Business Process Management in the Laboratory

1. Business Process Management in the LaboratoryAri HeiskanenUniversity of OuluDepartment of Information Processing Science, Kajaani uniteGovernment Working GroupHelsinki November 9th, 2006

2. MSc in computer science and applied mathematics 1971 assistant professor in the computer science department of Helsinki University during the 1970’s a short visit as a senior lecturer to Joensuu University in 1982 -1984 Chief Information Systems Officer (administration) of Helsinki University during the 1980’s and 1990’s actively involved in about 30 major IS projects, all of them have been used as research material (shallow/overview or very deep) systems of different size: a couple of dozens users to tens of thousands of users doctoral thesis in information systems in 1994 Reflective IS Practice (RISP): the decentralization of student record data processing, theory based partly on author’s understanding of Schön and Argyris acting IS professor in Oulu University 2001 – 2004, nominated full professor 10/2004 -> AH’s Background

3. Background Department of Information Processing Science, University of Oulu Business Process Re-engineering The laboratories The CreaProc Process Laboratory The Joint Authority of Kainuu Region Outline of the presentation

4. The department conducts high-quality, scientific research and academic education on information systems and software engineering The research and education focus is human-centered and organization-oriented not technology driven Mission of the Department

5. Founded 1969 as an independent department, joined Faculty of Science in 1987 1970´s emphasis in information systems 1980´s emphasis in software engineering 1990´s rapid growth and extension to digital media, software business as well as embedded software and telecommunication History and Background of the Department

6. Total number of students over 1400 New students yearly app. 200 Personnel 130 Total number of MSc thesis over 600 MSc degrees 52(2004), 74(2005), 80(2006) Ph.D.’s 5-7 (estimated yearly) 2004 permanent unit started in Kajaani 2004 office in Petrozavodsk Basic facts about the Department

7. Orientations: In Oulu: In Kajaani: Digital media - Software engineering Mobile services - Software business Software business Software engineering Information systems Specialization areas and general aspects of the studies http://www.tol.oulu.fi/english/studies.html

8. Information Processing Science asregional education Master programmes in 6 towns: • Software engineering • Mobile services • Information security (Sweden, Russia, Czech Republic …) Open university teaching: • from 1985, now in 6 towns Polytehnics collaboration 2nd grade collaboration Kuusamo OULU Raahe Haapavesi Ylivieska Kajaani University Center

9. Major themes of research Information systems Software engineering Research

10. Information systems Major themes: • E-commerce and hypermedia systems • Research of design, production and theories of computer games and their applications -specializing on experimental game productions and tailored game-oriented virtual environments • User interfaces and usability, distributed teamwork • Information systems security • Information systems and knowledge work

11. Software production Major themes: • Software quality and quality techniques • Software process capability, assessment and improvement of software production processes • Software business • Future telecommunication products and services

12. The support for technology and video servers The transfer of voice and picture using video conferencing technologies Quality surveillance The use of Netmeeting, WebOffice and video conferencing in the distribution of digital learning material The use of web radio and screen capturing over Internet Videoconferencing is our normal way of learning

13. Video screen from Oulu Weboffice / PC Kamera PC Touch screen Document camera A view of Kajaani classroom

14. c h a p t e r Laudon&Laudon: Management Information Systems 10 REDESIGNING THE ORGANIZATION WITH INFORMATION SYSTEMS

15. AUTOMATION: Using technology to perform tasks efficiently / effectively RATIONALIZATION OF PROCEDURES: Streamline SOPs; eliminate bottlenecks BUSINESS REENGINEERING: Radical redesign of processes to improve cost, quality, service; maximize benefits of technology PARADIGM SHIFT * SPECTRUM OF ORGANIZATIONAL CHANGE

16. PARADIGM: A complete mental model of how a complex system functions A PARADIGM SHIFT: Involves rethinking the nature of the business, the organization; a complete reconception of how the system should function * PARADIGM SHIFT

17. REENGINEERING: Redesigning business processes to lower cost, speed development WORK-FLOW MANAGEMENT: Streamlining process to move documents easily, efficiently * BUSINESS PROCESS REENGINEERING (BPR)

18. Variance or factor approach Reality described with variables ICT activities in a black box Outcome is an equation that relates dependent variable(s) with independent variables Process models Reality described as a series of actions and events Two main approaches to explain the effects of ICT on organisations

19. Input Output Black Box: ISD Process Unknown User Invlmnt Use of system Top mnt supp Satisfaction Experience Investment Rtn Independent Variables Dependent Variables Little or no context: Ahistorical, snapshot. Statistics: Correlations, R**2 Factor or Variance Models

20. The General Structure of a Process Model Environment Event 1 Event 2 Event N Event N+1 Outcomes Antecedent conditions A sequence of events related to information system evolution

21. Antecedent Conditions Ev-ent1.1 Ev-ent 1.2 Ev-ent 1.3 Ev-ent 1.4 Outcomes Ev-ent 2.1 Ev-ent 2.2 Ev-ent 2.3 Ev-ent 2.4 CONTEXT (Organization and beyond) Path dependent trajectory. Single, Interpretive, Longitudinal Case Study. Parallel Process Models (Single case study, multiple subjects, multiple, parallel processes)

22. Example of Parallel Processes (Heiskanen, Newman and Simila 2000) 1 5 7 4 2 3 6 2 3 6 PC –version/CCC 7 VAX-version/CCC 1 4 5

