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September 2008

Online Version of This Newsletter

Welcome

Several articles highlighted in this month’s newsletter focus on the current limits of applying Prediction in business. Frequently, while predictive algorithms might be powerful, the quality of the data – messy, inconsistent and deficient -- limits their effectiveness. Many algorithms are complex and designed to be used by statisticians, as opposed to, business managers. This can lead to misuse by managers not very familiar with these techniques or terms. Finally, top level executives can make wrong strategic decisions by ignoring scenarios and forecasts because they think that they know better. In such cases, analytics cannot help when executives won’t listen to the numbers. Separately, a couple of articles also highlight ways in improving business intelligence including using a roles-based approach – presenting information tailored to a person’s role and scope of authority.

In the BPO section, one of the articles focuses on the need for better management tools to manage the greater risks, as outsourcing continues to expand. Another article focuses on the impact of offshore outsourcing on customer satisfaction and what companies can do to improve the quality of outsourced customer service. Finally, the article "Beyond Outsourcing, to World-sourcing" highlights the shift from a unidirectional world where business ideas and innovations flow from the developed world to the developing world, to a new era of “Global 2.0”, where successful companies are harnessing ideas and innovations from the fast-growing emerging markets.

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



Business Process Leadership (BPL)
Howard Adams, Chaosity LLC, BPM Institute Newsletter and Website, July 22, 2008.
Business requires both leadership and management to succeed. You can’t overlook or over-value one or the other; they have a symbiotic relation in any business, business function or business process.

The Limits of Prediction

Seth Grimes, Alta Plana Corp, Intelligent Enterprise Newsletter and Website, July 1, 2005.
Predictive analytics may be gaining new users, but it's still too complex for mainstream adoption.

Reasons for Six Sigma Deployment Failures

Marvin Wurtzel, Wurtzel Consulting, BPM Institute Website and Newsletter, June 13, 2008.
As a Six Sigma consultant Marvin Wurtzel is often asked: "Have there been any Six Sigma deployments that have failed?" His answer is ambiguous enough to make him sound like a presidential candidate. That answer depends on the definition of the term "failure." His definition of a failure would be a result that does not deliver the Return On Investment (ROI) anticipated by the company

The Real Limits of Prediction
Seth Grimes, Alta Plana Corp, Intelligent Enterprise Newsletter and Website, August 13, 2008.
Seth refers to his article back in 2005 (above) on the Limits of Prediction. He argues with an example that if the direction is wrong, prediction is useless!

Improving Business Intelligence: The Power of Metrics
Dorothy Miller, DM Review Newsletter and Website, August 27, 2008.
The Six Sigma Way for improving business intelligence (BI) quality is a program that is rigorous, structured, iterative and based on metrics. Why do we need to base the improvement program on data? What are some of the metrics that are crucial to improving BI quality? What should be measured and how do we measure? How do metrics fit into a BI quality improvement program?

Making Role-Based Business Intelligence Meaningful - A New Approach to Performance Improvement
Peter Long, DM Review Website and Newsletter, August 19, 2008 
Role-based business intelligence (BI), presenting information tailored to a person’s role and scope of authority, is a necessity. But it is not sufficient in today’s disparate business environment. Role-based BI is only effective if it delivers role-based information within the context of a value stream, a sequence of processes that are connected by a common customer, product or service request.


Maximizing Success When Implementing a Basic 5S Program

Terra Vanzant-Stern, iSixSigma Newsletter and Website, August 21, 2008.
5S is a popular Lean Six Sigma tool that is designed to instill a sense of responsibility in employees and promote a disciplined approach. 5S was originally used by Toyota in Japanese factories, primarily at the shop-floor level, but now it is often used in the workplace to decrease cycle time and general flow. There are many different translations of 5S. Because of this, practitioners should reach a strong understanding of the original Japanese method before introducing it to their workplace. By gaining this knowledge, they will be able to educate others in a way that will garner employee buy-in and achieve the best results in helping their firm become more organized.

