Business Process Management of Japanese and Korean Companies

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Today's business environment is characterized by hypercompetition and the development of the Internet. Fierce competition between suppliers and the availability of abundant information have caused a shift in bargaining power from producers/suppliers to buyers and consumers. Consequently, Business Process Management (BPM) -- i.e. management tool to optimize and control operations flows by viewing the transactions within and outside corporations as processes, with the focus on speedily meeting customers' needs -- has emerged as a popular management framework.However, recent research on BPM has put too much emphasis on information sharing and the visualization of business processes using IT innovations. This book argues that BPM must be linked with existing management tools. Based on survey results of Japanese and Korean companies' BPM practices, the book demonstrates how to build BPM as a holistic management model by addressing the importance of BPM views, the effectiveness of its approach, and the latest research trends.

Author(s): Gunyung Lee, Masanobu Kosuga, Yoshiyuki Nagasaka
Series: Japanese Management and International Studies, 5
Publisher: World Scientific Publishing Company
Year: 2009

Language: English
Pages: 188
City: Singapore

Contents
Preface
List of Contributors
PART 1 THEORY AND FRAMEWORK OF BPM
The Conceptual Framework of Business Process Management Gunyung Lee
1 Introduction
2 Necessity and Possibility of Process Management in the IT Era
2.1 Demand from the management side
2.2 Support from innovation in IT
3 History of Business Process Management
4 The Concept of Process
5 Process Classification Framework (PCF) of the American Productivity & Quality Center (APQC)
6 Process Management Unit and Operation Flow
7 Structure of BPM
7.1 Process chain management
7.2 Process net strategy
7.2.1 Business process collaboration
7.2.2 Patterns of business process collaboration
8 Conclusion
References
Organic Coupling Between BPM and Management Information Ryuta Uematsu
1 Post-War Development of Japanese Economy
1.1 From post-war high economic growth to medium growth
1.2 To mature economy through the bubble economy
2 Utility and Limit of ERP
3 Cost of Sales and Cost Accounting of Financial Accounting, and the Relation with Management Accounting
3.1 Utility and limit of standard cost accounting
3.2 Function and performance of cost accounting in the sight of management accounting
4 Characteristics of Mature Economy and Economical Evaluation
4.1 Economic performance indicator required by “high-mix/low volume”
4.1.1 Price is high, but cost is higher?
4.1.2 Inhibitory element on fixed cost productivity
4.2 Impact on business caused by unforeseen event
4.2.1 Characteristics of customer behavior in the age of continuous excess-supply
4.2.2 Impact on business management caused by inter-process stocks
4.3 Historically sophisticated management and the object of management accounting
5 Process Management and Economic Performance Indicator
5.1 Single process management and time related information
5.1.1 Single process management for cost reduction and improvement of fixed cost productivity
5.1.2 Inter-process management: upholding the efficiency between processes
5.1.3 Fixed cost productivity indicator and fixed cost accounting
5.1.4 Analysis of variation of four elements of fixed cost productivity from budget
5.2 Inter-process management and profit information
5.2.1 Impact of customer loss
5.2.2 Operating expense for acquisition of alternative new customer
5.3 From the age of exclusive management indicator to that of open management indicator
Summary
The Business Process Network Strategy of SMEs Satoshi Arimoto
1 Introduction
2 Change Required for SMEs
3 SMEs’ Collaboration with Outside Organizations
4 Current Status and Issues of SMEs’ External Cooperation in a Survey in the Niigata Area
4.1 About the competitive environment
4.2 Awareness of external cooperation
4.3 The future of collaboration with outside organizations
5 The Meaning of Building a Business Process Network of SMEs
6 A Search for Management Methods for Business Process Networks for SMEs
References
Global Process Management Yoko Asakura
1 Introduction
2 The Basis of Process Management
2.1 The concept of process management
2.2 Process management inside the enterprise
2.3 Process management between enterprises
3 Global Process Management Inside the Enterprises
3.1 Arrangement and cooperation in process
3.2 Process management and its problems
