Process Management for the Extended Enterprise: Organizational and ICT Networks

271 Pages·2004·2.634 MB·English

by  Professor Stefano Tonchia, Andrea Tramontano (auth.)

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ISBN 978-3-642-62082-9 ISBN 978-3-642-17051-5 (eBook)
DOI 10.1007/978-3-642-17051-5
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Foreword1
How to Evolve: Leading Change in the Digital Age
Now that the unrealistic hype about the Internet has died, the promise of
the Internet can emerge. Now that the get-rich-quick schemes are gone, the
technology can take its proper place as a tool to help enterprises – and
people – be more productive, more networked, more connected. The Digi-
tal Age is in its infancy, and the Internet is only just becoming a powerful
force for change.
As a Harvard Business School professor and expert on leadership and
innovation, I know change is hard and can sometimes hurt, so it is all too
tempting to avoid it. That would be a mistake. As I write this, the world
faces numerous challenges, from economic downturns to terrorism threats;
European businesses are conserving resources rather than investing in new
opportunities. Uncertainty trumps optimism. But despite a temporary hold
on enthusiasm and investment, significant, paradigm-shifting change still
lies ahead in the still-unfolding possibilities offered by the Internet.
In today’s economy, for example, all organizations need greater reach.
They need to be in more places, to be more aware of regional and cultural
differences, and to integrate into coherent strategies the work occurring in
different markets and communities. The advent of the Internet and the
World Wide Web over the past decade has provided the means to achieve
greater reach at greater speed, and to work more closely with customers
and suppliers in the process. This has created a new idea: that of the
boundaryless organization that is known not by its structure of walls but by
the processes that move knowledge and information, goods and services,
seamlessly across permeable boundaries. The “extended enterprise” is like
the extended family – a community of all those with ongoing relationships
engaged in tasks toward common ends, regardless of where they live or
what their ownership is.
In my recent book Evolve!: Succeeding in the Digital Culture of Tomor-
row (Boston: Harvard Business School Press), I noted that mastering this
environment requires evolving to a new way of working, a new way of do-
ing business, a new style of human relationships. “The Web rewards or-
ganizations that are nimble and innovative, with a freer spirit of creation,”

1 Copyright 2004 by Rosabeth Moss Kanter, the Ernest L. Arbuckle Professor of Business
Administration, Harvard Business School. Used by permission. All rights reserved.
VI Foreword
I observed, “ones that can move quickly because all the right connections
are in place. That need for agility has been noted frequently. What has not
been examined is the Web’s hidden secret: that it provokes a shift toward
more collaborative work relationships, ones that resemble open, inclusive
communities more than they resemble secretive hierarchical administrative
bureaucracies.”
The Internet is finally at a point of technological and cultural acceptance
that makes effective online collaborative work relationships a growing re-
ality. By moving many tasks to the Web, companies can accrue numerous
benefits: speed, influence, innovation, and considerable cost savings. What
the authors call B2E, or business to everything, is at the core of a new or-
ganizational structure. B2E is not a cosmetic change or a program du jour;
it represents a fundamental shift in the way organizations interact with em-
ployees, customers, suppliers and partners. Companies are moving in this
direction because staying in place means falling behind.
But despite the remarkable power and capability of this technology, or-
ganizations need more than websites and faster servers to make it work. In
a global, high-tech world, organizations need to be more fluid, inclusive,
and responsive. They need to manage complex information flows, grasp
new ideas quickly, and spread those ideas throughout the enterprise. What
counts is not whether everybody uses e-mail but whether people quickly
absorb the impact of information and respond to opportunity.
The technology is often the easy part. The harder part is the human side,
the challenges of leading change. My years of study and experience show
that while bold strokes – courageous decisions by leaders – can trigger
change, it takes long marches – independent, discretionary, and ongoing
efforts of people throughout the organization – to sustain change long
enough to produce tangible results. No matter how the technology ad-
vances, these efforts remain at the heart of any organizational transforma-
tion. Organizations, after all, are collections of people. Company perform-
ance is built on how people interact, how they communicate a message to
customers, how they carry forward a corporate agenda and make it profit-
able and sustainable.
I believe that we are now at the outset of a long march toward a new
kind of workplace. In my work with companies struggling with change, I
have documented the innovation-stifling, performance-reducing impact of
groups defending their turf, clinging to territory, and protecting rather than
sharing information. And I have seen the ways in which corporate leaders
have addressed the often-daunting issue of bringing these groups together
into an effective, cohesive organization.
To guide transformation and create “one enterprise” out of disparate,
sometimes warring, tribes, a new kind of leader is required. Obsolete ten-
Foreword VII
ets of leadership, steeped in the traditions of hierarchical organizational
structure are no longer valid or effective. Corporate chieftains must lead
out in the open on an electronic stage that places them in a more visible
role than ever before.
I have long argued that open, inclusive communities are a hallmark of
corporate culture for high performance, high innovation companies. Creat-
ing such communities within large, traditional corporate entities is a scary
proposition for many executives. Some leaders are happier as cheerleaders,
touting the good news, diluting the bad news. Yet the fear factor is likely
to be mitigated by the growing realization that the Enron model of closed
cultures, communication roadblocks and secretive actions in the executive
suite is simply unacceptable in the Digital Age.
If organizations of the twenty-first century are to become effective open
communities, their leaders will need role models and lessons, new ways of
organizing and managing. And they will need to invest in large-scale or-
ganizational change. To get big results, small piecemeal projects won’t do
the trick. It will take a coherent vision, the desire to innovate, and the
courage to keep at it even when the challenges seem overwhelming.
Rosabeth Moss Kanter2
Harvard Business School, Boston, Massachusetts (USA)

