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As a means of achieving efficiency, improved product and service quality, The definition of codification in coordinating expert groups is disparate in

and responsiveness, organisations utilise IT. However, effectiveness of IT in


Adesola, S., and Baines, T., 2005. "Developing and the extant literature. One the one hand, it is argued that codification is
organisational performance is questionable given the metrics suggested in
Evaluating a Methodology for Business Process
Improvement the extant literature as there exists little consensus on the extent to which highlighted as a process that supports coordination of expert groups by
IT creates business value. Many papers use firm level output or end-product
enabling storage and ready transfer of knowledge. This externalisation of
A process is the transformation of inputs into based measures as proxies to determine business IT value, however this
outputs; the inputs can be resources or proxy does allegedly not reflect the aforementioned as intermediate knowledge, the purpose is to reduce the need for close, reciprocal
requirements, whilst the outputs can be products or business processes may be more relevant.
interactions, as each expert group is able to adhere to the same procedures.
results. The outputs may or may not add value and The paper contends that firms derive business value from IT through its
could be an input to another process. impact on intermediate business processes (operational processes and Routinisation is another aspect of codification, as it aids in setting rules and
management processes). The authors furthermore contend that due the
responsibilities for the specification of services, conformance to
A business process is a group of logically related ubiquitous presence of IT in business processes, the business value of IT
tasks that use the resources of the organization to increases. standardised workflows and tie in the relationships between on-site and
provide defined results in support of the
organisations objectives. offshore teams.
Operational processes are those that concern the execution of tasks that are
part of an organisations value chain. On the other hand, the coordination of codification is considered as a
Business Process Improvement (BPI) is a
Management processes are the tasks associated with the administration,
methodology that is designed to bring about step- dependent variable on the quality of reciprocal interaction, where expert
allocation and control of resources within an organisation.
function improvements in administrative and support
processes using approaches such as process Definitions of the term process groups create boundaries to transfer knowledge. It emphasises the
benchmarking, process redesign and process re- A specific ordering of work activities across time and place with a beginning
limitations on the role of codification in coordinating expert groups. Here
engineering. and end, and clearly defined inputs and outputs (Mooney et al, 2001)
Note that: the most common rationale for BPR is improving financial the storage and ready transfer of knowledge is questioned, and note that
Business Process Re-engineering (BPR) is associated performance > through cost reduction. Process innovation (BPR) may also be
due to the differences between expert groups, the sharing of knowledge
with much more radical changes to a business seen as aligning a business strategy with IT.
process. The authors contend duality exists between business IT value and BPR, as IT may be limited. Rather than enabling storage and ready transfer of
is an enabler, while BPR catalyses the realisation for business IT value.
It is apparent that research is needed to develop a knowledge, the coordination of different expert groups is preferred.
Davenport (1993) identified nine opportunities in BPR through IT:
structured and practical methodology for BPI, and automation, informational, sequential,, tracking, analytical, geographical, Acknowledging the difficulties of transferring knowledge to expert groups
that this should be subject to rigorous evaluation integrative, intellectual and disintermediating.
in real case projects to ensure it is effective when possessing different forms of expertise and therefore should involve the
These opportunities may be classified under three categories:
used by the practitioners. The aim of the paper is
Informational Transformational Automational transformation of knowledge so that it mutually understood, rather than
to develop a practical methodology to support the
implementation of business process improvement and effect effect effect
simply transferring it.
to validate its effectiveness in organizations. Informational Sequential Automation
Three objectives have been set: Tracking Geographical - Support for effort coordination is an important contribution that IS can
1. Develop a structured and procedural Analytical Disintermediating - make, as it reduces dependencies between expert groups through the
method of business process improvement Intellectual Integrative -
2. Seek expert opinions to identify and codification of knowledge, whilst increasing connectedness. Vlaar et al.
contrast this method against leading industry
Direct order and first order business value impacts (2008) find that the exchange of documents is insufficient when rationalising
practice
3. Evaluate and refine the method through First order automational effect primarily related to operational processes
the code for transparency, which is the knowledge boundary.
practical application Informational effects effect of IT on management processes
Transformational effect merging of management processes with Five vignettes exist which describe expertise coordination between onsite
Phase 1 Forming the initial structure and content operational processes
and offshore experts, the onsite and the client, and the client and offshore.
of the BPI methodology Develop a prototype
methodology based around current frameworks where Strong points of TCS pertaining to the coordination of expertise use of
possible.