23. Research project in the Kajaani Unit of the Information Processing Department of Oulu University First phase (1.5.2006 – 31.12.2007) funded by Tekes Planned to be a continuing activity in Kajaani CreaProc Process Laboratory Tekes is the main public funding organisation for research and development in Finland. Tekes funds industrial projects as well as projects in research organisations, and especially promotes innovative, risk-intensive projects. Tekes offers partners from abroad a gateway to the key technology players in Finland. CreaProc – Feel at Home with the Process

24. ICT increases productivity an average of 8 – 20% when it is combined with organisational and process changes and data communications (ETLA 2003, OECD 2003) Mobile communications can increase productivity an average of 40% (ETLA 2004) ICT applications analysed (Martikainen 2006) E-mail 15-40% Mobile phone 15% Structural changes (e.g. e-services supporting the mobile care of elderly people ) 30-100% Radical changes (e.g. augmented reality support in design and construction) 50-200% What is the anatomy of productivity increase? CreaProc - motivation Etla (The Research Institute of the Finnish Economy) is a private independent non-profit research organisation that produces economic forecasts and carries out research in economics, business administration and social policy

25. Quite often the outcome of an ICT based process renewal is the result of many reasons and happenings The consequences of the renewal may be visible after a long time, several years typically The over-all effect of ICT upon society is sometimes paradoxical CreaProc - challenges

26. Time: ICT should help in work but everybody seems to be in more hurry Space/Place: ICT should make it possible to work anywhere, but people seem to concentrate in metropoles Employment: ICT makes some professions obsolete while it creates need for new jobs ICT may lead to centralisation or decentralisation of organisational decision making Examples of paradoxical consequences of ICT

27. Visualisation of organisational processes – computer game techniques Formal modelling and analysis of organisational processes First analyses Planning business activities in process modelling International cooperation A databank of modelled and analysed processes National and international seminars Preparation of further research projects CreaProc Process Laboratory - Activities

32. Changing the (former) independent municipalities of Kainuu into a unified regional body

37. Hannu Leskinen, Executive Director:

38. Technical platform Organisation, transformation to new form Experiences eServices for the citizens? Work to be done, only some minor steps taken Kainuu and ICT

39. KUNNAN LAN ATM, ETHERNET, GIGAETHERNET KUNNAN LAN ATM, ETHERNET, GIGAETHERNET KUNNAN LAN ATM, ETHERNET, GIGAETHERNET KUNNAN LAN ATM, ETHERNET, GIGAETHERNET KUNNAN LAN ATM, ETHERNET, GIGAETHERNET KAUPUNGIN LAN ATM, ETHERNET, GIGAETHERNET TERV. HOID. LAN ATM, ETHERNET, GIGAETHERNET KUNNAN LAN ATM, ETHERNET, GIGAETHERNET KUNNAN LAN ATM, ETHERNET, GIGAETHERNET KAUPUNGIN LAN ATM, ETHERNET, GIGAETHERNET KUNNAN LAN ATM, ETHERNET, GIGAETHERNET KAINUUN ALUEVERKKO ATM/ethernet-kytkinratkaisu hajautetulla reitityksellä Kainuu regional data transmission network INTERNET Verkonhallintaohjelma+tietokone FireWall Kajaani Kass ATM 34/155M ATM 34/155M Hyrynsalmi ATM 34/155M ATM 34/155M Suomussalmi Kajaanin Puhelinosuuskunnan Kainuun ATM-alueverkko Kuhmo ATM 34/155M ATM 34/155M JOKAISESSA KUNTA- KESKUKSESSA CISCO LS 1010 ATM-KYTKIN ja PALOMUURI Vaala ATM 34/155M ATM 34/155M ATM 622M Paltamo ATM 34/155M ATM 34/155M ATM 34/155M ATM 34/155M Vuolijoki Sotkamo Puolanka Ristijärvi Lähde: Laurikainen 2004

40. Wireless wideband in Kainuu

41. ICT personnel were gathered to a single unit from Kainuu municipalities 26 persons working now in the centralised ICT unit 6200 workstations, 160 servers Organisational transformation was done by own forces, no external consultants Integration of central hospital IT system to basic social and health care IT, different systems from two (powerful) vendors Kainuu ICT organisation

42. Tight schedules, e.g. production use of regional health care information system started when the system was partly untested Costs are in better control Lack of comprehensive standards makes it difficult to transfer data between the systems Was the ICT transformation process success or failure? Differing viewpoints Kainuu ICT experiences

43. Arto Laurikainen (Chair of Kainuu ICT board) : One year is too short a time for evaluation, problems because of untested systems, as a whole it can be considered to be a surprising success

44. Ministry of internal affairs, first interim evaluation report of Kainuu experiment

45. Best in Kainuu experiment: cooperation, common practices, common will, enthusiasm

46. Worst in Kainuu experiment: technical problems, especially in information technology and economy administration

47. Analysis of selected social welfare and health care processes Research on how to use ICT in the service of sparsely populated areas (or ICT for distantly located partners) Industry: clients far away all over the world Social welfare and health care: citizen scattered around the wide province Education and (organisational) learning: enhancing the usability of distant learning techniques International working seminar in spring 2008? Future activities in Kainuu Living Lab