ADL - 11

ASSIGNMENT-A
Q1). What is the purpose of organizations, how do they achieve it? What is a system; explain the
types of systems y giving examples. What type of systems are used in the management and why?
!ns). Organization
Organization is a group of people who process material and informational resources towards a set
of multiple common goals including an economic profit for the business by performing financing,
design, production and marketing functions to achieve finished goods and their sale at a specified
minimum per year. That means in nutshell organization is a group of people working together to
achieve one common goal. Organization can also be defined as the formal structure of roles or
positions. Organizations are open systems as they have an environment, which can affect the
performance of organizations.
Every organization has set of policies, procedures, goals, objectives, mission statements, guidelines
etc. These all are the tools that are used for the proper functioning of any organization. Mission
tatement is the main purpose of the organization, due to which the organization e!ists. "oals and
Objectives are the end results that the organization intends to achieve.
The mission or purpose identifies the basic function or task of an enterprise or agency or of any part
of it. Every kind of organized operation has, or at least should have if it to be meaningful purposes
or missions. "enerally the purpose statement of an organization is a statement that tells in nutshell
about the reason of the e!istence of the organization. #or e!ample a purpose of manufacturing firm
could be to produce surplus with a minimum costs, or a purpose for a service firm could be to
deliver the $uality service on time, every time thus leaving every customer in a satisfied mode.
Organization achieves their purpose by a mi!ture of many techni$ues. The main component that
helps in achieving the purpose of any organization is management. Management is a combination
of five functions namely %lanning, Organizing, taffing, &eading and 'ontrolling. To achieve the
purpose, first the organization needs to do proper planning. (n this phase objectives of the
organization are identified. Objectives are the end results that any organization would like to
achieve, various policies, procedures etc are framed that will tell the people of organization how to
achieve the purpose. Then ne!t phase is organizing. (n this phase all the tasks are identified, all the
resources are identified, and then the tasks are grouped and allocated to the resources. taffing is
another important area that means keeping filled all the positions in the organization. Effective
leadership is needed in order to carry out all the tasks and at last effective control mechanism is
re$uired that will ensure that the tasks being done in an organization will achieve the purpose of the
organization.
(n achieving the purpose of the organization managers needs to take very important decisions. #or
this to happen there are various information systems that needs to be in place. These information
systems like Management (nformation ystem) *ecision upport ystem helps managers to take
decisions in order to finally achieve the purpose of the organization.
+ny organization, as a system, can be analyzed in terms of inputs and outputs where inputs are
considered to be the causes, which interact to produce an output, which in turn represents the effect.
The system acts as a bo!, and non,physical like material and information and so also the outputs in
the form of finished goods. (n an organization, a combination of difficult inputs often interacts in
complicated ways to produce a desired output. -ormally, in an organization which is a comple!
system, there are a number of subsystems which make up the total system and in such situations,
the output of one subsystem becomes the input of another subsystem and so on. &ike the outputs of
production planning department, which are in the forms of production programs, material
re$uirement etc. Thus every subsystem acts as a processor.
The various departments or the processors constituting an organization cannot operate in isolation
as they are interrelated and output of one subsystems acts as input of another subsystem) thus
necessitating an integration of various subsystems. The job of management thus is to integrate the
subsystems and to achieve the objectives of the organization in an optimum manner. (f this
integration is not incorporated each function or subsystem will operate to optimize its own
objective resulting in sub,optimization for the total system.
System
.efore knowing what is meant by an information system, one must know what is meant by a
system. + system is simply a set of components that interact to accomplish some specific purpose.
ystems are all around us. #or e!ample, you communicate by means of language, a highly
developed system of words and symbols that conveys meanings to you and to others. + business is
also a system. (ts components like marketing, manufacturing, sales research, shipping, accounting
and personnel all work together to create a profit that benefits the employees and stockholders of
the firm.
Every business system depends on the information system for its proper functioning. This system is
the means by which the data flows from one person or department to another and can encompass
everything from inter,office mail and telephone links to a computer system that generates periodic
reports for various users. (nformation ystem serves all the systems of a business, linking the
different components in such a way that they effectively work towards the same purpose.
