MIS 525: Business Process Innovation
Winter, 1997

Srinarayan ("Sri") Sharma
302 Varner Hall
(248) 370-4088
srisharm@oakland.edu
Section: U5480
Class Times: TH 6:30-9:20 p.m.
480 Varner Hall
Office Hours: T TH 5:00-6:30 p.m. & by appointment
http://www.sba.oakland.edu/faculty/sharma/mis525/U80w97.html


Required Text

Davenport, Thomas H. Process Innovation: Reengineering work through Information Technology. Harvard University Press: Boston, 1993.

Optional Text

Hammer, Michael and Champy, James. Reengineering the Corporation: A Manifesto for Business Revolution. Harper Collins: New York, 1993.

Cases

  1. CIGNA: Managing and Institutionalizing Business Process Reengineering
  2. ISSC: Solution Center
  3. PacBell: Centrex Reengineering
  4. Procter & Gamble: Improving Customer Value through Process Redesign
  5. KPMG Peat Marwick: The Shadow Partner
  6. Siemens Rolm Communications, Inc.
  7. The Internal Revenue Service: Automated Collection System

Objectives of the Course

The competitive climate of the 1990s requires that organizations devise methods for changing and improving activities crucial to their mission. Organizational performance improvement must include the identification and analysis of key processes and their redesign using available technological and organizational resources. The main objective of this course is to prepare students for a significant role in an organization where processes are designed and managed in such a way that costs are minimized, quality is increased, and customers are satisfied. The students will also be prepared to undertake a project that aims to design a process to achieve these objectives.

At the completion of the course, the students will be able to:

  1. identify key processes in an organization
  2. distinguish between process innovation and process improvement
  3. develop a case for action for a BPR project
  4. diagram the flow of activities in key organizational processes
  5. simulate the flow of activities for key organizational processes
  6. analyze and redesign the flow of activities of key organizational processes
  7. identify critical personnel (project sponsors, process owners, BPR team members, etc.) for a BPR project
  8. understand the different phases of a BPR project and how they relate
  9. develop an implementation plan for a BPR project
  10. understand the change management issues involved in a BPR project

Conduct of the Course

The course will consist of lectures, discussions, group projects, and in-class exercises. I will attempt to have available at the time of the class, all lecture notes in a PowerPoint document to minimize the burden of note taking. Most activities will depend on the active participation of the students in the class (e.g. discussion about the lecture material and active involvement in solving the cases). Graded material will include: one examination, an ongoing group project that involves the solution of an in-class case, in class case discussions, and a final project. In addition, there may be some smaller exercises concerning the use of the AdvanEdge process modeling tool Optima.

Project.

Each student will be responsible for completing a project that integrates the materials from this course. The project will consist of an analysis and description of the redesign of a process in your organization or in one that you know about. It is important that each student keep the final project in mind during the term in order to collect data, make notes, and perform preliminary analysis relevant to the project. Upon completion of the project proposal, the student will receive feedback from the instructor to guide the final project. Naturally, a more clear description in the proposal will enable more beneficial feedback from the instructor.

The final project will be in the form of a business report and will be word processed with computer generated diagrams. The report should include an executive summary and a description of the firm, its market, competitors, and customers. The following components will be required:

  1. Critical Success Factors for the firm.
  2. A list and brief description of 6+ processes for your firm.
  3. A case for action.
  4. Process selection for redesign and justification in terms of the case for action.
  5. Identify sponsor and champion for the BPI project.
  6. Identify stakeholders for the process.
  7. Identify customers.
  8. Identify customer requirements.
  9. Diagram and analysis of the process as it exists.
  10. Diagram of new process with explanation of changes.
  11. Description of technology, human resource, and organizational structure enablers needed to support the new process.
  12. Implementation plan for the project.

13. Lessons learned - what did you learn from doing this project?


Grading

Grades will be determined approximately as follows:

Exam 30%
In class case and exercises 25%
Final project25%
Case discussions20%

The final grade will be based on your score relative to other members of the class. It will be determined after all the points for the different assignments are totaled.

Tentative Class Schedule

Date
Topic
Reading Assignment
Handouts
Jan 9
Jan 16Introduction Chapter 1Hammer article

Davenport interview

Jan 23Hammer Video

Davenport interview

Hammer article

Davenport interview

Jan 30Process Identification Chap. 2

CIGNA Corp.

