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September 2007

Online Version of This Newsletter

Welcome
 
The major themes in this issue are Management of Performance and Risk, and the sharp rise in interest in Knowledge Services, and companies that provide them.

Process Performance Management has always been an art rather than a science. There are articles that cover the aspects of Processes that are managed actively, and how they are done. Risk Management in business processes, especially in the outsourcing context, involves selecting the right risks to manage and the right ways to manage them. There are a couple of articles that address these issues.

There has been a sharp rise in Knowledge Process Outsourcing (KPO) services, and companies that offer these services have been growing at a faster clip when compared to Business Process Outsourcing (BPO) companies. We have a few articles that explore recent trends in investments, mergers and acquisitions of KPO companies.

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


Using the Single Most Powerful Process Improvement Tool

Don D. Harris, Rath and Strong, iSixSigma Insights Website and Newsletter, August 27, 2007.
If an organization could choose only one method for unlocking value quickly, what approach should rise to the top of the list? If a company could adopt only one method for shaping it's culture toward continuous improvement, what tool should it use? The answer to both questions is Work-out. Work-out certainly should not be the only process improvement tool employed - far from it. The power and utility of Lean Six Sigma and Design for Six Sigma and other analytically intensive methodologies are unquestioned, and these tools have generated enormous value in a wide variety of settings. But, perhaps because of its relative simplicity, Work-out is often underemphasized - and underutilized - as complement to these well-proven approaches.

Business Process Management - If You Have a Hammer

Caspar Hunsche,Process Core Group, BPM Institute Website and Newsletter, August 28, 2007.
In this article, Caspar Hunsche argues that the Source, Make, Deliver and Return processes in Standardized Reference Models in Supply Chains like SCOR can be applied to Service Processes also.

The Big Six Sigma Myths
Marvin M. Wurtzel, Marvin M. Wurtzel & Associates, BPM Institute Newsletter and Website, August 23, 2007.
Consultant Marvin Wurtzel identifies ten "daunting" myths about Six Sigma. He points out that Six Sigma is not strictly for manufacturing processes and that it does work with Business Process Management. He opines that "any company can take advantage of the principles of Six Sigma to achieve continuous improvement of their processes resulting in improved customer satisfaction, leading to millions of dollars in cost savings and profitability." applying Six Sigma.

The Foundation for Successful Performance Management
Shyamala Sadananda, Infosys Technologies, BI Review Newsletter and Website, August 9, 2007.
Information is critical to managing business change. Rapidly reacting to business events and proactive business planning requires accurate and timely information. Building a performance management solution would mean constantly managing corporate data with the right portfolio of tools and technologies. Understanding and analyzing corporate data becomes easier within the context of an enterprise information management framework.

Which Countries Lead in Performance Management?
Gary Cokins
, BI Review Newsletter and Website, August 23,  2007.
Having visited 30+ countries, Gary Cokins analyzes the strengths of various countries when it comes which competencies stand out as excellent performers. And what do they manage well?

The Real Measure of Great End-User Services
Joe Hogan, CIO Insider Newsletter and Website, August 29,  2007.
Escape the SLA trap! Service level agreements are necessary to provide a base level of metrics for IT support performance, but sole reliance on SLAs is likely to create unhappy and even unproductive users.

Achieving Yokoten in the Process of Risk Management
Muthuvelan Varadharajulu, Carsten Rommel, Bosch Group, iSixSigma Website and Newsletter, September 3,  2007.
Risk management is a systematic process to handle risks in every aspect of a project. Yet despite the need to manage risks with care, Six Sigma teams and others involved in projects can get ahead of the curve on addressing risks via Yokoten. Achieving Yokoten for risk management makes the organization understand the risks, earlier and better. This facilitates the project teams to plan the actions proactively to avoid risks at an early stage of projects rather than to act reactively. That will save lots of time, effort and money.

Minimize the Risk of the Unknown in Six Sigma Projects
Robert B.Tripp, Six Sigma Advantage, iSixSigma Insights Website and Newsletter, August 29,  2007.
More often than not, it is the unknown that causes project failures. No single technique exists to ensure decision-making integrity; there are, however, several tools and disciplines that exist as checks-and-balances.
 

 


Business Process Outsourcing Articles



A Simple Way To Use Core Competency and Financial Impact Analysis in Outsourcing Planning
Nari Kannan, Ajira Technologies, Inc., Sourcingmag.com Newsletter and Website, August 27, 2007.
Outsourcing introduces a new wrinkle when handling the core competencies of any company. Which business processes do you outsource? Having rules such as, "Outsource non-core competencies but not core competencies," just doesn't work that well anymore. Here's a systematic approach the Financial Impact of various business processes on the company that is outsourcing.

Retail Promotions: Gaining Advantage from Global Services
NeoIT Newsletter and Website, August, 2007.
The latest neoIT's research brief "Retail Promotions: Gaining Advantage from Global Services" explores the promotional spend in the retail industry and the steps to maximizing promotion effectiveness. It also discusses the differences between traditional information technology outsourcing (ITO) and business processes outsourcing (BPO) services to improve promotions. The brief covers the core competencies that retailers should focus on in-house to maximize profitability and those that they should globalize to avail the opportunity to analyze more data more quickly while managing costs.


