Business Process
Reengineering
Chapter 9
Reinventing The
Organization
Reinventing The Organization
The concept of an organization
"...organization is a particular pattern of structure,
people, tasks and techniques.. "
Features of an organization
Composed of individuals and groups of
individuals
Oriented towards achievement of common
goals
Differential functions
Intended rational coordination
Continuity through time
Reinventing The Organization
Restructuring the organization:
In order to cope up with changes they face
,companies are are being advised to redesign their
business process.The major Feature of this global
approach is its shift from Micro vision to Macro
vision of the organization.
One of the major ingredients in managing any
business is the creation of structure to link the
various elements that comprise the organization
What is Organizational
Structure
An organizational structure is formal network
by which jobs/tasks are divided
The structure provides guidelines for effective
employee performance
Features of an organization
Composed of individuals and groups of individuals
Oriented towards achievement of common goals
Differential functions
Intended rational coordination
Continuity through time
What is Organizational
Design
Organizational Design
is the overall set of structural elements and
relationship among those elements used to mange
the total organization
Utility
Division of work into activities
Linkage between different functions
Hierarchy
Authority structure
Authority relationships
Coordination with the environment
Relationship between Organizational
Design
& structure
Organizations in the computer software industry
which operate in high tech computer industry ,need
to be flexible and capable of quick response to their
competitors strategies & need to be innovative and
using new technology.
Considerations in designing organizational
structure
CLARITY
UNDERSTANDING
DE-CENTRALIZATION
STABILITY AND ADAPTABILITY
Objectives of Organizational
Design
The four objectives of Organizational design are:
1. Responding to change: Nothing lasts for
ever,”Change is inevitable,”Ether change or
perish”, “change is only thing that is
permanent”,these could be slogans of
organizational designers For a firm to remain
competitive it must respond to change
2. Integrating New Elements: As organization
grow ,evolve expand and respond to
changes,many new positions & departments will
have to be added to deal with new things
Objectives of Organizational
Design
3.Co-Coordinating The Components: After
creating new department s Mangers need to find
a way to tie all the departments together to
ensure co ordination and collaboration.
Departments have to work together Either
through reporting or cross functional teams
4.Encouraging Flexibility : Organizational
designers want to build into organization with all
its authority,chains of command,flexibility for
decision making
Contingency factors Affecting
Organizational Design
The Contingency factors are:
• Strategy
• Environment
• Size of Organization
• Age of Organization
• Technology
Organizational Theory
There are several theories which explain the organization and its
structure .Classical organization theory includes the scientific
management approach, Weber's bureaucratic approach, and
administrative theory.
The scientific management approach is based on the concept of
planning of work to achieve efficiency, standardization,
specialization and simplification. The approach to increased
productivity is through mutual trust between management and
workers. Taylor (1947) proposed four principles of scientific
management:
· science, not rule-of-thumb;
· scientific selection of the worker;
· management and labour cooperation rather than conflict; and
scientific training of workers.
Organizational Theory
Weber's bureaucratic approach considers the organization
as a part of broader society. The organization is based on
the principles of:
· structure;
· specialization;
· predictability and stability;
· rationality; and
· democracy.
Neoclassical theory emphasizes individual or group behavior
and human relations in determining productivity. The
main features of the neoclassical approach are individual,
work group and participatory management.
Organizational Theory
adjust to changes in its environment. Discuss the important
characteristics of the modern approach to organizations.
Modern theories include the systems approach, the sociotechnical approach, and the contingency or situational
approach.
The systems approach considers the organization as a system
composed of a set of inter-related - and thus mutually
dependent - sub-systems. Thus the organization consists of
components, linking processes and goals
The socio-technical approach considers the organization as
composed of a social system, technical system and its
environment. These interact among themselves and it is
necessary to balance them appropriately for effective
Organizational Theory
functioning of the organization.
The contingency or situational approach recognizes that
organizational systems are inter-related with their
environment and that different environments require
different organizational relationships for effective working
of the organization.
Ask participants whether they consider the research
organization as a social system. Since scientists constitute
the core resource in a research organization, their growth is
as important as the growth of the organization. A social
organization is characterized by complexity, degrees of
inter-dependence between sub-systems, openness, balance
and multiplicity of purposes, functions and objectives.
Organizational Theory
Now move to goal setting in an organization. Ask
participants "Why should goals be set?" Goals are set to
increase performance and provide control.
First, the overall objectives of the organization are set and
then an action plan is evolved. The second step is to
prepare members in the organization for successful
implementation of the action plan. Individual goals are
set in the third step. Periodic appraisal and feedback is
the fourth step, to ensure smooth implementation of the
action plan. Finally, an appraisal of performance by
results takes place.
Major approaches to
Organizational Theory
CLASSICAL ORGANIZATION THEORY (theory X)
· Scientific Management approach
· Weber's Bureaucratic approach
· Administrative theory.
Four key pillars of classical Theory
• Division of labour
• Scalar or functional process such as unity of
commands,chain of commands,delegation of
authority
• Structure line & staff
• Span of control
Major approaches to
Organizational Theory
NEOCLASSICAL THEORY(Theory Y)
MODERN ORGANIZATION THEORY
· Systems approach
· Socio-technical approach
· Contingency or Situational approach
This approach reflects human relation movement as well as
behavioral science approach
This theory is people oriented
Taylor's principles of scientific management
· Science, not rule-of-thumb;
· Scientific selection of the worker
· Management and labour cooperation rather than conflict
· Scientific training of workers
Major approaches to
Organizational Theory
Weber's bureaucratic approach
Structure
Specialization
Predictability and stability
Rationality
Democracy
Fayol's principles of management: Administrative
theory
· Division of work (specialization)
· Authority and responsibility
Discipline
· Unity of command
· Unity of direction
· Subordination of individual interest
Major approaches to
Organizational Theory
Remuneration of personnel
· Centralization
Scalar chain
· Order
· Equity
· Stability of tenure of personnel
· Initiative
· Esprit de corps
· The concept of line and staff
· Committees
· Functions of management
- planning
-Training, organizing
-Commanding,Coordinating
Major approaches to
Organizational Theory
Principles of the neoclassical approach
The classical approach stressed the formal organization. It
was mechanistic and ignored major aspects of human
nature. In contrast, the neoclassical approach introduced
an informal organization structure and emphasized the
following principles:
· The individual An individual is not a mechanical tool but a
distinct social being, with aspirations beyond mere
fulfillment of a few economic and security works.
Individuals differ from each other in pursuing these
desires. Thus, an individual should be recognized as
interacting with social and economic factors.
·
Major approaches to
Organizational Theory
The work group The neoclassical approach highlighted the
social facets of work groups or informal organizations
that operate within a formal organization. The concept of
'group' and its synergistic benefits were considered
important.
· Participative management Participative management or
decision making permits workers to participate in the
decision making process. This was a new form of
management to ensure increases in productivity.
Major approaches to
Organizational Theory
Modern understandings of the organization can be broadly
classified into:
· the systems approach,
· socio-technical theory, and
· a contingency or situational approach
The systems approach
The systems approach views organization as a system
composed of interconnected - and thus mutually
dependent - sub-systems. These sub-systems can have
their own sub-sub-systems. A system can be perceived
as composed of some components, functions and
processes (Albrecht, 1983). Thus, the organization
consists of the following three basic elements (Bakke,
1959):
Major approaches to
Organizational Theory
(i) Components There are five basic, interdependent parts of
the organizing system, namely:
· the individual,
· the formal and informal organization,
· patterns of behavior emerging from role demands of the
organization,
· role comprehension of the individual, and
· the physical environment in which individuals work.
(ii) Linking processes The different components of an
organization are required to operate in an organized and
correlated manner. The interaction between them is
contingent upon the linking processes, which consist of
communication, balance and decision making.
Major approaches to
Organizational Theory
Communication is a means for eliciting action, exerting
control and effecting coordination to link decision
centers in the system in a composite form.
· Balance is the equilibrium between different parts of
the system so that they keep a harmoniously
structured relationship with one another.
· Decision analysis is also considered to be a linking
process in the systems approach. Decisions may be
to produce or participate in the system. Decision to
produce depends upon the attitude of the individual
and the demands of the organization. Decision to
participate refers to the individual's decisions to
engross themselves in the organization process.
Major approaches to
Organizational Theory
The contingency or situational approach
The situational approach (Selznick, 1949; Burns and
Stalker, 1961; Woodward, 1965; Lawrence and
Lorsch, 1967) is based on the belief that there
cannot be universal guidelines which are suitable
for all situations. Organizational systems are interrelated with the environment. The contingency
approach (Hellriegel and Slocum, 1973) suggests
that different environments require different
organizational relationships for optimum
effectiveness, taking into consideration various
social, legal, political, technical and economic
factors.
