Week 6 assignment

Please find the attached documents

If you have you been involved with a company doing a redesign of business processes, discuss what went right during the redesign and what went wrong from your perspective. Additionally, provide a discussion on what could have been done better to minimize the risk of failure. If you have not yet been involved with a business process redesign, research a company that has recently completed one and discuss what went wrong, what went right, and how the company could have done a better job minimizing the risk of failure.

Your paper should meet the following requirements:

• Be approximately 2-4 pages in length, not including the required cover page and reference page.

• Follow APA6 guidelines. Your paper should include an introduction, a body with fully developed content, and a conclusion.

• Support your answers with the readings from the course and at least two scholarly journal articles to support your positions, claims, and observations, in addition to your textbook. The UC Library is a great place to find resources.

• Be clearly and well-written, concise, and logical, using excellent grammar and style techniques. You are being graded in part on the quality of your writing.

Managing and Using Information Systems:
A Strategic Approach – Sixth Edition

Keri Pearlson, Carol Saunders,
and Dennis Galletta

© Copyright 2016
John Wiley & Sons, Inc.

Chapter 5
IT and Business Transformation

2

Sloan Valve
What was wrong with their Product Development Process?
What did Sloan do? What is NPD?
Did it help?
Are all enterprise system implementations this successful?

© 2016 John Wiley & Sons, Inc.
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Complex and slow; 16 units had to coordinate; took 18-24 months to bring new products to market; >50% of ideas didn’t make it; nobody accountable
New Product Development: Adoption of ERP. Process: team included members across the firm; proposed new process of (1) ideation (2) business case development, (3) project portfolio management, (4) product development, (5) product/process validation, (6) launch
Results: Time to market reduced to 12 months, poor ideas filtered out early; better access to info and customer feedback; better accountability
Other firms: No, some failed, such as: Overstock.com, Levi Strauss, Avis Europe
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SILO PERSPECTIVE
VERSUS
BUSINESS PROCESS PERSPECTIVE
4

© 2016 John Wiley & Sons, Inc.

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Silo (Functional) Perspective
Specialized functions (sales, accounting, production, etc.

Advantages:
Allows optimization of expertise.
Group like functions together for transfer of knowledge.
Disadvantages:
Sub-optimization (reinvent wheel; gaps in communication; bureaucracy)
Tend to lose sight of overall organizational objectives.
Executive Offices
CEO
President
Operations
Marketing
Accounting
Finance
Administration
© 2016 John Wiley & Sons, Inc.
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The Process Perspective
Examples of processes:
Fulfill customer orders
Manufacturing, planning, execution
Procurement (see below)

Processes have:
Beginning and an end
Inputs and outputs
A process to convert inputs into outputs
Metrics to measure effectiveness
They cross functions
© 2016 John Wiley & Sons, Inc.
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6

Receive Requirement for Goods/Services

Create and Send Purchase Order

Receive Goods

Pay Vendor

Verify Invoice

Cross-Functional Nature of Business Processes

© 2016 John Wiley & Sons, Inc.
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How to Manage a Process
Identify the customers of processes (who receives the output?)
Identify the customers’ requirements (how do we judge success?)
Clarify the value each process adds to the organizational goals
Share this perspective so the organization itself becomes more process focused
© 2016 John Wiley & Sons, Inc.
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Comparison of Silo Perspective and
Business Process Perspective
Silo Perspective Business Process Perspective
Definition Self-contained functional units such as marketing, operations, finance Interrelated, sequential set of activities and tasks that turns inputs into outputs
Focus Functional Cross-functional
Goal Accomplishment Optimizes on functional goals, which might be suboptimal for the organization Optimizes on organizational goals, or the “big picture”
Benefits Highlighting and developing core competencies; functional efficiencies Avoiding work duplication and cross-functional communication gaps; organizational effectiveness
Problems Redundancy of information throughout the organization; cross-functional inefficiencies; communication problems Difficult to find knowledgeable generalists; sophisticated software is needed