The purpose of the information system, like any other system in an organization, is to process
input, maintain files of data about the organization, and produce information, reports and other
outputs. (nformation ystem consists of subsystems, including hardware, software and data storage
for files and database.
Categories of Information System
%rimarily (nformation system may be classified in to following categories/
0. Operations upport ystems
Transaction %rocessing ystem
Management (nformation ystems
Enterprise wide 1esource %lanning ystem
2. Management upport ystems
*ecision upport ystems
E!ecutive (nformation ystems
E!pert ystem
(-%3T %1O'EO1 O3T%3T
#EE*.+'4
Operations upport systems focuses on the operations of the enterprise. The basic objective of
these systems is to improve the operational efficiency of the enterprise. +s these systems are
concerned primarily with operations, they use internal data primarily for managers at the lower
level.
OPERATIONS SUPPORT SSTEMS
1). "ransaction #rocessing $ystem
The most fundamental computer based system in an organization pertains to the processing of
business transactions. Transaction %rocessing ystems 5T%6 are aimed at improving the routine
business activities on which all organizations depend. + transaction is any event or activity that
affects the organization. 'ommon transactions include placing orders, billing customers, hiring
employees and depositing checks. The type of transactions varies from organization to
organization. .ut handling or processing transactions are the major activity of any organization.
tandard operating procedures, which can facilitate handling of transactions, are often embedded in
computer programs that control the entry of data, processing of details, and storage and
presentation of data and information. These systems provide speed and accuracy and can be
programmed to follow routines without any variance. E!ample of T% is #inancial +ccounting
ystem in +ccounts department, 'alls Tracking ystem in 'all 'enter etc.
%). &anagement 'nformation $ystems ()sed at &anager*s level)
M( assist managers in decision,making and problem solving. They draw on data stored as a result
of transaction processing, but they may also use other information that is developed internally and
outside the firm. 7e know that in any organization decisions must be made on many issues that
recur regularly and re$uires a certain set of information to make the decision. This information can
be provided by managing management information systems. These systems are designed to support
often recur) it is possible to study the decision factors and variables and develop reports that will
useful in formulating future decisions. M( aims at meeting the information needs of managers,
particularly with regard to the current and pas operations of the enterprise and sometimes provides
on,line link to individual transactions as well. The focus of M( is the internal environment.
E!ample of M( is the final marketing and sales reporting tool, total calls statistics to the managers,
performance reports of the staff to the managers. This is based on the inputs from the T%.
+). ,nterprise -esource #lanning
E1% system integrates all the processes of the organization with customer satisfaction and plans the
management of the resources of an enterprise. These solutions help in focusing on production
capacities, managing logistics and working out financial conse$uences of each decision rather than
just computing costs. E!ample of E1% systems are apient, %eopleoft, 8* Edwards etc.
MANAGEMENT SUPPORT SSTEM !Use" in Management#
Management upport ystems focus on managerial uses of information resources. These system
provide information to managers) for planning and decision making.
1). .ecision $upport $ystems
-ot all decisions are of recurring nature. ome occur only once or recur infre$uently. *ecision
upport ystems 5*6 provide information to managers who must make judgments about
particular situations. These systems support decision,makers in situations that are not well
structured that is, in those situations where it is difficult to identify information needs in advance.
*ecision support systems must, therefore, have greater fle!ibility than other information systems.
The typical areas of application of * in production and finance functions of business are/
Pro"$%tion/ %rocurement +nalysis, 'ost estimation and analysis, production planning and
scheduling
&inan%e' 'apital .udgeting, #inancial %lanning and analysis, ta! planning, strategic financial
planning etc.
E!amples are 8ust (n Time manufacturing process and T9M and 4anban system of inventory
control.
%). ,xecutive 'nformation $ystems
* are designed to cater to the information needs of managers at middle to top levels. They relate
to rule,based work doing modeling and analysis of data in order to make it useful in decision
making. :owever, at the top of managerial level, there is a need to focus more on packaging and
delivery of information than on generation of information. The top manager deserves better
environment for information access than that provided by *. The top e!ecutives need fast access
to up,to,date, concise information and e!ception reports with facilities to personalized information
and analysis. The information systems designed to cater to such needs of top e!ecutives and called
E!ecutive (nformation ystem. #ollowing are few e!amples where E( is re$uired.