Multivariable Approach to
Organizational Theory
2 Structure
3.Technology
1 Task
4.People
Types of
Organizational Structure
Formal & informal Organization
Formal organizational structure are categorizes as
• Line organizational structure
• Staff or Functional authority organizational
structure
• Line & staff organizational structure
• Committee organizational structure
• Divisional organizational structure
• Project organizational structure
• Matrix organizational structure
• Hybrid organizational structure
Types of
Organizational Structure
Line Organization Structure
Types of
Organizational Structure
Line Organization Structure
Advantages:
1)Tends to simplify and clarify
authority,responsibility& accountability
2) Promote Fast decision making
3) Simple to understand
Disadvantages:
1) Neglects specialists in planning
2) Overloads key person
Functional Departmentalization
President
Computers
Manufacturing
Finance
Marketing
Functional Departmentalization
Form
Advantages
Disadvantages
– Decision making becomes
– Department can be staffed slow and bureaucratic
by experts
– Lose sight of organizationa
– Supervision is facilitated
goals/issues
– Accountability and
– Coordination within
performance are difficult to
department is easier
monitor
Types of Organizational Structure
Staff or Functional authority organizational
structure
Product Departmentalization
President
Computers
Printers
Software
Manufacturing
Finance
Marketing
Product Departmentalization
Advantages
Disadvantages
– Activities with one
– Focus on product at
product can be integrated
the exclusion of the
rest of the
– Speed and effective-ness
organization
of decision making
– Administrative costs
– Performance of these
may increase
individual products can
be assessed
Types of Organizational Structure
Bureaucratic or divisional organizational
structure
Types of Organizational Structure
Bureaucratic or divisional organizational
structure
Divisional structure is formed when an
organization is split up into a number of selfmanaged units, each of which operates as a
profit center. Such a division may occur on the
basis of product or market or a combination of
the two with each unit tending to operate along
functional or product lines, but with certain key
function (e.g., finance, personnel, corporate
planning) provided centrally, usually at a
company headquarters.
Types of Organizational Structure
A Project-type organization
Customer Departmentalization
Form
President
Computers
Manufacturing
Dallas
Phoenix
Finance
Marketing
Industrial
Sales
Consumer
Sales
Customer Departmentalization
Advantage
– Skilled specialists can
deal with unique
customer needs
Disadvantage
– Large administrative
staff needed to integrate
activities of various
departments
Location Departmentalization
Form
President
Computers
Manufacturing
Marketing
Software
Marketing
Design
Chicago
St. Louis
Location Departmentalization
‘ Advantage
– The organization can
respond to unique
customer and
regional/
environmental
characteristics
‘ Disadvantage
– Large administrative
staff may be needed
Matrix Organizational Structure
Matrix Organizational Structure
A matrix structure overlays two organizational forms in
order to leverage the benefits of both. Some global
corporations adopt a matrix structure that combines
geographical with product divisions. The product-based
structure allows the company to exploit global economies of
scale, whereas the geographic structure keeps knowledge
close to the needs of individual countries. Many
organizations also have degrees of matrix structure, meaning
that each divisional group has specific responsibilities, but
some issues must be decided jointly across all of these
groups. Instead of combining two divisional structures, some
matrix structures overlap a functional structure with project
teams.
Matrix Organizational Structure
Where the matrix approach is best
Matrix organizations have been found to be best for
complex activities in uncertain environments
Benefits
• Effective use of specialists
• Job security for specialists
• Friendly environment for specialists
• Equipment and facilities: more and better
Disadvantages
• Stress,• Specialists with several bosses
• Project managers requiring several specialists or
shared specialists
• Functional managers providing shared specialists
• Sacrifice of territorial incentive
The Informal Organization
Adhocracy
Adhocratic structures are also called 'free form' or organic
organization structures. They stress managerial styles which
do not depend upon formal structures. They are well suited for
complex and non-standard work and rely on informal
structures. An adhocratic structure is flexible, adaptive and
organized around special problems to be solved by a group
consisting of experts with diverse professional skills (Robbins,
1989). These experts have decision making authority and other
powers. The adhocratic Structure is usually small, with an illdefined hierarchy. Such a design is suitable for high
technology and high growth organizations where an arranged
and inflexible structure may be a handicap.
The Informal Organization
Establishing Reporting
Relationships:
Tall versus Flat Organizations
‘ Tall Organizations
– More expensive
– Communication can be
‘ Flat Organizations
– higher levels of employee
morale and productivity
difficult because of the
number of channels through
which it must pass
– More administrative
responsibility for
managers
Tall Versus Flat Organizations
Tall Organization
President
Flat Organization
President
Parts of the Delegation Process
Part 1:
Assigning
responsibility
Part 2:
Granting
authority
Part 3:
Creating
accountability
Manager
Manager
Manager
Subordinate
Subordinate
Subordinate
Coordination
Technological Interdependence
Sequential
Input
Reciprocal
Output
Input Output
Input Output
Pooled
Input
Input
Input
Output
Input
Output
Differentiating Between Positions
Line and Staff Structure at Toys “R” Us
Corporate Staff
CEO
Finance and Administration
Real Estate
MIS
Architecture and Construction
Treasurer
Controller
Attorney
President
President
USA
Senior Vice
President
Marketing
Senior Vice
President Store
Merchandising
Vice President
Divisional
Merchandising
Vice President
Planning
Vice President
Divisional
Merchandising
Vice President
Physical
Distribution
Factors Influencing the
Span of Management
‘ Competence of the supervisor or subordinates
‘ Physical dispersion of subordinates
‘ Extent of non supervisory work in manager’s job
‘ Degree of required interaction
‘ Extent of standardized procedures
‘ Similarity of tasks being supervised
‘ Frequency of new problems
‘ Preferences of supervisors and subordinates
Factors Influencing the
Span of Management
‘ Competence of the supervisor or subordinates
‘ Physical dispersion of subordinates
‘ Extent of non supervisory work in manager’s job
‘ Degree of required interaction
‘ Extent of standardized procedures
‘ Similarity of tasks being supervised
‘ Frequency of new problems
‘ Preferences of supervisors and subordinates
Learning Management
The factors that determine success of
Learning Organizations
‘ They possess the ability to create an elements of
systems thinking in action
‘ They shorten the feedback loop
‘ They improve customer relationship
‘ They improve quality of services
‘ They improve process of understanding risks
‘ They create synergistic relationship
‘ They improve ability to manage change
Learning Management
Characteristics of learning Organization
Observations and research identifies four types of
factors.
‘ Learning Culture:An organizational culture that
nurtures learning
‘ Processes : That encourages interaction across
boundaries. These are infrastructure,development
& management process
‘ Tools & Techniques Methods that aid individual
and group learning such as creativity and
problem solving technique
‘ Skills & motivations
Learning Management
A Learning Culture
‘ Future ,External Orientation
‘ Free exchange & flow of Information
‘ Commitment of learning & personal development
‘ valuing people
‘ climate of openness and trust
‘ learning from experience
Learning Management
Essentials of Learning Organization
‘ Shared Vision : Identify deep fundamental
core values
‘ Communication
‘ Standards of success
‘ Involving employees
‘ Creating Awareness
‘ Encouraging Experimentation
‘ Building mentor relationship
A model of organization
transformation & Reengineering
Management system
Policies,Leadership
Procedures
Mission,Vision,Values
Social system
Culture,structure,Teams
Values & creativity
Partnership ,reward
Transformation & reengineering plans Deployment mechanism
& results
Technical System
Work plans and products
Tools & techniques
Work processes
Job description,
Decision making
Behavioral System
Habits
Attitudes
Perception
Behavioral
The Six R’s of transformation
1
Realization
2
6
Reevaluate
Requirement
Six R’s of
transformation
5
Retool
4
Redesign
3
Rethink
Holonic concept
Holon
“Holon” is a term that was coined by Arthur Koestler in the
1967 in his book the “Ghost in the Machine”. It comes
from a combination of the Greek words “holos” meaning
“whole” and “on” meaning “entity” and it captures the
idea that a holon is something that is both a whole in itself
but forms part of another system, which can also be
considered a whole. The “whole” is then built up of
holons within holons. Nature is full of such examples. Our
bodies are one where a cell is considered to be a whole
but forms part of a body which can be considered to be
another whole. A cell itself is also constructed of other
parts, right down to atoms and subatomic particles.
Holonic concept
Such systems that are composed of holons within holon are
called holarchies and this is the type of organization that I
propose for a future society. Communities are holons that
form groups, another holon, which form areas, another
holon, to make a holarchy.
w Holonic BPI:
w Emulate market dynamics in the networked
economy, which necessitates that strategies and
relationships evolve overtime, changing with the
dynamic business environment
Holonic concept
Such systems that are composed of holons within holon are
called holarchies and this is the type of organization that I
propose for a future society. Communities are holons that
form groups, another holon, which form areas, another
holon, to make a holarchy.
w Holonic concept:Emulate market dynamics in the
networked economy, which necessitates that
strategies and relationships evolve overtime,
changing with the dynamic business environment
w A holonic Network is asset of companies that act
integtragrately and organically
w Each configuration within network is called a “Virtual
company””
Holonic Business system
Advantages Of holonic Business system
‘ Leverage
‘ Speed
‘ Flexibility
‘ Shared risk
‘ Independence
‘ Taster growth and increased profit
‘ Sustainable customers
‘ Less capital required
‘ Quick failure recognition
holonic Business system
‘
‘
‘
‘
‘
‘
Types of Holonic Network
Vertical network
Horizontal network
Regional network
Out- of -necessity network
Self promoted network
holonic Business system
What will The virtual corporation look like?
‘ To the outside observers ,it will appear almost
endless with preamble and continuously changing
interfaces between company suppliers & and
customers.
‘ From inside the firm ,it will look like a traditional
corporation with traditional offices
‘ In the words of expert Earl hall “The complex
product of 21st century will demand the ability to
quickly and globally deliver a high variety of
customized product
Process Reengineering
in Action
‘ Reengineering at Wasting House
‘ It's hard enough to collect Web content in the best of
times. Imagine the challenge when individual content
owners - not to mention whole departments or even
business units - might disappear overnight. Add to that the
difficulty of pumping up enthusiasm and getting
employees to provide fresh material when their futures are
uncertain.
‘ The intranet development team at Westinghouse Electric
Corp. knows these challenges well. Since Westinghouse
formally launched its intranet initiative at the close of
1995, the corporation has either sold or spun off a number
of business units. Those efforts culminated this past
Process Reengineering
in Action (Reengineering at Wasting
House)
‘ November when Westinghouse announced plans to
separate into two companies.
