Cyberfraud & identity theft: the hidden costs of business process outsourcing

Offshore business process outsourcing involves additional risks, according to Anne Rouse and David Watson. Here they outline some of these with strategies for their management.

IT-supported business process outsourcing (BPO): the good, the bad and the ugly

Outsourcing decisions are not, technically, irreversible. But in practical terms the organizational disruption and financial costs of bringing services back in house (“backsourcing”) mean that few organizations revert, even when quite dissatisfied with an arrangement. Instead, organizations typically seek to move to another outsourcing arrangement, that is sometimes less attractive than the original in-house delivery. Preliminary evidence from studies of business process outsourcing (BPO) experiences, like those into IT outsourcing’s success, suggests that only a minority of organizations report their BPO arrangements as satisfactory, implying that many are caught in this “can’t go back” bind. In this paper the authors examine two organizations contemplating the adoption of BPO, and consider their expectations and experiences in light of existing empirical literature. The paper concludes with a set of principles to assist organizations to avoid BPO failure.

Managing collaborative business process in knowledge-intensive environment

Business processes especially those in knowledge intensive environments often emerge rather than following predefined steps. Supporting emergent processes is one of the key issues for collaborative knowledge sharing. This paper first introduces a component-based workspace metamodel used to support emergent processes. A loose-coupled collaborative process management model WorkPath is proposed based on the workspace structure to support flexible process evolution management and coordination among processes. Key elements that construct workspace and WorkPath, such as role, action, artifact, workspace and reference relation, are described in detail. An implementation prototype and future work is also discussed at the end of the paper.

Business process affordances through the lens of activity theory

Business process designers are increasingly being challenged to develop processes that are not only useful in achieving business objectives but also accepted by the process participants and followed in the work place. Those objectives can only be achieved when both the business and the social/cultural aspects of the specific business environment are taken into account. Humans are not unaided individuals separated from a social group and from supporting artefacts but they are complemented by the environment in which they live in. This paper presents a novel framework for the design of business processes based on the application of activity system, providing a comprehensive framework of humans acting in the world, and the theory of affordances, representing action opportunities offered by the environment. The contribution of this paper is two-fold. First, it provides a theoretical contribution to affordance studies by offering a conceptual model that consolidates new developments in the concept, post Gibson. Second, it introduces a new framework (Activity/Affordance Framework - AAF) to aid the design of business processes. Finally, a case study is used to illustrate the utility of the framework in design practice.

Towards a semantic quality based approach for business process models improvement

Business process (BP) modeling aims at a better understanding of processes, allowing deciders to improve them. We propose to support this modeling with an approach encompassing methods and tools for BP models quality measurement and improvement. In this paper we focus on semantic quality. The latter is evaluated by aligning BP model concepts with domain knowledge. The alignment is conducted thanks to meta-models. We also define validation rules for checking the completeness of BP models. A medical case study illustrates the main steps of our approach.

Business process affordances

 The bypassing of established business processes is a significant problem in organisations. This research proposes a novel framework for incorporating psychological and social factors into the business process design. The framework promises to increase system adoption and decrease process bypassing, ultimately making an organisation's work more effective and efficient.

Acknowledging risks when deciding to outsource business processes : the case of data theft

Outsourcing is generally framed in terms of benefits and cost savings, rather than risks. One important risk is “data theft”. This paper draws upon a longitudinal study into IT and business process outsourcing to present a theoretical model incorporating risk. Sources include qualitative interviews with purchasers, non purchasers, and vendors of outsourced business process services. It concludes that data theft is an under-acknowledged risk in all business process outsourcing (BPO), but is higher for offshore outsourcing. This risk may be mitigated, but when factored into the business case can invalidate typically small cost savings. In acknowledging and adequately costing this risk, decision-makers may find BPO, particularly where offshore vendors are involved, less attractive.

The impact of business outsourcing on corporate real estate in India

Driven by Western companies' requirements for efficiency and effectiveness, a trend towards outsourcing of business activities to India and other low-cost countries commenced in the early 1990s and has continued to grow at a surprisingly fast pace. In a relatively short timeframe India has become a global hub for back-office services, although the effect on the urban cities is yet to be fully comprehended. As American and European companies continue to relocate their information technology services and other back office works to the subcontinent, there has been a considerable flow-on effect on Indian corporate real estate. This paper addresses two key questions. Firstly, the factors important for Western companies' outsourcing of organisational activities to India, and secondly, the effect of business outsourcing on corporate real estate locational requirements in India. A survey of corporate real estate representatives in India and the UK was conducted with the results providing an insight into the present state and possible future direction of outsourcing for India. This research presents a unique insight into the impacts of Western business outsourcing on corporate real estate in India, and presents findings that are useful to both organisations seeking to relocate business activities to India and for property market analysts looking to understand drivers behind this sustained demand for Indian corporate real estate.