Kotlarsky, J., Scarbrough, H., and Oshri, I. 2014. standardised templates to capture knowledge
1. Assess readiness
"Coordinating Expertise across Knowledge
2. Outline process under review Note that depersonalising knowledge is counterproductive and limits rather
Boundaries in Offshore-Outsourcing Projects: The
3. Detailed data collection
Role of Codification" (ABN AMRO, TATA) than supports the necessary interactions between knowers.
4. Form model of current process
5. Assess and redesign process
6. Implement process The coordination of effort within and among differentDistinction
expertbetween knowledge codification and codification of the knower.
7. Review process groups is a central feature of contemporary How knowledge-related interdependencies are managed among groups.
organizations. Information systems can contribute
Phase 2 Initial confirmation of the BPI methodology These technologies are often absent from research.
to this by supporting coordination, both
Initial validation process was conducted to seek in general studies of offshored and distributed work t
by improved communication between exports
expert opinions to contrast the methodology against focus on team processes of communication and
pand through codification of knowledge.
leading industry practice. Main finding was that coordination and their associated technologies
the methodology structure appeared valid. rather than on domain specific task processes an
There are 2 views on the role of codification in
technologies employed to carry them out.
Phase 3 Testing the BPI methodology through coordinating expert groups:
industrial application Codification supports coordination by spreading common
The BPI methodology was evaluated to determine Task-based offshoring means that transformational
knowledge and reducing dependencies between groups.
whether it was valuable in practice using case technologies enable the offshoring of tasks that
The coordination of different groups is much more
studies in four companies; in the first company the take mere hours rather than offshoring the whole work.
reliant on the intensity and quality of their
researcher was the main user and facilitated the
methodology, in the next three companies the reciprocal interactions, and the role of
Transformational technologies can embody explicit knowl
methodology was applied by an experienced in-house codification is limited.
(formulas in excel) and implicit knowledge (knowledge
facilitator. The following conclusions were drawn:
embodied in an artifacts structure or features,
Feasibility: Can the BPI methodology be The authors look into offshore-outsourcing and its impact on
applied and followed? The methodology can like the implementation of artifacts).
the distribution of expertise between different organizations.
be applied through all stages of Previous work on expert coordination mainly focused on dynamic
analysis. Knowledge transfer problems represent a skill that
interactions in collocated teams where mutual awareness and
Usability: Was the methodology easy to reflection of ones occupational knowledge.
adjustment of different individuals expertise is developed
apply and use? The methodology was easy In offshoring, individuals who receive work offshore m
to use and apply. informally. In the case of offshore outsourcing such informal
be able to interpret the knowledge embedded in
mechanisms are not present and the setting is distinctive due
Usefulness: Did the methodology produce a artifacts by their expert and distant colleagues. This su
useful result? The methodology was to the geographically distributed character, the implications
that individuals at the offshore site may lack the nec
considered useful across the four case of organizational boundaries and the impact of cultural
occupational knowledge and judgement, beyond the
studies. All four companies identified differences on the teams.
and improved their business process. ability to interpret implicit knowledge
embodied in artifacts, to undertake the work. Of
RQ: What role does codification play in the coordination of
Testing and evaluation has demonstrated that the employees may need to learn not just
expertise within the offshore-outsourcing setting, when
methodology has successfully captured business firm-specific work practices, needs and
process improvement activity. knowledge boundaries are present?
specifications, but general occupational skills and
knowledge.
The BPI methodology captures the relevant elements There are two views on knowledge and expertise:
and success factors to be considered in developing Epistemology of possession, which views knowledge
The objective of this study was to clarify how
and evaluating an effective methodology for a BPI as something that can be abstracted, explicitly represented,
members of distributed teams develop advanced
activity. codified and accessed understandings.
Epistemology of practice, in which knowledge
emerges through situated learning from the patterned - Distributed work: Collaboration across
interactions and practices within groups or local teams, temporal and relational
Steinfield, C., Markus, M. L., and Wigand, R. T. communities. boundaries to accomplish an
2011. "Through a Glass Clearly: Standards, interdependent task.
Expertise is a knowers capacity to act,
Architecture, and Process Transparency in Global - Understanding: Use of cognitive
while knowledge is a tool used by knowers to solve a problem
Supply Chains" capability to think about an issue in
or transform their own expertise. task environments.
