Performance measurement system for business processes

All companies need to know at what level and to what extent they are complying with their objectives. We present a system called PMS-BP (performance measurement system for business processes) which has been designed to define indicators and evaluate company performance. The system is used to measure performance through the integrated management of business processes and to define indicators or parameters at all levels of the company. It also detects the linkages that exist between parameters at different levels and associates them with the company's objectives and strategies through critical success factors. PMS-BP has been built around three components: a methodology, an architecture and a performance measurement structure. The interconnection between the different components makes it easy to constantly trace the relationships between the different performance measurement elements at different levels (enterprise, business entity, processes, etc.). Processes are analysed by means of different types of graphs which make it simple to read and interpret the entire context of the company. We describe a real-life case in which the PMS-BP was applied to an SME in the metal/mechanics sector.     

A model for reverse logistics entry by third-party providers

Reverse logistics has become an important entity in the US economy. Nonetheless, many companies are not capable of or are unwilling to enter the reverse logistics market. Such reluctance appears to be attributed to lack of knowledge of reverse logistics. This paper reviews current industry practices in reverse logistics. Specifically, we examine the issues and processes that an organization has to address to engage in the reverse logistics business. A reverse logistics decision-making model is developed to guide the process of examining the feasibility of implementing reverse logistics in third-party providers such as transportation companies. The purpose of this model is to help those companies who would like to pursue reverse logistics as a new market. A field study was conducted with a larger US transportation company to validate the proposed model.     

REENGINEERING CHANNEL REORDERING PROCESSES TO IMPROVE TOTAL SUPPLY-CHAIN PERFORMANCE

This paper discusses the relationship between business process reengineering and channel performance for firms implementing electronic data interchange (EDI) linkages within the U.S. grocery industry. Both quantitative and qualitative data sources are combined to test the hypothesis that channel transformation involving adoption of EDI and redesign of replenishment processes enables performance improvements more than an order of magnitude greater than implementation of EDI alone. This new process, enabled by EDI, provides retailers with 50- 100% higher inventory turns for products on continuous replenishment processes (CRP) relative to retailer performance using traditional ordering processes. Firms adopting EDI without using CRP to reengineer the ordering processes have failed to realize any statistically significant improvements in either inventory levels or warehouse stockouts. This research provides evidence to support the claims of process reengineering that are common in the popular business press, but for which statistically significant empirical evidence is minimal. The findings of the research also demonstrate the potential improvements that firms can realize through extending the business process reengineering concept to include the firms' entire supply chain.     

Preparing for business model change: the “pre-stage” finding

The purpose of this paper is to investigate managers’ initiatives in the context of an emergent technology and their effect on the business models of firms. Building on four case studies of organizations interested in using an emergent technology for commercial purposes, this study applies a process-based framework of business model change. The main finding is that managers’ initiatives occur in the context of a “pre-stage” of potential business model change, which includes processes of experimenting and learning. The pre-stage finding gives a better understanding of when change initiatives affect a business model and when they do not, allowing managers to adopt a more proactive behaviour and guide their organizations towards effective business model change. The main contribution of this paper is to suggest the inclusion of the pre-stage idea in research and practice, since it is an intermediary step in the process of business model change that has been overlooked.     

Creating and sustaining competitive advantage in collaborative systems: The what and the how

Initially this paper asks two questions: In order to create and sustain competitive advantage through collaborative systems WHAT should be managed? and HOW should it be managed? It introduces the competitive business structure and reviews some of the global trends in manufacturing and business, which leads to focus on manage processes, value propositions and extended business processes. It then goes on to develop a model of the collaborative architecture for extended enterprises and demonstrates the validity of this architecture through a case study. It concludes that, in order to create and sustain competitive advantage, collaborative systems should facilitate the management of: the collaborative architecture of the extended enterprise; the extended business processes and the value proposition for each extended enterprise through a meta level management process. It also identifies areas for further research, such as better understanding of: the exact nature and interaction of multiple strategies within an enterprise; how to manage people/teams working along extended business processes; and the nature and prerequisites of the manage processes     