E!ecutive .riefing
%ersonalized +nalysis
E!ception 1eporting
Model .ased +nalysis.
(#) ,xpert $ystems'
These systems incorporate e!pertise in order to aid managers in diagnosing problems or in problem
solving. The increasing comple!ities and dynamism in the emerging business environment re$uire
greater interaction of functional managers with the e!perts so as to get the timely advice. The
typical areas of application of e!pert system in business include/
Make or buy decisions
-ew product launch decisions
*etermining credit limits.
Q%). ,xplain the difference etween .ata and 'nformation. Why different information is
re/uired y three distinct levels of management.
!ns).
The terms data and information are often used interchangeably when referring to two distinct
concepts. *ata are raw facts in isolation which when placed in meaningful conte!t by a data
processing oration allows interfaces to be drawn. These interfaces relate to the measurement and
identification of people, events and objects. The basic purpose of capturing and processing data is
to produce the information. The wealth of data can be burden is $uantities of data are processed
without an informational objective.
(nformation is substantially different from data, in that data are raw, unevaluated messages.
(nformation is the increase in knowledge obtained by the recipient by matching proper data
elements to the variables of a problem. (nformation is the aggregation or processing of data to
provide knowledge or intelligence. (nformation is an occurrence or a set of occurrences, which
carry messages, and when perceived by the recipient via any of the senses will increase their state
of knowledge. The primary function of information is to increase the knowledge or reduce the
uncertainty of the user. The information that is disseminated to the user may be the result of
inputting data in to, and processing a decision model.
There are three levels of management in any organization. These levels are trategic, Tactical and
Operational.
Strategi% Le*e+
0. +t this level, management has to make the decisions in great deal of uncertainty and the
decisions are very much future oriented.
2. These decisions establish the long range plans for the organization. This level of
management has to evolve strategies for achieving these goals. Thus at this level, the
management is concerned for establishing the objectives, the &1%, %olicy making,
Organizing and attaining an overall effectiveness for the entire organization. The
activities of this level of management could be determination of the product, selection of
the market, plant e!pansion and diversification etc.
;. The source of data needed is in the environment e!ternal to the enterprise, and data is
scarce.
<. &arge scale of resources is at risk.
=. Major uncertain future events affect such decisions.
>. Essentially creative, imaginative and therefore human processes with many ambiguities.
?. This entails largely a planning activity.
Ta%ti%a+ Le*e+
0. This is the second level of management, which is responsible for making the tactical
decisions. The decisions made here are mainly for the short term activities and concern
the allocation of the resources for achieving the objectives of the organization set in the
strategic plans prepared by the strategically level of management.
2. +s compared to strategically level of management, this level of management takes the
decision not entirely in a state of uncertainty but has a very small potential for
programmed decision,making.
;. This entails mi! of planning and controlling activities.
<. E!amples are formulation of budget, ash flow analysis, plant lay out etc.
=. *ecisions about how to utilize resources and their subse$uent control.
>. The decision maker is looking ahead days or weeks.
?. The necessary data is typically generated within the organization.
@. The scale of risk is small and degree of uncertainty is smaller.
A. *ecision re$uires human mental activity to recognize needs.
Te%,ni%a+-O.erationa+ Le*e+
0. The main characteristics of the management at this level are that the standards of the results,
to be achieved by each of the decisions taken by managers, are deterministic and fi!ed.
2. The operational level of management is responsible for ensuring that specific tasks are
implemented in an effective and efficient manner. Thus the prime responsibility of the
management aspect is on limited scale.
;. 'oncerned with taking immediate action e.g. operating a lathe, paying the wages etc.
<. Time horizon is short, typically hours or minutes.
=. The decision maker tends to by in close touch with his resources.
>. Bery few uncertainties.
?. The scale of risk is very low.