4 Global Process Management between Enterprises
4.1 Process strategy across borders
4.2 The method in process management
4.2.1 Case of outsourcing
4.2.2 The support of process optimization-BSC
5 Conclusion
References
PART 2 CASE STUDIES OF BPM IN JAPANESE AND KOREAN COMPANIES
Business Process Innovations in Panasonic Corporation: A Case Study Masanobu Kosuga
1 Introduction
2 “Deconstruction” and “Creations”: Value Creation 21 Plan
2.1 Core concepts of the plan
2.2 New Corporate Model: Super Manufacturing Company
2.3 Manufacturing reforms: The first trial of business process innovation based on IT innovation
2.4 Restructuring domestic consumer sales and distribution: The second trial of business process innovation
3 Group-wide Business and Organizational Restructuring under Value Creation 21 Plan
3.1 Main results of implementing the plan
3.2 Roles of business domain companies and headquarters
3.3 Crawling up from the bottom
4 Toward Next Stage: Further Challenge of Future Growth and Creating Value: Leap Ahead 21 Planfrom Fiscal 2005
4.1 Initiatives of Leap Ahead 21 Plan
4.2 Growth Engine under Leap Ahead 21 Plan
4.3 Halving plant inventories: Cell-style production system
4.4 Management innovation through IT and corporate cost busters project
5 Core Concept of GP3 Plan: Manufacturing-Oriented Company
6 Conclusion
References
Appendix. Corporate Profile of Panasonic Corporation
BPM Practices in a Japanese Company: A Case Study of Canon Co. Ltd. Yoko Asakura and Asako Kimura
1 Introduction
2 Overview of Nagahama Canon
2.1 Overview of Canon
2.2 Overview of Nagahama Canon
3 Visualization at Nagahama Canon
3.1 Introduction of cell production
3.2 Ongoing production innovation after adoption of cell production
3.2.1 Improvement steps to achieve optimum workflow
3.2.2 Extension to entire Manufacturing Division
3.2.3 Adoption of Leaders Board
3.2.4 Best practices recognition
4 Conclusion: The Importance of Visualization
Acknowledgements
References
BPM Practices in a Korean Company: A Case Study of LG Electronics Co. Ltd. Gunyung Lee
1 Introduction
2 Company Overview
3 Mid-to-Long-Term Strategy of LG Electronics
4 Financial Performance of LG Electronics
5 BPM Framework of LG Electronics
5.1 Target of BPM
5.2 Range and system of process construction
5.3 The main principle of BPM
5.4 Process review system
5.5 Process-based organization
5.6 The important roles of process owner organization
5.6.1 Process owner’s role
5.6.2 Business innovation owner’s role
5.6.3 IT owner’s role
6 The Effect of BPM Introduction and Using the Information Concerning the Process
7 Conclusion
References
Business Process Management: A Case of Korea Telecommunication Co. (KT) Byungkyu Sohn
1 Introduction
2 History of KT
2.1 Development and growth of KT
2.2 Business strategy and innovation
2.2.1 Vision and corporate strategy of KT
2.2.2 Business innovation in KT
3 BPM (Business Process Management) in KT
3.1 Background of BPM introduction
3.2 Strategy for BPM introduction
4 Examples of Process Management in KT
4.1 New product (service) development process
4.2 Financial accounting process
5 Conclusion
References
PART 3 EMPIRICAL STUDIES OF BPM IN JAPANESE AND KOREAN COMPANIES
Current Status of Process Management in Japanese and Korean Companies Keisuke Sakate and Naoya Yamaguchi
1 Introduction
2 The Framework of Analysis of This Study and a Brief Summary of Enterprise Investigation
2.1 The framework of analysis
2.2 Brief summary of Japanese and Korean enterprise investigation
2.3 Outline of responded companies
3 Result of Positive Analysis
3.1 Production, management and competitive environment in Japan and Korean companies
3.2 Process innovation and informatization
4 Verification of Causal Relationships Between Process Innovation and Some Factors
4.1 Causal relationships between process innovation and customers’ participation
4.2 Causal relationships between process innovation and competitive factor
4.3 Causal relationships between process innovation and introduction of IT tools
5 Conclusion
References
Comparison Between Japanese and Korean Companies from the Viewpoint of Balanced Scorecard Yoshiyuki Nagasaka
1 Introduction
2 BPM and Diversity of Objectives of Strategy and Performance Evaluation Indexes
3 Analysis Method
4 Business Process Innovation and Result
4.1 Business process reform and performance evaluation
4.2 Satisfaction degree of process reform
4.3 Relationship between process reform and the effect
5 Examination Based on the BSC Framework
6 Important Processes in Near Future
Summary
References
About the Volume Editors
Index