‘ Westinghouse would like to split its broadcasting and
industrial businesses. It's awaiting federal regulatory
approval for these plans.
‘ Juggling existing files
‘ When content developers at Westinghouse Electric
Corp.'s Source W started formatting digital files for the
intranet back in late 1995, they naturally turned to HTML.
Now, in many cases, they favor the portable document
format (PDF). Source W's tool of choice is Acrobat from
Adobe Systems, Inc.
(www.adobe.com/prodindex/main.html).
Process Reengineering
in Action (Reengineering at Wasting
House)
‘ Using this software, content developers took hundreds of
existing digital files, converted them to Adobe PDF and
posted them on the Web. PDF keeps the original file's
formatting - graphics, fonts and color, for example intact.
‘ To the state of the art
‘ At Westinghouse Electric Corp., the development of the
intranet complements a broader effort to deploy state-ofthe-art desktop and network technology throughout the
enterprise. Westinghouse launched that effort, called the
Strategic Information Technology Initiative (SITI), as part
of a corporate reengineering plan devised in late 1995.
Process Reengineering
in Action (Reengineering at Wasting
House)
‘ Through SITI, Westinghouse is moving from a mixed
Ether-net and token-ring NetWare environment to an allEthernet, TCP/IP- and Windows NT server-based
switched infrastructure, says Gary Ellis, manager or
corporate engineering at Westinghouse. The standard
desktop gets Microsoft Corp.'s Windows NT or 95 and
Office95 suite, Netscape Communica-tions Corp.'s
Navigator 2.0 browser and Adobe Systems, Inc.'s reader
for portable document format files.
‘ IS also has a few specific-purpose Web servers, Kelly
says. One of those servers, for example, delivers personal
database information to human resources managers for
administrative tasks
Process Reengineering
in Action
‘ IBM Fixes Credit Application Process
IBM Credit
‘ IBM Credit Corporation is in the business of financing the
computers, software, and services that the IBM Corporation
sells. The IBM Credit's operation comprises of five steps as
follows:
‘ (1) When an IBM field sales representative called in with a
request for financing, one of the operators in the central
office wrote down the request on a piece of paper.
‘ (2) The request was then dispatched to the credit department
where a specialist checked the potential borrower's
creditworthiness, wrote the result on the piece of paper and
dispatched to the next link in the chain, which was the
business practices department.
Process Reengineering
in Action
‘ (3) The business practices department was in charge of
modifying the standard loan covenant in response to
customer request. The special terms to the request form
would be attached to the request if necessary.
‘ (4) Next, the request went to the price department where a
pricer determined the appropriate interest rate to charge the
customer.
‘ (5) Finally, the administration department turned all this
information into quote letter that could be delivered to the
field sales representative.
‘ This entire process consumed six days on average. From the
sales representative's point of view, this turnaround was too
long that the customer could be seduced by another
computer vendor. Furthermore, no-one would tell
Process Reengineering
in Action
‘ where the request was and when it could be done.
‘ To improve this process, IBM Credit tried several fixes.
They decided, for instance, to install a control desk, so
they could answer the sale representative's question about
the status of the request. That is, instead of forwarding the
request to the next step in the chain, each department
would return the request to the control desk where an
administrator logged the completion of each step before
sending out the request again. This fix did indeed solve
the problem, however, at the expense of adding more time
to the turnaround.
‘ Eventually, two senior managers at IBM Credit took a
request and walked themselves through all five steps.
Process Reengineering
in Action (IBM)
‘ They found that performing the actual work took in total
only ninety minutes. Clearly, the problem did not lie in
the tasks and the people performing them, but in the
structure of the process itself.
‘ In the end, IBM Credit replaced its specialists - the credit
checkers, pricers and so on - with generalists. Now, a
generalist processes the entire request from beginning to
end. i.e. No handoffs.
‘ How could one generalist replace four specialists? The
old process design was, in fact, found on a deeply
held(but deeply hidden) assumptions: that every bid
request was unique and difficult to process, thereby
requiring the intervention of four highly trained
specialists. In fact, this assumption was false;
Process Reengineering
in Action (IBM)
‘ most requests were simple and straightforward: finding a
credit rating in a database, plugging numbers into a standard
model, pulling clauses from a file. These tasks fall well
within the capability of a single individual when he or she is
supported by an easy-to-use computer system. IBM Credit
therefore developed a new, sophisticated computer to
support the generalists. In most situations, the system
provides guidance and data to generalists. In really tough
situations, he or she can get help from a small pool of real
specialists who are assigned to work in the same team.
‘ The new turnaround becomes four hours instead of six days.
The company achieved a dramatic performance
breakthrough by making a radical change to the process -
Process Reengineering
in Action (IBM)
‘ i.e. the definition of reengineering. IBM Credit
did not ask, "how do we improve the calculation
of a financing quote? How do we enhance credit
checking?" It asked instead, "How do we improve
the entire credit issuance process?" Moreover, in
making its radical change, IBM Credit shattered
the assumption that every requests needed
specialists to perform..
Process Reengineering
in Action
‘ Reengineering Accounts payable at FORD
‘ Hammer illustrates reengineering with the revolution that
took place in Ford’s system of accounts payable. In the early
1980’s, Ford’s auditors carefully studied accounts payable
activities and concluded that, by consolidating, by
rationalizing processes, and by installing new computer
systems, staff could be cut twenty percent -- from 500
employees to 400. Ford was pleased with its plan to slim the
accounts-payable payroll -- until it looked at Mazda, whose
entire accounts-payable organization consisted of five
clerks. Consequently, Ford did not "settle for the modest
changes it first envisioned. It opted for radical change -- and
achieved dramatic improvement." Through reengineering,
Process Reengineering
in Action(FORD)
‘ Ford cut the required number of manual accounting
transactions and reconciliation's associated with processing
and paying for the goods it used from nine to three, thereby
producing "a 75 percent reduction in head count, not the
twenty percent it would have gotten with a conventional
program." Hammer also notes that the changes Ford made in
its accounts-payable operation also resulted in improved
materials management and more accurate financial
information.
‘ The principles of reengineering are fairly simple. First,
wherever possible, design jobs around an objective or
outcome instead of a single function -- functional
specialization and sequential execution are inherently
inimical to expeditious processing. Second, whenever
possible, have those who use the output of activity
Process Reengineering
in Action(FORD)
‘ perform the activity and have the people who produce
information process it, since they have the greatest need for
information and the greatest interest in its accuracy. The use of
modern data bases, expert systems, and telecommunications
networks provides many, if not all, of the benefits that once
made administrative centralization and specialization of
administrative functions such as reporting, accounting,
purchasing, or quality assurance (economies of scale, high levels
of coordination, and standardization) attractive, without
sacrificing any of the benefits of decentralization. Third, capture
information once and at the source. Fourth, coordinate parallel
activities during their performance, not after they are completed.
And last, give the people who do the work responsibility for
making decisions and build control into job design
Process Reengineering
in Action
Changing layout at Hamilton Standard
‘ The Hamilton Standard Electronic Manufacturing Center
(HSEMC) has developed a design review program in
support of its producibility efforts and integrated product
development (IPD) cycle. These reviews are conducted by
experts from the design, test, and production departments.
Producibility design rules are implemented in HSEMC's
design for test practice and includes lessons learned. These
mandatory producibility design rules are implemented for
testing ease, diagnostics, reliability, and statistical process
control (SPC) compatibility. Design for test subjects
included in the producibility design rule encompass test
access, test control, test observation, diagnostics,
Process Reengineering
in Action(Hamilton Standard)
‘ test equipment design, test equipment software, reliability,
fault coverage, fault isolation, documentation, and SPC
compatibility.
One set of design rules are followed to reduce the number
of design books required for adequate design. The six
sigma design process target increases test yields and
improves design of performance by identifying tolerance
variations from parts failure data. Analysis tools are
available that allow designers to simulate component
parameter distributions with multiple patterns. Automated
factory feedback is available to confirm results or to aid
new design decisions. Documentation on this process is
required to include design reports, programmable array
logic equations, engineering unit conversions,
Process Reengineering
in Action(Hamilton Standard)
‘ connector definitions, software flowcharts, software
listings, and input/output address tables.
‘ The design review program is presented in a Guidelines
for Electronics Design Review document which outlines
mandatory participants for each step. Team members must
be experts in the area they are representing with a
minimum of five years related experience. Lessons
learned from the process are accessible to all associates
with a VAX account and are periodically incorporated
into the design guidelines. The design guideline document
is dynamic in nature and therefore is constantly updated to
meet the need for improvement.
Process Reengineering
in Action(Hamilton Standard)
‘ Standard circuits are also used to reduce development
time and to prevent an engineer from reinventing the
wheel. These circuits are mandated for use by the
Hamilton Standard Circuit document. Variations from the
standards must be justified on the basis of performance,
cost, or weight.
‘ The use of design rules such as designing for testability,
required documentation, and using pre-developed
standard circuits provides a very efficient IPD process.
More information known early in the process enhances
and improves HSEMC's IPD process. The design review
program established by Hamilton Standard has improved
the yields and lowered its IPD time by involving all
phases of the IPD cycle in the design phase.
Process Reengineering
in Action
‘ Process management At AT&T
‘ In order to satisfy regulators that the cost of a tariffed
service was correct, AT&T was required to develop
sophisticated cost allocation procedures. Thus, an
important management process was concerned with
how to allocate cost in order to satisfy the political/legal
process. The staff worked hard to obtain funding and
manage the budget within a framework heavily
influenced by outside interests.