Lack of interoperable IS enormous costs, - Congruence: relationship between the
development, implementation and effective use of Codification is defined as the compression of expectations held and the actions and
inter organizational systems remains dream for knowledge and experience into a structure, outcomes produced by different
companies involving the use of codes and models to translate rules and individuals.
actions into procedures, guidelines, specifications and - Actionable: The capability to configure
Focus on 2 characteristics of IOS (Inter- documents. and execute action patterns in a manner
Organisational System) that meets someone else expectations
Firms can adopt two strategies:
1. Proprietary vs standard based
2. Information flow point to point or via - Codification strategy, which allows - Sense-giving
coordination hub people to search and retrieve codified knowledge without - Alter and influence the way
having to contact the person who others think and act
Proposition that (standard based+ coordination originally developed it - Stakeholder management
hub) is best - Personalization strategy, which is - Manipulation
associated with the sharing of knowledge - Sense-making
Current IT based solutions for information Information seeking
through personal contacts. -
transparency
- Achieve congruency
problems in supply chains
Understanding the message
EDI (Electronic Data Interchange) given to you
Vertical Industry Data - Sense-demanding
Process Standards - Something is unclear to you
Coordination Hubs Paper 9 Olsen et al. (2008) - Ask extra information
Approaches in two-stage offshoring differs in the following: - Search for extra information
EDI 1. Team integration and understanding
High costs 2. Organisational level implementation - Sense-breaking
Few partners and transactions mitigate 3. Site hierarchy - Question and criticize
potential saving understandings
Lack of knowledge and resources to Location alone will not be enough to maintain the position in future two- - Innovative ideas
implement EDI stage offshoring! This is exemplified by Indias growth in terms of capacity, - Disruption
Limited ability to reuse EDI investments jeopardising Ireland position as an intermediary in the two-stage offshoring
with other partners because of the lack chain.
of standardized transactions, process The article focuses on in-house offshoring, so
and technology environments locating certain tasks in low-cost destinations. It
o Web based EDI also requires BPMN book
looks at two-stage offshoring, whereby a company
rekeying of data so limited offshores to one location, which then offshores work A hit policy determines how many rules apply and what happens if several
benefit further, thus becoming a bridge-location. In the rules apply simultaneously
Strained supplier relationships case, we adopt a social perspective on offshore Unique (U) exactly one row has to match
sourcing and explore the dual role experienced by (F) the first row that matches determines the result
Virtual Industry Data & Process Standards two Irish software development companies. The Priority (P) the row with the highest priority matches
Reduces communication costs (esp. general conclusion from the literature is that Any (A) as many rows as desired may match, all of which then have to
for small companies) formal contracts are necessary for offshore provide the same result. Essentially A hit policy has a rule for every input
Lower costs because XML can be sourcing success, but not sufficient. Customer- noted. A hit policy is recommended for checklist scenarios.
reversed (industry wide data and vendor relationships are seen as increasingly Rule order(R) multiple rules can be satisfied.
process standards) important for the outcome of the offshore sourcing Multiple hit policy
arrangement. (C) collects the results of all matching rows to lead to a decision
Proposition 1: (industry-wide Data and C+ adds the value of a hit
process standards Adoption) The authors use the Relational Exchange Theory,
Ci applies the smallest hit
if standards are used, adoption by which holds that transactions between parties are
increasingly governed by processes based on C? applies the largest hit
small entities is more likely than when C# counts the hits
proprietary standards are used informally negotiated rules of exchange. Exchanges
between parties in a relationship are shaped by a If no hit policy set, the default is U.
XML-based standards often implemented on set of expectations about behaviour that are shared
between exchange partners. Contracts between FEEL values
a point-to-point basis
industry-wide data and process parties are incomplete and cannot be expected to - Strings
standards are not sufficient, as XML- anticipate all possible contingencies that might - Numbers
basis may be more are less extended for arise. - Boolean
each PLP party involved in the overall - Time and date
supply chain The nature and composition of a relationship is
described in terms of attributes (characteristics - Duration

Propostion 2: (Point to Point IOS & that contribute to the functionality and harmony of
Adoption) a relationship) and processes (means by which the Strategic process models can be generated in two stages of BPMN life cycle
if supply chain IOS is implemented on attributes are developed), which need to be present process documentation and process design
PTP basis, even if industry wide data in order to establish and maintain functional and
and process standards, may still not be harmonious interorganizational relationships.
