n d n e xt ye a r?
A n d n e xt ye a r?
W h e re
sh o u ld w e
b e n e xt
ye a r?
A n in cre m e n ta l a p p ro a ch
to co m p a n y's d e ve lo p m e n t
w ill n o t w o rk in th e e
-b u sin e ss w o rld
W h y so m e co m p a n ie s sta g n ate ?
Incremental Approach
T im e
Y o u a re h e re
W o rk
b a ckw a rd s
W h e re d o w e
n e e d to b e 3
ye a rs fro m
n o w ?
A n e -b u sin e ss visio n
co m b in e s a cle a r
u n d e rsta n d in g o f w h e re
yo u n e e d to b e w ith w h a t
n e e d s to b e d o n e
W h y so m e co m p a n ie s gro w ?
Thinking Ahead Approach
Figure 3 E-business planning approach (Source: Kalakota and Robinson, 2001)
Trang 2business goal is to focus on cost reduction
DQG LQWHUQDO HI¿FLHQF\ &KHQJ /L /RYH
& Irani, 2001) Our research showed that
SMEs who are able to integrate internally
are more successful and employ skilled and
knowledgeable staff
Stage 4: Full integration with free information
ÀRZEHWZHHQVXSSOLHUVRUJDQLVDWLRQDQG
customers
7KLVLVWKH¿QDODQGIXOOLQWHJUD-WLRQZLWKDIUHHLQIRUPDWLRQÀRZZKHUHWKH
business goal is to create market value and
competitive advantage by using the Internet
technology This stage enables supply chain
integration and more effective in-sourcing
and outsourcing It also allows for
sophisti-cated online business to interrelate internally
as well as externally (Van Hooft & Stegwee,
2001; DTI, 2000) SMEs presented in this
study have not yet reached this stage of full
integration However, this stage is seen as
an essential part of implementing an
e-busi-ness strategy
It is important to stress that the four basic
elements of e-business integration should not be
VHHQDVDOLQHDUSURFHVVEXWUDWKHUDVWKH³EXLOGLQJ
blocks” of various factors helping SMEs to take a
step at a time and when ready The proposed
build-ing stages of integration support the government’s
e-business adoption ladder model (Kaplan &
Norton, 2003) and contradict Levy and Powell’s
(2003) statement that the stage model is
inappropri-ate and misguided In addition, all four elements
of e-business integration have been seen as key
enablers of a full e-organisational integration that
ZLOODOORZIUHHLQIRUPDWLRQÀRZEHWZHHQVXSSOL-ers, the organisation, and customers In exchange,
WKLVZRXOGFUHDWHSUR¿WDEOHJURZWKWKDWSURYLGHV
a customer-tailored product and service and add
VXSHULRUYDOXHWRWKH¿UP 3RUWHU
The proposed prototype model is based on our
¿QGLQJVDQGOLWHUDWXUHUHYLHZDQGLWGHWHUPLQHV
the strategic elements that translate into an
enter-SULVHWKDWLVERWKHI¿FLHQWDQGÀH[LEOHDOORZLQJ
the company to adapt, change, grow, and innovate The relationship between value creation, innova-tion, and integration forms the core of e-business planning This approach allows the company to take either a short- or long-term solution The short-term solution is where a company uses existing applications and builds upon them in their own time The long-term solution is where
a company starts over with new applications as the core business This way, companies with no
¿QDQFLDOVXSSRUWFDQPLQLPLVHULVNVDVVRFLDWHG with an expensive enterprise framework planning and investment approach
CONCLUSION AND IMPLICATIONS
In this chapter, we have reviewed the current litera-WXUHJRYHUQPHQWVXSSRUWIRU60(VEHQH¿WVDQG barriers of adopting and implementing e-business strategies in organisations, and proposed a new prototype model, which suggests new ways of creating competitive advantage through e-busi-ness Guided by the general alignment models and literature review, we presented a prototype model CATE-b that develops an e-business strategy for SMEs It can be used for SMEs that do not want to take the radical approach to e-business and could build upon their existing technology, and also for SMEs that start over with new applications as a core business
Our proposed agenda builds upon existing capabilities of the organisation and will ensure a SURSHU¿WZLWKWKHVWUDWHJLFJRDOVRIWKHRUJDQLVD-tion as a whole We expect this prototype model to aid SMEs in taking full advantage of the current publicity surrounding e-business, while avoid-ing projects which can turn out to be costly and disadvantageous However, we anticipate that RZQHUVPDQDJHUVZLOOEHIDFLQJVRPHGLI¿FXO-ties while implementing a prototype CATE-b model For example, many organisations still have 20-year-old legacy IT systems which cannot
be discarded, so it makes it harder for
Trang 3organisa-tions to integrate Furthermore, owners/managers
PD\ H[SHULHQFH GLI¿FXOWLHV VXFK DV HPSOR\HH
resistance when attempting to transform an old
business design, based on physical realities into
a new design rooted in the digital virtual