‘ The Big Breakup
‘ AT&T's breakup into smaller, more focused business
units combined with the advent of price-cap regulation
(instead of the predefined return on investment
regulation)
Process Reengineering
in Action
‘ made managing rather than allocating costs critical.
The company's business units compete in a open
market, and the need for accurate cost and profit
information by service is vital.
‘ Each of AT&T's 22 business units consists of a number
of strategic business units. AT&T's management
believes the business is managed better and customer
segments served more effectively by holding business
managers accountable for profit, market share, and
customer satisfaction within a smaller, more focused
market.
‘ Allocation methods had been developed to assign
costs of the business unit, strategic business unit, and
substrategic business unit managers.
Process Reengineering
in Action
‘ Initially, however, costs were allocated most often on
the basis of "convenient," high-level volume drivers.
They were not allocated according to service,
customer segment, or actual activity being
performed.
‘ For example, the costs to maintain and manage the
telephone typically were allocated to service based
on network telecom minutes of use. Some billing
costs were allocated on the basis of the number of
invoices produced, but different invoice types
required significantly different levels of computing
support and staffing requirements in order to
validate, sort, and mail.
Process Reengineering
in Action
‘ A new accounting system was developed in 1992 and
succeeded in telling the business and strategic
business units what their results were at a detailed
service level - with an assurance that all of the servicelevel numbers added up to the business unit level. But
what they did not have was a process that allowed
them to do the following:
‘ * Provide business unit managers with the ability to
manage the costs of cost centers that allocate
significant expense to their profit and loss statement.
For example, if network costs were allocated according
to relative minutes of use, it might result in lower
minutes of use rather than analyzing the value of those
activities that drove the cost.
Process Reengineering
in Action
‘ * Enable these managers to relate their operational
decisions to the bottom line. For example, if a manager is
able to lower his service order rejection rate by a certain
percentage, the improvement should be reflected in the
manager's profit and loss statement.
‘ * Make it possible to predict how certain operational
decisions will impact the bottom line.
‘ * Establish funding/budget levels for internal suppliers
using a fact-based process that identifies activities,
activity cost drivers, and value added. The existing
funding negotiation process focused more on allocations
and less on eliminating non-value-added activities. It also
was influenced by emotion and intimidation rather than
by the goal of solving a problem in which the business
managers had a stake
Process Reengineering
in Action
‘ Reengineering At BANCA DI AMERICA
‘ Banca di America e di Italia (Deutche bank)
w After 1993, when you deposited cheques at BAI,
the teller ran them through a scanner at the counter,
and funds were automatically transferred, there and
then, from accounts at the other banks. There was
no back office.
w BAI top executives wanted to create a “paperless”
bank. 80% of the bank’s revenue came from retail
operations.
w Top executives spent 20% - 60% of their time on
the project.
Process Reengineering
in Action(BANCA DI AMERICA)
w In Oct. 1988, “two teams systematically
diagnosed processes and redesigned them
without considering the constraints of the
current organization.” p.125
w First, the organization team broke down all
transaction types into “families”, such as
payments, deposits, withdrawals, money orders,
bills, consumer credit, foreign exchange, credit
cards (merchant and card holder), sourcing, and
end-of-day processing.
w They documented in detail one process for each
family, then redesigned it from scratch.
Process Reengineering
in Action(BANCA DI AMERICA)
w The cheque deposit “transaction”, for instance:
w Before: 64 activities, 9 forms, and 14 accounts.
w After: 25 activities, 2 forms, and 2 accounts.
‘
The redesigned process then became the
prototype for all transactions in the family.
w Finally, the organization team handed off the
design to the technology team. That team
suggested a client-server architecture
Process Reengineering
in Action(BANCA DI AMERICA)
w In April 1989 (7 months after start), the organization
team began redesigning all processes in each
transaction family based on the original prototype. A
total of 300 processes were redesigned.
w Meanwhile, the technology team began to build
systems. Branch managers and tellers helped design
the screens.
w February 1990, software began to be rolled out, one
process at a time. Tellers were given a five-day
training period. Branches were restructured. The
manager was placed out in front, with the customers.
Process Reengineering
in Action(BANCA DI AMERICA)
w
w
w
w
w
w
By 1993, the bank had
50 new branches, with no increase in personnel
revenue doubled,1987 to 1994 (1/4 due to BPR),
average personnel per branch dropped from 8 to 4
daily cashier closing time from 2 hours to 10 mins
Summary: Used computer technology to achieve
significant improvements in process performance.
w Aside: Today, many Australian banks are closing
branches, and the potential of internet banking
means that more change may be coming their way.
Process Reengineering
in Action
‘ Reengineering At Mutual Benefit assurance
‘ The Mutual Benefit Life (MBL) company reengineered its
processing of insurance applications. The original process
involved a long multi-step process. MBL obliterated the
existing job definitions and departmental boundaries and
created a new position called a case manager, who works
autonomously and handles an application from the time it is
received to the time the policy is issued. The empowering of
the individual has resulted in the reduction of manpower and
at the same time, the case managers can handle more than
twice the volume of new applications.
‘ A fundamental notion of reengineering is the obliteration of
outdated rules, assumptions, and processes. Processes that
are weighing down the company must be challenged
Process Reengineering
in Action
‘ and evaluated to see if there is a better option. Traditional
rules of work design are mainly based on a model of
decentralization (specialization of labour) and economy of
scale derived from the Industrial Revolution. This is a
breeding ground for tunnel vision where ac countability
blurs, and critical issues fall between the cracks. No one is
able to see the whole picture to be able to respond quickly
to new situations. As a result, it should not be surprising
to companies to find their businesses under performing
due to these processes and structures that are obsolete.
"Reengineering requires looking at the fundamental
processes of the business from a cross-functional
perspective."
Process Reengineering
in Action
‘ This implies that by necessity, for reengineering
to work, the team assembled to reengineer the
process should represent the functional units
involved in the process being reengineered and all
the units that depends on it. The reengineering
effort must break away from convention wisdom
and organizational boundaries, be broad and
cross-functional, and use information technology
not to automate existing process but to enable a
new one.
Process Reengineering
in Action
‘ Reengineering Travel systems at US department
‘ The Defense Travel System cuts processing time and puts
the user in charge.
‘ “DTS is outstanding. It is a more efficient and responsive
system than the previous one. It allows service members to
have better control of their travel arrangements. I used DTS
prior to arriving in Korea and received my reimbursement
within three to four days,” said Maj. Bret Growth, 8th U.S.
Army Logistics Planner.
‘ Within a 72-hour period, service members who use DTS
should, in most cases, receive reimbursement for their travel
expenses directly into the account designated by the traveler.
DTS also supports split disbursement for government travel
card usage.
Process Reengineering
in Action
‘ DTS is a standardized web based way of coordinating
travel for TDY. It combines a travel tool similar to
Expedia or Orbitz, where you can make your reservations
on line, with an electronic work-flow system, eliminating
the need to run around a copy of paper orders, Kevin
King, 8th Army Lead Defense Travel Administrator said.
‘ DTS is now being deployed in all four areas across the
peninsula, but it has some challenges since Korean hotels
and businesses are not recognized.
‘ Although all forces on the Korean peninsula are moving
towards using DTS in place of the Department of Defense
travel voucher forms, service members will not be turned
away for using the paper- trail method, King said.
Process Reengineering
in Action
‘ The DTS process is a bit more straight-forward. For
example, if the average traveler needs temporary duty
orders, they would log onto the DTS website and enter the
pertinent information about their travel such as flights,
housing, and rental car estimated costs. After digitally
signing it, the traveler would submit the file.
‘ This file is verified by the unit’s reviewing official, who is
designated to ensure correct information has been entered as
well as checking authorizations for the trip. Authorizations
such as rental cars, lodging, and other expenses must be
included in the orders to ensure that the service member will
receive reimbursement.
‘ If it is incorrectly entered by the traveler, such as adding a
rental car when it is not authorized, the review official can
Process Reengineering
in Action
‘ make correction the digital form to remove it as well as
send notification to the traveler. Once the order is
reviewed by both the unit and 8th Army officials, it will
be sent forward for signature and funding approval.
‘ The development of DTS resulted from a 1993 National
Performance Review that called for an overhaul of the
Department of Defense TDY travel system. The result
was a task force charged with the mission to reengineer
travel. They found that there wasn’t a standardized system
and the process was more geared towards staying within
regulations rather than supporting unit missions, King
said.
Process Reengineering
in Action
‘ Reengineering South Korea's Bright Star
‘ In 1990 ,gold Star company was in deep trouble The
largest south Korean manufacture of electrical appliances
and consumer electronics has seen the market share
slip,losses piled up
‘ However ,the healthy and Vibrant company has regained
its sales position The chairman Leen Hun –Jo was
responsible for this transformation
‘ He has shifted Gold Star from From family managed
business to one enjoying skills and training of
professional mangers
‘ He organized Gold star into 9 SBU That include twenty
one operational groups
Process Reengineering
in Action (South Korea's Bright Star)
‘ The Plan called decentralizing management as far
down possible
‘ Hun-jo changed the Product development process
concentrating on bringing in a foreign product &
reverse engineering it
‘ He sent engineers to see what customers wanted.
‘ It resulted number one position in its domestic
market
Process Reengineering
in Action
‘ Rubbermaid’s approach to Reengineering
‘ Out sourcing ,Downsizing,wholesale layoffs and
overburdened workers are all too often connected with
reengineering and great leaps forward.However as
Rubbermaid proves,they don’t have to be.