@. The decision process is straight forward
C+assifi%ation Of Information Le*e+s of Management
Strategi% Ta%ti%a+ O.erationa+
*ependence on e!ternal source B :igh Moderate B &ow
*ependence on internal source Moderate :igh B :igh
(nformation on line Moderate :igh B :igh
(nformation on real time B :igh B :igh B :igh
1eporting %eriodically B :igh B :igh B :igh
*escriptiveC :istorical in Balue &ow Moderate :igh
'urrent %erformance Moderate :igh B :igh
#uturistic B :igh :igh &ow
imulated B :igh :igh &ow
Q+). 'dentify and list any three responsiilities of the 0,1 of a manufacturing organization.
!lso list three decisions, which she2he has to ta3e as part of this responsiility.
!ns).
+ccording to me following are the three main responsibilities of the 'EO of a manufacturing
organization.
06. #ormulation of Objectives, "oals, %olicies, %rocedures for the organization. 1epresenting
organization in front of public and board members. (n undertaking this responsibility, 'EO has to
e!hibit his leadership and decision making attributes. (n this way he is responsible towards the
public, members of boards and organization.
26. The main target of the 'EO is to be most cost effective. :e monitors various information
systems to get the information about the %roduct *elivery. The targeted manufactured units, the
timelines and the $uality of the product. The main aim of a 'EO is to get the surplus with minimum
cost and ma!imum $uality. 'EO monitors the same and takes any corrective action is re$uired. :e
also verifies the policies, objectives being set for product manufacturing, delivery, warehousing,
raw materials etc. Modifications are made if re$uired. :e also oversees the cost and budgeting
aspects
;6. The third and not the least he is responsible to the biggest asset of the company namely people.
:e sees that the people in the organization are motivated. There is a proper organizational structure
in place with the policies and procedures are being implemented.
T,ree Im.ortant "e%isions t,at t,e CEO ,as to ta/e in or"er to ta/e as .art of t,e
res.onsi0i+ities are as fo++o1s'
06. TO create, drop or modify an objective, goal, policy or procedure of a company. uppose a
'EO finds that there is a policy in the company due to which the production is suffering, he might
drop the policy. uppose 'EO has introduced another objective of an organization, now after some
time 'EO finds that the new objective has hindered the growth of the old objectives, and then 'EO
might want to drop or modify the new objective.
26. 'EO might take a decision to add a new product in the product line or to drop the prices of any
e!isting product or to face lift the look and feel of an e!isting product or to enhance the
manufacturing capacity or make the timelines stricter. 'EO might take any decision related to the
budgets allocated in the organization.
;6. 'EO might introduce a new policy that will motivate people and drop the attrition rate of the
company. 'EO may drop some already e!isting schemes. 'EO might take some actions that will
motivate people like awards etc. 'EO might take a decision to increase the strength of the company
or to involve in some sought of mergers and ac$uisitions etc.
Q4). .o you agree that understanding 'nformation needs is the first step towards developing a
wor3ale &'$? What are the various types of 'nformation 5eeds, explain with examples of each.
!ns).
3nderstanding of information need is fundamental and necessary to good M( design. Too many
companies spend lavish amounts of hardware and software without first determining the real
information needs of the managers in critical areas such as problems, alternatives, opportunities and
plans. 3nless the managers can provide the specifications for what they want from an information
system, the design efforts will produce less than optimum result. Too often system design begins
without a clear,cut statement of objectives and information needs, although these should be stated
as clearly and precisely as possible.
(nformation need assessment would be complete when following are identified/
The nature of information.
#re$uency at which re$uired
ource of origin
Their inter,relationships are established.
-ature of information re$uired depends upon the purpose or use. (n order that the decisions made
by the manager result in the economic use of resource and are congruent with the objectives of the
organization, the manager has to have full information about the alternatives. +lso he must get the
information periodically if the decisions are periodic or as and when it is re$uired. The information
may either be from internal sources or e!ternal sources. .oth internal and e!ternal information
must cover not only past performance but also future trends and forecasts. *ifferent levels of
management may re$uire the same information re$uired by lower levels of management is more
detailed and is given constantly at fre$uent intervals whereas at higher levels of management the
type of information re$uired is aggregated one and is needed at different fre$uency levels.