Bambino Handout
Feb 6Process Enablers: Information Technology

Project Initiation: Case for Action

Chap. 3-4

Bambino case

Project Proposal Due
Feb 13Organizational and HR Enablers

Project Initiation: Scope and Scale

Chap. 5

Bambino case

Feb 20Creating a Process Vision Chap. 6

Bambino case presentation

Siemens-Rolm case

Feb 27Winter Recess
Mar 6Process Understanding Chap. 7

ISSC case

Bambino case

Mar 13New Process Design Chap. 8

Bambino case

Mar 20Change Management Chap. 9

PacBell case

Bambino case

Mar 27Implementation Chap. 10

IRS case

Bambino case

Assignment on Process Map Reassigned
Apr 3Bambino: Process Simulation and New Process Design KMPG caseAssignment on Process Map Due

Assignment on Process Simulation Given

Apr 10Bambino: New Process Design Assignment on Process Simulation Due

Assignment on New Process Design Given

Apr 17Review, Project Related Questions Assignment on New Process Design Due
April 24Final Exam (7:00-10:00 p.m.) Final Individual Project Due

Additional Reading

Books

Johansson, Henry J., McHugh, Patrick A., Pendlebury, John, and Wheeler, William III. Business Process Reengineering: Breakpoint Strategies for Market Dominance. Wiley: Chichester, UK, 1993.

Lockamy, Archie III and Cox, James F. III. Reengineering Performance Measurement: How to Align Systems to Improve Processes, Products, and Profits. Irwin: Burr Ridge, IL, 1994.

Articles

Lucas, Henry C Jr; Berndt, Donald J; Truman, Greg. A reengineering framework for evaluating a financial imaging system. Communications of the ACM, Vol. 39, No. 5, May 1996, pp. 86-96.

Buzacott, John A. Commonalties in reengineered business processes: Models

and issues. Management Science, Vol. 42, No. 5, May 1996, pp. 768-782.

Stoddard, Donna B; Jarvenpaa, Sirkka L; Little, John Michael. The reality of business reengineering: Pacific Bell's Centrex provisioning process. California Management Review, Vol. 38, No. 3, Spring 1996, pp. 57-76.

Candler, James W; Palvia, Prashant C; Thompson, Jane D; Zeltmann, Steven M. The ORION project: Staged business process reengineering at FedEx. Communications of the ACM, Vol. 39, No. 2, Feb 1996, pp. 99-107.

Holden, Tony; Wilhelmij, Paul. Improved decision making through better integration human resource and business process factors in a hospital situation. Journal of Management Information Systems, Vol. 12, No. 3, Winter 1995/1996, pp. 21-41.

Clemons, Eric K; Thatcher, Matt E; Row, Michael C. Identifying sources of reengineering failures: A study of the behavioral factors contributing to reengineering risks. Journal of Management Information Systems, Vol. 12, No. 2, Fall 1995, pp. 9-36.

Bartlett, Christopher A; Ghoshal, Sumantra. Rebuilding behavioral context: Turn process reengineering into people rejuvenation. Sloan Management Review, Vol. 37, No. 1, Fall 1995, pp. 11-23.

Sachs, Patricia. Representations of work: Transforming work: Collaboration, learning, and design. Communications of the ACM, Vol. 38, No. 9, Sep 1995, pp. 36-44.

Anonymous. Beyond total quality management and reengineering: Managing through processes. Harvard Business Review, Vol. 73, No. 5, Sep/Oct 1995, pp. 80-81.

Earl, Michael J; Sampler, Jeffrey L; Short, James E. Strategies for business process reengineering: Evidence from field studies. Journal of Management Information Systems, Vol. 12, No. 1, Summer 1995, pp. 31-56.

Davenport, Thomas H; Beers, Michael C. Managing information about processes. Journal of Management Information Systems, Vol. 12, No. 1, Summer 1995, pp. 57-80.

Stoddard, Donna B; Jarvenpaa, Sirkka L. Business process redesign: Tactics for managing radical change. Journal of Management Information Systems, Vol. 12, No. 1, Summer 1995, pp. 81-107.

Grover, Varun; Jeong, Seung Ryul; Kettinger, William J; Teng, James T C. The implementation of business process reengineering. Journal of Management Information Systems, Vol. 12, No. 1, Summer 1995, pp. 109-144.

Cooper, Robin; Markus, M Lynne. Human reengineering. Sloan Management Review, Vol. 36, No. 4, Summer 1995, pp. 39-50

Martinez, Erwin V. Successful reengineering demands IS/business partnerships. Sloan Management Review, Vol. 36, No. 4, Summer 1995, pp. 51-60

Clemons, Eric K. Using scenario analysis to manage the strategic risks of reengineering. Sloan Management Review, Vol. 36, No. 4, Summer 1995, pp. 61-71.

Allen, C Dennis. Succeeding as a clandestine change agent. Communications of the ACM, Vol. 38, No. 5, May 1995, pp. 81-86.

Miles, Raymond E; Coleman, Henry J Jr; Creed, W E Douglas. Keys to success in corporate redesign. California Management Review, Vol. 37, No. 3, Spring 1995, pp. 128-145.