Click to edit Master text styles
Second level
Third level
Fourth level
Fifth level

9

What do you do when things change?
Dynamic and agile processes
Examples:
Agile: Autos are built with wires and space for options
Dynamic: Call centers route incoming or even outgoing calls to available locations and agents
Software defined architectures (see chapter 6)
IT is required to pull this off well
© 2016 John Wiley & Sons, Inc.
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Techniques to Transform a Static Process
Radical process redesign
Also known as business process reengineering
Incremental, continuous process improvement
Including total quality management (TQM) and Six Sigma
© 2016 John Wiley & Sons, Inc.
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Incremental Change
Total Quality Management
Often results in favorable reactions from personnel
Improvements are owned and controlled
Less threatening change
Six-Sigma is one popular approach to TQM
Developed at Motorola
Institutionalized at GE for “near-perfect products”
Generally regarded as 3.4 defects per million opportunities for defect (6 std dev from mean)

© 2016 John Wiley & Sons, Inc.
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Time

Improve-ment

Radical Change
Business Process Reengineering (BPR)
Sets aggressive improvement goals.
Goal is to make a rapid, breakthrough impact on key metrics in a short amount of time.
Greater resistance by personnel.
Use only when radical change is needed.

© 2016 John Wiley & Sons, Inc.
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Time

Improve-ment

Comparing the Two
© 2016 John Wiley & Sons, Inc.
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Improve-ment

Key Aspects of Radical Change Approaches
Need for quick, major change
Thinking from a cross-functional process perspective
Challenge to old assumptions
Networked (cross-functional organization)
Empowerment of individuals in the process
Measurement of success via metrics tied to business goals and effectiveness of new processes
© 2016 John Wiley & Sons, Inc.
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Workflow and Mapping Processes
Workflow diagrams show a picture of the sequence and detail of each process step
Objective is to understand and communicate the dimensions of the process
Over 200 products are available to do this
High-level overview chart plus detailed flow diagram of the process
© 2016 John Wiley & Sons, Inc.
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BPM
Information systems tools used to enable information flow within and between processes.
Comprehensive, enterprise software packages.
Most frequently discussed:
ERP (Enterprise Resource Planning),
CRM (Customer Relationship Management),
SCM (Supply Chain Management)
Designed to manage the potentially hundreds of systems throughout a large organization.
SAP, Oracle, Peoplesoft are the most widely used ERP software packages in large organizations.
© 2016 John Wiley & Sons, Inc.
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BPM Architecture
© 2016 John Wiley & Sons, Inc.
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Standardization vs Integration
Business Process Standardization
Low High
Business Process Integration High Single face to customers and suppliers but standards not enforced internally High needs for reliability, predictability, and sharing; single view of process
Low Decentralized design; business units decide how to meet customer needs Tasks are done the same way across units, but there is little need for business units to interact

Source: J. Ross “Forget Strategy: Focus IT on your Operating Model,”
MIT Center for Information Systems Research Briefing (December 2005)
© 2016 John Wiley & Sons, Inc.
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Enterprise Systems (Enterprise Resource Planning or ERP)
Seamlessly integrate information flows throughout the company.
Reflect industry “best” practices.
Need to be integrated with existing hardware, OSs, databases, and telecommunications.
Some assembly (customization) is required
The systems evolve to fit the needs of the diverse marketplace.
© 2016 John Wiley & Sons, Inc.
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ERP Advantages and Disadvantages
Advantages Disadvantages
Represent “best practices”
Modules throughout the organization communicate with each other
Enable centralized decision-making
Eliminate redundant data entry
Enable standardized procedures in different locations Enormous amount of work
Require redesign of business practices for maximum benefit
Require customization if special features are needed
Very high cost
Sold as a suite, not individual modules
Requires extensive training
High risk of failure

© 2016 John Wiley & Sons, Inc.
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ERP II
Makes information available to external stakeholders too
Enables e-business applications
Integrates into the cloud
Includes ERP plus other functions (see Figure 5.8)
© 2016 John Wiley & Sons, Inc.
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ERP and ERP II Functions
© 2016 John Wiley & Sons, Inc.
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Customer Relationship Management
Customer Relationship Management (CRM) is a natural extension of applying the value chain model to customers.
CRM includes many management activities performed to
obtain,
enhance relationships with, and
retain customers.
CRM can lead to better customer service, which leads to competitive advantage for the business.
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© 2016 John Wiley & Sons, Inc.

