Information Technology—Make vs. Buy
Classical reengineering approach will suggest
that the design of the new solution be completed to the required
level of detail before beginning the design of the enabling
information system solution. In reality however, this may not be a
practical choice. Many companies get impatient with the long drawn
out reengineering program and end up selecting the information
system to be implemented, somewhat prematurely. And, then they
learn to simultaneously reengineer the business processes in the
context of the system solution. This may indeed be a more effective
approach, if coordinated effectively, due to the long time taken for
developing a custom solution. Motivation to sustain the effort will
fade quickly if it takes longer to deliver the reengineered
solutions. Well designed integrated solutions may in fact offer
rich ideas that may speed up the reengineering design and
Solution Component: The "Social" Design
Most reengineering efforts are primarily focused
on the "technical" design and not on the
"social" design aspects. The technical design includes the
process design, linkages with other processes and functions,
information requirements etc. Social design, on the other hand, is
where Human Resources (HR) can play a crucial role. As Dr. Hammer
puts it "the soft stuff is the hard stuff." Unless social
factors are included in the reengineering, the designs will most
likely remain as designs that may not get implemented. Some of the
tasks in developing the social design include: empowering customer
contact personnel, defining jobs and skills, specifying the
management structure, designing career paths, designing change
management activities, and designing appropriate incentive
Phase 3: Transition
After prototyping the new process, the
organization must evolve to institutionalize the new capabilities.
This phase has to be meticulously planned because this is when most
of the organization will actually experience change. Many
important decisions have to be made regarding the
rollout strategy and sequence, particularly in global
environments. There are significant risks and tradeoffs in
implementing the solution in a "bigbang" fashion vs. in
a phased manner. The phasing of implementation can get very tricky.
It is often not easy to decide whether to rollout the implementation
one product division at a time, or one geographic location at a
time. Cultural issues will have a significant bearing as well.
The reengineering team makes the transition,
during this phase, from a design focus to working within various
organizations supporting the rollout. Management teams from
individual organizations should lead the implementation efforts.
The reengineering team provides the expertise and experience
required for successful transfer of ownership. Many of the change
management issues pertaining to this phase are covered below.
To be Continued
stay current on bullet-proofed manufacturing solutions, subscribe to
ezine, "The Business Basics and Best Practices Bulletin."
Simply fill in the below form and click on the subscribe button.
also send you our free
Special Report, "Five Change
Initiatives for Personal and Company Success."
personal information will never
be disclosed to any third party.
leaders have a responsibility to educate and train their team
members. Help for developing a self-directed, World Class
Manufacturing training program for your people is just a click
are welcomed to print and share this bulletin with your
manufacturing teams, peers, suppliers and upper management ...
better yet, have them signup for their own copy at:
the escalating spam-wars, it's also a good idea to WHITELIST
our bulletin mailing domain via your filtering software or
This will help guarantee that your bulletin is never deleted
Knowledge you’ll not find at offsite
seminars nor in the books at Amazon.com
Lean Manufacturing - Balanced Scorecard
ISO 9000:2000 - Strategic Planning - Supply Chain
Management - MRP Vs Lean Exercises - Kaizen Blitz
Lean Six Sigma - Value Stream Mapping
All at one Website: Good
Six Sigma Training Thinking
Out of the Box
Supply Chain Inventory Management Total
Quality Management Principles
Manufacturing Implementation Lean