require-ments of tomorrow Whatever the limitations of
the prototype model CATE-b may be, our belief
LVWKDWWKHEHQH¿WVDUHJUHDWHUWKDQWKRVHRIIHUHG
by alternative models E-business offers greater
operational advances and opens wider markets
than traditional business models SMEs must
fol-low the new trend of e-business if they are to stay
SUR¿WDEOHDQGFRQWLQXHWRWUDGH/DUJHUHPSLULFDO
research, followed by in-depth case studies, will be
FDUULHGRXWWRWHVWWKHYDOLGLW\RIFXUUHQW¿QGLQJV
and suitability of the prototype model
Our conclusion is that successful managers
should anticipate the impact of recent economic
and technological changes on their current
busi-nesses Going digital is not a luxury anymore, it
has become a necessity However, digitalisation
requires a systemic approach and gradual
integra-tion and applicaintegra-tion depending on the size and the
capital available in the organisation To thrive in
today’s dynamic environment, companies must
consciously choose the next phase in their growth
and evolution This is the age of continuously
as-sessing their e-business processes The challenge
confronting today’s manager is in the creation,
execution, and ongoing evolution of a successful
e-business plan So the message to SMEs would
be: to be customer focused; value creation is a
continuous process; transform business processes
into digital form; start small, build on success,
and learn
ACKNOWLEDGMENTS
We would like to thank all those managers and
directors involved in the interviews for their time
and generosity
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F Zhao, pp 238-260 , copyright 2006 by IGI Publishing (an imprint of IGI Global).
Trang 7Chapter 6.10
Analysis of Business Process Models in Enterprise
Web Services
Mabel T Kung
California State University-Fullerton, USA
Jenny Yi Zhang
California State University-Fullerton, USA
ABSTRACT
This article reports a series of process-based
models for the development of e-business using
en-terprise software applications Merging
manage-PHQWWHFKQRORJ\LQZRUNÀRZV\VWHPVLVDFULWLFDO
step to provide service-oriented architecture and
on-demand business We propose a
value-ori-ented process technique as a strategic alignment
to improve investment value Our framework
focuses on the guidelines for traditional users
WRLGHQWLI\WKHVWUXFWXUDOFRQÀLFWVLQLQWHJUDWLQJ
:HEVHUYLFHV$FRPSDUDWLYHVWXG\RIZRUNÀRZ
models for intra-and inter-organizational process
FRQWURO LV SUHVHQWHG 7KLV DUWLFOH LGHQWL¿HV WKH
current progress in the adaptability in the
de-sign of process models coupled with structural
FKDQJHVRIZRUNÀRZYLHZV7KHVWXG\SURYLGHV
a resource list of successful implementations
for practitioners in organizational management The research highlights the motivation of market facilitation, expert sharing and collaboration that enable commercial applications to support com-plex heterogeneous, autonomous and distributed information systems
INTRODUCTION
%XVLQHVVSURFHVVPRGHOLQJLVDVLJQL¿FDQWDFWLYLW\
in enterprises as e-business and enterprise integra-tion drive the need to deploy business processes online (Aissi, Malu, & Srinivasan, 2002; Weiss
& Amyot, 2005; Sewing, Rosemann, & Dumas, 2006) Most business process modeling efforts are knowledge-intensive and require organiza-tions to formalize a large number of complex inter- and intra-organizational processes to
Trang 8fa-cilitate their ensuing deployment in large-scale
ZRUNÀRZV\VWHPVLQHQWHUSULVHSODQQLQJ 7DJJ
2001) These management systems need to be
integrated with the tools of a process to perform
within it: productivity tools, specialized technical
support systems, such as CAD systems, graphic
packages, enterprise-wide integrated software
applications, such as enterprise resource
plan-ning (ERP), customer relationship management
(CRM), mail systems and other communication
systems When the applications become more
modulated and service-oriented, there will no
longer be work-alone software (Cimatti, Clarke,
Giunchiglia, & Roveri, 2000)
The most common application for process
PRGHOLQJFRQWURODQGPDQDJHPHQWLV:RUNÀRZ
Management Systems (WfMSs) The technology
has become readily available (van der Aalst,
De-sel, & Oberwies, 2000; van der Aalst & van Hee,
2002; van der Aalst & Jablonski, 2000; Fischer,
2001; van der Aalst & van Dongen, 2002; Grigori,
Casati, Dayal, & Shan, 2001; Herbst &
Karagi-annis, 2000; Cook & Wolf, 1999) Commercial
ZRUNÀRZ PDQDJHPHQW V\VWHPV :I06V VXFK
as Staffware, IBM MQSeries, and COSA offer
generic modeling and enactment capabilities for
structured business processes Besides
stand-alone systems, WfMSs are becoming integral
components of many enterprise-wide information
