Find the source of new value

ProcessInnovation
Dr. Edward G. Lewis


Rafael Angulo February 2011


Case Study based on
“Find the sources of New Value”

Table of contents

KEY ISSUES 2
DETAILED ANALYSIS 2
CONCLUSIONS 7
RECOMMENDATIONS 7

KEY ISSUES
IT organizations create value for an organization basically in two branches of action, improving information quality for decision makingor increasing efficiency and quality by improving processes, but here we will analyze other options to create value, these just are…

1. OPTIMIZING
2. RESHAPING
3. INTERNAL INFORMING
4. EXTERNAL INFORMING
DETAILED ANALYSIS
1. OPTIMIZING
The wide development of information technologies provides ICT areas with the best elements to streamline the automation and consolidation ofprocesses. Etymologically optimizing means “generating the most richness” this implies the use of the minimum resources possible, below this understanding we should realize that an IT area through an analysis, detection of bottlenecks, detection of opportunities and the design of a new process is able to make important contribution to the organization.
Organizations in Mexico bear old schemesof work. Things work fine as they are and there is no perceived reason to change it. The existing processes are good, reliable and proved. Why to change them? Traditions are important in society and therefore they are important in public or private organizations. This way of thinking is reflected in organizations. The old processes are the best, simply because they work. It is very important, if wethink in any change, to understand this and think in ways to make organization’s personnel realizes the new competitive market that surrounds them. This new reality forces all of us to change the way we think and consequently the way we act.
To explore the opportunities we could use the next basic questions.
* What are the processes that contribute to the key operational performance metricsfor the enterprise?
* What are the major steps in those processes? Who are the key personnel and functions involved in each of those steps?
* How do cycle times and efficiency measures for those processes compare with similar

2.1. Application In Mexico
In my organization, which I will use as an example, there is the perception that the different areas in the company have isolatedprocesses. I work in a railroad company. We are a transportation enterprise. We move charge from one point “A” to point “B”, and we earn money by this, but in this company human resources manager thinks that he simply hires people, training manager prepares courses, the financial managers pay accounts. They do not realize all those processes are simply “subprocesses” of our real target. “We movecharge” and this is our principal process. We all in my company should be aware we are in the same process and therefore all our tasks are interconnected. Then it is evident that if we optimize our subprocesses through automation, or simply reducing the cycle time we will gain in the quality of services our company supplies.
Public organizations have many opportunity areas. I think one of thebest examples is Pemex. Pemex is a huge oil company with a complex organization. Pemex right now has too Many processes, too many people, too much money and too much politics. Pemex has a lot of opportunities where to improve processes increasing productivity and revenue. There are places to explore, industrial areas where to venture, researches to be done etc, however the union and the politicshave trapped this company in a wood of interests.
Other possibilities of application are
* CFE (Electricity Production)
* Airports (Federal Management)
* Police Departments
2. RESHAPING
Organizations can improve their business performance creating new ways for the interaction with the customers and clients. The new interaction could be through self-service options, maybe...