Strategic learning with scenarios

Since the oil shocks upset the business world in the 1970s, the use of multiple scenario analysis has been increasingly propagated as an approach to deal effectively with the many long-run uncertainties that surround business organisations. Since its introduction, the scenario approach has undergone some considerable changes and it is now claimed fulfils a diverse range of functions. Newly-added functions include the stretching of managers' mental models and the triggering and acceleration of processes of organisational learning. Although these functions currently get most of the attention in academic and management journals in recent years, a satisfying explanation of how scenarios fulfil these functions is still missing in the scenario literature. The scenario methodology seems to tell only part of the story suggesting that construing and using scenarios ‘simply’ consists of sequentially completing several distinct phases. If multiple scenario analysis really is able to fulfil the wide range of functions ascribed to it another, more dynamic process has to be hidden behind the rather static phase model. The scenario literature does not give any insight into this latter process. This article aims to increase the understanding of multiple scenario analysis by unravelling some of the mysteries surrounding it. For this purpose, the role of scenarios in strategic management is studied from a cognitive perspective. It appears that scenarios can deal effectively with several bottlenecks that potentially hinder organisational learning on a strategic level in organisations.     

Partner selection for reverse logistics centres in green supply chains: a fuzzy artificial immune optimisation approach

The design of reverse logistics networks has now emerged as a major issue for manufacturers, not only in developed countries where legislation and societal pressures are strong, but also in developing countries where the adoption of reverse logistics practices may offer a competitive advantage. This paper presents a new model for partner selection for reverse logistic centres in green supply chains. The model offers three advantages. Firstly, it enables economic, environment and social factors to be considered simultaneously. Secondly, by integrating fuzzy set theory and artificial immune optimisation technology, it enables both quantitative and qualitative criteria to be considered simultaneously throughout the whole decision-making process. Thirdly, it extends the flat criteria structure for partner selection evaluation for reverse logistics centres to the more suitable hierarchy structure. The applicability of the model is demonstrated by means of an empirical application based on data from a Chinese electronic equipment and instruments manufacturing company.     

Business Actors in Peace Mediation Processes

Even though the relevance of business actors in peace processes is increasingly acknowledged, analysis of their particular roles and contributions remain sparse in peace mediation literature. This is despite the fact that such knowledge would be highly relevant for supporting mediation processes such as those ongoing in Colombia or the Philippines. This article looks at the involvement of business actors in mediation processes by tracing analysis along the entry points for involvement, the different roles that business actors can play and the limitations they face. The empirical data shows that business actors mainly play a role during the pre‐ and mediation phase and therein often as a support‐giver to the mediation process. Furthermore, most of the involvement does not take place at track‐1 level but rather at track‐2 mediation processes, where mainly local business play an important role. In contrary to what is postulated by some of the literature, the relevance of utilitaristic motives is not problematic; rather a monetary motivation can also foster the credibility in a political process where a lot is at stake.     

Organising the business processes of a product servitised supply chain: a value perspective

This paper develops a structured method from the perspective of value to organise and optimise the business processes of a product servitised supply chain (PSSC). This method integrates the modelling tool of e³value with the associated value measurement, evaluation and analysis techniques. It enables visualisation, modelling and optimisation of the business processes of a PSSC. At the same time, the value co-creation and potential contribution to an organisation’s profitability can also be enhanced. The findings not only facilitate organisations that are attempting to adopt servitisation by helping avert any paradox, but also help a servitised organisation to identify the key business processes and clarify their influences to supply chain operations.     

