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May 13 th , 2013 Sanetake NAGAYOSHI, Ph.D Tokyo Institute of Technology, Japan

3rd Enterprise Engineering Working Conference (EEWC 2013 )@Luxemburg. A Case Study on Enterprise Transformation in a Medium-Size Japanese IT Service Provider Business Process Change from the Ontological Perspective. May 13 th , 2013 Sanetake NAGAYOSHI, Ph.D

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May 13 th , 2013 Sanetake NAGAYOSHI, Ph.D Tokyo Institute of Technology, Japan

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  1. 3rd Enterprise Engineering Working Conference (EEWC 2013)@Luxemburg A Case Study on Enterprise Transformation in a Medium-Size Japanese IT Service ProviderBusiness Process Change from the Ontological Perspective May 13th, 2013 SanetakeNAGAYOSHI, Ph.D Tokyo Institute of Technology, Japan

  2. Conclusion • Based upon the case study on the enterprise transformation of divisions in “Company A” • it is not always necessary to change the ontological level of business process in market development • it is necessary to change the ontological level of business process in product development • it is necessary to reengineer the ontological level of business process in diversification

  3. Introduction • Organizational change and transformation is an important research topic • Traditionally, organizational change and transformation mainly focuses on the change in organizations’ structures • Discourses on organizational transformation has begun to draw from many other disciplines and various perspectives • Process-based research in understanding how and why organizations change and transform

  4. Objectives • To describe business process change based on the case study of enterprise transformation from the ontological perspective • The relationship between market diversification(in Product-Market Grid)and business process change from the ontological perspective is analyzed and discussed

  5. Product-Market Grid Ansoff (1965)

  6. Research Method (1/2) • Actor Transaction Diagram in DEMO(Design and Engineering Methodology for Organization) for describing business process

  7. Research Method (2/2) • Qualitative Research • Case Study in “Company A” , Medium-Size Japanese IT service provider • Interview : 4times for 7persons • First interview: Director • Second interview: CEO and technical director • Third interview: Sales manager and technology manager from the second solution division • Fourth interview: Sales manager and technology manager from the first solution division

  8. Case StudyOverview : Company A • Medium Size Japanese IT Service Provider • As a software provider in 1969 • Several well-known application software packages in 1980’s • Main Customer • Local government in Japan , Wholesaler • Large scale IT Service Providers in Japan: as sub-constructor in projects • No consumer

  9. Case StudyFive Transformation Stories in Company A • Division 1 (A) • Story1: From a software package provider to an application service provider • Division 2 (B-1,B-2) • Story2:Systems Integration Service for new market • Story3:Organizational change for continuing the service • Division 3 (C-1,C-2) • Story4:Start new product • Story5:New market entry with the product

  10. Story1:From a software package provider to an application service provider (A) Before After Transformation Local Government Local Government Company A Company A Product Service Infrastructure with Software Software

  11. Story1: New Product Development on Product-Market Grid

  12. Story1: Business Process “Before”

  13. Story1: Business Process “After” Added process (Actors, Transactions)

  14. Systems Integration Service In Japan Story2: From Sub-Contractor to Primary Constructor (B-1) Maintain Develop Systems Development Japan Plan Primary Constructor Systems Integrator Sub-Contractor Consulting Firm Software Developer Software Developer • Systems • Development • Overseas Maintain Develop Plan Consulting Firm Software Developer Self

  15. Story2: From Sub-Contractor to Primary Constructor (B-1) Before After Transformation End Customer (Telecom company ) End Customer (Distributor: Company C) Complete System Complete System Large Scale Systems Integrator (Primary Constructor: Company B) Company A (Primary Constructor) Sub-Contractors Sub-Contractors Other Sub-Con Other Sub-Con Company A Other Sub-Con Other Sub-Con Other Sub-Con

  16. Story2: Diversification on Product-Market Grid

  17. Story2: Business Process “Before”

  18. Story2: Business Process “After” Drastic Change

  19. Story3:Organizational change for continuing System Integration (B-2) Before After Transformation End Customer (Company C : Distributor) End Customer (Other Customers) Complete System Complete System Company A (2nd Division) Company A (2ndDivison) Sales Eger,PGer “Prime Center” Sales Eger,PGer Sub-Contractors Sub-Contractors 20

  20. Story3:Market Development on Product-Market Grid

  21. Story3: Business Process “Before”

  22. Story3: Business Process “After” Same as “Before”

  23. Story4: Start New Product (C-1) modify Before After Transformation Customer Customer Company A Company A Modified Software Product Product Software Acquire Software Other Company

  24. Story4: New Product Development on Product-Market Grid

  25. Story4: Business Process “Before”

  26. Story4: Business Process “After” Added process (Actors, Transactions)

  27. Story5:New market entry with the product (C-2) modify modify Before After Transformation New Customer Customer Company A Company A Modified Software Modified Software Product Product Acquire Acquire Software Software Other Company Other Company

  28. Story5: Market Development on Product-Market Grid

  29. Story5: Business Process “Before”

  30. Story5: Business Process “After” Same as “Before”

  31. Five stories on Product-Market Grid

  32. Product-Market Grid and Business Process Change in the Five Stories

  33. Result Based upon the case study on the enterprise transformation of divisions in “Company A” 1 • It is not always necessary to change the ontological level of business process in market development 2 • It is necessary to change the ontological level of business process in product development 3 • It is necessary to reengineer the ontological level of business process in diversification

  34. Discussion(1/2) • When a company intends to sell existing products to new customers, change in business processes may not be necessary, because the company only needs to know customer information such as implicit and/or explicit customer needs and sometimes industry-specific knowledge • This requires substantial changes in employee behavior, company culture, and information systems which are not observable at the ontological level • This suggests that an ontological-level analysis may miss out some important changes

  35. Discussion(2/2) • When a company intends to deal with new products and/or services, it needs to change business processes because production and/or service delivery is directly related with business processes

  36. Limitation • This research was conducted by a single case study • Author does not have any intension to claim that the findings are universal • More studies are needed to generalize the findings beyond this study

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