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CRM
Common systems are:
Oracle
SAP
Salesforce.com (web-based cloud system)
Oracle and SAP integrate into their ERP systems
© 2016 John Wiley & Sons, Inc.
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Supply Chain Management (SCM)
An enterprise system that manages the integrated supply chain
Translation: processes are linked across companies
The single network optimizes costs and opportunities for all companies in the supply chain
Every part of the supply chain has the latest information about sales expected and inventories from source materials at all stages
Bullwhip effect occurs when the supplier at each stage adds a small “buffer” for it’s suppliers in case demand is higher than expected
© 2016 John Wiley & Sons, Inc.
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Difficulties in Integrated Supply Chains
Information integration requires agreement of what information to share, how to share it, and the authority to view it.
Trust must be established
Planning must be synchronized carefully
Workflow must be coordinated between partners to determine what to do with the information they obtain
© 2016 John Wiley & Sons, Inc.
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Advantages and Disadvantages
of Enterprise Systems

© 2016 John Wiley & Sons, Inc.
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The Adoption Decision
The enterprise system sometimes should drive business process redesign when:
Just starting out.
Organizational processes are not relied upon for strategic advantage.
Current systems are in crisis.
It is inappropriate for the enterprise system to drive business process redesign when:
Changing an organization’s processes that are relied upon for strategic advantage.
The package does not fit the organization.
There is a lack of top management support.
© 2016 John Wiley & Sons, Inc.
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Managing and Using Information Systems:
A Strategic Approach – Sixth Edition
Keri Pearlson, Carol Saunders,
and Dennis Galletta

© Copyright 2016
John Wiley & Sons, Inc.

Influence of Digital Technology on Roadmap
Development for Digital Business Transformation

Iryna Strutynska
Department of Computer Science

Ternopil Ivan Puluj National Technical
University

Ternopil, UKRAINE
ringtons999@gmail.com

Galina Kozbur
Department of Computer Science

Ternopil Ivan Puluj National Technical
University

Ternopil, UKRAINE
kozbur.galina@gmail.com

Lesia Dmytrotsa
Department of Computer Science

Ternopil Ivan Puluj National Technical
University

Ternopil, UKRAINE
dmytrotsa.lesya@gmail.com

Olena Sorokivska
Department of Management and Administration

Ternopil Ivan Puluj National Technical University
Ternopil, UKRAINE

soroka220996@gmail.com

Liliya Melnyk
Department of Management and Administration

Ternopil Ivan Puluj National Technical University
Ternopil, UKRAINE

liliana.mel0512@gmail.com

Abstract—In a highly competitive information economy,
business structures require continuous introduction of
innovation, effective information technology to ensure
sustainable long-term market benefits, as well as their rational
functioning. The implementation of the digital business model is
one of the promising areas, which makes it possible to realize the
activity of enterprises even more productively. The digital
business model allows businesses to react more responsibly to
the needs of potential buyers and customers, and also helps
adapt and optimize business processes over a certain period of
time to certain market conditions. That is why, the purpose of
the article is to identify the peculiarities of the influence of
digital technology on the transformation of existing business
models of organizations. In view of this, an in-depth analysis of
the main stages of the development of a roadmap for the digital
transformation of business has been carried out; business
process management software products and the most suitable
ones have been examined. The article studies digital technologies
in the context of enterprise business groups and reflects how
relevant technologies affect the transformation of the existing
linear business model into the digital business model and reflects
the most significant effects for business.