允许直达的混合轴辐式快递网络规划模型与算法研究

在快递企业的日常运营中,当两个城市之间的快递业务量达到一定规模之后会允许该城市对之间开展直达递送。但是这一规则通常仅在快递网络规划完成之后由相关子公司提请实施。为弥补这一实际规则的局部最优性缺陷,本论文将直达问题纳入网络规划决策,基于全局优化的视角构建了允许直达的混合轴幅式快递网络规划决策模型,设计了相应的求解流程,并对其中的指派关系决策构建了遗传算法。基于国内标杆企业的数值案例计算证明了该决策模型与求解方法的有效性,研究结果还说明,相对于纯轴辐式结构,允许直达的混合轴幅式网络结构有助于降低网络总成本,同时在直达线路上能够有效的降低迂回、提高服务时效性和服务水平。     

Do service-oriented IT architectures facilitate business process outsourcing?

How does a firm’s IT architecture affect its potential to outsource business processes? As Information Technology (IT) has become many firms’ essential operational infrastructure or “backbone”, we are interested in scrutinizing to what extent the kind of IT architecture affects a firm’s boundaries or the plasticity of its boundaries. Focusing on the particular concept of service-oriented architectures (SOA), we concretely ask: How does SOA affect business process outsourcing potentials? Since SOA is widely expected to modularize the IT implementation of business processes, it should increase business process outsourcing (BPO) in terms of buying in the provision of single business functionalities. We develop and empirically evaluate a theoretical model that conceptualizes the relationship between SOA and BPO. Questionnaire data from 115 firms give first evidence that SOA facilitates BPO. By increasing IT modularity, SOA supports BPO by increasing sourcing flexibility and, in particular, operational benefits, while at the same time lowering financial risks and strategic risks, such as lock-in. Overall, however, firms see SOA-based BPO mainly in an operational context with low hidden costs and little strategic benefits.     

Understanding Power: Bringing about Strategic Change

Success in today's competitive and complex world depends upon the ability to bring about effective strategic change. Much of the business literature has been preoccupied with finding more sophisticated techniques to formulate better strategies. But business success depends not only on finding the right strategy, but also ensuring it materializes in the form of a pattern of appropriate strategic actions. We know relatively little about this part of the strategy-making process. This article shows how a better understanding of the use of power can provide the energy to ensure strategic action by driving the organization and its members through the strategy-making process.     

Business angel post-investment activities: a multi-level review

In this article, empirical research on post-investment activities of business angels is reviewed and conceptualized as five distinct governance processes: boundary spanning, structuring, leadership, doing, and monitoring. These processes have the potential to reduce the exposure of business angels to relational risk and market risk. The identification of these governance processes also contributes towards understanding the social aspect of business angels’ post investment involvement. In particular, it is shown how the recognition of the cognitive/institutional dimension opens up for new questions about post-investment involvement. Finally, it is proposed that venture performance can be enhanced in practice if business angels and venture members develop skills that are connected to the governance processes.     

Alternative operations strategy processes: do they matter?

Abstract

With the increasing significance of business model innovation, and due to the ongoing difficulties encountered in executing formally developed strategies, there is a strong case for studying the functional-level strategy processes from fresh perspectives. This paper examines the significance of alternative operations strategy (OS) processes and organisational context and explores how they relate to operations performance. The empirical evidence was drawn based on the statistical analysis of data collected through 242 survey responses from the senior management staff of the Canadian oil and gas industry. The evidence drawn from the empirical study confirmed that alternative forms of OS development do indeed exist in practice and that certain organisational factors have a direct influence on OS processes. The analysis discerned four strategy process configurations representing singular and multiple combinations of the three process modes identified through the literature review. The results explain the differences between these process configurations in terms of certain contextual factors and operations performance. The findings of this study help advance the understanding of OS processes and may contribute to theory building, particularly what is known as ‘mid-range’ theory, as the evidence was built through the analysis of a relatively large sample of data drawn from an industry sector that has not been reported on in previous studies.     

