The Real-time Enterprise

Systematically removing delays from time-critical processes will significantly change enterprise activities.


 

 

 

 

 

 

 

Remove Delays. The real-time enterprise is a business that senses opportunities and problems faster and responds to them faster and more precisely. A real-time enterprise has flexible business processes and can establish and de-establish business (and customer) relationships opportunistically and quickly.

 

The real-time enterprises compete by using up-to-date information to progressively remove delays in managing and executing its critical business processes (internally, and with customers and suppliers).

 

According to Gartner Groups research, by 2006, more than 50 percent of the Global 2000 will be attempting to reduce major process cycle times by 50 percent or more (0.6 probability). By 2008, real-time processing will be a standard requirement in critical business processes.

 

Set Time Redution Goals. The goal of an real-time project is to radically reduce end-to-end cycle times repeatedly over the mid-to-long term. Incremental improvement is not transformational. Annual or biannual cycle-time reduction targets need to be in the 30 percent to 90 percent range.

 

If the enterprise sets a hard target of halving a cycle time and then halving it again, the repeated request for significant change will sponsor genuine creativity and the application of technology.

 

This will progressively remove the waste, inefficiency and poor customer service that remain within many organizations. This repeated reduction of changing cycle times behaves like a centrifugal improvement force.

Four key questions. We suggest four real-time enterprise "key questions" that IS leaders might use to open up meaningful dialogue with business executives about real-time enterprise opportunities. These can be used in the context of any specific, business-critical, end-to-end activity, such as new product development.

 

1.   "If you had it in real time today, what single piece of information would make a significant difference to the way you manage the activity in question?"

 

2.   "Is it plausible that a new entrant competitor could use technology to invent a way to execute this activity five times faster?"

 

3.   "What is the first step in this process? What event kicks it off? Is there a precursor?"

 

4.   "How long does this process take? How long did it take five years ago? How long will it take five years from now?"

 

Next Generation Solutions. The real-time enterprise demands new processes, better data-capture techniques and changes in managerial culture. Such a change program will, necessarily, affect all application software including packages like (ERP, CRM and SCM), knowledge work support (business intelligence, content management, knowledge management) and in-house developed software. 

 

The Itera Consulting Group provides services and solutions that enable companies to capture the promising benefits of next generation business solutions as a core part of their business—helping them drive one of their most strategic assets.

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