There are various types of information needs at the managerial level. These are as follows/
'urrent 'omfort (nformation D This informs about the current situation or achievement
levels that are tuned to e!pectations. This includes information like clients served, targets
achieved, etc.
tatus (nformation or %rogress (nformation D 4eeps informed about the current problem,
crisis and changes
7arning (nformation D ignals that change for good or worse are occurring 5tock %rice,
Turnovers, 'lient complaints etc6.
%lanning (nformation D *escription of projectsCprograms due in future, knowledge of
anticipated developments
(nternal Operations (nformation D (ndications of how organizationCprograms are performing
E!ternally (ntelligence D (nformation, gossips and opinions about activities in the
environment of organization. 'ompetition, political changes, emerging social policies etc.
E!ternally distributed information D +nnual report before release, publicly distributed
material about the organization like media reports etc.
Q6). What is the vision process named after .avenport, how does it help the systems analysts in
developing &'$, which can e, related the organizational o7ectives?
!ns).
Bision %rocess is named because of summit it convened in downtown *avenport in 3 regarding
long,term vision for the city of &as Begas. (n this process, more than ;EE people from on,campus
and the community came. There were 02 vision teams that came up with recommendations for their
respective areas. These were put in to a draft report. ally 'rino led the visioning. The vision 2E2E
teams were formed. The key to the long,term impact of vision 2E2E was to link the
recommendations to the strategic process. The purpose of the committee was to formulate ideas and
a vision for the new master plan from the outset of the process and not at the end. (t was also to
participate in the formulation of ideas and vision.
.usiness %rocess 1eengineering 5.%16 is defined by :ammer and 'hampy as Fthe fundamental
reconsideration and radical redesign of organizational processes, in order to achieve drastic
improvement of current performance in cost, service and speedF. Value creation for the customer is
the leading factor for .usiness %rocess 1eengineering and information technology often plays an
important enabling role.

*avenport and hort 50AAE6 prescribe a five,step approach to .usiness %rocess 1eengineering/
0. *evelop the business vision and process objectives/ .usiness %rocess 1eengineering is driven by
a business vision, which implies specific business objectives such as cost reduction, time reduction,
output $uality improvement.
2. (dentify the business processes to be redesigned/ most firms use the F:igh, (mpactF approach
which focuses on the most important processes or those that conflict most with the business vision.
&esser number of firms uses the FE!haustive approachF that attempts to identify all the processes
within an organization and then prioritize them in order of redesign urgency.
;. 3nderstand and measure the e!isting processes/ for avoiding the repeating of old mistakes and
for providing a baseline for future improvements.
<. (dentify (T levers/ awareness of (T capabilities can and should influence .usiness %rocess
1eengineering.
=. *esign and build a prototype of the new process/ the actual design should not be viewed as the
end of the .usiness %rocess 1eengineering process. 1ather, it should be viewed as a prototype,
with successive iterations. The metaphor of prototype aligns the .usiness %rocess 1eengineering
approach with $uick delivery of results, and the involvement and satisfaction of customers.

+s a >th step of .usiness %rocess 1eengineering some mention to adept the organizational structure
and governance model towards the newly designed primary process.

7hen should .usiness %rocess 1eengineering be usedG
+lthough it is difficult to give generic advice on this, some factors that can be considered are/
, is the competition outperforming the company by factorsG
, are there many conflicts in the organizationG
, is there an e!tremely high fre$uency of meetingsG
, e!cessive use of non,structured communicationG 5memos, emails, etc6
, is a more continuous approach of incremental improvements not possibleG 5see/ 4aizen6.

7hen 4aizen is compared to .usiness %rocess 1eengineering is it clear the 4aizen philosophy is
more people,oriented, more easy to implement, re$uires long,term discipline. .usiness %rocess
1eengineering on the other hand is harder, technology,oriented, enables radical change but re$uires
major change management skills.