‘ Thinking out of box is a hall mark of Wolf Schmitt’s and
Rubbermaid’s approaches to everything.He gets great
ideas by observing his kids at play,commuting with nature
,trusting his intuition
‘ There profitability depends on unleashing the creativity of
there employees.
Process Reengineering
in Action
‘ Reengineering at sudarshan fastners
‘ Sudarshan Metal Industries takes immense pleasure in
introducing itself as one of the leading names in the
Engineering Industry having Integrated Steel Complex
with modern integration to produce Pipe Fittings &
Fasteners. The organisation has pioneered its operations
in 1996 to produce Pipe Fittings & Fasteners, we have
experience in this field for past 25 years. We are the
stockist & suppliers of Stainless Steel and Carbon Steel
sheets, plates, flanges, flats, rods, round bar, pipes, tubes,
fasteners, fittings etc.
Process Reengineering
in Action(Sudarshan Metal Industries)
‘ Sudarshan Metal Industries are Manufacturers of
Pipe Fittings & Fasteners all kind of Steel. As per
National & International Standard like ASTM, BS, IS,
DIN, ASME, ANSI, MSS Etc.
‘ Over a decade of progress have consistently made us
realize that more than products, it is understanding the
client's requirement and giving maximum services to the
customer is what makes us stand apart from others. We
have a self contained unit with forming, Forging,
Welding, Machining,Heat treatment, and Facilities for
physical & Chemical testing, This enables us to meet
strict requirements of manufacturing and testing codes.
Process Reengineering
in Action(Sudarshan Metal Industries)
‘ Each of our department right from procurement,
production, inventory, market, sales and services are fully
automated for a better supply chain management, so as to
offer the best product quality and prompt service to our
clients. Along with technological equipment, manpower is
also given special attention. All our professionals are
highly dedicated and committed to their client's
requirements. Our team of workers starves to provide
quality service to you according to your specification.
Process Reengineering
in Action
Reengineering at INDFOS industries
‘ Drastically cut the time taken by raw material to be
transported from factory gate to assembly line
‘ The old process The process had two components:port
1from the gate to the holding stores and Port 2from holding
stores to the assembly line
‘ port 1 involves 16 people and took 540 minutes
‘ In modified process all cross references are eliminated
‘ Computer terminal installed at gate with Trained security
guard
‘ As incoming material is logged in at gate the final document
is created on spot
‘ The new time for clearance was reduced to 31 minutes
Process Reengineering
in Action
Reengineering at Hindustan Motors
‘ The old Process The old process was designed for only
one kind of machinery.The same assembly line was used
for all products resulting in confusion
‘ Reengineered process:Three mini plants have been
formed,one each for dumper equipment Holder equipment
& tract vehicles.
‘ Each cell is responsible for fabricating& assembling the
entire product cutting out delays that resulted from
handoffs that used to occur when jobs were passed from
one worker to other
‘ Work in progress is reduced by 20%
Process Reengineering
in Action
‘ Reengineering at Siemens
‘ Siemens Nixdorf Service
DM 3.4B (=US $2.1B) revenue Siemens Nixdorf
Service (SNS) installs, services, maintains, and
networks software and hardware sold by Siemens
Nixdorf.
w By late 1990, the 12,900-person company was still
making profits but forecasting losses by 1995.
w General manager, Gerhard Radtke assembled a tenperson team to restructure headquarters to reduce
personnel by 50%.
Process Reengineering
in Action (Reengineering at Siemens)
w September-December 1991: The team confirmed
the profit forecasts but argued that reducing HQ
staff would not be sufficient. Instead, they
suggested the entire 11,400 person field-servicing
organization needed to be streamlined.
w SNS had 30 support centers in Germany, fully
staffed with specialists continuously available for
telephone enquiries. Some specialists only
received a few phone calls per day. Most times
when technicians visited a site, they identified the
problem, then returned to base for parts (two trips
per call).
‘
Process Reengineering
in Action (Reengineering at Siemens)
‘ Redesign proposals for SNS
w Reduce the number of support centers 30 Æ 5.
w Found that in 80% of cases, and expert could diagnose
the problem over the phone. Once diagnosed, could
airfreight parts to customer or place in technician’s car
Æ most repairs could be completed on first service
call.
w Team also proposed
w reducing management hierarchy by two levels,
w creating a new team structure for field technicians,
w reducing HQ personnel from 1,600 to 800.
Process Reengineering
in Action (Reengineering at Siemens)
w
‘
w
w
‘
‘
w
w
w
August-October 1992:
trialled the proposal in Frankfurt, good results:
35% reduction in personnel
technicians productivity doubled (2Æ4/day)
November 1992 - December 1993: Rollout
Results:
% of problems solved remotely 10% Æ 25%
profit and cost improvements in excess of 10%
employee headcount reduced by 20% (through
voluntary retirement and severance packages)
w plan to service other non-SN equipment in future
Process Reengineering
in Action
‘ Reengineering at Hewlett –Packard
‘ 1.1 Motivation
‘ Several years ago, the process engineering department at
the Vancouver Division of Hewlett Packard was planning
to build a new large automated manufacturing system.
They had already committed to a flow line design with
the added complication of multiple subassembly input
flow lines (SA) feeding it at various points through
buffers (B) as shown in Figure 1-2. The group built
financial models to calculate the viability of the
investment with an estimate of the system throughput
rate as a key input. Third party simulation to estimate
system throughput would have delivered results too late
to influence the
Process Reengineering
in Action
‘ design given the aggressive project schedule.
Simulation benefits were therefore greatly diminished
for this phase of the program
‘ To keep the project moving forward, HP utilized
analytic modeling as a tool to help analyze and modify
the line architecture and predict the resulting effects
on throughput.
‘ The HP story highlights typical problems faced by
process engineers. Our goal is to make this entire
process easier and better in the future. Product
introductions and changes are occurring so rapidly
that process engineers are faced with increasing
pressure to reduce development cycles.
Process Reengineering
in Action
‘ Judgments made on simplified capacity models are
not adequate to manage investment risks of this
magnitude on aggressive schedules. Typical
simulation exercises take far too long to model even
very few design options. Although there were
limitations in the analytical models used at HP
(specifically, the inability to account for parallel
machines, deterministic asynchronous processing
times, failures in the material handling system and
subassembly cells) there was the opportunity to
employ some creative adjustments in using the
models. It was these creative approaches that
motivated this thesis.
Case Illustration
Colgate rethink a supply chain
‘ When it comes to toothpaste in China, Colgate is the
market leader, according to a recent AC Nielsen Media
International survey on China's emerging consumer
society. But in the shampoo category, a ColgatePalmolive rival tops the list.
‘ Driving sales through brand-building and smart marketing
is as necessary for fast-moving consumer products
companies in China and the rest of Asia as it is in the
mature markets of North America and Europe. But in
Asia, with its fickle tastes, falling prices and unpredictable
competitors, the pressure to keep ahead of the pack—and
make a proper return—is relentless.
Case Illustration(Colgate rethink a
supply chain)
The trick is to control tightly what can be controlled. The one
area a consumer products company can be firmly in charge
of is its own internal business processes. Eliminating waste
and wringing out costs can have a dramatic effect, especially
with the likes of shampoo, toothpaste and soap, where
volumes are large but margins are tight.
In the past two years Colgate-Palmolive has rolled out an
ambitious program to do just that in the Asia Pacific region.
The company's entire supply chain was reengineered and
new back-office systems were put in place with stunning
speed—all the more remarkable considering that the
undertaking involved 57 sites across 11 different markets,
including China. As a result, these
Case Illustration(Colgate rethink a
supply chain)
far-flung operations were transformed into a single, closely
integrated organization.
Colgate-Palmolive's entire business-process reengineering
effort—code-named Project Dragon—was accomplished
without missing a single self-imposed deadline. All the
while the company had to do battle in a furiously
competitive marketplace that was being rocked by
regional economic turmoil.
Well Positioned
Today Colgate-Palmolive is following a new model.
Subsidiaries throughout Asia use the same automated
systems, whether they are handling orders or managing
credit. Sourcing has become more economical,
Case Illustration(Colgate rethink a
supply chain)
with selected countries being the primary suppliers of
products for the region. Supporting each market is a
shared service organization providing region-wide
information technology and financial functions.
The upshot is that one of the global leaders in consumer
products is strongly positioned to win profitable market
share as Asia's economies shake off the malaise of the
past three years.
Colgate-Palmolive is famously coy when it comes to
releasing facts and figures about its business. But
according to Malaysia-based Barry Simpson, general
manager of Asia Pacific Information Technology for
Colgate-Palmolive and the man behind Project Dragon,
Case Illustration(Colgate rethink a
supply chain)
the program has come in one-third under budget and "ahead in
the savings we had scheduled."
Project Dragon was conceived and driven by both wider
corporate goals and specific Asian issues. The former
included Colgate-Palmolive's strategy to allocate 60 percent
of capital expenditures to cost-savings programs. Among the
latter was the realization that there was no guarantee that the
company could sustain its double-digit growth rates of the
past few years, which, in part, had been due to the region's
rising prosperity.
Many operational anomalies had also arisen in Asia over the
years, with Colgate-Palmolive units in various countries
conducting business in different ways. The result was a
series of separate systems
Case Illustration(Colgate rethink a
supply chain)
and procedures often unique to individual markets. This made it
more difficult to obtain a more complete picture of the
company's global finances—a crucial task, given the fact
that 70 percent of Colgate-Palmolive's revenues come from
outside the United States, a figure that is expected to grow.
To Simpson, who had led a similar reengineering effort in the
United States, the goal in Asia was to streamline the
production and distribution cycles. "To do this meant
matching information flows," he explains, "so that the right
products were made at the right time and unwanted
inventory did not sit on the shelf."
