Case Studies
The Beginning of Change Management
In 1997, System 21 saw a marked increase in the number of projects involving the design, development and installation of rationalised administration systems across a range of industries.
This trend looks set to grow in 1998 and beyond, based on the profile of current projects, and those already planned.
There are three main driving forces behind the apparent explosion in demand for process re-engineering in organisations and companies throughout Europe.
The systems
in place currently are over 5 years old and involve too many inefficient processes
or lack support. The life cycle of the systems which were installed around
ten years ago is nearing its end
The so-called "Millennium" problem with micro processors has brought
forward existing plans to upgrade systems. Even though the company's computer
systems do not yet need to be changed, replacement has been agreed to achieve
two solutions in one - an increase in efficiency provided by a smaller system,
which is also "Millennium proof"
The need for increased competitiveness forcing companies to restructure the
organisation. This can only be achieved through BPR techniques coupled with
investment in new technology
A combination of all three, in which there are simultaneous initiatives to
rationalise the business process, restructure the company and install new
IT solutions. This combination becomes very attractive if the return on investment
can actually be shown to partially, or wholly, fund the new computer system
and the cost of the change consultancy.
This last option is in strong demand across all industry sectors - Aerospace,
Automotive, Food Manufacture, Retail "Big Shed" operations, Service
and Engineering. There are ongoingSystem 21
projects to help install systems such as SAP R3, J D Edwards, JBA, Visibility,
Movex and other AS 400 based systems.
Re-engineering the process flow and organisation as part of the System 21 Project produces the following deliverables:
Reduced
number of "Transactions"
Improved communications
Reduced paperwork/procedures
Cost savings
Customer service improvement
Format specification for the new system "inputs"
Defined performance criteria for the new system
Training documentation for the new methods/systems
In most process re-engineering projects it has been possible to reduce the
number of transactions required to run the business by between 30% and 50%.
In one case the reduction was 60% in a company of 450 people. Very often an
individual, or group of departments, is able to reduce combined total transactions
by as much as 75%, by eliminating duplication in communications between people
and other departments. The System 21 methodology
helps to ensure the minimum number of transactions to deliver the maximum
amount of information required to run the business.
Our methodology is based on sorting processes and procedures into one of three defined categories : "Inputs", "Processes" and "Outputs". Using these labels it is possible to restructure a series of functions and activities. This leads to significant reductions in the volume of data flowing from one person, or function, to the next. Simultaneously, process efficiencies are installed into the revised systems and organisation structure which make it possible to extract the trapped profitability dormant in all companies and install new computer systems more simply. Other ongoing initiatives are also maintained.