3rd Enterprise Engineering Working Conference (EEWC 2013)@Luxemburg
A Case Study on Enterprise Transformation in
a Medium-Size Japanese IT Service Provider
Business Process Change from the Ontological Perspective
May 13th, 2013
Sanetake NAGAYOSHI, Ph.D
Tokyo Institute of Technology, Japan
Conclusion
– Based upon the case study on the enterprise
transformation of divisions in “Company A”
i.
it is not always necessary to change the
ontological level of business process in market
development
ii. it is necessary to change the ontological level of
business process in product development
iii. it is necessary to reengineer the ontological
level of business process in diversification
3
Introduction
• Organizational change and transformation is an
important research topic
• Traditionally, organizational change and
transformation mainly focuses on the change in
organizations’ structures
• Discourses on organizational transformation has
begun to draw from many other disciplines and
various perspectives
– Process-based research in understanding how and
why organizations change and transform
4
Objectives
• To describe business process change based on
the case study of enterprise transformation
from the ontological perspective
• The relationship between market
diversification (in Product-Market Grid) and
business process change from the
ontological perspective is analyzed and
discussed
5
Product-Market Grid
Current Products
New Proucts
Current Markets
Market
Penetration
Product
Development
New Markets
Ansoff (1965)
Market
Development
Diversification
Figure 1 Product-Market Grid [1]
6
Research Method (1/2)
• Actor Transaction Diagram in DEMO
(Design and Engineering Methodology for
Organization) for describing business process
A 01
T02
A 02
Figure 1 ATD (Actor Transaction Diagram)
7
Research Method (2/2)
• Qualitative Research
– Case Study in “Company A” , Medium-Size
Japanese IT service provider
– Interview : 4times for 7persons
• First interview: Director
• Second interview: CEO and technical director
• Third interview: Sales manager and technology
manager from the second solution division
• Fourth interview: Sales manager and technology
manager from the first solution division
8
Case Study
Overview : Company A
• Medium Size Japanese IT Service Provider
• As a software provider in 1969
• Several well-known application software
packages in 1980’s
• Main Customer
– Local government in Japan , Wholesaler
– Large scale IT Service Providers in Japan: as subconstructor in projects
– No consumer
9
Case Study
Five Transformation Stories in Company A
• Division 1 (A)
– Story1: From a software package provider to an
application service provider
• Division 2 (B-1,B-2)
– Story2:Systems Integration Service for new market
– Story3:Organizational change for continuing the
service
• Division 3 (C-1,C-2)
– Story4:Start new product
– Story5:New market entry with the product
10
Story1: From a software package provider
to an application service provider (A)
Before
Product
Software
Transformation
Local
Government
Company A
After
Company A
Local
Government
Service
Infrastru
cture
with
Software
11
Story1: New Product Development on
Product-Market Grid
12
Story1: Business Process “Before”
13
Story1: Business Process “After”
Added process
(Actors, Transactions)
14
Story2: From Sub-Contractor to
Systems Integration Service In Japan
Primary Constructor (B-1)
Systems
Development
Plan
Develop
Maintain
Primary
Constructor
Systems Integrator
Japan
Systems
Development
Overseas
Consulting
Firm
Plan
Consulting
Firm
Software
Developer
Software
Developer
Develop
Maintain
Software
Developer
SubContractor
Self
15
Story2: From Sub-Contractor to
Primary Constructor (B-1)
Before
After
End Customer
(Telecom company )
Large Scale Systems Integrator
(Primary Constructor: Company B)
Company
A
Other
Sub-Con
Sub-Contractors
Other
Sub-Con
Transformation
Complete
System
End Customer
(Distributor: Company C)
Complete
System
Company A
(Primary Constructor)
Other
Sub-Con
Other
Sub-Con
Other
Sub-Con
Sub-Contractors
16
Story2: Diversification
on Product-Market Grid
17
Story2: Business Process “Before”
18
Story2: Business Process “After”
Drastic
Change
19
Story3: Organizational change
for continuing System Integration (B-2)
Before
After
End Customer
(Company C : Distributor)
Company A
(2nd Division)
Transformation
Complete
System
End Customer
(Other Customers)
Complete
System
Company A
(2nd Divison)
“Prime Center”
Sales
Eger,PGer
Sub-Contractors
Sales
Eger,PGer
Sub-Contractors
20
Story3: Market Development
on Product-Market Grid
21
Story3: Business Process “Before”
22
Story3: Business Process “After”
23
Story4: Start New Product (C-1)
Before
After
Product
Company A
modify
Acquire
Software
Transformation
Customer
Company A
Modified
Software
Customer
Product
Soft
ware
Other
Company
24
Story4: New Product Development on
Product-Market Grid
25
Story4: Business Process “Before”
26
Story4: Business Process “After”
Added process
(Actors, Transactions)
27
Story5: New market entry with the product
(C-2)
Before
modify
Other
Company
Product
Company A
modify
Acquire
Acquire
Soft
ware
Modified
Software
Customer
Transformation
Company A
After
Modified
Software
New
Customer
Product
Soft
ware
Other
Company
28
Story5: Market Development
on Product-Market Grid
29
Story5: Business Process “Before”
30
Story5: Business Process “After”
31
Five stories
on Product-Market Grid
32
Product-Market Grid and Business Process
Change in the Five Stories
Story
Product Market Grid
Business Process Change
Between before and
after
1
Product Development
Added Business Process
2
Diversification
Drastic Change
3
Market Development
Little Change
4
Product Development
Added Business Process
5
Market Development
Little Change
33
Result
Based upon the case study on the enterprise
transformation of divisions in “Company A”
1
It is not always necessary to change the
ontological level of business process in
market development
2
It is necessary to change the ontological level
of business process in product development
3
It is necessary to reengineer the ontological
level of business process in diversification
34
Discussion(1/2)
• When a company intends to sell existing products to
new customers, change in business processes may
not be necessary, because the company only needs
to know customer information such as implicit
and/or explicit customer needs and sometimes
industry-specific knowledge
• This requires substantial changes in employee
behavior, company culture, and information systems
which are not observable at the ontological level
• This suggests that an ontological-level analysis may
miss out some important changes
35
Discussion(2/2)
• When a company intends to deal with new products
and/or services, it needs to change business
processes because production and/or service
delivery is directly related with business processes
36
Limitation
• This research was conducted by a single case
study
• Author does not have any intension to claim
that the findings are universal
• More studies are needed to generalize the
findings beyond this study
37