Keywords—information technology, digital economy, digital
technologies, information management system, digital business
model, business processes, BPM, business process management,
CRM, ERP.

I. INTRODUCTION
In this digital era, the pace of change is extremely

frustrating and each organization encounters existential
threats from new and existing competitors. In the era of the
Industrial Revolution 4.0, technology is the right of any
company to change its own business model so as to
differentiate itself from the entire world market.

The competitiveness of business structures is shaped by
the use of digital technologies, the application of the
information management system, reengineering and the
transformation of existing business processes into new digital
business models.

Digitalization is the use of digital technologies to change
the business model and provide new revenue and value-
producing opportunities; it is the process of moving to a
digital business [1-7].

The problem of the development of the digital economy
and the transformational processes taking place in society
under the influence of digitization has received a lot of
attention among both foreign authors [1-2, 10-12] and
Ukrainian researchers [3, 5-6], etc.

Fig. 1. The evolution Digital Business Development Path
(Source: Author’s interpretation based on: Gartner)

Despite numerous scientific studies on the development
of information and communication technologies and the
digital economy, we consider that the issues of the impact of
digital technology on the transformation of existing business
models of the organization are insufficiently examined.

II. PROBLEM ANALYSIS AND MARKET TRENDS
On the one hand, in the market of information

technologies and services, there are already a lot of software
products (world and domestic) that are largely able to fill the
gaps in information technology companies. Domestic
business is in search of suitable technologies for business
automation, is familiar with the best European and world
practices of digital transformation.

The development of information technology (systems) of
management for a particular business is a project for the
development of a roadmap for the digital transformation of
business. This is a very important project that requires
significant financial support, highly trained specialists and
knowledge-intensive technology, knowledge in many areas,
namely, project management, digital development
management and others (fig. 2).

978-1-7281-0450-8/19/$31.00 ©2019 IEEE 333

Fig. 2. Relationships Computer Science, Information Systems with Business World

Before deciding on the use of any information technology
in business, it is necessary to analyze the current business
model (fig. 3) and the business processes of the organization,
to understand the problems that are encountered by the
relevant stakeholders, and only then integrate into the digital
transformation.

Fig. 3. Elements of the business model canvas
(Source: Author’s interpretation based on: Osterwalder, 2010)

In general, modern business solves the triple strategic task
for strengthening their competitive positions:

first, it is necessary to establish closer relations with
suppliers and clients (the sector of work with clients, increase
sales);

second, to increase the level of own operational
efficiency (the sector of effective operational activity of the
organization);

third, to increase the competitiveness of products
produced (consolidation of certain sectors of the business
model).

The fulfilment of all these tasks is impossible without the
integration of information systems and technologies into the
business sphere.

We offer to consider achievement of these three tasks
through the prism of business processes of the organization
using certain information technologies (digital instruments)
(Table 1).

TABLE I. GROUPS OF BUSINESS-PROCESSES OF
ORGANIZATION AND DIGITAL TECHNOLOGIES OF THEIR

TRANSFORMATION

# Groups of business-
processes of organization

Digital instruments
(systems, products, digital

decisions)
Task 1. Establishing closer relations with suppliers and customers

1 Interaction with suppliers
Management)

2 Interaction with customers
(consumers)

Systems CRM (Customer
Relationships Management)

Task 2. Increase the level of own operational efficiency
3 Resources management ERP (Enterprise Resources

Planning)
4 Management of Business

Process
BPM-system (Business process
management)

5 Analytical component
management (data analysis)

Technologies Big Data, Data
mining, OLAP-cube, cloud
computing,

6 Providing modern
technologies to employees
of the company to
effectively carry out daily
work

Office 365, Google doc, use of
CRM system, dashboards for
evaluation of key indicators

Task 3. Increase the competitiveness of products
7 Product management

(control, storage and
provision of necessary
information)

Systems PLM (Product Lifecycle
Management) and PDM (Product

Data Management), digital
sensors, GIS technology and

others.
8 Marketing activity,

including:
New ways to attract
customers;
Search for effective sales
channels for a particular
consumer;
Changing products or
services using technology.