2
Rosabeth Moss Kanter is the Ernest L. Arbuckle Professor of Business Admini-
stration at Harvard Business School, specializing in strategy, and leadership for
change. Past editor of Harvard Business Review, she advises major corporations
and governments worldwide, and is the author or co-author of 15 books. In 2001
she received the Academy of Management's Distinguished Career Award, for
her impact on management thought. She also received 21 honorary doctoral de-
grees from distinguished universities, and has been named to lists of the “most
influential business thinkers in the world”, the “business gurus to watch”, and
the “50 most powerful women in the world”.
Table of Contents
Introduction..........................................................................................1
Part One: Principles and Methods
1. Fundamentals of Process Management and Business Process
Reengineering.......................................................................................11
S. Tonchia
1.1 Process Management at the Origin of Customer Satisfaction.................11
1.2 The Basic Concepts of “Internal Supplier / Customer” and “Process
Ownership”..............................................................................................13
1.3 Importance of Objectives and Consequences on Performance
Measurement............................................................................................16
1.4 From Process Management to Business Process Reengineering.............20
1.5 Process Management and ISO 9000:2000 Quality Standards.................25
2. Methodology for Process Management Design &
Implementation....................................................................................29
S. Tonchia
2.1 Content and Deployment of the Methodology..........................................29
2.2 The Main Processes in a Company...........................................................33
2.3 Process Management and Information &
Communication Technologies (ICT)........................................................38
2.4 Techniques and Software Packages for Process Data Management &
Representation...........................................................................................39
3. Knowledge Management in Enterprise Networks............................47
S. Tonchia
3.1 Foundations of Knowledge Management................................................47
3.2 Knowledge, Competencies and Process Management.............................52
3.3 Process Management and Enterprise Networks: The Extended
Management of Knowledge.....................................................................57
3.4 Organizational and ICT Networks: The Extended Enterprise.................60
X Table of Contents
Part Two: The BPR Project and the Processes
4 The Business Process Reengineering Project: A Successful Case
Study....................................................................................................71
E. Snaidero and A. Tramontano
4.1 A Product-Oriented Company Opts to Become Customer-Oriented......71
4.2 Basic Principles of the Reorganisation Carried out in
Snaidero R. S.p.A.....................................................................................74
4.3 New Methods and Tools Supporting the
Customer-Oriented Company..................................................................79
4.4 BPR Project Phases in Snaidero R. S.p.A................................................89
4.5 Main Difficulties and Immediate BPR Benefits......................................92
5. The Business Development and Sales-Service Processes..................97
S. Tonchia
5.1 Business Development.............................................................................97
5.2 Marketing Strategy and Product Portfolio Definition..............................99
5.3 Product Input/Output Impact Evaluation...............................................102
5.4 Design & New Product Development....................................................106
5.5 Sales and Service...................................................................................123
6. The Supply Chain Processes.............................................................125
S. Tonchia
6.1 Supply Chain.........................................................................................125
6.2 Logistics................................................................................................128
6.3 Relationships with Suppliers.................................................................136
6.4 Manufacturing.......................................................................................142
6.5 Quality...................................................................................................143
6.6 Plants & Safety and Technology & Investments..................................146
7. The Directive and Support Processes..............................................149
S. Tonchia
7.1 Strategic Planning..................................................................................149
7.2 Human Resources Management............................................................153
7.3 Budgeting & Control.............................................................................154
Table of Contents XI
Part Three: From Processes to the Extended Enterprise
8. The Knowledge Extended Enterprise: An Innovative Business
Model Suggested by Snaidero.......................................................161
A. Tramontano
8.1 An Evolving Business: The Process-Based Company Becomes a
Knowledge Extended Enterprise.........................................................161
8.2 The Knowledge Extended Enterprise: Main Features and
Comparisons........................................................................................166
8.3 The Collaboration Platform: Its Target Addressees and
Main Benefits......................................................................................172
9. The Web-Based Collaboration Platform: Implementation Phases,
Tools and Architecture..................................................................185
A. Tramontano and S. Franz
9.1 Basic Principles for Implementing the Collaboration Platform.........185
9.2 Why Not Just One Project Partner?....................................................188
9.3 The Project Phases..............................................................................192
9.4 Development and Implementation of the Company’s Toolbox and
Software Architecture.........................................................................198
10. The Management Intelligence Methodology: From Process and
Capabilities Redesign to the Development of Knowledge
Management...................................................................................209
L. Quagini
10.1 SDG Consulting..................................................................................209
10.2 Management Intelligence and the Extended Enterprise......................211
10.3 The “Adapt - Case” Approach............................................................214
10.4 The Creation of Value in BPR Projects..............................................216
10.5 Snaidero Case: SDG’s Contribution to the Creation of KPI’s and
the Knowledge-Based Extended Enterprise Through
Web-Intelligence.................................................................................219
11. The Extended Supply Chain: Enabler of Business Drives.........229
A. Braga Illa and A. Cencini
11.1 Evolution Scenario of the Supply Chain.............................................229
11.2 TXT E-Solutions.................................................................................230
11.3 The Supply Chain in the Extended Enterprise....................................232
11.4 The Extended Supply Chain of Snaidero............................................236
XII Table of Contents
12. Infrastructures and Web-Based Business Applications for an
Integrated Supply Chain...............................................................245
M. Bonzano and E. Liverani
12.1 Company Profile of Oracle Corporation.............................................245
12.2 From Integrated Logistics to the Supply Chain..................................246
12.3 Unity of the Information.....................................................................248
12.4 Orientation to the Processes................................................................250
12.5 Technological Prospects for the Extended Enterprise........................257
Bibliography and Web Sites..........................................................259