adopted by all SC: members
Proposition3: If supply chain IOS is Team integration P Input Relevance Output
implemented on PTP basis, information Close cross-site integration vs loose inter-site 2 Q2 Normal
transparency problems are likely to stay coupling. More mature teams with well-established
3 Q1 Normal
unrevised development processes allow for more loosely
1 - Date(2017- Exception
coupled teams. Form teams around the structure of
12-31)
Proposition 4: if a supply chain IOS the system and architect the system according to
features and functionality. 4 Q3 Normal
uses a standards-based coordination hub
Pennysoft: communication on a daily basis, joint
architecture then it will be more likely
to solve supply chain information teams, close cross-site integration, requires more
transparency problem than if it uses a communication and needs to be closely managed
Semicon: teams consist of collocated members,
point to point architecture
managing extended teams is too complex, loose
Private Coordination Hubs coupling, bridge model does not appear during day-
to-day work
Intel gave options: RossetaNet, EDI, File
2. Organizational level implementation
transfer Protocol 4 web-based transactions
Implemented at managerial or operational software
(invoice, forecasts, advanced shipments
engineering + managerial level. The level of cross-
notification, purchase orders )
site integration seems to have direct impact on the
level at which it is implemented. Organizations with
Nettech standard but private hub built
extensive cross-site integration may implement the
Proposition 5: if a supply chain IOS is
bridge model at both levels, while loosely coupled
implemented as a private standards-based
teams may prefer to only implement at managerial
coordination hub, then t will face adoption
level. Then a project manager acts as a managerial
problems by smaller, remote, and peripheral
bridge between sites and inter-team communication
members of the extended supply chain
is kept to a minimum.
Data and process standards are necessary to enable transparent supply Pennysoft: closely integrated as extended teams,
chain information transparency in Interorganisational systems (IOS), but both managerial and software engineering level.
also standards that need to be complemented by hub-type IT architecture Irish manager delegates and manages other sites.
that is shared by organisations participating in a certain industry field. Low Ownership resides in the US. Teams leveraging the
adoption has hindered the effort of the abovementioned. most relevant skills available at different
MOSS case exemplifies that when a supply chains IOS is based on industry- locations. Valuable when establishing new offshore
wide data and process standards, minor and peripheral actors are more sourcing relationships because employees are
likely to adopt it as well. trained.

3. Site hierarchy The authors suggest that firms should engage in multi-sourcing in services
Hierarchical (one site is superior) includes in order to benefit from discovering new partners and their qualities. The
offshoring only mundane tasks, implementing the success of multi-sourcing however depends on a firms ability to devise a
bridge model at the operational software global sourcing process that addresses critical trade-offs. The crux lies
engineering level is feasible (and managed from the within the fact that sourcing engagements are fundamentally based on
superior site). When the sties are organized as trust, which may be at stake on both sides, as both supplier and client may
peers the bridge can delegate full responsibility be less committed to the sourcing process.
and this requires corresponding managerial skills.
Note that a sourcing process is a set of organisational practices that
Hierarchical appproach is helpful in training new
people, well-established teams can work independent facilitates discovering new supplier opportunities; evaluating suppliers;
and are more suitable for a peer-to-peer developing supplier relationships; coordinating across suppliers; changing
implementation. Long-term sustainability can suffer levels of supplier commitment.
if people on ofshore locations are not treated as Multi-sourcing is the disciplined provisioning and blending of business and IT
equal. Offshore locations can then try to bypass services from the optimal set of internal and external providers in the
the bridge location, and this makes the bridge pursuit of business goals. It is argued that rapid change in the global supply
unwilling to tranfer knowledge. market increases the value of a multi-sourcing strategy.
Pennysoft: teams comprise several locations but Main research question: how does a global sourcing process mitigate the
are driven by one site. Us delegates to Irish risks and increase the benefits of a multi-sourcing strategy?
managers who delegate to Irish and Indian sites. Three highlights
Irish site does complex design activities, Indian 1. Advantages of multiple provider strategy in rapidly changing
does quality assurance. Train new Indian recruits
global supply market
this way. But this can cause tension.
Semicon: teams at semicon are not perceived as 2. Important role of middle managers in enabling continuous
being a multiple level hierarchical structure. innovation in the supplier structure
Teams working on a project are seen as peers. 3. The importance of global sourcing process combining top-
Mature offshore teams down and bottom-up decision-making in multi-sourcing.
Overlapping time zones are useful, but it is not
clear whether the Irish bridge is sustainable in
In ITO BPO, firms tend to concentrate on a few strategic suppliers.
the future. Ireland is no longer a low-cost
offshoring location but a mature site, so the A key characteristic in a multi-sourcing strategy is the cooperation with
bridge should maintain and improve quality. Depth multiple providers each serving a different purpose.
of expertise and experience will be more important Middle management contributes to a multi-sourcing strategy by:
for future competitiveness. Also in India costs - Discovering new best-fit supplier opportunities
are rising, leading to offshoring to even cheaper - Making vendor-specific investments
countries such as China, Vietnam and Malaysia. - Reducing organisational resistance to changes associated
Two-stage offshoring will then lead to multistage with off-shoring
offshoring.
The first two bottom-up sourcing capabilities respond to rapid change in the
global supply market, for which multi-sourcing strategies are desired. The
third capability increased the benefit of the multi-sourcing strategy.

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