This goal translated into three specifics: reengineer the entire
supply chain, standardize business processes and build
regional hubs for information technology and finance.
Case Illustration(Colgate rethink a
supply chain)
The first step was to decide where to base Project Dragon.
Given the region's cultural diversity and operational
quirks, the question was crucial. Australia was too far
away. Hong Kong and Singapore were convenient, but
their markets were too small.
Malaysia was finally chosen because Colgate-Palmolive
produced all categories of goods there, and the market
was large enough to provide a valid test bed. The
Malaysian government was also actively seeking IT
investments in the country.
The strategy was to develop the overall plan from Kuala
Lumpur and then roll out in Malaysia. Simpson assembled
a core team in Asia to run the project. The company
brought together
Case Illustration(Colgate rethink a
supply chain)
Colgate-Palmolive people from the Philippines, Thailand,
India and Malaysia and teamed with a multinational
Accenture team from Australia and Asia. They quickly
embarked on an intense five-month design phase.
From the beginning the idea was to avoid the notion of
imposing a solution from "on high" and instead to
encourage involvement from the subsidiaries. "We
brought people from local subsidiaries to Kuala Lumpur
for training and to be involved in the Malaysian rollout,"
says Simpson. Having enthusiastic staff from one market
support their colleagues in another became a feature of the
entire program.
.
Case Illustration(Colgate rethink a
supply chain)
According to Brian Strange, the Accenture client partner on the
project, it was necessary to have a "quick win" to boost the
project's credibility within Colgate-Palmolive's Asia Pacific
operations. A decision was made up front to standardize the
processes. Because of time pressures, specific features were
added later
‘ The Malaysian rollout started in early 1997. A flurry of new
finance, procurement, sales and distribution systems was
introduced. Staff members—including warehousemen,
production managers, shift supervisors, accounts clerks and
sales teams—had to understand the new processes. The final
weeks before the "big bang" implementation, set for July
1997, were characterized by workshops, coaching sessions
with practice databases and a final full "day in the life"
simulation.
Case Illustration(Colgate rethink a
supply chain)
‘ Firm Deadlines
‘ As soon as Malaysia was up and running, attention moved
to other markets. The unfolding regional economic crisis
in mid-1997 encouraged Colgate-Palmolive to drive the
project faster. Instead of doing one market after another,
markets were rolled out simultaneously.
‘ To Simpson, the key to successful implementation is "to
copy, copy, copy" rather than reinvent. He estimates that
85 percent of Colgate experiences in the United States and
Europe fit Asia. But he advocated accepting the "80
percent rule": It was better to achieve 80 percent of the
design requirement now than to wait for 100 percent and
miss deadlines.
Case Illustration(Colgate rethink a
supply chain)
And deadlines were set in stone. "As part of the changemanagement process, we set up clear communications with
country managers," says Simpson. "They were told what
was expected of them and were given a set of dates two
years out."
The rollout was aggressive. The final two markets, China
and Hong Kong, went live in May 1999.
Each market offered its own challenges, although many had
been identified in advance in Kuala Lumpur during visits by
staff from the local markets. And in every market, systems
had to be adapted to take account of local taxes and other
official requirements.
Capturing orders, credit management and accounts receivable
are among a host of functions that have improved. More
Case Illustration(Colgate rethink a
supply chain)
crucially, better information flows make it easier to predict
demand and therefore create better manufacturing
schedules and, working back down the supply chain, to
source materials more effectively.
In the wider picture, Project Dragon will allow ColgatePalmolive to take advantage of the revival of Asia's
economies. The Economist poll of forecasters has
predicted that GDP growth in 2000 for the likes of India,
Singapore, Taipei and Malaysia should top rates achieved
in 1999. With confidence returning, the battle for
consumers' wallets will intensify. Colgate-Palmolive will
be ready.
Case Illustration
‘ Rebuilding Mahindra
‘ Mahindra & Mahindra Ltd.
‘ Mahindra & Mahindra is a part of the Mahindra Group
and was established in 1945 to manufacture generalpurpose utility vehicles. It later moved into manufacturing
tractors and light commercial vehicles, and is today the
tenth largest private sector company in India.
Having increased the scope of work, the company's
business is divided into four divisions viz. automotive,
tractor, inter trade and MSL. These divisions handle steel,
trading and manufacturing of ash handling plants and
traveling water screens.
Case Illustration (Rebuilding
Mahindra)
‘ The company has rapidly expanded itself and today has seven
state-of-the-art factories and 33 sales offices supported by a
network of more than 500 dealers throughout the country. The
company employs over 17,000 technical and non - technical
personnel and is situated on an area of over 5,00,000 square
meters.
With an experience of over 52 years in extensive manufacturing
and engineering development, it has a strong technological base,
and is supported by a team of experienced personnel.
The onset of 1994 saw the company branch itself in the field of
business process re - engineering at its manufacturing locations.
It's product development centers are located at Kandivili and
Nasik. There already are plans to move this center to a new and
more spacious site with more facilities, in a conducive
environment.
Case Illustration (Rebuilding
Mahindra)
Six principles of management followed at Mahindra
‘ Build product units
‘ Create cellular systems
‘ Deploy flexible process
‘ Try to cut cycle time
‘ Customaries your shop floor
‘ Let your workers own the factory
Case Illustration (Rebuilding
Mahindra)
‘ Business Interests of Mahindra Group
Automotive Sector: Mahindra Group is the market leader
in utility vehicles in India since inception. Mahindra also
manufactures and markets utility vehicles and light
commercial vehicles, including three-wheelers. Some of the
famous automobile brands of Mahindra are: Scorpio and
Bolero. Recently, Mahindra joined hands with French
automobile major Renault to enter passenger car segment. It
has launched a car called Mahindra Renault Logan.
Farm Equipment Sector: Mahindra is the largest producer
of tractors in India and is among the top five tractor brands
in the world. It has its own state-of-the-art plants in India,
USA, China and Australia, and a capacity to produce
1,50,000 tractors a year.
Case Illustration (Rebuilding
Mahindra)
‘
Trade & Financial Services: Mahindra Intertrade
Limited and its subsidiaries have specialized domain
knowledge in imports and exports of commodities,
domestic trading, marketing and distribution services.
Mahindra Finance is one of the largest Non Banking
Finance Companies in India with an asset base of about
Rs. 5000 crores. Mahindra Insurance Brokers offer Life
and Non-life Insurance plans to retail and corporate
customers. Mahindra Steel Service Center is the first
steel service center in the organized sector in India.
Infrastructure Development: Mahindra Group has
interests in real estate, special economic zones,
hospitality industry, infrastructure development,
Case Illustration (Rebuilding
Mahindra)
‘
project engineering consultancy and design. Mahindra
Holidays & Resorts is the leader in the lifetime holiday
market in India. Mahindra Gesco is fastest growing
Construction Company in India. Mahindra World City is
developing and promoting India's first Integrated Business
City. Mahindra Acres Consulting Engineers is a
multidisciplinary engineering consultancy organization.
Information Technology: Mahindra Group entered into IT
sector in 1986 when it formed a joint venture with British
Telecommunications plc. The company was called
Mahindra-British Telecom. The Company has recently
changed its name to Tech Mahindra. Tech Mahindra is a
leading provider of telecommunication solution and service
industry world-wide. It is India's 8th largest software
exporter.
Case Illustration (Rebuilding
Mahindra)
‘Specialty Businesses: Mahindra Group companies such as
Mahindra AshTech, Mahindra Defense, Spares Business Unit and
Mahindra Logistics are into Specialty Businesses. Mahindra
AshTech undertakes turnkey contract execution for Ash Slurry
System and Traveling Water Screens. Mahindra Defense Systems
looks after the requirements of India's defense and security forces.
Mahindra Logistics provide complete logistics solutions to complex
transportation needs of clients across the world.
Major Achievements of Mahindra Group
‘· Mahindra & Mahindra made the first indigenous Jeep in the
country in 1949.
‘· Fourth largest tractor company in the world.
‘· Largest manufacturer of tractors in India.
‘· Largest manufacturer of MUVs, offering over 20 models
Case Analysis
Change Management at CMC Hospital
CMC Hospital has provided the residents of Canara district
with high quality health services from 1945.It is 150 bed ,non
profit,intensive care hospital.In spite of success ,the CMC
hospitals top management felt that the hospital must change to
meet challenges of today and future.
The board and medical staff responded to the changing needs of
CMC hospital and expressed there commitments by
1) Continuing to provide basic inpatient & outpatient Health
care services 2)Beginning to collaborate with other health care
providers 3) Striving to improve heath of community at
large4)seeking to develop better methods of consumer needs
Change is difficult and painful initially ,to be successful they
have to overcome large resistance
Case Analysis Change Management at
CMC Hospital)
Questions
1) What types of changes should CMC Hospital
Implement in order to respond to its
environment and compete with other hospital
2) List some of recommendations for handling
change submitted by the employee and
administration of CMC hospital
3) How would you describe the type of
organizational change being implemented at
CMC hospital
Case Analysis
BPR at Escort
‘ Escorts Limited's, Agro Machinery Group had deployed
Avalon's ERP systems and faced challenges like inability
to upgrade, lack of vendor support, and buggy software. It
used tools from the Oracle 11i suite and now performs its
critical operations with better productivity levels. by
Shipra Arora
‘ Escorts Limited's Agro Machinery Group (EL-AMG)
manufactures agricultural machinery, and has four
manufacturing plants in Faridabad. It manufactures three
lines of tractors, imports and sells various other farm
equipment, and consequently accounts for around almost
two-third of Escort's revenues (Rs. 900 crore in FY 20022003).