Kiely, Thomas J. Managing change: Why reengineering projects fail. Harvard Business Review, Vol. 73, No. 2, Mar/Apr 1995, p. 15.

Kotter, John P. Leading change: Why transformation efforts fail. Harvard Business Review, Vol. 73, No. 2, Mar/Apr 1995, pp. 59-67

Anonymous. Two (very different) success stories. Harvard Business Review, Vol. 73, No. 1, Jan/Feb 1995, pp. 70-71.

Ghoshal, Sumantra; Bartlett, Christopher A. Changing the role of top management: Beyond structure to processes. Harvard Business Review, Vol. 73, No. 1, Jan/Feb 1995, pp. 86-96.

Davenport, Thomas H; Nohria, Nitin. Case management and the integration of labor. Sloan Management Review, Vol. 35, No. 2, Winter 1994, pp. 11-23.

Venkatraman, N. IT-enabled business transformation: From automation to business scope redefinition. Sloan Management Review, Vol. 35, No. 2, Winter 1994, pp. 73-87.

Riggins, Frederick J; Mukhopadhyay, Tridas. Interdependent benefits from interorganizational systems: Opportunities for business partner reengineering. Journal of Management Information Systems, Vol. 11, No. 2, Fall 1994, pp. 37-57.

Sampler, Jeffrey L; Short, James E. An examination of information technology's impact on the value of information and expertise: Implications for organizational change. Journal of Management Information Systems, Vol. 11, No. 2, Fall 1994, pp. 59-73.

Anonymous. The perils of inadequate leadership. Harvard Business Review, Vol. 72, No. 5, Sep/Oct 1994, pp. 137.

Caron, J Raymond; Jarvenpaa, Sirkka L; Stoddard, Donna B. Business reengineering at CIGNA Corporation: Experiences and lessons learned from the first five years. MIS Quarterly, Vol. 18, No. 3, Sep 1994, pp. 233-250.

Dixon, J Robb; Arnold, Peter; Heineke, Janelle; Kim, Jay S; Mulligan, Paul Business process reengineering: Improving in new strategic directions. California Management Review, Vol. 36, No. 4, Summer 1994, pp. 93-108.

Schonberger, Richard J. Human resource management lessons from a decade of total quality management and reengineering. California Management Review, Vol. 36, No. 4, Summer 1994, pp. 109-123.

Markus, M Lynne; Keil, Mark. If we build it, they will come: Designing information systems that people want to use. Sloan Management Review, Vol. 35, No. 4, Summer 1994, pp. 11-25.

Davenport, Thomas H; Stoddard, Donna B. Reengineering: Business change of mythic proportions? MIS Quarterly, Vol. 18, No. 2, Jun 1994, pp. 121-127.

Teng, James T C; Grover, Varun; Fiedler, Kirk D. Business process reengineering: Charting a strategic path for the information age. California Management Review, Vol. 36, No. 3, Spring 1994, pp. 9-31.

Kambil, Ajit; Short, James E. Electronic integration and business network redesign: A

roles-linkage perspective. Journal of Management Information Systems, Vol. 10, No. 4, Spring 1994, pp. 59-83.

Newman, Julie; Kozar, Kenneth A. A multimedia solution to productivity gridlock: A re-engineered jewelry appraisal system at Zale Corporation. MIS Quarterly, Vol. 18, No. 1, Mar 1994, pp. 21-30.

Dennis, Alan R; Daniels, Robert M Jr; Hayes, Glenda; Nunamaker, Jay F Jr. Methodology-driven use of automated support in business process re-engineering. Journal of Management Information Systems, Vol. 10, No. 3, Winter 1993-1994, pp. 117-138.

Goss, Tracy; Pascale, Richard; Athos, Anthony. The reinvention roller coaster: Risking the present for a powerful future. Harvard Business Review, Vol. 71, No. 6, Nov/Dec 1993, pp. 97-108.

Duck, Jeanie Daniel. Managing change: The art of balancing. Harvard Business Review, Vol. 71, No. 6, Nov/Dec 1993, pp. 109-118.

Hall, Gene; Rosenthal, Jim; Wade, Judy. How to make reengineering really work. Harvard Business Review, Vol. 71, No. 6, Nov/Dec 1993, pp. 119-131.

Davenport, Thomas H. Reengineering the Corporation. Sloan Management Review, Vol. 35, No. 1, Fall 1993, pp. 103-104.

Short, James E; Venkatraman, N. Beyond Business Process Redesign: Redefining Baxter's Business Network. Sloan Management Review, Vol. 34, No. 1, Fall 1992, pp. 7-20.

Curtis, Bill; Kellner, Marc I; Over, Jim. Process Modeling. Communications of the ACM, Vol. 35, No. 9, Sep 1992, pp. 75-90.