A hermeneutic phenomenological investigation of business and IT alignment

The maximum potential potential alignment between business and IT is constrained by the mutually interacting factors of communications, shared understanding, trust, use of an appropriately scaled project and risk management methodology, distributed business ownership of all its processes and a pervasive IT ownership of every technology-enables business process.

Enhancing business intelligence traceability through an integrated metadata framework

The Business Intelligence (BI) system provides users with multi-dimensional information (so-called BI product) to support their decision-making. However, very often business users still could not fully understand the BI product, nor have a clear picture of the entire information manufacturing chain of the BI product. In response to this situation, this paper presents an integrated metadata framework (“BIP-Map”) to facilitate the traceability and accountability of a BI product following the design science research approach. Specifically, the salient modelling and management techniques from the business process modelling notation (BPMN), the information product map (IP-Map), and the metadata management are adapted to construct a three-layered integrated metadata framework enabling the business users to make timely and informed decisions. A BIP-Map informed prototype system has been developed in collaboration with online job recruitment firms. The authors conducted in-depth interviews with seven key BI stakeholders of the recruitment firms to evaluate the usefulness of the BIP-Map. It is envisaged that the metadata framework allows the technical personnel to understand the business processes that relate to certain information provided in the BI reports. Business users will also be able to gain insights into the logic behind any BI report.

Analysing business processes to manage and resolve strategic issues in a manufacturing business

This paper demonstrates the value of applying heuristics to knowledge systems of business processes in a manufacturing company to resolve strategic issues and enable the attainment of strategic business goals. The manufacturing company was losing market share through not being able to get its new products to market quickly enough. The research illustrates the ‘location’ and use of information systems in a manufacturing context. The researchers collected the specific business process knowledge in the company and developed a knowledge management system and then applied heuristics to the ‘AS IS’ manufacturing process to determine better models of manufacturing that would enable faster to market product development and thus enable better strategic alignment between company expectations and realisation of market share. The paper highlights the strategic use of information systems as a means of directly solving business problems.

Implementing green business processes : the importance of functional affordances of information systems

An environmentally sustainable and thus green business process is one that delivers organizational value whilst also exerting a minimal impact on the natural environment. Recent works from the field of Information Systems (IS) have argued that information systems can contribute to the design and implementation of sustainable business processes. While prior research has investigated how information systems can be used in order to support sustainable business practices, there is still a void as to the actual changes that business processes have to undergo in order to become environmentally sustainable, and the specific role that information systems play in enabling this change. In this paper, we provide a conceptualization of environmentally sustainable business processes, and discuss the role of functional affordances of information systems in enabling both incremental and radical changes in order to make processes environmentally sustainable. Our conceptualization is based on (a) a fundamental definition of the concept of environmental sustainability, grounded in two basic components: the environmental source and sink functions of any project or activity, and (b) the concept of functional affordances, which describe the potential uses originating in the material properties of information systems in relation to their use context. In order to illustrate the application of our framework and provide a first evaluation, we analyse two examples from prior research where information systems impacted on the sustainability of business processes.

Preliminary insights from a multiple case study on process modelling impact

Process modelling – the design and use of graphical documentations of an organisation’s business processes – is a key method to document and use information about business processes in organisational projects. Still, despite current interest in process modelling, this area of study still faces essential challenges. One of the key unanswered questions concerns the impact of process modelling in organisational practice. Process modelling initiatives call for tangible results in the form of returns on the substantial investments that organisations undertake to achieve improved processes. This study explores the impact of process model use on end-users and its contribution to organisational success. We posit that the use of conceptual models creates impact in organisational process teams. We also report on a set of case studies in which we explore tentative evidence for the development of impact of process model use. The results of this work provide a better understanding of process modelling impact from information practices and also lead to insights into how organisations should conduct process modelling initiatives in order to achieve an optimum return on their investment.