Un"erstan" 2 Im.ro*e T,e Pro%ess
Overview
Understand & Improve The Process converts current processes and products into integrated and
improved processes and products intended to serve the needs of the customer. The primary outputs
are process improvements, improved products and an associated set of process performance
measures, which specify how the process is e!pected to behave. +n additional output is a set of
technology needs that is used by Develop Technology Solutions to define and develop technologies,
which are re$uired to support and enhance the redesigned processes. The technology needs are
integrated into the Transformation %lan for implementation. #eedback from customers, suppliers,
and e!ternal processes concerning the process is transformed under the control of re$uired product
features and process re$uirements. +dditional control stems from process control development
H"uha 0AA;I. 'ulture limits the range of process improvements and the schedule of
implementation. This process is performed by people involved in the transformation process and
supported and championed by the teering Team.
Understand & Improve The Process translates current process performance into desired
performance. +ssuming all work is a process, improving process performance is critical to realizing
the vision. Understand & Improve The Process identifies and bounds current processes, analyzes
current performance, designs an improved process and implements that process according to a plan
which is in support of the Transformation %lan and the vision H*avenport 0AAE, "uha 0AA;,
:arrington 0AA;, %arker 0AA;, Talwar 0AA;, 3lis 0AA;, 7omack 0AA>I.
Understand & Improve The Process incorporates process re$uirements from the customer, which
ensures a customer focus in process improvement efforts. &inking process improvement to
customer desires ensures that resources are allocated to pursue the vision. 'ustomers define their
desired and re$uired product attributes that translate into process re$uirements during Understand
the Product. 3sing these re$uirements as a guide, new processes are designed to satisfy customer
needs.
Understand & Improve The Process develops a competitive advantage through both innovative and
incremental improvement. Understand & Improve The Process identifies, analyzes, designs and
implements processes to pursue the vision and develop a competitive advantage. This four,step
algorithm can be performed using incremental or innovative methods. (ncremental methods focus
on improving the current process. 'ontinuous improvement is the theme of incremental methods.
These methods are characterized by e!tensive data collection and analysis of current performance.
(nnovative methods focus on designing new processes. 1adical change is the theme of innovative
methods. These methods are characterized by a clean slate approach, which emphasizes the
importance of ignoring the current process and developing a new process with no preconceived
ideas H"rover 0AA<, :all 0AA;, :ammer 0AAE, :arrington 0AA;I. Each method has merit and
should be investigated. Many scholars agree that a hybrid approach using elements from both
approaches yields the best results H*avenport 0AA<, :arrington 0AA;, Moad 0AA<I. The desired
result of using either of the methods is to develop processes that support the vision.
Understand & Improve The Process focuses on vision re$uired metrics. The identify, analyze,
design and implement cycle is focused on metrics which are directly tied to achieving the vision.
*uring the Develop Vision and Strategy activity, metrics are developed that define the desired
future condition described by the vision. These metrics guide the development of new and
improved processes to ensure that all enterprise resources are focused towards the vision. Metrics
that are typically used to describe the vision are concerned with resources, $uality, service and
time. Thus enterprises usually attempt to reduce cost, improve $uality, improve delivery and reduce
cycle time. (mprovement in these areas often helps the enterprise reach the vision by improving
customer satisfaction H3lis 0AA;I.

3o$n" Pro%esses 2 I"entify Re+ations,i.s
Bound Processes & Identify Relationships transforms current processes into bounded processes and
identified relationships. The process is conducted by the teering Team and people involved in the
transformation process. 'ontrols include product re$uirements identified by customers, process
re$uirements specified in the transformation plan, the environment and the transformation plan.
Bound Processes & Identify Relationships identifies e!change points and relationships between
processes. Three types of knowledge are re$uired to establish process boundaries and identify the
relationships these boundaries have with other processes in the enterprise/ 06 knowledge of the
customersCsuppliers, 26 product knowledge, and ;6 knowledge of the process re$uirements. The
generation of this information is performed by other activities within Integrate & Improve
Enterprise. These three types of information are re$uired to ade$uately define the inputs and
outputs of the process. These inputs and outputs can be thought of as products themselves. The
inputs to a process are the products being provided by JsupplierJ processes. The process outputs
can in turn be considered as products supplied to subse$uent JcustomerJ processes which re$uire
these products as inputs. (dentifying the suppliers and customers and understanding how products
flow between the JsupplierJ processes, the process under investigation, and JcustomerJ processes
will determine how this process is integrated with the other processes within the system.