Digital Internet Marketing Tools
Google Analytics, Google
AdWords; SEO and SMM
Using chat bots to communicate
with customers;
Forming funnel sales;
Connecting a virtual or
complementary reality to a
shopping mall, collecting
customer data.

One of the possible options for an effective and efficient
organizational information support system for the enterprise
is a system that is integrated with the technology of
operational management of business processes.

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III. SOFTWARE TOOLS FOR MODELING BUSINESS PROCESS
It is necessary to use informational products that enable

us to simulate business business processes, the so-called “As
Is” model (the “How It Is” Business Processes Model), which
will allow you to see “weak areas” in business, build a new
business model of business-processes, that is, model “To Be”.
These information products will allow you to structure and

automate business processes (reengineering business
processes) of the enterprise.

In the IT market there is a differentiated set of BPM
systems. That is why as the basis for the study «Gartner magic
quadrant bpm tools, 2018» [13] was considered and other
researches [11, 14]. All the information is systematized in
table 2 where TOP 10 BPM-systems are listed and their
characteristics are provided.

TABLE II. 10 BPM-SYSTEMS AND THEIR CHARACTERISTICS

BPM
Systems Vendor Details

Easy to use Standards support License and cost
Integration with
other corporate

applications

Ability to
dynamically
change the

business
process

ELMA BPM
Founded 2007
Luxembourg

Cloud, SaaS, Web Installed
– Mac

Installed – Windows

Mobile – Android Native,

Mobile – iOS Native

BPMN

Paid,
Free Demo and

free version for five
jobs

Ability to integrate
with “1 C: Enterprise”

Yes

Bizagi BPM

Founded 1989
United

Kingdom

Cloud, SaaS, Web
Installed – Windows

Mobile – Android Native,
Mobile – iOS Native

BPMN,
XPDL

Paid,
Free Demo and

free

version

Wide possibilities of
integration with CRM

and ERP systems Yes

Bitrix24 Founded 1998 United

States

Cloud, SaaS, Web
Installed – Mac

Installed – Windows
Mobile – Android Native

Mobile – iOS Native

IDEF, BPMN

Paid (Starting Price
$39.00/month),

Over 10,000
intranets created
already! Up to 12

users free!

Wide possibilities of
integration with CRM
and ERP systems Yes

Oracle BPM
Founded 1977
United States Convenient and simple, realization of violin tasks

BPMN,
BPEL

Paid,
Free

Demo

Wide integration
possibilities Yes

erwin
Business
Process

Founded 1988
United States

Deployment Cloud, SaaS,
Web

Installed – Windows

IDEF0,
IDEF3, DFD

Paid,
Free Demo, free

version
Wide integration
possibilities Yes

Appian Founded 2004 United States
Convenient and simple,

realization of violin tasks BPMN
Paid (Starting Price
$75.00/month), Free

Demo

To store ARIS models,
an object database is

used
No

IBM
Blueworks

Live

IBM Cloud-based BPM
platform. Simple and

straightforward

BPMN Paid,
Free Demo

Wide integration
possibilities

Yes

Bpm’online Founded 2011
Ukraine, United

States

Is ideal for middle-sized
companies and enterprises BPMN Paid, Free Demo

Wide integration
possibilities
Yes

Bonita BPM Founded 2001
France

Convenient and simple,
realization of violin tasks BPMN Bonita open solution

Wide integration
possibilities
Yes

Pegasystems Founded 1983
United States

Convenient and simple,
developed on Java and

OOP concepts
BPMN

Paid,
Free Demo and

free version

Wide integration
possibilities
Yes

Each of the above systems deserves attention. However,
we offer in practical examples a more detailed analysis of the
most suitable software products. The following perspectives
are taken into account: the features of the system, prices and
simplicity of its use (Erwin Business Process, Bitrix24,
Bizagi BPM, ELMA BPM, Pegasystems, Bonita BPM).
(Erwin Business Process, Bitrix24, Bizagi BPM, ELMA
BPM, Pegasystems, Bonita BPM).

