Digital Strategy and Business Process Transformation

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Questions and Answers

What is a primary advantage of implementing AI in fraud detection procedures in banking?

Ability to reactively manage fraud cases only

Real-time monitoring using machine learning algorithms (correct)

Increased human oversight of transactions

Reduction of fraud detection time through manual reviews

Which of the following best describes a business process?

An isolated task that does not contribute to any outcome

Any activity performed within an organization, regardless of purpose

A random collection of unrelated tasks aimed at producing a service

A series of coordinated and structured activities designed for a common goal (correct)

How does an end-to-end approach benefit a business?

By minimizing all forms of customer interaction

By separating operational strategies from customer value creation

By combining customer engagement with operational excellence (correct)

By solely focusing on customer satisfaction without regard for process efficiency

In the context of design thinking, which stage follows the ideation phase?

Prototype Signup and view all the answers

Which statement about Business Process Improvement (BPI) and Business Process Reengineering (BPR) is accurate?

BPI signifies gradual, minor changes while BPR seeks large-scale transformations Signup and view all the answers

What role does IT play in shaping business processes according to the provided content?

IT enhances efficiency and allows for better decision-making through automation. Signup and view all the answers

Which factor is NOT mentioned as a benefit of using digital technologies to improve processes?

Increased employee satisfaction. Signup and view all the answers

How does DBS create a competitive advantage through its processes?

By transforming its processes to enhance customer value and technological integration. Signup and view all the answers

What specific advantage does AI provide in recruitment processes as mentioned?

AI automates tedious tasks, thereby enhancing efficiency and improving accuracy. Signup and view all the answers

What is a transformative capability linked to digital technologies regarding business processes?

To create a clear and transformative ambition that enhances customer value. Signup and view all the answers

What is the primary purpose of process decomposition in a business context?

To identify and solve problems within existing processes Signup and view all the answers

What characterizes a breakthrough improvement in business processes?

A significant leap resulting in radical change Signup and view all the answers

Which of the following is a responsibility of the process owner?

Negotiate improvements and highlight critical issues Signup and view all the answers

What happens when no further continuous improvements are possible in a business process?

The process should be entirely restructured Signup and view all the answers

In the context of business processes, what does the term 'end-to-end' refer to?

The overall lifecycle from initiation to delivery of a process Signup and view all the answers

What is the primary purpose of identifying suppliers in a business process?

To ensure the delivery of inputs needed for the process Signup and view all the answers

During the travel plan quote process, what occurs if there are problems with the credit card information?

A fault message is displayed to the client and the process stops Signup and view all the answers

Which of the following best explains the importance of interviewing clients about their needs?

To tailor the products/services to match client preferences and priorities Signup and view all the answers

What role does 'process flow design' play in the business process?

It helps in understanding, standardizing, and improving the activities within the process Signup and view all the answers

In the context of the travel plan quote process, who can be identified as the owner of the process?

The travel agency coordinating the bookings Signup and view all the answers

Study Notes

Session 6: Digital Strategy and Business Process Transformation

The session focuses on digital strategy and business process transformation.
Course coordinator is Nabila BOUKEF Ph.D., an Associate Professor specializing in information systems and digital transformation at SKEMA Business School.
The course is a two-year Master of Science program.

Course Schedule

Session 1: Rethinking strategy in the digital era
Session 2: Digital strategy formulation
Session 3: Strategy approaches and ambidexterity strategy
Session 4: Digital platform strategies
Session 5: Differentiation strategies and competition in the sharing economy
Session 6: Digital strategy and business process transformation
Session 7: Building digital capabilities and creating digital leadership
Session 8: Digital strategy execution in practice: Fostering innovation in the digital era

Outline for This Session

Transforming your business
Business processes and business process management
Process decomposition exercise
Individual assignment
Business process reengineering
Practice exercise
Teamwork assignment

Drivers of Digital Transformation

Analyzing the new rules of the game and opportunities enabled by digital technologies.
Creating a competitive advantage using digital technologies
Adapting strategy with the constraints of the environment
Creating digital growth and a sustainable competitive advantage.
Transforming business with digital technologies.
Transforming the processes and digital leadership.
Investing in digital technologies to transform the organization and manage the ecosystem.