Do%$ment an" Ana+yze Pro%ess
Document and naly!e Process transforms current process performance metrics and process
feedback into an understanding of process performance and a set of technology needs. The process
is conducted by the teering Team and people involved in the transformation process. 'ontrols
include technology development feedback, process controls, the environment and the
transformation plan.
Document and naly!e Process develops an understanding of process performance. Document and
naly!e Process is a structured and methodical process that e!amines the process in hard and soft
metrics. :ard metrics are numerical and $uantified. These metrics can be counted or measured
using scientific instruments. :ard metrics are those that the enterprise maintains for shop floor
control, such as efficiency, cycle time, $uality, and work,in,process. oft metrics are subjective and
$ualitative. These metrics are opinions or situational and are measured with surveys or interviews.
oft metrics are attitudes, norms of behavior, $uality of worklife issues, communication levels and
other cultural issues that could have an impact on the process. (n combination, hard and soft metrics
provide a well rounded description of the process.

Design Im.ro*e" Pro%ess
Design Improved Process transforms current process performance into an improved process design.
The process is conducted by the teering Team and people involved in the transformation process.
'ontrols include cultural competencies, the environment and the transformation plan.
Design Improved Process creates an improved process. Design Improved Process follows the four
step process of design / 06 %reparation, 26 (ncubation, ;6 (llumination, and <6 1esolution to create a
process design H4im 0AAEI. The design is intended to create a process that performs to levels
re$uired by the transformation plan to reach the vision and satisfy the customer. %reparation entails
e!amining the process analysis, customer re$uired and desired attributes, and performance
measures re$uired by the vision. (ncubation involves searching for alternative designs. (llumination
is the process that combines the information and alternatives into an innovative configuration. The
new configuration could be a radical departure from the present design or just an incremental
improvement. The e!tent of the change from the old design to the new design depends on the needs
of the enterprise.
Design Improved Process identifies technologies to facilitate the new design. 'urrent research has
shown a close relationship between business process design and the implementation of technology
solutions H*avenport K hort 0AAEI. %rocess design and the capabilities of technical solutions have
a recursive relationship consistent with continuous improvement philosophies. Each is the key to
thinking about the other. Thinking about the adoption of technical solutions should be in terms of
how it supports new or redesigned processes. %rocesses should be considered in terms of the
capabilities information technology can provide. +s the business processes and feedback
mechanisms are evaluated and designed, supporting technologies will be identified. These
technology needs will feed Develop Technology Solutions which will implement systems designed
to support the associated processes and feedback mechanisms. *uring the technology solution
development effort, systemCsolution feedback is often re$uired to insure that the system
development effort is on track.
Design Improved Process has three primary outputs/ 506 + process design and a set of performance
measures and goals relating to how the process must perform, 526 design feedback to the ""#
Document and naly!e Process function and 5;6 the identification of potential technical solutions
which can assist in the e!ecution of the re$uired process. The process improvement activities must
be consistent with enterprise strategy and relies heavily on the e!perience and ingenuity of all those
who impact or are effected by the output of the process.

Im.+ement Im.ro*e" Pro%ess
Implement Improved Process transforms the improved process design into an integrated and
improved process. The process is conducted by the teering Team and people involved in the
transformation process. 'ontrols include cultural competencies, the environment and the
transformation plan.
Implement Improved Process activates the process design into reality. This process coordinates all
the resources necessary to implement the new process design in the enterprise. 'oordination
re$uires planning to ensure success. Thus a planning cycle is conducted with the same method
described in $% Develop & Deploy Integrated Transformation Plan. (mplementation is the
function within Integrate & Improve Enterprise where failure is most likely to occur. This function
re$uires people within the enterprise to change their behavior and daily activities. 'hange is a
difficult process and people are resistant to it. (mplementing new process design typically re$uired
people involved to work e!tra hours and make sacrifices to their individual goals and performance.
(mplementation uncovers the flaws in a design. + design may not account for all re$uirements of
the process. -ew re$uirements may arise that were previously unknown. +s a design is installed,
the new re$uirements or short comings of the design will become apparent. The degree to which
those involved with the implementation can compensate for these problems, often determines the
success of the implementation.