Objective Defect Evaluation Leads Improvement Efforts
Gorur N. Sridhar, iSixSigma Newsletter and
Website, August 11, 2008.
Many times it is imperative for a firm to improve the quality of its deliverables even though it is operating consistently at a high sigma level. The difficulty in completing these tasks, however, is knowing where to start. When no process area is clearly failing, but the drive for continuous improvement remains, practitioners should use an end-effect rating system to determine where to focus efforts.
 


Business Process Outsourcing Articles


Beyond Outsourcing, to Worldsourcing
William J. Amelio, BusinessWeek Magazine and Website,  May 30, 2008.
We are now in the era of Global 2.0, where successful companies know how to harness ideas and innovations from the fast-growing emerging markets.

How Offshore Outsourcing Affects Customer Satisfaction
Wall Street Journal Online, July 7,  2008.
The outsourcing of customer service to offshore providers has gotten a lot of bad press in the U.S., with reports citing language problems and the exporting of jobs. But, despite the potential for such reports to alienate consumers, this off-shoring continues to grow, driven mainly by the lower labor costs overseas.

Tracking Outsourcing's Paradigm Shift
Robert Malone, Forbes Newsletter and Website, May 29th  2008.
Global outsourcing has undergone a paradigm shift.  From a practice that once offered long-standing opportunity and significant cost advantage, outsourcing now holds greater risks and, as a result, requires more highly honed management tools.


Companies Look to Application Management Mega Contracts for Operational Improvement
Dominique Raviart, NelsonHall BPO Insight Newsletter and Website, July 2008
Application Management (AM) has undergone many changes in recent years, moving away from T&M to SLA-based provisioning, from on-site to factory-based delivery, and overall becoming much more industrialized than in the past. In addition, Indian vendors have changed the rules of the AM game with their low-cost, process-oriented and certification-heavy offerings, as well as by their ability to provide low-cost staff augmentation services. And this transformation is not going to end any time soon.

Maximizing Success When Implementing a Basic 5S Program
Terra Vanzant-Stern, iSixSigma Newsletter and Website, August 21, 2008.
5S is a popular Lean Six Sigma tool that is designed to instill a sense of responsibility in employees and promote a disciplined approach. 5S was originally used by Toyota in Japanese factories, primarily at the shop-floor level, but now it is often used in the workplace to decrease cycle time and general flow. There are many different translations of 5S. Because of this, practitioners should reach a strong understanding of the original Japanese method before introducing it to their workplace. By gaining this knowledge, they will be able to educate others in a way that will garner employee buy-in and achieve the best results in helping their firm become more organized.

Reactive Complaints: A Valuable Source of Customer Data
Uwe. H. Kaufman, iSixSigma Newsletter and Website, August 28,  2008.
Voice of the customer (VOC) is a key topic in customer service, as well as Six Sigma training and project work. VOC involves gathering information about customer needs in order to provide them with best-in-class products and services. There are two main categories for VOC: reactive data and proactive data. Proactive data is collected with methods such as focus groups, interviews, observations, surveys or test customers; reactive data is mainly based on customer complaints, feedback, hotline data or warranty claims. Practitioners can benefit from understanding the differences between these data types, and knowing that reactive data, which perhaps does not get as much attention, is a great opportunity for process improvement.

Picking the Best Approach for the Problem at Hand
Jason Bates, iSixSigma Newsletter and Website, August 18,  2008.
As more organizations expand their efforts into multiple process improvement methodologies, choosing the methodology to solve a particular problem can be as difficult as solving the actual problem. While simply using a problem solving methodology significantly increases the success rate of a project, choosing the correct methodology optimizes the solution process to achieve the best result. A simple tool, adapted from a marketing concept called a positioning map, can help practitioners choose the best methodology.
 


Notable News



Outsourcing Prospects in Brazil Good, but Economy is a Barrier
Zach Church, CIO Mid-Market Newsletter and Website, August 4, 2008.
Brazil may be a leader for Latin American IT outsourcing, but all isn't well below the equator as an appreciating Real cuts into potential cost savings.