An actor-network perspective on business models: How ‘Being Responsible’ led to incremental but pervasive change

Business models have been studied as organizational value logics, which manifest in the states of cognition, artefacts, and activities. There is no conceptual perspective integrating all three of these states yet. In response, this paper develops a conceptual scaffold of an actor-network perspective: Value logics become programs of action as they are embodied in human actors’ cognition and inscribed into artefacts, forming actor networks that enact business model activity systems. An in depth case study of The Company (anonymized) and of its corporate responsibility initiative ‘Being Responsible’ illustrates the empirical application of this perspective. An analysis of 104 interviews with 72 individuals shows how The Company's business model was enacted by a network of human and nonhuman actors. The Being-Responsible artefact engaged in translation through which it enrolled business model actors to enact a responsibility logic in addition to their commercial logic. This changed the business model incrementally, but pervasively. The paper contributes (1) an integration of existing theory on business model logics manifesting cognition, artefacts, and activities in an actor-network perspective, (2) an extension of research on artefacts, exploring their agency when not explicitly related to the business model; and (3) the development of substantive theory that explains incremental, pervasive business model change through distributed processes of translation. The translation perspective also holds promise for explaining the dynamics of business model creation, maintenance, and radical business model change.     

An empirically derived model of the role of IS networks in business process improvement initiatives

During the past two decades both business managers and academic researchers have shown considerable interest in information system (IS) networks and their effect on business processes and performance. The present study builds on this interest to examine the nature of IS networks and business process improvement initiatives (BPII) and delineate the process by which IS networks influence BPII. Conceptually, both of these variables are considered multidimensional constructs, with IS networks comprising connectivity and flexibility dimensions and BPII involving process improvement initiatives and customer focus dimensions. We develop a model that elaborates on the interrelationships among these variables along with two key contextual antecedents (management support and information intensity) and pose a series of hypotheses. We then present the results of an empirical test of the model that involved structural equation modeling using data collected via a national mail survey from executives from ‘Fortune 500’ divisions. Overall, the results of the study found mixed support for our hypotheses. While network connectivity and network flexibility were found to be significantly related to process improvement initiatives, network flexibility did not have any significant effect on customer focus. The results of the study also indicate that top management support is significantly related to both IS network dimensions, which fully mediate top management support’s influence on both BPII dimensions. Information intensity was also found to be significantly related to BPII and partially mediated by network flexibility with regard to process improvement initiatives. Implications of this study and directions for future research are also discussed.     

Mismatch in the West German Labour Market? Economic Restructuring and Unemployment in the 1980s*

Abstract. The paper briefly investigates theoretical arguments for mismatch unemployment; it presents a vacancy-unemployment curve for Germany and investigates various reasons for outward shifts of the curve. Both variables, unemployment and vacancies, are decomposed into flows and duration to identify the underlying processes of these shifts. The analysis of the components with the help of change-duration curves shows adverse trends for unemployment and vacancies over the business cycles. Unemployment duration has increased while vacancy duration has decreased. Mismatch in the labour market can therefore hardly be blamed to have been an obstacle for economic expansion in the German economy during the 1980s. Persistently high unemployment in Germany has to be interpreted as a hysteresis process which was driven by macroeconomic policies, increasing labour supply and restructuring imbedded in the German institutional framework.     

EXTENDING THE BOUNDARIES OF OPERATIONS MANAGEMENT: AN INTERNATIONAL FIELD-STUDIES APPROACH INTEGRATING INFORMATION SYSTEMS

Continued globalization, extensive use of information technologies, increasing cross-functional dependencies, and new organizational forms are rapidly changing the learning context of operations management. This paper describes an example of a mba elective course that has been created to address and learn from these new realities. We have taken a process view of the global firm, focusing mainly on the new product/service development, order fulfillment, and supply chain/ after-sales service processes. We have designed our course to contain most of the traditional topics in operations management (om) with information systems (is) woven in to support the key business processes. Our underlying belief is that these two functional areas should be seen as a blend, a seamless merging of the two fields, to obtain a competitive advantage. Besides teaching om and is in this integrated manner, the course engages in face-to-face student consulting projects with multinational companies. This paper describes our rationale for the course design and how it has been implemented over the last 6 years-as well as our plans for the future.