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April 2007

Online Version of This Newsletter

Welcome

This month’s newsletter gathers a number of articles on achieving Operational Excellence, especially through the application of Six Sigma Methods. Hoshin Kanri, a Japanese methodology for systematically setting, and achieving process improvement goals is highlighted as a way to build a high performance organization.

Also in this issue, are a number of articles and news items that cover how organizations are leveraging Information Technologies for Operational Excellence, especially in Banking.

Your suggestions for other topics, articles and news to be covered are always welcome. Please send them to newsletter@ajira.com. Please forward this to others in your organization and elsewhere, if you feel this newsletter may be of interest. We value your privacy and for any reason if you wish to unsubscribe, the instructions are at the end of this newsletter.

Thanks for your time and attention,

Anil Rewari
President
Ajira Technologies, Inc.

www.ajira.com

____________________________________________________________________________________

Business Process Management Articles


BPM Vs ISO
Stephen G.Smith, Rummler-Brache Group, BPMInstitute.Org Website and Newsletter, March 29, 2007.
ISO tends to concentrate on documentation as the primary evidence of process maturity.  There are risks involved in this approach, as an organization could easily "fool" the ISO criteria by concentrating on physical, static evidence (the documentation) rather than dynamic evidence, such as metrics history. In addition, there are often less tangible aspects such as company values, common practices, and other cultural elements - all of which are very fluid - that cannot be effectively represented in static documentation.  By contrast, BPM effectively accounts for the more dynamic elements in an organization by its very nature of focusing on active flow versus static documents.


The Gap between Process and the End Users : A Case Study For Process Roadmaps
Christine Dicken, Julius Spain, APS,  BPTrends Newsletter and Website, April, 2007.
Christine Dicken and Julius Spain examine the problems their organization encountered in implementing process initiatives, and describe the solution they developed to overcome the gap between the development of the processes, and implementation of the processes by end users.


Insights on Establishing an Operational Excellence Program

iSixSigma Europe Newsletter and Website, March 7, 2007.
In a conversation with iSixSigma, Gerald (Jerry) P. Belle, the executive chairman of Merial, and Dr. Silke Birlenbach, vice president of Operational Excellence for Merial, offer insights on their Operational Excellence program. They answer questions such as, When is the right time to launch a company-wide initiative such as Operational Excellence?, and What did you expect would change through Operational Excellence?



Six Sigma Basics: DMAIC Like Normal Problem Solving
Chew Jian Chieh, Valeocon Consulting, iSixSigma Europe Website and Newsletter, March 21,  2007.
Six Sigma problem solving is really not so different from day-to-day problem solving, except in Six Sigma, nobody knows what is really causing the problem at the beginning of the project. Six Sigma DMAIC methodology is really just a series of common sense questions that one asks in order to solve any problem and eventually sustain the gains that come from solving the problem.


Measuring and Improving Service Processes with Six Sigma
Nari Kannan, Ajira Technologies, Inc., iSixSigma Financial Services Newsletter, March 21, 2007.
Service processes play integral roles in almost every company - loan processing in the case of banks, mechanical services in an automobile dealership, recruitment or new employee orientation in a human resources department, accounts payable in an accounting department. Here are four ways to help ensure sensible measurements and improvement.


Creating a High Performance Culture with Hoshin Kanri

Frank Deno, New York ISO, iSixSigma Financial Services Website and Newsletter, March 7,  2007.
Often organizations plan effectively for performance gains, but fail to act on their plan to achieve their goals, leading to poor performance. Hoshin Kanri is a method that addresses the need to act on and achieve planned goals. Implementing Hoshin allows an organization to build a high performance culture and measure the progress of culture change toward a high performance. Following this process on a set schedule for each of the fundamental plans and annual plans throughout the organization ensures achievement of the business mission and progress towards the business vision.


Six Sigma Strategy: Understanding the Customer Process
Bryan Carey, John Munce, iSixSigma Financial Services Newsletter, March 7, 2007.
Here are three ways that leaders of an organization can define and document their customer strategy regardless of whether they choose to utilize Lean and Six Sigma to execute the strategy: Business Architecture, Hoshin Planning, and Information, Process and Infrastructure Diagramming.

 

Business Process Outsourcing Articles


Looking Beyond Cost Savings in Outsourcing
Nari Kannan, Ajira Technologies, Inc., Sourcingmag.com Newsletter and Website, March 21, 2007.
Many companies will share with you their own anecdotes about how, when they added up the costs of travel, coordination, delays and changes, the promised cost savings in outsourcing were always much smaller than originally expected. Looking beyond cost savings in outsourcing is strategically beneficial for both buyers and sellers of outsourcing services.