systems (Leymann & Roller, 2000) Consider, for
example, Enterprise Resource Planning (ERP)
systems such as SAP, PeopleSoft, Baan and Oracle,
Customer Relationship Management (CRM)
soft-ware, Supply Chain Management (SCM) systems,
Business to Business (B2B) applications which
HPEHGZRUNÀRZWHFKQRORJ\
The introduction of large scale systems such
as the ERP system changes the structure of the
organization of software applications This moves
from numerous independent software
develop-ment procedures to an integrated Web based
software framework with components for
differ-ent purposes Although ERP system can improve
organization’s performance, standardized ERP
system from the vendor such as SAP, need to be customized to be deployed in an organization It KDVWREHFXVWRPL]HGWR¿WWKHEXVLQHVVJRDOVRI the company This customization needs the con-tinuous input of end user involvement In order for the dynamics of the Web services to succeed, the deployment team needs to understand the business processes of the company that can be incorporated LQWRDZRUNÀRZGHVLJQ7KHGHVLJQOD\RXWFDQWKHQ
be used for discussions with the management and end users to provide better understanding of the processes during changes
&XUUHQWO\ ³(LJKW\ SHUFHQW RI WKH VRIWZDUH that needs to be written has already been done collaboratively” (McKendrick, 2006) It was estimated that in U.S alone, there would be 55 million user developers compared to 2.75 million professional software developers (Sutcliffe & Mehandjiev, 2004) Because the user developed software may affect the entire organization’s sys-WHPPRUHFKDOOHQJHVDQGFRQÀLFWLVVXHVDULVHLQD more dynamic state (Bergeron & Berube, 1990) Although the centralized Information Technology (IT) department provides the traditional support
of the enterprise-wide system, integration and ZRUNÀRZ GHVLJQ DUH IDU IURP WULYLDO :LWKRXW appropriate policies and control mechanisms, user development cost can be higher than the EHQH¿WLWEULQJVLQ *DOOHWWD +XIQDJHO The cost related to such user software includes poor security, incompatible hardware and soft-ware, inadequate documentation (Davis, 1988), LQVXI¿FLHQWYDOLGDWLRQDQGWHVWLQJ $ODYL :HLVV 1986; Davis, 1988; O’Donnell & March, 1987), DQGLOOGH¿QHGSROLFLHVUHJDUGLQJDFFHVVWRFRU-porate databases (Alavi & Weiss, 1986) Without DVWUXFWXUHGSURFHVVFRQWUROÀRZRUSROLF\FRO-laborative computing in enterprise wide systems can hardly be effective
This article presents the components of a standardized business process with the empha-sis from the user point of view The individuals involved in each process have the skills and human capital that complement one another
Trang 9Next, a value-oriented framework is proposed
as a benchmark for economic assessment The
synthesis and the process-based approach are
discussed to align with organizational strategic
goals In this context, the types of inputs, the
nature of tasks needed to perform the activity, the
sorts of coordination required among the various
tasks, and the intended scale of output depend on
the internal top management reactions to assess
values in the production level as well as the social
level among the employees Lastly, a summary of
FXUUHQWUHVHDUFKLQZRUNÀRZPRGHOVSURYLGHVWKH
technological and managerial issues involving the
current designs in organizations By combining
these different streams of research, our objective
is to provide guidelines and structural designs to
enable evaluations of process goals to improve the
overall value of enterprise Web services
BUSINESS PROCESS
A business process is composed of a series of
con-tinuous actions or operations that are performed
upon a commodity (Childe, Maull, & Bennett,
1994) It is usually initiated by a customer It
must provide results directly to a customer, who
may be internal or external to the company
CIM-OSA Standards Committee (1989) has subdivided
processes into three main areas: manage, operate
and support The CIM-OSA framework regards
manage processes as those which are concerned
with strategy and direction setting as well as with
business planning and control Operate processes
are viewed as those which are directly related to
satisfying the requirements of the external
cus-tomer, for example the logistics supply chain from
order to delivery They are sometimes referred to
as core processes Support processes typically
act in support of the management and operate
SURFHVVHV7KH\LQFOXGHWKH¿QDQFLDOSHUVRQQHO
facilities management and information systems
provision (IS) activities