IT Support Portal in 2010
Ron Muns, The Muns Report Newsletter and Website, Help Desk Institute, August 29, 2007
Support cost will continue to be a concern. It is not an issue unique to IT or IT support, it is a concern for every area of any organization. The cost of support will be less on phone and more on technology, openness, and collaboration. Thus the IT support portal will be a requirement in 2010.

Six Sigma: Let the data lead you to quality software
Colleen Frye, Software Quality News Newsletter and Website, August 22, 2007.
IT organizations are successfully using a variety of quantitative and qualitative tools in their Six Sigma initiatives to improve software quality and processes.

Involving Suppliers in Six Sigma; Fostering Lean Six Sigma
Andreas Kleinert, iSixSigma Europe Newsletter and Website, August 23, 2007.
As companies concentrate on design and outsource more of the order fulfillment process, including manufacturing, their quality image is dependent on supplier performance. So, when is the time to involve suppliers in a quality improvement initiative?

Large Players Eager to get the KPO Tag
ValueNotes Database Newsletter and Website, August 1, 2007.
Having built a brand in the BPO space, large BPOs such as WNS, EXLService, Wipro and Genpact are ready to make a mark in the 'knowledge services' space. Several of these companies have already tested the space and are now looking to grow their "KPO" business both organically and inorganically.

Benefits Administration: Offshore Opportunity in The Mid-market
ValueNotes Database Newsletter and Website, August 8, 2007.
The global HR outsourcing market is estimated to cross $78.8 billion by 2010 according to Global Industry Analysts. Here are the major players.

Growth in Knowledge Services
ValueNotes Database Newsletter and Website, August 22, 2007.
In the last two years, a large number of entrepreneurs have started KPO outfits and several large multi-service BPOs have added knowledge services to their offerings



 



Notable News


Why Do Tech-Support Responses Often Seem Slow?

Eric Chabrow, CIO Insight Newsletter and Website, August 30, 2007.
Perhaps it's because the number of computer support specialists in the U.S. has fallen by nearly 12% since 2001. No wonder many CIOs say their companies technical support teams are 40% smaller than they should be.


Aligning I.T. and Business
John McCormick, Baseline Magazine Newsletter and Website, August 7, 2007.
Business leaders and tech execs still aren't on the same page. How wasteful is that?

Large-Scale Six Sigma Initiative Improves Patient Care
Tomas A.Gonzalez.M.D, Matiana Vela EdD,Tracy Kirkonnel MBA, Valley Baptist Health System, iSixSigma Health Newsletter and Website, August 29,  2007.
Several years ago, Valley Baptist Health System (VBHS) decided to launch a large-scale performance improvement initiative based on Six Sigma and change management. By any measure, the strategy has been a success. Valley Baptist has become a model for other healthcare organizations to follow – improving the quality of care, raising satisfaction and increasing efficiency across the continuum of care.

Eight of the Worst Spreadsheet Blunders
Thomas Wailgum, CIO Enterprise Newsletter and Website, August 17,  2007.
Spreadsheet typos and oversights can wind up costing your company millions. Here's a look at eight big mistakes, and tips on how to prevent them from happening at your company.
 

Wachovia IT Exec Scott Flemming Focuses on Process
Nancy Feig, Bank Systems and Technology, August 24, 2007.
While calling Scott Flemming process "obsessed" may be a bit of a hyperbole, process improvement is something he has trouble checking at the door to his home. "The biggest carryover from my IT background has to do with the analytical approaches I apply to my home and family," he relates.

Banks Must Engage Customers to Secure Online Transactions
Maria-Bruno Britz, Bank Systems & Technology, August 25, 2007.
Securing online banking requires cooperation among banks, customers and vendors.

Legacy Systems Yield To Modern Technologies
Anthony O'Donnell, Insurance &Technology, September 1, 2007.
The continued success of newer technology platforms is clarifying the likely future state of policy admin systems and reshaping how carriers large and small think about legacy migration.

 

 


Related Blog

Lean Six Sigma and Continuous Process Improvement in Outsourcing

Nari Kannan, Ajira Technologies, Inc. Sourcingmag.com

Some Recent Entries:
How to Implement BPM in Existing Operations
What's your Number 1 Process Improvement Technology?
Importance of Visualization in Process Improvement

 



Book Reviews

Business Innovation in the 21st Century Praveen Gupta, Book Surge Publishing, 2007. Reader Reviews in Amazon.com.

Process Mapping, Process Improvement, And Process Management Dan Madison, Paton Press, 2005. Reader Reviews in Amazon.com.

The Basics of Process Mapping Robert Damelio, Quality Resources, 1996. Reader Reviews in Amazon.com.

Next Generation Offshoring: The Globalization of Innovation
Arie Y. Lewin, Vinay Couto, Duke Center for International Business Education and Research. 2007 Reader Reviews in Amazon.com.

 


Notable Events
 

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