Case Analysis(BPR at Escort
The use of an ERP thus plays a significant role in the business
operations of this busy manufacturing company.
‘ EL-AMG had already deployed ERP systems from
Avalon, but was plagued with a number of challenges.
The company was unable to draw a future roadmap and
upgrade its technology. And to make matters worse, the
ERP vendor Avalon had shut shop in India. This
prompted EL-AMG to look for an alternative enterprise
applications solution for its business. As a solution, it
deployed a number of modules of the Oracle 11i suite of
products and can now make better and more informed
decisions, and enjoy a bug-free software performance.
Case Analysis(BPR at Escort
Business challenges
Despite using an ERP, the toughest challenge was the inability to
draw a future roadmap by leveraging the latest technologies. This
was impeding the scope for future growth. The company could
not leverage the benefits of the Internet by offering e-commerce
and other Web initiatives. Since the Avalon ERP could not be
Web-enabled. To make matters worse, Avalon had shut shop in
India, shutting down chances of upgrades and making use of the
latest technology developments.
"The Avalon ERP system had outlived itself and had become a
dead product," said Vinay Mehta, IT Head, EL-AMG. The
product had inadequate documentation, which made maintenance
very difficult. It was a headache to incorporate frequent changes
in the application.
Case Analysis(BPR at Escort
EL-AMG also had to deal with the problems of software
bugs, which could not be resolved due to lack of proper
documentation. The company feels that the bugs
appeared due to over-customization of the product. The
central systems department, which took charge of
applications maintenance, spent most of its time tackling
these bugs.
The system was not very user-friendly. The users were not
able to run queries on their own. The responsibility of
running the large amounts of queries and reports was
delegated to the central systems department. This created
a huge backlog of work.
Case Analysis(BPR at Escort
EL-AMG also had a certain amount of legacy, which
included i2 SCM, demand planner, factory planner,
warehouse management software for the spare parts
division, HR and payroll applications, after-sales and
warranty systems, and Auto-Matrix Exchange for
collaboration with vendors.
The group wanted an end-user-driven system that would
empower the users and allow them to run their own
queries, reducing the burden on the systems department.
This made the company decide to implement a new ERP
system, which could take care of the future growth
strategies of the company and provide the needed
functionalities.
Case Analysis(BPR at Escort
Choosing the ERP system
In early 2001, EL-AMG began to look for a new ERP
system to replace the existing one. The company chose
Oracle among other vendors keeping in mind the
organization's functional and technical requirements.
Since the ERP project was very significant for company,
it was named, 'Pragati'.
A lot of time was spent in planning and deciding upon the
right software. And the entire proceedings were
conducted in an elaborate and phased manner to ensure
efficiency.
The company laid down three ground rules for vendors
willing to participate
Case Analysis(BPR at Escort
They were:
w The vendor had to conduct a three-month Business
Process Re-engineering (BPR) exercise at EI-AMG.
w The ERP vendor would be the technology
implementation partner and handle the sole
responsibility of the project.
w The ERP systems had to integrate seamlessly with the
company's legacy software systems.
An important highlight in the selection process was the
involvement of end users. A team of around 70 members
was created during evaluation. Almost 80 percent of the
members belonged to functional areas. The rest were
from the IT department.
Case Analysis(BPR at Escort
"This was a key learning from the earlier ERP
implementation, which was largely IT-driven. If the
selection process is not end-user-driven, you'll have a
hard time convincing users about the benefits. In our
new ERP implementation, we made sure that it was the
choice of the end users, so that they accepted the
decision easily," explained Mehta. The Gartner group
was also involved in providing consultancy at each
stage.
Each member of the team gave ratings to the vendor. The
evaluation was finally done on the following criteria:
w Functionality
w The ability to integrate third party software
Case Analysis(BPR at Escort
w Type of feedback from existing user base (through visits
to other company's ERP sites)
w Presence in India
w Localization of modules
w Cost
Time taken to implement
Implementing 'Pragati'
The rollout of Oracle's products began in March 2002. ELAMG is present in five locations, which comprised four
manufacturing plants and an R&D setup, all within
distances of three Km in Faridabad.
Case Analysis(BPR at Escort
The company decided upon the 'big bang'
approach to implementation in the five
locations. It went live on Oracle 11i in March
2003. The modules implemented were
Oracle Financials, Oracle Discrete
Manufacturing, Oracle Purchasing, Oracle
Order Management, Oracle Workflow and
Alerts, Financial Analyzer (OFA), Purchasing
and Manufacturing Intelligence, Teleservice,
iReceivables, and Oracle Treasury.
Case Analysis(BPR at Escort
Questions
1) Give reasons for ECEL to take up BPRE
2) Discuss The issues that ECIL as those needed
attention
3) Describe the planning done by ECEL for
introducing BPRE,What results it achieve
Case Analysis
‘ Restructuring Malnad Manufacturing
Company
‘ Malnad company manufacturing company manufactures
pneumatic valves The problem arise when new control
valve has to be produced Development of electronics
replace old valve technology every year
‘ Case of control valve code numbered CV505 .In
producing new valve following departments involved
‘ Research & development,Engineering,Materials
‘ Production,marketing
Case Analysis(Restructuring Malnad
Manufacturing Company)
Marketing wants to provide input to R&D so that design will
meet the customer needs production insists that the design
fits machine limitation and be cost effective for production.
It also needs final plans so that it can acquire tooling.
Engineering on the other hand wants to slow down
development to ensure that specifications are correct
All these problems with the CV505 exist at present and
department mangers are frustrated and becoming
uncommunicative
The R&D keep there plans a closely guarded secret for other
department
Case Analysis(Restructuring Malnad
Manufacturing Company)
CEO of the Company receives memo from Marketing:
The CV505 must go to market Immediately This is urgent
because our competitors already have that product & fear of
loosing three more orders unless new valve is ready by 30 days.
Questions
1)Is there a proper balance between vertical and horizontal
structure in Malnad manufacturing?Is it appropriate that
department managers always run to the executive vice president
for help rather than helping one another?
2) If you were CEO ,how would you resolve problem
3) What structural changes would you recommend to prevent
these problems in future.A project manger with responsibilities
for co-ordinating the CV505?or a task force
Case Analysis (Competency development
at royal Dutch/shell)
Royal Dutch Shell plc is a multinational oil company of
British and Dutch origins. It is one of the largest private
sector energy corporations in the world, and one of the six
"supermajors" (vertically integrated private sector oil
exploration, natural gas, and petroleum product marketing
companies). The company's headquarters are in The
Hague, Netherlands, with its registered office in London,
United Kingdom (Shell Center).[1]
‘ The company's main business is the exploration for and
the production, processing, transportation and marketing
of hydrocarbons (oil and gas). Shell also has a significant
petrochemicals business (Shell Chemicals), and an
embryonic renewable energy sector developing wind,
Case Analysis (Competency development
at royal Dutch/shell)
Businesses
One of the original Seven Sisters, Royal Dutch/Shell is the
world's second-largest private sector oil company by
revenue, Europe's largest energy group and a major player
in the petrochemical industry.
Core businesses
Shell oil depot in Kowloon, Hong Kong The upstream
provides two thirds of Shell's revenues
Shell has five core businesses: Exploration and Production
(the "upstream"), Gas and Power, Refining and
Marketing, Chemicals (the "downstream"), and
Trading/Shipping, and operates in more than 140
countries.
Case Analysis (Competency development
at royal Dutch/shell)
Shell's primary business is the management of a vertically
integrated oil company. The development of technical and
commercial expertise in all the stages of this vertical
integration from the initial search for oil (exploration)
through its harvesting (production), transportation,
refining and finally trading and marketing established the
core competencies on which the Group was founded.
Similar competencies were required for natural gas, which
has become one of the most important businesses in
which Shell is involved, and which contributes a
significant proportion of the company's profits.
Case Analysis (Competency development
at royal Dutch/shell)
One of the challenges facing shell was figuring out how to
use its 47,000 retail outlets to boost sales of all the companies
products .miller organized a five day retailing boost camp to
be attended by cross functional team Most of people involved
were grass root level found the process to be “scary as
hell”.Top management has had convinced them that change
was essential for survival.
As people move up the management ladder ,they get
further away from work that goes on the field.people at
top get caught up in broad strategic issues,legal matters.
But what drives business is the work that gets done at the
front line
Case Analysis (Competency development
at royal Dutch/shell)
‘
Competency development at royal Dutch/shellhydrogen and solar
power opportunities. Shell is incorporated in the UK with its
corporate headquarters in The Hague, its tax residence is in
Netherlands, and its primary listings on the London Stock Exchange
and Euro next Amsterdam (only "A" shares are part of the AEX
index).
‘ Shell's revenues of $318.8 billion in 2006 made it the second-largest
corporation in the world by revenues behind only Exxon Mobil. Its
2006 gross profits of $26 billion made it the world's second most
profitable company, after Exxon Mobil and before BP. Forbes Global
2000 in 2007 ranked Shell the eighth largest company in the world.
‘ It operates in over 140 countries. In the United States, its Shell Oil
Company subsidiary, headquartered in Houston, Texas, is one of
Shell's largest businesses. In 2007, Fortune magazine ranked Shell as
the third-largest corporation in the world, behind Wal-Mart and
ExxonMobil.
