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siness Process Reengineering R K P Q X P T X Q P T X Q T X P Q T X P 1 2 3 4 5 High Low The Degree of Mediation 4/2/2023 37 Business Process Reengineering The Degree of Collaboration Dimension of a Business Process ?The second dimension is related to the degree of collaboration between functions through information exchange and mutual adjustments when participating in the same process. ?The frequency and intensity of information exchange between two functions can range from none (pletely insulated) to extensive (highly collaborative). 4/2/2023 38 Business Process Reengineering A B C A B C A B C A B C Low Degree of Collaboration High Low Degree of Mediation High insulated collaborative indirect direct 4/2/2023 39 Business Process Reengineering insulated collaborative indirect direct A B C A B C A B C A B C Low Degree of Collaboration High Low Degree of Mediation Hight ? Coupling Pattern: Function participate in the process sequentially with no mutual information exchange ? Environment: Participating functions are sequentially dependent and face low level of uncertainty in I/O requirements. ? Example: Sales function (A) sends customer order to inventory function (B) for shipment ? Coupling Pattern: Function participate in the process sequentially with mutual information exchange ? Environment: Participating functions are sequentially dependent and face high level of uncertainty in I/O requirements. ? Example: Engineering function (A) provides manufacturing design to production (B) with frequent consultation between A and B. ? Coupling Pattern: Function participate directly in producing the process oute with no mutual information exchange ? Environment: Participating functions are sequentially independent and face low level of uncertainty in I/O requirements. ? Example: Recruiting workers (A) and equipment requisition (B) participate directly in establishing a new plant with no consultation between A and B. ? Coupling Pattern: Function participate directly in producing the process oute with mutual information exchange ? Environment: Participating functions are sequentially independent and face high level of uncertainty in I/O requirements. ? Example: Advertising (A) and production (B) directly participate in launching a new product with frequent consultation between A and B. 4/2/2023 40 Business Process Reengineering Functional Integration ?Reducing Degree of Mediation through IT ? redesigning business process from an indirect pattern to a direct pattern ? permitting two or more functions to proceed independently ? the use of shared puting resources is the key point of reducing the mediation level of a process. ? shared information is not depleted upon usage and may retain its value to additional functions after access by the initial user. 4/2/2023 41 Business Process Reengineering Enhancing Degree of Collaboration through IT ?Collaborations between functions are not always necessary ?IT technologies have great potential for improving collaboration between functions involved in a business process. ? Telemunication ? Inter ? ? groupware ? other OA applications 4/2/2023 42 Business Process Reengineering A B C A B C A B C DB A B C DB Path X Primarily through application of munication technology Path X* Path Y Primarily through application of shared information resources Path Y* Low Degree of Collaboration High Low Degree of Mediation High III II I IV 4/2/2023 43 Business Process Reengineering A B C A B C A B C DB A B C DB Path X Primarily through application of munication technology Path X* Path Y Primarily through application of shared information resources Path Y* Low Degree of Collaboration High Low Degree of Mediation High III II I IV ? Example of HP ? 135 salespersons were trained to use laptop puter to retrieve inventory information from corporate database during customer meetings. ? They also may municate with their peers and superiors to exchange information. ? A high degree of collaboration was achieved between marketing inventory and sales functions. ? Results: ? meeting time decrease 46% ? travel time was cut by 13% ? time with customer increase 27% ? sales increase 10% ? Example of TI ? Product development is conducted at different countries: India, Malaysia, Japan, . ? Glo