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Business ProcessManagement: AmazonMIS 460 IT Strategy Group 1:Caitlin Chamberlain, Andrea Dragoni, Julie Payton, SammiDevlin, Marlana Perillo Gentile, Jasmine Mina, and Akash Bajaj
History of BPM1980’s -- Total Quality Management1990’s -- Business Process Reengineering1995 -- Managerial/Collaborative Work1997 -- Learning Organization, Knowledge Management2001 -- Business Process Management
#1 Priority BPM is a collaborative effort betweenbusiness units and the IT world. BPM is an approach that is designed toproduce better processes. BPM has recently been identified as thenumber one business priority.
Different Perspectives,Different Detail
The Process
IT Migration SuccessCriteria1. Strong Executive Commitment2. Motivated Engineers3. High Cloud Readiness and LowMigration effort4. Strong Vendor Partnership AroundCloud Licensing and Support
Applian BPM SuiteComponent Breakdown
Amazon’s Business Model Canvas
BPM Improves theBusiness Model BPM Migration to the Cloud Logistics (Delivery) Big Process – Far MoreImportant than Big Data
BPM Improves theBusiness Model Communication with KeyPartners and Customers Reduce Error Rate Acquired Kiva systemto improve infrastructure
As-Is To-Be essGovernanceTO-BEProducts & Services Wide variety of products that range fromseveral departments Server Space Overnight deliveryProducts & Services Amazon Publishing Cloud Play Same-day delivery Increased third-party seller activity AmazonFreshCustomers & Clients #1 online retailerCustomers & Clients Increase brand awareness in othercountriesCompetitors Netflix eBay ShopRunnerCompetitors Netflix eBayInternal DecisionsInternal DecisionsGovernance Relentless focus on customersGovernance Relentless focus on customersPartnersPartners
As-Is To-Be AnalysisAS-ISBusinessStructureIT StrategyITInfrastructureTO-BEOrg StructureOrg StructureKey Processes Customer ServiceKey Processes Maintain exceptional customer serviceHuman ResourcesHuman ResourcesTechnology ScopeTechnology ScopeKey ApplicationsKey ApplicationsSystem CompetenciesSystem CompetenciesGovernanceGovernanceArchitecture physical disk space/serversArchitecture Movement toward Cloud Kiva Systems for fully automatedwarehousesKey Process Delivery logisticsHuman ResoucesKey Process Delivery logisticsHuman Resouces
Amazon’s Business Problem“Amazon.com uses Business Process Management(BPM) software to automate a number of missioncritical financial operations processes. Theseinvolve disparate teams across the company andinclude handling confidential financial data forpayment, payroll, and accounting processes.Managed correctly, the automation and execution ofthese financial process applications helps ensurethat the company maximizes profit, reduces errors,and eases compliance burdens.” Appian.com
Amazon’s Solution Use BPM software to automate importantfinancial operations processes/tasks BPM software helps Amazon.com handle a largenumber of invoices each day Appian BPM Suite creates a technology systemthat combines everything into a single application Emphasize a positive user experience
Ansoff MatrixExisting Products/ServicesNew Products/ServicesMarket Penetration OpportunitiesProduct Development Opportunities Expand post-delivery surveys tosocial networking sitesExistingMarkets Improve interface to be moreaesthetically pleasing Keep up with evolving technology Reach out to new suppliers for moreinnovative products Make more of their own products(Amazon Kindle)§ Update existing products withnew featuresMarket Development Opportunities Introduce the company in moreNewcountriesMarkets Make Amazon more popular inexisting locations Target older generations who areless tech savvyDiversification Opportunities Offer services as well as tangibleproducts worldwide§ Example: Taxi Service Create an Amazon weight lossprogram where food will bedelivered§ Example: Includes a workoutregimen
Pestle tsLegal FactorsEnvironment
Boston MatrixHighMarketGrowthLowHighMarketShareLow
