Martijn R. Hoogeweegen

A comprehensive approach to assess the value of EDI

We describe a comprehensive approach that helps to assess the value of various courses of action that can be taken in implementing Electronic Data Interchange (EDI). The approach consists of two components. The first relies on Activity-Based Costing and quantifies the costs and benefits that are to be expected in the information processes when EDI is being used. The second uses discrete-event computer simulation to quantify the costs and benefits to be expected in the physical logistic processes. The combination of the two results in an overall costs/benefits analysis for a diverse set of EDI scenarios.

Embedded coordination in a business network

Information and communication technology enables a firm to maintain more links with more companies at much lower costs than before. This combined with the increasingly standardization of business processes and the application of modularity at the process level leads to embedded coordination. This case study describes how three unconnected business networks were integrated using modularity at the business process, or activity component, level and the role standardization played to implement embedded coordination. The case study was conducted at ABZ, a trusted Business Service Provisioner in the Dutch insurance industry. This study suggests that embedded coordination leads to improved performance of the business network under the condition that standardization is enforced.

A method to assess expected net benefits of EDI investments

In this paper we analyze how small and medium-sized enterprises (SMEs) operating in the Port of Rotterdam can be supported in the assessment of electronic data interchange (EDI) investments in terms of expected net benefits. In contrast to many other industry sectors, where a dominant hub actor is able to enforce wide-scale adoption of EDI by spoke SMEs, port communities need more ex-ante insights into the benefits that may accrue from EDI before they decide to allocate part of their scarce monetary resources to investments in this technology. There is a need for a cheap method of quantifying bottom-line savings from EDI in a traceable way.A literature survey shows that none of the existing IT evaluation methods satisfies these criteria. Therefore, we developed a new tool, called Edialysis, which aids in the decision-making process in terms of whether investments in EDI may yield a positive net present value, given a context-specific set of interorganizational communication scenarios.This paper discusses the methods scope, design, and underlying plan. In addition, a case study conducted at a forwarder operating in the Port of Rotterdam illustrates the results one may obtain from the Edialysis application.

Management support for globally operating virtual organizations: the case of KLM Distribution

In search for new organizational forms that incorporate the appropriate level of flexibility to offer a high variety of products and services, while keeping costs and lead times low, the virtual organization has emerged. The capabilities of information and communication technology (ICT) enable the virtual organization to link and coordinate a wide variety of globally dispersed business partners. The virtual organization in action is difficult to manage. We introduce a management support tool, called Modular Network Design (MND). MND supports managers of a virtual organization in four steps: determination and analysis of customer requirements; tracking of possibilities to satisfy customer requirements; allocation of production tasks among network partners; and ongoing assessment and adjustment of activities and allocation procedures. The applicability of MND, and the evaluation of ICT use, is illustrated with a case study at KLM Distribution, the center of a globally operating virtual organization. This business unit of KLM Royal Dutch Airlines distributes worldwide aircraft spare-parts for KLM and its partners and customers. The case study describes how MND supports the management of the virtual organization and contributes to better planning of individual, customized transport orders.

The expected costs and benefits of EDI in the modular supply chain

We examine how the adoption of EDI can increase the flexibility of a modular supply chain of organisations to match customised demand, and how expected costs and benefits of such the adoption are distributed among these organisations. Within a modular supply chain, organisations form process module networks in response to customised demand. These networks indicate in what order process modules need to be operated, how they are linked to each other, and how many resources they use. We have developed the modular design approach to support the design of process module networks. By means of an automated tool, called Chain Moduling, costs and lead times of several designed networks can be computed and compared. The first application of Chain Moduling demonstrates how the adoption of EDI impacts a specific process module network. The approach, the tool, the first application and future research are discussed.

To adopt or not to adopt? Experiencing the effect of quick connect capabilities on network performance

Two new developments confront the Dutch insurance industry. First, there is the introduction of quick connect technologies which enable firms to efficiently integrate business processes across organisational boundaries. Second, there is a move towards more modular product architectures. These new technologies create uncertainty, especially regarding the possible benefits for the participating firms. Using the Business Network Lab, a management game, we let managers experience and discover the possible gains of quick connect technologies. Simultaneously we conducted experiments to investigate the relationship between information transparency, which is a benefit of quick connect technologies, and network performance. Our results indicate that a higher level of information transparency leads to a higher network performance. The managerial implication of this research is that it suggests that firms that adopt quick connect technologies are better of.

Visualized Guidelines for IT-Enabled Process Change

Many contributions in the literature of Business Process Change BPC address the questions of why and how to conduct IT-enabled BPC projects. A relatively underexposed area, however, is the question of how to formulate an alternative process design. Therefore, the focus of this paper is to support BPC managers in their search for IT-enabled alternative process designs. The support should stem from a set of concretely defined redesign guidelines that are visualized in simple process charts. These visualized guidelines should help BPC managers to recognize their applicability in their own context. The aim of this paper is threefold. First, the literature is reviewed to formulate a number of IT-enabled BPC guidelines. Second, these guidelines are visualized in process charts. Third, a case study is presented to illustrate the applicability of these visualized guidelines.