1 Deloitte & Touche Bakkeni st OR Defining the Future By Prof. dr. ir. Jo van Nunen Erasmus University Rotterdam Deloitte & Touche Bakkenist The Netherlands

2 Deloitte & Touche Bakkeni st The Role of ICT and OR in the Organisation of Business Processes By Prof. dr. ir. Jo van Nunen Erasmus Universiteit Rotterdam Deloitte & Touche Bakkenist The Netherlands

3 Deloitte & Touche Bakkeni st Contents Developments in BP Supply Chains e-Business ICT change OR Modeling Examples

4 Deloitte & Touche Bakkeni st MOTTO There are 3 types of Organisations

5 Deloitte & Touche Bakkeni st AND There are 3 types of Mathematicians

6 Deloitte & Touche Bakkeni st Business Processes Customer Orientation Mass Individualization Internationalizati on Efficiency of Processes Quality of Processes etc.

7 Deloitte & Touche Bakkeni st And the Possibilities of ICT and Networks

8 Deloitte & Touche Bakkeni st E lectronic Business EB = Electronic Data Interchange EB = Electronic Ordering EB = Electronic Paying EB = Electronic Auctioning EB = Electronic Intermediation EB = Electronic Quality Control

9 Deloitte & Touche Bakkeni st E lectronic Business EB = Online Routing EB = Online Quality Control EB = Online Selection EB = Customer Analysis EB = Online Optimization EB = Online Simulation EB = Etc.

10 Deloitte & Touche Bakkeni st E-Business organisation Customer Business Process

11 Deloitte & Touche Bakkeni st A business process is a collection of related activities with a well defined result for a customer different from business functions crosses organisational boundaries

12 Deloitte & Touche Bakkeni st Business Process 1 Product Development Distribution After sales service Production Marketing Sales Custo mer

13 Deloitte & Touche Bakkeni st Example Deloitte & Touche Bakkeni st Production of lamps Central depot Decentral depot Customer Philips Lighting

14 Deloitte & Touche Bakkeni st The Customer retailer project maintenance special orders etc.

15 Deloitte & Touche Bakkeni st The Customer specific quality international information after sales service etc.

16 Deloitte & Touche Bakkeni st Classical Multichanneling How To Handle Different Types Of Customers

17 Deloitte & Touche Bakkeni st productionassembling production on order assembling on order deliverin g out of stock Logistic chain

18 Deloitte & Touche Bakkeni st Classical Approaches OR methods Value chain analyses Business Process Redesign ERP Etc.

19 Deloitte & Touche Bakkeni st ProducerTransport EB- Organisation Chain Management Auction Wholesaler Retailer

20 Deloitte & Touche Bakkeni st EB-organisation Deloitte & Touche Bakkeni st Where does the customer enter? Retailer Wholesaler Agent Producer Etc.

21 Deloitte & Touche Bakkeni st Channels Shop Internet Call centre CRM- agent Etc.

22 Deloitte & Touche Bakkeni st Modern Multichanneling How to Handle same customer that uses all channels

23 Deloitte & Touche Bakkeni st Examples Auctions Nike cargo on ship bonds flowers

24 Deloitte & Touche Bakkeni st Revenue Management NOT:Optimize Revenue from Single System BUT:Optimize Revenue from Multiple Interactive Systems

25 Deloitte & Touche Bakkeni st Intelligent Transport Systems interact online with External Realtime Systems

26 Deloitte & Touche Bakkeni st Escudero & Pereira DSS for Electricity Open Market Short Term Auctions Spot Market Mid & Long Term Bidding Contracts

27 Deloitte & Touche Bakkeni st ICT developments and Business Processes Tracking and tracing Communication on –wip –resource availability –etc. OL-Optimization Etc.

28 Deloitte & Touche Bakkeni st ICT developments and Business Processes Satellite communication Multi media technology Chip card technology Voice recognition Mobile communication THINKING PRODUCT Etc.

29 Deloitte & Touche Bakkeni st ICT & OR and Strategy Competitive pull new services shorter delivery Information Technology& OR as strategic weapon Technology push cost efficiency optimisation integration

30 Deloitte & Touche Bakkeni st COMPETING ON BUSINESS PROCESS

31 Deloitte & Touche Bakkeni st Redesigning Business Processes level of trans- formati on local exploitation IT internal integration redesign business process redesign business network redesign core business value added Venkatraman 1991

32 Deloitte & Touche Bakkeni st RESEARCH QUESTIONS THE ENGINEERING APPROACH GIVEN ALL THE TECHNOLOGICAL POSSIBILITIES HOW TO DESIGN HOW TO CONTROL? “THE NEW BUSINESS PROCESS”

33 Deloitte & Touche Bakkeni st CHALLENGE Can we develop theory and models that help in design and control problems ?

34 Deloitte & Touche Bakkeni st Subjects Modeling interorganisational trade procedures ERP and IOS FMS and WFMS Intelligent agents etc.

