Week 10 Redesign Principles and Tactics (1)

Source/Reference:
1. 

Subject: 
Introduction of Redesign Principles

Response:

In Lecture 10, various types of redesign principles and common tactics have been discussed. These principles can be categorized into three aspects. In this article, two of them will be introduced.

Principle #0: Streamline

It plays an important role in Just-In-Time (JIT) strategy. This principle is to streamline the process by minimize the waste, simplify and consolidate similar activities.

For restructuring and configuring around processes...

Principle #1: Lose Wait

It is essential to remove the waiting time in process links to create value. Owing to the interdependencies between different resources or processes, most of the time they are just waiting and no value added activities are performed. This leads to delay in processing and making the business process inefficient. 5 common tactics are discussed which can speedy up the process and reduce the waiting time; they are Concurrency, Closed-Loop, Not Gating Main Process, Continuous Flow and Upstream Relieves Downstream.

Principle #2: Orchestrate

It leads the swiftest and most able enterprise to be execute, which means taking advantage of other companies’ competence to improve the effectiveness of a process. Common tactics include Partnering, Outsourcing, In-Sourcing and Routing through an Informediary (middleman). It is quite common for companies to outsource its non-core business process to other specialized companies who have better infrastructure and expertise in that area. As a result, companies can focus on its core business and the non-core business can be executed much cheaper and more efficient.  

Principle #3: Mass-customize

It flexes the process for any time, any place, anyway. Mass customization is defined as, with the help of IT, by combining mass production processes with high flexibility of individual customization to offer or deliver customized good and services to individual customers. Common tactics like Flexing Time, Flexing Space, Dynamic customization and Modularity are introduced.

Principle #4: Synchronize

Synchronize the physical & virtual parts of the process. A business process will become more efficient and effective if both physical and virtual parts coordinate together. Common tactics include Match Offering, Common Process Platforms and Track Movement.

For changing information flows around processes...

Principle #5: Digitize and Propagate

It refers to capturing information digitally at the source and propagate it throughout the process. In other words, it is more efficient to store the information in digital electronic form. In this way, information can be propagate costless and easily. Also, the information can be validated by some software which can help to eliminate some careless human mistakes and reduce the repetitive workload. Common tactics include Digitize at Source, Make the Process Paperless, Make Information Accessible Upstream and Downstream and Shrink the Distance between the information and the Decision.  

Principle #6: Vitrify

It provides glass-like visibility through fresher and richer information about process status. Nowadays, customer wants greater control on the process. Therefore, real-time visibility is highly demanded by customers as they can keep track of the process’s progress and can obtain the real-time information of the process. Visibility is very essential in e-business. Common tactics of this principle are On-demand Information Tracking, On-the-fly Reporting and Analysis and Standard Partner Interface.  

Principle #7: Sensitize

It fit the process with sensors and feedback loops to prompt action. Since the business environment is dynamic and changeable, therefore it is better for a process to be sensitive to change so that we can react quickly and have timely action. Besides, by providing some feedback loops, customers can express their views and concerns of the process and can gather information for process improvement. Two of the common tactics are Process Dysfunction Loops and Monitor Environmental change.