IV. PRACTICAL RESULTS
After the practical use of these six BPM systems, we have

chosen two systems that are cost-effective, the most simple
and easy to use.

The advantages of BPM system Erwin Business
Process:

1. Clear, standard, and concise representation of the
elements. To ensure the unity of representing elements of data
models in ERwin, standardized representations of object
names, standardized data types, and standard model samples
(reference models) are used. Visual representation of large
data arrays. Due to the powerful graphic system and
navigation system (IDEF0, IDEF3, DFD);

2. The ability to interact with users. ERwin provides
various opportunities for sharing information among all
members within an organization. Collaborative work with
Depositary Users. ERwin provides automatic version control,
access control, conflict management, and model modification
to work together effectively. At the expense of the web portal,
business analysts, technical specialists and others can access
data models in understandable configurations for them;

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3. Application of open architecture. ERwin provides
extensive integration opportunities with other process
modeling and information system development tools (more
than 120 different tools).

Fig. 4. BPM for Agroholding Mriya (IDEF0, IDEF3)

BPM ELMA system has a sophisticated yet clear
interface. It is distributed in three versions intended for
organizations with different needs and staff numbers. In
addition, there is a free version for five jobs, which makes it
possible to use it fully in the activities of small businesses
(Fig. 5).

When an enterprise establishes the necessary
configuration of all business processes and coordinates it with
the organizational system, it is at this stage that makes it
possible to decide on the application of certain digital
technologies in the context of different groups of business
processes.

Fig. 5. BPM «Receiving an order from a client» (Agroholding Mriya»
(system BPM ELMA, BPMN)

It is precisely the implementation of certain information
management systems in the existing business model that will
lead to data transformation and the emergence of a new
digital business model (Fig. 6).

Fig. 6. Digital focus areas are drivers for transforming existing business models
(Source: structured by the authors on the basis of the conducted in-depth analysis)

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With the use of modern information technology business
transforms into a new business model and receives significant
benefits:

– access to new markets;
– added value of the product through technology
– intensification and automation of existing business

processes;
– consolidation of key resources (6), key activities (5),

customer relationships (4) and sales channels (3) in integrated
digital business processes based on certain digital systems
(platforms);

– change of business culture;
– formation of a single ecosystem;
– intelligent analytics and forecasting;
– effective cooperation with clients, customers and

partners;
– optimization of system management (including

reduction of funds);
– acceleration of economic cycles;
– efficient use and release of production and warehouse

capacities as a result of reduction.

V. CONCLUSIONS
It is determined that the emergence of the digital economy

has opened new opportunities for the development of
business structures.

New digital technologies have affected the transformation
of existing business models of organizations. Digital business
models have begun to penetrate large and small companies in
different sectors.

That is why in the article the features of application of
modern information technologies in the context of groups of
business. That is why in the article the features of application
of modern information technologies in the context of groups
of business processes and components of business models of
the organization are explored. In view of this, an in-depth
analysis of the main stages of the development of a roadmap
for the digital transformation of business has been carried out;
business process management software products and the most
suitable ones have been examined. The research reflects how
relevant technologies affect the transformation of the existing
linear business model into the digital business model and
discovers the most significant effects for business.

In a future version of this article, we intend to propose to
consider current models and methodologies for calculating
the digital transformation index of EU countries and the

world. We will analyze the general structure of the indicators,
we will pay special attention to the analysis of indicators of
the index of digital transformation of business structures and,
based on this, we will work towards adapting and developing
our own methods and methodologies for digital
transformation for the domestic economy and business
structures.

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https://www.gartner.com/it-glossary/digital-business-transformation
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[11] The Infrastructure Needs of the Digital Economy [Electronic
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[12] Digitalization vs Digital Transformation: A Trojan Horse or a Golden
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