35 Deloitte & Touche Bakkeni st Subjects Analyzing Customer Behaviour Designing Modular Networks Role of Auctioning in Networks etc.

36 Deloitte & Touche Bakkeni st Managerial Problems Our New Integrated Designs are Controlled by Whom?

37 Deloitte & Touche Bakkeni st Managing business processes Goods flow control Department control Department control Department control Department control Department control Department control Departmt. A Departmt. B Departmt. C

38 Deloitte & Touche Bakkeni st Business Network Producers Wholesal ers Retailers

39 Deloitte & Touche Bakkeni st Version 1 Producers are organized

40 Deloitte & Touche Bakkeni st Business Network Producers Wholesal ers Retailers

41 Deloitte & Touche Bakkeni st Version 2 Wholesalers know the market

42 Deloitte & Touche Bakkeni st Business Network Producers Wholesal ers Retailers

43 Deloitte & Touche Bakkeni st Version 3 Retailers are a chain

44 Deloitte & Touche Bakkeni st Business Network Producers Wholesal ers Retailers

45 Deloitte & Touche Bakkeni st Version 4 Logistic service provider offers service

46 Deloitte & Touche Bakkeni st Business Network Producers Wholesal ers Retailers

47 Deloitte & Touche Bakkeni st Succes s if power relation is clear

48 Deloitte & Touche Bakkeni st Power Relations Clear then OR-Models OK

49 Deloitte & Touche Bakkeni st Practice is often a mixture

50 Deloitte & Touche Bakkeni st Ways have to be found to "create" cooperation “The Governance structure”

51 Deloitte & Touche Bakkeni st Shifts in control structure do they influence the models ?

52 Deloitte & Touche Bakkeni st Who will be the chainmaster?

53 Deloitte & Touche Bakkeni st The Lord of the Process Producer Wholesaler Retailer LSP Bank Microsoft etc.

54 Deloitte & Touche Bakkeni st How do we mobilize cooperation

55 Deloitte & Touche Bakkeni st OR-Models Simulation Scenario Analysis Sensitivity Analysis etc.

56 Deloitte & Touche Bakkeni st Redefinition of Customized Product Old customized product Barcode & Chip Website Helpdesk call center Tracking and Tracing Delivery Time Remote Repair Community

57 Deloitte & Touche Bakkeni st The Producers Where and when to produce each part? What is distribution? What is stock? With whom to collaborate? How to serve? Etc.

58 Deloitte & Touche Bakkeni st LSP Am I producer? Am I warehouse? Am I intermediary? Am I information system? Am I in charge? Etc.

59 Deloitte & Touche Bakkeni st COMPLEXIT Y How do we Handle Mixture of Product and Services

60 Deloitte & Touche Bakkeni st WHICH INFO SYSTEMS and WHICH OR MODELS FOR Customers and Processes

61 Deloitte & Touche Bakkeni st Simulation Software IBM Supply Chain Simulation analysis optimization etc. Simple ++ Planning Scheduling Forecasting etc.

62 Deloitte & Touche Bakkeni st AIMMS 3.0 Allround Development Environment for Modeling Experts to create Fully Functional Decision Support Systems for End Users Simulation Software

63 Deloitte & Touche Bakkeni st Examples analyzed SHIP IT SMARTER.COM PROCUREMENT HEINEKEN OMRON ELECTRONICS PHILIPS MOBILES ETC.

64 Deloitte & Touche Bakkeni st Examples CISCO DELL CARGOWEB.com E- marketplaces ETC.

65 Deloitte & Touche Bakkeni st Organizational Research ICT induced Organizational Redesign Trusted THIRD Parties 4 PL New organizational forms Organizational boundaries etc.

66 Deloitte & Touche Bakkeni st Operational Research Network Design Workflow Optimization Neural Networks SCM Optimization APS ASP Software etc.

67 Deloitte & Touche Bakkeni st Operational Research NUMETRIX ==> JDE PLANNING ==> O.L. FORECAST ==> Reallife

68 Deloitte & Touche Bakkeni st CUSTOMER COMPOSES PRODUCT and SELECTS PROCESSES

69 Deloitte & Touche Bakkeni st HOW CAN CUSTOMER DO IT IN AN OPTIMAL WAY ?

70 Deloitte & Touche Bakkeni st OPTIMIZING THE VIRTUAL ORGANIZATION USING E-BUSINESS

71 Deloitte & Touche Bakkeni st The virtual organisation agent customer

72 Deloitte & Touche Bakkeni st E xcellent use of OR-models B y defining the future