Mintzberg’s 5 Ps of StrategyThis is the choice a “player” willmake in every possible situation; it isthe company’s course of action forbusiness in the futurePlanThis discusses how acompany will cater to thepersonality of their targetmarket – it unites individualsby common thinkingPerspec-veThis defines where thecompany will be within themarketplace; it delineatestheir position in the“environment”Posi-onPloyThis is a specificmaneuver or aspect of thecompany that will help tosustain competitiveadvantagePa(ernThis is a study of pastpatterns of consumerbehavior that will help acompany moving forward
Porter’s 5 ForcesThreatof NewEntrantsBargainingPower ofSuppliersRivalryAmongExistingCompetitorsThreats ofSubstituteProductsorServicesBargainingPower ofBuyers
Porter’s 6 AdditionalForces for ThreatsDemographic Environment – MEDIUMPolitical & Legal Environment – HIGHGlobal companies and country specificlimitations on technology usage; DataPrivacy Laws; AccountingRequires new approach to considering“processing” as an asset which may provide anobstacle to older generationTechnologically savvy younger generationmay be reluctant to depend onComplementors – MEDIUMSocial Environment – LOWEconomic conditions, employmentturnover, competitionIntegration with both social and mobilenetworks is availableTechnical Environment – MEDIUMSlow or lack of internet connectionOne company holds key to entire BPMplatformMacroeconomic Environment – MEDIUMInvestment in new technology may be costprohibitive in poor economic conditions
SWOT AnalysisStrengths Large customer database Most successful online retailer Customers can easily compare prices Successful promotions and advertisementsWeaknesses Purchases are from distributors – not manufacturers Not everyone who looks at products makes a purchase
SWOT AnalysisOpportunities Expansion is always an option Desire to purchase online continues to grow E-Commerce is increasing in popularityThreats Market entry is very easy Lots of competition Consumers still prefer to make in store shoppingpurchases when it comes to certain products
Alternatives Purchase specialty software programs Handle exceptions individually Auto match documents Use a manual spreadsheet to handle exceptions Develop internal system for purchase-to-pay
Recommendations BPM platform that eliminates writing code Tailor BPM platform to specific needs Integrate BPM platform with ERP platform Build applications for all purchase-to-pay operations Use social/mobile interfaces to access BPM platform
6 Next StepsStep12Step Description and ObjectiveAssignedResponsibilityTarget CompletionDateMigrate to Amazon Web servicescloud from Appian BPM SuiteIT department, CIOthat only controls finances3 monthsStrong executive commitment tocloud ciesTransition failing ortransition timeTimeEngineers set up the cloud system Engineering team3 monthsTime, budget,technological issuesTransfer all the web-based datafrom the BPM models1 monthTime, possibleinternet failuresCreate strong partnerships aroundCEO, VP marketingcloud licensing and support3 monthsTime, failedrelationshipsTest security of cloud system1 monthBudget, timeIT department, CIOCIO
Questions?
Works Cited 7-amazon-and-porter%E2%80%99s-5-forces/Kucera, Danielle. "Amazon Acquires Kiva Systems in Second-Biggest Takeover."Bloomberg.com.Bloomberg, 19 Mar. 2012. Web. 29 Sept. 2013.Richardson, Clay. "Big Process." Big Data Ain't Worth Diddly Without Big Process. Forrester, 12Apr. 2012. Web. 29 Sept. 2013Davies, Matt. "Data-Driven BPM: Making "Big Data" Actionable." RSS. Smart Data Collective, 13Feb. 2013. Web. 29 Sept. 2013.Goodfellow, Pam. "Amazon #1 In Customer Service, But Will This Lead To SustainableLoyalty?" Forbes. Forbes Magazine, 28 Aug. 2012. Web. 29 Sept. 2013.Manjoo, Farhad. "Amazon's New Push for Same-Day Delivery Will Destroy Local Retail."SlateMagazine. Slate, 11 July 2012. Web. 29 Sept. 2013.Schiff, Jennifer. "Six Ways BPM Can Improve Supply Chain Management." - Enterprise AppsToday. Enterprise Apps Today, 15 Mar. 2012. Web. 29 Sept. 2013.Noren, Eric. "Digital Business Models: Analysis of the Amazon Business Model." Digital BusinessModels: Analysis of the Amazon Business Model. Digital Business Models, 8 July 2012. Web. 29Sept. ormal-0-21-false-false-false.html
cloud from Appian BPM Suite that only controls finances IT department, CIO 3 months Transition failing or transition time 2 Strong executive commitment to cloud services CEO Immediately Time 3 Engineers set up the cloud system Engineering team 3 months Time, budget, technological issues 4 Transfer al