EMS CIO Outsources the Mundane to Focus on Rebranding
Zach Church, CIO Mid-Market Insight Newsletter and Website, August 6, 2008.
It was a case of slimming down to move forward. And the northeastern retail chain's IT department had to do the same. EMS's leaders expect the IT department to do more than keep the lights on, CIO Jeffrey Neville said. They want innovation and projects that add to the business. And that takes staff time.

Measuring Training with Return on Investment (ROI) Analysis
Robert Last, Help Desk Institute
, Newsletter and Website, August 6, 2008.
Determining the cost of a course or an entire training program is not nearly as hard as it used to be. In fact, there is a substantial body of literature that has been developed in just the last few years on quantifying the value of training.


Is Cloud Computing A Cost Saver?
CIO Reader's View Newsletter and Website, August 11,  2008.
C
loud computing is gaining steam, but is it helping businesses save money?

Making the Journey Toward Culture Change in Healthcare
Anita M. Yelton, GE Healthcare, iSixSigma Healthcare
Newsletter and Website
, August 27, 2008.
Recognition is growing among healthcare leaders of the need for a culture change within their organizations. Moving from recognition to reality, however, is more difficult. The problem lies in the perception – or misperception – of what a culture change actually entails. Culture change is not a program with a completion date, nor is it a quick fix. It is an ongoing journey – a journey that requires leaders to understand the current state of the organization, establish a clear vision, align behaviors and instill accountability.

Flexibility, New Technology Key To Attracting Young IT Workers

Nathan Conz, Insurance and Technology, July 08,  2008.
Insurers are finding that both newer technology environments and more flexible working environments are keys to attracting top IT talent from younger generations.

Policy Admin System Replacement: Insurers Shift Focus From Systems to Functionalities
Anthony O'Donnell,  Insurance and Technology, August 7, 2008.
Canada’s oldest mutual P&C company developed its GoBroker portal to offer brokers more online capabilities according to the brokers’ priorities.

Financial Supply Chain Management Continues to Evolve
Maria Bruno-Britz, Bank Systems & Technology, August 19, 2008.
In the world of treasury management, corporates (at least the largest ones) have always placed pressure on their banks to provide innovative products and services designed to optimize performance and cost savings. In the current economic environment, their petitions are likely to become louder as companies are impelled to shore up their working capital and every new expenditure is subjected to intense scrutiny.

 

Related Blog



Lean Six Sigma and Continuous Process Improvement in Outsourcing
Nari Kannan, Ajira Technologies, Inc. Sourcingmag.com
 

Some Recent Entries:

Mining Process Intelligence For Gold!
Process Improvement and Design of Experiments (DOE)
California DMV - Stellar Example of Process Improvement Efforts
 


Book Reviews



The Profit Impact of Business Intelligence
Steve Williams, Nancy WIlliams, Morgan Kauffman, 2006. Reader Reviews in Amazon.com.

Successful Business Intelligence: Secrets to Making BI a Killer App
Cindi Howson, McGraw Hill-Osborne, 2007. Reader Reviews in Amazon.com. .

Competing on Analytics: The New Science of Winning

Thomas H. Davenport, Harvard Business School Press, 2007. Reader Reviews in Amazon.com.

Risk Intelligence: Learning to Manage What We Don't Know
David Apgar, Harvard Business School Press, 2008. Reader Reviews in Amazon.com. . .


 

Notable Events


3rd Annual Service Level Agreements Conference- Operationalizing Your Contract
September 29 - October 1. JW Marriott. Mumbai, India.  Infor-Media India.
Nari Kannan, CEO, Ajira Technologies, Inc will present the topic "A Framework for Business Process Outsourcing Governance" at this conference.

Business Process Management Conference Europe 2008
September 29- October 1, 2008.  London. IRM UK.

BPM Think Tank 2008
October 6 - October 7, 2008. Chicago, IL. Object Management Summit.

Global Lean, Six Sigma, and Business Improvement Summit & Awards

October14 - October 17, 2008. Orlando, FL. WCBF.

10th Annual Lean, Six Sigma, and Process Improvement Summit
January 18 - January22, 2009, Orlando, FL. IQPC

 


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