Case Analysis (Competency development
at royal Dutch/shell)
Questions
1) What type of change was shell undergoing?What
triggered the companies realization that change was
needed
2) Describe how a plan for a top down approach to change
might differ from a plan for grass root change
3) If you were Miller ,how would you measure the success
of your change effort?explain your rationale
4) To what extent shell is learning organization
Case Analysis
Exide Technologies a global leader in stored electrical-energy
solutions,
About Exide Technologies
Exide Technologies, with operations in more than 80 countries,
is one of the world's largest producers and recyclers of
lead-acid batteries. The Company's four global business
groups -- Transportation Americas, Transportation Europe
and Rest of World, Industrial Energy Americas and
Industrial Energy Europe and Rest of World -- provide a
comprehensive range of stored electrical energy products
and services for industrial and transportation applications.
Transportation markets include original-equipment and
aftermarket automotive, heavy-duty truck, agricultural and
marine applications, and new technologies for
Case Analysis(Exide Technologies
hybrid vehicles and 42-volt automotive applications. Industrial
markets include network power applications such as
telecommunications systems, electric utilities, railroads,
photovoltaic (solar-power related) and uninterruptible
power supply (UPS), and motive-power applications
including lift trucks, mining and other commercial vehicles
(a) projections of revenues, cost of raw materials, income or
loss, earnings or loss per share, capital expenditures,
growth prospects, dividends, the effect of currency
translations, capital structure and other financial items, (b)
statements of plans and objectives of the Company or its
management or Board of Directors, including the
introduction of new products, or estimates or predictions of
actions by customers, suppliers, competitors
Case Analysis (Exide Technologies)
The question posing top management is how to organize this
company in 21st century Certainly designing the right
organizational structure should be easier than designing new
products
For example under the “Ford2000” plan ford tried to
consolidate its functional departments
Unfortunately with geographic structure excide has found
itself in similar situation to Ford .Financial losses increased &
companies share price dropped
Which organization structure should Exide use?Should stay
with geographical structure,but tinker with it to fix problem Or
it use the product structure “Global business unit”
Question 1. If you were the CEO at Exide What structure
would you go?
Case Analysis (Burger King )
Burger King Loosens up
Burger King Holdings is the parent company of Burger King,
in the US it operates under the Burger King Brands title while
internationally it operates under the Burger King Corporation
banner. It is a publicly traded company with investment firms
of Texas Pacific Group, Bain Capital, and Goldman Sachs
each owning about 25% of the company.[14]
Historically, Burger King has been the second largest burger
chain in North America, behind McDonald's. However, Burger
King's revenues and market share have been declining. In the
early 2000s, Burger King fell to a near tie for second place
with Wendy's. Burger King has been closing under-performing
stores and changing its marketing strategy in an attempt to turn
its fortunes around.
Case Analysis (Burger King )
In fiscal year 2002, the firm had US $11.3 billion in total
sales.[14]
As of 2006, there are more than 11,220 Burger King outlets in
61 countries. 66% of the restaurants are in the United States.
The company has more than 340,000 employees who serve
approximately 11.4 million customers daily.[14]
Almost 90% of Burger King restaurants are privately owned
and operated, or franchised. While Burger King Corporation
sets standards for exterior store appearance, food quality and
menu, individual owners have control over hours of
operations, interior decor, pricing and staff uniforms and
wages. For example, Magic Johnson's company Magic
Johnson Enterprises purchased 30 Burger King stores on June
7, 2004.
Case Analysis (Burger King )
While Burger King's logo has since changed to the "blue
crescent" design, the Hungry Jack's logo is still based on the
previous Burger King logo, employing the simpler bun-andfilling motif.
Hungry Jack's sells the usual range of burgers but also
offers an Australian specialty: the Aussie Burger. This
burger is based on the traditional Australian fish and chips
shop favourite, including fried egg, bacon, onion, and
beetroot, with the traditional meat, lettuce, and tomato.
Hungry Jack's locations are required to follow any menu
changes made by Burger King.
Hungry Jack's breakfast menu, introduced in late 2005 in
three states (Queensland, New South Wales, and Northern
Territory)
Case Analysis (Burger King )
and the other states on October 31, 2006, bears little
resemblance to Burger King's US breakfast menu. The main
breakfast sandwich is served on either an English muffin,
baguette roll or as a wrap (breakfast burrito) instead of a
croissant; the hash browns are served as patties as opposed
to Tater Tots and they feature pancakes.[18][19]
The only trademarked sandwich products that HJ sells is the
Whopper and the Ocean Catch sandwich. All other products
go by a generic naming such as hamburger or chicken
nuggets
Case Analysis (Burger King )
CEO Jim Adamson Developed a six part strategic plan
code named operation Phoenix to help Burger king
recover from its declining same store sales.
That plan improves Operations ,marketing menus .It also
advertised stressing its “have it your way”service
Philosophy that was used successfully past
Question
1) What are the advantages and disadvantages of the
changes Adamson is making at burger king
2) Who benefit From the changes at Burger King If they
are successful
3) Do you think that the changes at burger king will enable
it to remain successful ?why & why not?
Case Analysis
Procter & Gamble Trails in Innovation
With all the advertisements that the packaged-goods industry
hurls at consumers on TV, Procter & Gamble (PG ) might not
seem to be a place where innovation is paramount. But in
recent years, especially under the leadership of Chief
Executive Alan G. Lafley, the Cincinnati-based giant has
focused as much on honing its process of innovation as on
marketing, hoping to recharge growth. So far, it's working
well: In its fourth quarter ended June 30, profits shot up 44%,
to $1.4 billion, on a 10% rise in sales before acquisitions.
In particular, says G. Gilbert Cloyd, P&G's chief technology
officer, the company has encouraged various departments to
work together more closely to trade ideas.
Case Analysis (Procter & Gamble )
At the same time, it has reached outside to tap experts at other
companies. In a recent conversation with Business Week's
Silicon Valley Bureau Chief Robert D. Hof , Cloyd explained
how a seemingly lumbering giant is using cutting-edge
methods to accelerate innovation
How has the way Procter & Gamble innovates changed in
recent years?
What they have done in recent times is to put more emphasis
to what we call the desired consumer experience. That takes in
broader thinking than a specific product attribute. It can be the
concept, what it looks like, what it smells like, what it feels
like. We have industrial design much more integrated into the
innovation process than we had in the past.
Case Analysis (Procter & Gamble )
They have also putting a lot more attention on what we call
360-degree innovation. That has meant that we've brought
our commercial and our technical groups together even
more closely.
They have put more emphasis on serving an even broader
base of consumers. We have the goal of serving the
majority of the world's consumers someday. Today, we
probably serve about 2 billion-plus consumers around the
globe, but there are 6 billion consumers out there. That has
led us to put increased emphasis on low-end markets and in
mid- and low-level pricing tiers in developed geographies.
That has caused us to put a lot more attention on the cost
aspects of our products..
Case Analysis (Procter & Gamble )
What changes in society and industry are altering the way P&G
innovates?
One, we're facing an ever-faster pace of innovation in consumer-product
markets. We think the pace of innovation has roughly doubled in the past 10
years. So when we make an innovation and bring it into the marketplace, it
has a much shorter market life than what it had previously. We need to be
moving to upgrade our brands even more frequently.
Second, the competition is very fierce. Fifteen years ago, when we had a lot
of generic brands or private labels, they were often not true brands; they
were products. Now the brands that we face from retailers, from regional
competitors, are very well-developed brands.
Finally, consumers are increasingly better-informed about making their
choices. But they have a very busy life, and they don't have time to deal
with complexity. Our challenge in innovation is to present ourselves well
with a lot of different brands and do it affordably.
Case Analysis (Procter & Gamble )
Finally, consumers are increasingly better-informed about
making their choices. But they have a very busy life, and
they don't have time to deal with complexity. Our challenge
in innovation is to present ourselves well with a lot of
different brands and do it affordably.
How does the innovation process work today at P&G?
We have a broad program we call "connect and develop."
In the academic world, they call it "open innovation." We
want to connect internally -- move technologies and ideas
across our business units internally -- but we also want to
connect externally. This has been a real source of
innovation for us.
Case Analysis (Readers Digest)
The best read magazine in the world.
International Editions
•12+ million paid circulation
•45 editions worldwide
•56 countries
•20 languages
Reader's Digest was founded in 1922 by Dewitt and Lila
Wallace. They started a magazine that would - and continues
to - inform, enrich, entertain and inspire. Reader's Digest has
developed key strategic areas such as Health & Home, Family,
Food, Finance and Consumer Electronics.
Huson is proud to have been appointed the advertising partner
for Reader's Digest in North America, responsible for
marketing all of the international (excluding USA)
Case Analysis (Readers Digest)
However, the actual total readerships are of course much
higher than these circulation numbers - again more
information can be found at www.rdglobaladvertising.com.
Huson will be delighted to provide information on standard
advertising including special and privileged positions.
However in addition, Reader's Digest offers outstanding
flexibility and impressive creative ideas which can allow
you to approach these markets with flair, innovation, and
individuality. You can see examples from such global
brands as Shell, Nokia, HSBC, and a number of tourist
organizations on the website noted above. Some of these
show adversarial approaches designed by Reader's Digest,
as well as case studies detailing the objectives and targets of
the campaign.
Case Analysis (Readers Digest)
Finally, Reader's Digest is able to offer some excellent
research including European trusted brands and Asian super
brands - please inquire for more details. We will also be
happy to provide in-depth analysis and market data that will
amply demonstrate the superb audiences which advertisers
can reach via the pages of Reader's Digest worldwide.
Perhaps one surprising such snippet of information is that
the average age of those receiving Reader's Digest in Asia is
40. Most editions of Reader's Digest will deliver you
audiences with above average purchasing power and
therefore enhanced ability to buy more of your product
Business Process Reengineering
End Of
Chapter 9