W11 - Redesign Principles and Tactics (2)

Response:


In my last blog article, I have analyze the principles and tactics of first 2 types which are “restructuring and reconfiguring the process”, “changing the information flows around the process”. In this lecture, I have learnt the remaining one: Minding which is changing knowledge management around the process. I will also analyze these principles and give case studies which had applied these principles to make use of what I've learnt on the lesson.




Minding - Changing knowledge management around the process


Principle #8 - Analyze and Synthesize


It is to enhance the interactive analysis & synthesis capabilities around a process to generate value added.


This principle is mostly applied to business like agents that have to make recommendation to customers by summarizing and analyzing the information.


The common tactics of this principle are
1) Provide what-if capabilities to analyze decision choices
2) Provide slice and dice data analysis capabilities that detect patterns
3) Provide intelligent integration capabilities across multiple information sources




Principle #9 - Connect, Collect & Create


It is to capture intelligent and reusable knowledge around the process through all who touch it.


One of the examples is the creation of Knowledge Repository through collecting the answer in the repetitive queries/FAQ. Therefore, the most suitable answer can be collectively derived from these knowledge creation processes.


The common tactics of this principle are
1) Define procedures to collect the knowledge
2) Create physical/ virtual spaces for storing the knowledge




Principle #10 – Personalize


It is to make the process intimate with the preferences & habits of participants.


By repeating execution of a process, this will build up a knowledge repository of customers’ preference. Base on the information gathered and generated from the repository, the process can offer more personalized services to customers.


The common tactics of this principle are
1) Learn preferences of customers and doers of the process through profiling
2) Insert business rules that are triggered by personal profiles
3) Use collaborative filtering techniques
4) Keep track of personal process execution habits





Case Study

CIGNA (Continue)

Not only the principles from the first 2 types, CIGNA also make use of principles in Minding.


Principle #8 - Analyze and Synthesize


CIGNA has applied this principle.
Six Sigma team in CIGNA used their brand new skills and tools to “slice and dice” the data a number of ways and identify more precisely the highest risk groups and their respective top causal factors so as to recommend to professional case manager. As a result, costs went down but member satisfaction went up.
Besides, it also construct "what if" scenarios to see how customers’ plan choices will affect their out-of-pocket costs, based on projected utilization.




Principle #9 - Connect, Collect & Create


CIGNA has applied this principle.
CIGNA has automated its underwriting process and also provided users with quick access to additional knowledge resources, including contact details of experts for different facets of the process.




Principle #10 – Personalize


CIGNA has applied this principle.
CIGNA let consumers customize their health benefit selections, what they pay for them and the way they customize their everyday Internet purchases.





More Case Study

TOSHIBA

UPS

The material I found is about the Principle #2: Orchestrate. There is a common tactic called “Insourcing”. United Parcel Service (UPS) is an American courier company which performed logistics operations for Toshiba. UPS would deliver Toshiba computer equipment from the factory.  Toshiba were criticized that there was a long time delay from the pickup for repair to delivery of the fixed product. Therefore, to avoid the unnecessary timely transport to and from the Toshiba factory, UPS employees are trained to repair the products on UPS premises.


In the other words, TOSHIBA has in-sourced the maintenance and repairs logistics process to UPS. As a result, both parties are benefited a lot from insourcing. For TOSHIBA, their service time is shorter than before and reputation & company images are improved gradually. For UPS, it also reduces its transportation time and cost and not just focus on delivery but also maintenance skills which provides more knowledge to the workers and enhance the diversity of the company.


You can watch the following video to make it clearer to the case.

More Case Study

IKEA

In the official webpage of IKEA, it provides a way for customers to organize their dream wardrobe/living room themselves. They can decorate their own style, having different colours, sizes and models. Then, it will provide the total price of that combination to customers conveniently and you can save or print your design plan. In this case, Principle # 3 - Mass-customize has been applied as it has enabled dynamic customization. Also, IKEA applies Principle #10 – Personalize as this activity can capture personal process execution habits like the usual colours that customers will be chosen. Therefore, IKEA can have a better understanding about their customers and target them.




Reference:
1) "Focusing the Power of Six Sigma in the Healthcare Insurance Industry: Lowering Medical Costs while Improving Patient Service and Outcomes" by Leslie Behnke & Forrest Breyfogl 2004
2) "The compelling case for insourcing" 2008
http://www.mpmagazine.com/xq/asp/txtSearch.Information+Techonology/exactphrase.1/sid.0/articleid.0EE11681-6505-4BF0-892C-B2A060BB54BE/qx/display.htm