Case Study: DBS

DBS is a case study used for analysis.
DBS creates a competitive advantage through process changes.
IT impacts business processes extensively.

How Digital Technologies Improve Productivity

Efficiency: Output remains the same or increases while resource inputs decrease or stay the same.
Effectiveness: New things and/or improved outputs compared to the past.

Transform Business for Customer Value

Create a competitive advantage using digital technology.
Defining clear and transformative ambition.
Creating a competitive advantage using digital technologies.
Creating value for customers.

Business Process and AI Use

Using AI to enhance recruitment process speed and accuracy.
Automating tasks like resume screening, candidate matching, and initial interviews.
Enabling faster and better decision-making for companies.
Companies like Hilton and Unilever have implemented AI-enhanced recruitment.

Improve Data Flow Among Activities

Hospital management utilizes an integrated system.
AI-integrated anamnesis-diagnosis process improves data flow and efficiency.

Improve Control of Activities

Audi implemented AI-based crack detection in Ingolstadt and Neckarulm.

Use of Automation: Chatbots

AI chatbots handle routine customer inquiries 24/7.
Human agents focus on complex customer issues.

Improve Procedures: AI-Improved Fraud Detection in Banking

AI automates complex tasks for fraud detection.
Real-time monitoring and detection of unusual patterns/anomalies are enabled by machine learning.
Benefits include increased speed, enhanced accuracy and precision, scalability, and proactive fraud prevention.

Business Process and Business Process Management

Business processes are coordinated activities for business outcomes.
Business processes may also cross functional boundaries involving various roles and parties.

Business Process Components

Who leads the process? (Process Owner): Manages the process, responsible for achieving process goals, and highlights critical issues and solves problems.
What is the scope? (Mission): Explains "Why does the process exist?" from a client and organization viewpoint.
Identify process borders: Defining the start and end of the process.
Identify inputs and outputs: Identifying suppliers and clients of the process including who uses products/services as outputs.
Identify client needs: Interviewing customers to understand their needs and priorities, to standardize activities, and to facilitate improvements and describing the process to understand it better.

Process Decomposition Exercise (Quiz in K2)

Working in groups, but submitting individually.
The purpose is to do a decomposition of a travel plan quote process.

The Different Steps in Business Process Decomposition

Write a detailed description of the process "as-is."
Analyze process problems and identify opportunities for improvements.
Define a new process for a competitive advantage.
Include improvements to enhance customer experience.

Loan Process

Sales force agent contacts insurance headquarters to request a loan for a customer.
The clerk checks the customer's liability.
The contracting department customizes the loan contract.
A pricing agent determines and records the interest rate.
A sales department agent creates a proposal.
The proposal is sent back to the sales force agent.

Practice Process Reengineering Exercise

Keep details simple, only model the described process, and assume that the loan is approved.
Describe the process using numbered steps and points.
Improve the process using digital technologies.
Identify and list areas for improvement.
Create a new series of numbered points for your improved process, using bold or underlines to show new or improved steps.

Conclusion

Overview of digital transformation drivers and processes.
Overview of end-to-end approach concepts and customer experience improvement strategies.

Graded Assignment

Evaluation criteria for the assignments.
The scores for each section are displayed.

What's Next?

Outlining upcoming sessions on digital strategy, leadership, innovation and more.

What is next?:

Questions about the next steps in the process to identify the next topics to learn after the session or course.

Studying That Suits You

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Description

This session explores the essential components of digital strategy and the transformation of business processes. Led by Dr. Nabila Boukef, this course will equip students with the knowledge to effectively navigate the challenges of digital innovation within business operations. Join us to understand how to implement these strategies in the modern business landscape.