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Prioritization Factors Ease of Fix Customer Service Impact Competitive Threat / Strategic Vulnerability Estimated Performance Gap (Potential Impact) There are many dimensions across which problems may be prioritized. Potential Sources: Defining Question: ?Process maps ?Idea surveys ?Brainstorming ?PMO phase of reengineering –brainstorming –surveying –process flows –interviews –ridealongs ?Competitor analysis ?Benchmarking ?Customer analysis ?Client interviews ?Customer analysis ?Customer interviews ?Focus groups ?Client interviews –particularly sales force ?Which processes can we easily implement to help build momentum for the process? –little or no anizational barriers –low cost ?What is the financial impact associated with improving the process? –lower cost –higher revenue –less capital ?What processes are sources of petitive advantage or disadvantage? ?Which processes have the largest actual impact and/or the largest perceived impact on customers? Prioritize SubProcesses 32 SFR Reengineering Example Process Prioritization Matrix Processes with high petitive threats and high customer service impact are the most strategically vulnerable, and should be prioritized first. High Low High Low Customer Service Impact Competitive Threat Impact Support process Service provisioning Service restoration Network operations Operator services Network creation Customer acquisition Product development Estimated performance gap = $XM Phase I Phase II Phase II Prioritize SubProcesses 33 SFR Reengineering Reengineering Process Implement and Track Results Diagnose PMO FMO Redesign Quantification of Potential Design TMO, Create Initiatives Identify Critical Processes Initial Prioritization Definitions PMO = Present Mode of Operation TMO = Transitional Mode of Operation FMO = Future Mode of Operation Prioritize SubProcesses for Redesign 34 SFR Reengineering Alternative Bases for FMO Redesign Redesign Brainstorm Enabling Technology Sources for Redesign External Perspective (Customers, Benchmarking) Breakthrough ideas e from a variety of sources. AssumptionBreaking Related Links: ?Redesign Brainstorming Principles ?Brainstorming Techniques and Ground Rules ?Brainstorming Tactics ?Exploring External Perspectives ?Assumption Breaking Example ?Assumption Breaking Questions ?Information Technology as an Enabler ?Automate: Applications of Technologies FMO Redesign 35 SFR Reengineering Approaches to Redesign Greenfield / Radical Redesign Dramatic Process Improvement (DPI) ?Remove nonvalueadded activities ?Consolidate tasks/remove unnecessary handoffs ?Streamline process Goals: ?Create alternative process architectures ?Design new detailed processes ?Evolutionary ?Shortterm impact ?Based on current processes: major barriers set aside Description: ?Revolutionary ?Longterm vision ?“Blank Sheet” approach: “What if we were starting from scratch?” While Greenfield redesign is the ultimate goal, DPI redesign is equally important –quantification of fullpotential early on –easier to gain anizational momentum Whenever possible, FMO redesign employs both of the following approaches: See Related Topic: Principles of Reengineering FMO Redesign 36 SFR Reengineering FMO Redesign Process: Eliminate / Simplify / Automate The Eliminate / Simplify / Automate logic disciplines reengineering to eliminate nonvalue added cost before hardwiring inefficiencies through automation. Goals: ?Automate work to make processes –better –faster –cheaper ?A reengineered process should be: –simple: less overhead and nonvalueadded plexity –flexible: fluid and judgmentintensive –integrated: elimination of fragmentation –pressed: decisionmaking on the front line ?Reduce handoffs ?Eliminate unnecessary steps Create Customer Value Eliminate Automate Simplify Definition: ?Eliminate all or part of the work –reduce volume of inputs –eliminate noncustomer valueadded processes ?Eliminate sources of error and fallout –improve flowthrough FMO Redesign 37 SFR Reengineering Eliminate, Simplify Example: Athletic Shoe Industry Notes: denotes scheduled line review meeting Number of Months 0 3 6 9 12 15 18 ? Concept Design Client Competitor 17 5 ? Prototype samples ? Promotion/ Sales ? Revisions ? Prototype ? Initial Fit Tests ? Initial Costing ? Revisions ? Sales Samples ? Orders Placed ? Trial Runs / Tool Up ? Warehouse ? Delivery to Retail ? Production ? Shipping ? Marketing Strategy ? Market Research ? Product Briefs ? Design/ Tech Package ? Warehouse ? Delivery to Retail ? Promotio/ Sales ? Toolup for production ? Production ? Book Orders ? Weekly Production Orders ? Test Market ? Continue Production ? Begin Shipping ? DropShip ? Delivery FMO Redesign 38 SFR Reengineering Automate Example: Hospital Supplies Distribution See Related Topics: Information Technology as an Enabler。 18% improvement in customer satisfaction Process Industry Results ?Air freight express ?Truck delivery ?5 times improvement in revenue, 11 times improvement in operating earnings, and 10 times increase in share price ?Computers ?Distribution ?Product permutations decreased from 1 billion to 40,000。 and Electric Utility. A process is a set of business activities which cross multiple functional boundaries to create value for a custome