Midsize Firms Get More Value from Outsourcing
Allan E. Alter,  CIO Insight Newsletter and Website, March 7, 2007.
Our research reveals that smaller companies are more satisfied with their outsourcing deals than larger firms.


Newspaper Publishing: Gaining Offshore Traction
ValueNotes Database Newsletter and Website, March 23, 2007.
In 2004, Reuters decided to set up a center in Bangalore with a small team focused on data and news gathering. Today the 'fledgling team' has grown to a sizeable 1,000+ and has evolved to reporting financial news, writing complex stories as well as handling the entire IT database operations.


Product Development Outsourcing Helps This Company Stay Competitive
Lana Gates, SourcingMag.com Newsletter and Website, March 19, 2007.
How does a 100-percent, self-funded, interactive educational software company stay afloat and compete with much larger organizations to deploy electronic media and online educational solutions? The answer is through outsourcing. Xplana Learning develops digital educational solutions for big-name publishing clients, including McGraw-Hill, Thomson, Houghton-Mifflin and Cambridge University Press. As a result, the company can't afford much downtime. Nor can it afford to compromise its intellectual property (IP).


Outsourcing to Win: 4 Steps to An Effective Strategy
Paul McDougall, Information Week Newsletter and Website, March 9, 2007.
Here's what experts say CIOs and managers need to know to effectively manage a team of outsourcers and get the biggest bang for their IT dollars.
 

Agile Outsourcing: Managing Technology Metrics for Outsourced Software Development
Nari Kannan, Ajira Technologies, Inc., Sourcingmag.com Newsletter and Website, April 2, 2007.
If you're managing an IT project, you know that you need to set the important metrics you'll monitor to gauge whether the work is on track. Yet, what metrics should those be? In the case of software development, you may be surprised to learn that metrics might include such items as network latency, operating system currency, and the availability of support systems, such as defect management programs and collaboration portals. Why are these important?


 

Notable News


Latin America: Destination Next for India
ValueNotes Database Newsletter and Website, March 16, 2007.
In the recent few years there have been several instances of Indian service providers setting up Latin American shops.


In A Reversal, India Is Outsourcing To IBM
Paul McDougall, Information Week Newsletter and Website, March 30, 2007.
The $29 million deal's value could increase if India's largest real estate company maintains current growth rates.


Lean Delivers Faster Turnaround Time in Hospital Lab
Jennifer Blaha, GE Healthcare, iSixSigma Healthcare Newsletter and Website, March 28, 2007.
A hospital employed Lean Six Sigma methodologies in its specimen collection process to decrease patient wait time, decrease the distance staff needed to travel to complete tasks, increase patient touch time and improve lab turnaround time. "The lab staff saw great wins in terms of reduction in travel distance, time saved and increased patient touch time. The real excitement, however, came when the staff started to see a reduction in its overall turnaround time. Chemistry cycle time from draw to report ready was reduced by 35 minutes.


Streamlining Coast Guard's Accounts Payable Process
Mike Donnelly, The George Group, iSixSigma Finance Newsletter and Website, March 21,  2007.
Coast Guard Finance Center fix for over-stressed accounts payable process: An experienced Lean Six Sigma consultant with a finance background to lead a project team, break through the complexity, and design a Lean, effective and scaleable process. By utilizing the Lean Six Sigma methodology, the finance center now better understands where the pain lies (the root cause) and has already started developing improvement plans aimed at reducing the complexity and streamlining the larger process.


The CEO as CIO: An Interview with the Head of India's Top Private Bank
Leo Puri, The McKinsey Quarterly, March 31, 2007. (Free Membership Needed)
Information technology is so crucial for the success of India’s top private bank, ICICI Bank, that the CEO says he oversees it himself.
 

In The Thick of IT: Chief Information Security Officers Address Broad Risk Management Concerns

Anthony O'Donnell, Insurance & Technology, March 9, 2007.
Privacy, regulatory compliance, identity management and access top today's insurance industry chief information security officers' (CISOs) concerns.



A New Foundation: SOA Implementation and Bank Transformation

Nancy Feig, Bank Systems & Technology, March 30, 2007.
Charged with differentiating the bank and growing its business in the face of larger-scale competitors, Wachovia's CIB division had to map out where its technology needed to be to match where it wanted the business to go, relates Bishop. Under the leadership of Susan Certoma, who stepped into the role of CIO for the CIB division in 2004, Bishop was about to embark on a three-year total transformation of the business enabled by SOA.

 

Notable Events

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