Information systems (technologies) make an impact at different levels (Brancheau & Brown, 1993; DeLone & McLean, 1992; Harris, 2000; Powell & Moore, 2002; Seddon, 1997; Andreescu, 2006): system or information level, individual level, group level, organization level, and system
or information quality level When user develops application changes in organizational information V\VWHPWKHVHPRGL¿FDWLRQVZLOODOVRDIIHFWDOOIRXU different levels Without careful coordination at all levels, the organization will not obtain the possible EHQH¿WWKDWWKHXVHULQWHQGVWREULQJ&RQVLGHUWKH coordination from the process perspective The collaboration begins in these stages: (1) manage processes are related to organizational level, (2) operational processes are related to system and information level and individual level, and (3) support processes are related to group level LQÀXHQFH
Traditionally, project initiatives begin from WKHWRSPDQDJHPHQWOHYHODQG¿OWHUGRZQWRWKH lower level However, sometimes a project may start from the bottom level with an idea to modify the existing system to improve effectiveness or HI¿FLHQF\RIWKHLUMRE7KLVLQLWLDOLGHDZLOOWKHQ
be presented to the tactical middle management level to convert it into higher-level business requirement and redirected back to upper man-agement Upper management will then judge it based on its strategic direction If the proposal
is approved, it will be sent back to tactical level where it will be converted to a detailed plan on how to perform the project The project will be divided into sub processes and activities, which will then be transferred to operational level where the implementation takes place Figure 1 illustrates the hierarchical processes within the infrastructure:
• Strategic level: The top level process mainly
deals with direction setting, high-level strate-gic planning activities One common problem with many improvement initiations being less
Trang 10successful is the lack to the organizational
strategy, or the big picture (Rummler &
Brache, 1995; Hacker & Brotherton, 1998)
6RPHWLPHVDQLQLWLDWLRQPLJKWEHEHQH¿FLDO
in local operation level, but might be malicious
for the enterprise-wide strategy In most IS
projects, manage process acts as an overall
management that takes ideas about direction
based upon business requirement reported
from the operational level, decides whether or
not to proceed it based on its alignments with
the company’s overall direction, and sets the
high-level goal for the project Competitive
advantage requires the learning, change and
adaptation processes over the time horizon
in terms of the availability of resources and
the capabilities of the users involved (Helfat
& Peteraf, 2003; Adner & Helfat, 2003) The
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that provides the infrastructure for activities
in each of the business units, the tactical level
and the operational levels Strategic level will
decide the organizational level impact from
the project
• Tactical level: This level serves as a
con-verting or communication level It performs several critical roles:
R Transfers the high level strategy into plans
on how to convert an initiated idea into D¿QLVKHGSURGXFW
R Serves as a bridge between business perspective and technical perspective
R Provides guidance and support at opera-tion level
This level is the most important among all three levels It serves as a glue to combine strategic and operational process all together It encourages the creativity of user, and at the same time guarantees the quality and integrity of user development The level does all the managerial tasks that directly related to the project, for instance, agreement of requirement changes, monitoring project time-table, and quality control Meeting customer and SDUWQHU GHPDQGV ZLWK SURDFWLYH DQG HI¿FLHQW services, special attention to preferred business alliances such as joint market launches, analyst EULH¿QJV WHFKQLFDO FROODERUDWLRQ RU SUHPLXP customer support, help increase custom
satisfac-Figure 1 A hierarchical process perspective (or top-down and bottom-up perspective)
Strategic level
Tactical level
Operational level
CEO, CIO, Steering committee
Middle manager manage
support
operation
End user
... e-business readiness of small and medium-sized enterprises: Approaches andmet-rics Internet Research: Electronic Networking
Applications and Policy, 12(2), 139-164.... & Enders, A (2005) Strategies for
e -Business: Creating value through electronic
and mobile commerce – concepts and cases
Harlow, UK: FT Prentice Hall/Pearson... However, digitalisation
requires a systemic approach and gradual
integra-tion and applicaintegra-tion depending on the size and the
capital available in the organisation To thrive