EFFECTIVENESS of BUSINESS PROCESS MANAGEMENT in B2B MODEL - Polish Journal of Management Studies

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EFFECTIVENESS of BUSINESS PROCESS MANAGEMENT in B2B MODEL

Abstracts > Vol 8

EFFECTIVENESS OF BUSINESS PROCESS MANAGEMENT IN B2B MODEL
Łobaziewicz M.

Abstract: A dynamic progress in development of ICT technologies based on B2B, as well as their application in order to improve business processes carried out between enterprises and their business partners, have gained much importance during recent years. It was influenced by such factors as developing and tightening national and international cooperation, high competitiveness, time pressure and striving for improvement of customer and business partners service quality. While the reference books provide many titles referring to the effectiveness of processes, it turns out that there is not enough research on the volume of this effectiveness on the economic, operational and organizational level, measured after having applied B2B system.
Taking into consideration the above reasons, the paper provides an analysis and an assessment of the level of enterprise
s business processes effectiveness, resulting from application of integration platform based on B2B model and created using selected ICT technology of Electronic Data Interchange type.

Keywords: B2B, business process management, ICT, Electronic Data Interchange (EDI), Web Technologies

Introduction

Applying B2B model, including Web Technolgies, in SME
s sector in Poland has been dynamically expanding for the last several years. A dynamic technical and technological development, progressing informatization of SME companies, expansion and tightening of national and international cooperation, high competitiveness, time pressure, aiming at improvement of customer and business partner service quality, they all contribute to the fact that, apart from internal processes automation, the automation of external processes based on business to business model (B2B) is gaining more importance. Enterprises which have implemented advanced ERP systems are particularly interested in such model. This form of carrying out processes in chain of supplies is used by various business enterprises, i.a. chains and their suppliers, wholesalers, manufacturers and subcontractors, logistics service providers and their customers, thus enterprises cooperating with a wide range of their business partners. A group of companies interested in electronic and automated form of carrying out business processes is constantly growing, which on the other hand may contribute to the development of new applications and technologies of electronic business. As a result, there may be noticed a certain type of dualism, consisting in the fact, that due to the automation of business processes, the costs of cooperation between cooperating enterprises are lowered, the relations between them are significantly improved (external effectiveness), as well as the costs of internal processes of an organization decrease and the quality of their management improves (internal effectiveness). Moreover, the owners and participants of business processes carried out in B2B model directly receive data and information on processes progress, they work on actual data online and not using archived data in offline.
According to the author
s knowledge, there is lack of studies devoted to the efficiency of business processes management which are carried out in B2B model including ICT technologies with usage of Electronic Data Interchange (EDI) standard. It is also confirmed by opinions presented in foreign publications (e.g. K.P. McCormack & W.C. Johnson 2002, A. Tchokogue, C. Bareil, C.R. Duguay 2005). Foreign researchers notice that some attempts in studying the efficiency of business processes carried out in B2B model have been already made, however they have been only theoretical and not supported by the empirical studies conducted in enterprises. The research concerning e-business carried out in Poland and in other countries has mainly focused on such problems as: strategies and models of e-business  (e.g. A. Hartman, J. Sifonis, J. Kador 2003, A. Afuah, C. L. Tucci 2003, C. Combe 2006, Z. Pastuszak 2007, W. Chmielarz 2007, A. Olczak& M. Urbaniak 2005 ), Net Readiness (NR) a readiness to run business on the Internet - (e.g. Z. Pastuszak 2007, A. Molla i P. S. Licker 2005, A. Hartman, J. Sifonis, J. Kador 2000), B2B platforms standards (e.g. C. Albrecht,  D. Dean, J. Hansen 2007, XL. Zhang, XD Yin, XD 2009),  the management of a virtual organization (e.g. M.Warner, M. Witzel 2005, W.M. Grudzewski, I.K. Hejduk 2002, M. Brzozowski 2010).
On the other hand, in terms of the processes management, the publications are mainly devoted to presentation of process-based organization, concepts and models of the processes management (e.g. P. Grajewski 2007, E. Skrzypek i M. Hofman 2010, T. Neubaer 2009, S. Balasubramanian & M. Gupta 2005, A. Bitkowska, K. Kolterman, G. Wójcik, K. Wójcik 2011), as well as IT languages and tools used to manage processes (e.g. R. Gabryelczyk 2006, T. Kasprzak 2005, M. Lasek, B. Otmianowski, M. Pęczkowski 2005, M. Weske 2010).
To sum up, there is a research gap that requires to be filled up with a new knowledge of economical, organizational and operational effectiveness as a result of the process management made in an automated way in the B2B model.
Taking into account the above factors, the following assumptions can be made:

  • Automation of business processes carried out in B2B model with usage of Electronic Data Interchange (EDI) shows dualism from the point of view of such criteria as external and internal effectiveness.

  • The level of business processes effectiveness in B2B model depends on the degree of internal processes automation in cooperating enterprises.

  • Effectiveness of business processes automation in cooperating enterprises is influenced by applied ICT technologies and IT management systems.

Thus, the main goal of the paper is an analysis and an evaluation the level of effectiveness of business processes in an enterprise, as a result of applying integration platform based on B2B model created with usage of a selected ICT technology on the example of Biolanic LLC. (limited liability company).
To verify the scientific assumptions, it has been used a case study as the research method based on the following tools, data and information:

  • assumptions of the B2B system conception (pre-implementation analysis)

  • the B2B system documentation made during and after its implementation including its functional as well as technical and technological description

  • users operations evidenced in the system

  • interviews with managers on the base of a questionnaire.

The research were made in the form of an original data analysis contained in the B2B system documentation in Biolanic and information collected during the interviews with managers form the company. The questionnaire of interviews were constructed in the form of several questions related to the impact of the B2B system on the economical, operational and organizational efficiency of business processes and internal as well as external benefits that  BIOLANIC achieved due to B2B system.
The research issues determined the structure of the article which consists of theoretical research supported by the literature study and the empirical research based on a case study. As a result of the literature study, it was discussed issues related to the efficiency of business processes in three dimensions: economical, operational, organizational and types of B2B model. The empirical research was used to verify the assumptions that have been formulated on the basis of the literature study. The article ends conclusions and presents directions for further research. As noted in the introduction, the research issue relates to the current problems related to the management of business processes in B2B model, therefore the research results can be used not only by scientists, but also by the managers who have a need to improve the management of external processes carried out in the cooperation with business partners.

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Summary

At present the effectiveness of business processes in B2B model is an important aspect of enterprises’ activity, regardless of dynamics of the environment they are functioning in. Calculating such rate as “average monthly revenue from carrying out business processes automated by B2B system” combined with a rate defined as “decrease of average monthly cost of carrying out processes” causes many problems, because usually enterprises do not keep economic accounts of processes. It turns out that automation of processes through applying innovative technologies and cooperation standards substantially influences the improvement of effectiveness of processes related to the cooperation of several business entities, thus processes carried out in B2B model. There are many IT companies operating on the market which offer many efficient and beneficial solutions (systems or applications) supporting the improvement of effectiveness of external processes through their automation. On the basis of the selected enterprise, the paper presents the way how management of processes in B2B model may be supported and what may be the economic, organizational or market-related benefits resulting from it. In order to do this, the functionality of a dedicated B2B system was discussed, and thus it was presented how processes may be effectively planned, carried out, controlled and what employees, customers and business partners of an enterprise gain after implementing such a system. From the point of view of researched enterprise, only processes which are carried out by the company in B2B model using dedicated system working in the Internet environment, have been touched upon in this paper.
The literature and empirical studies conducted by the author and her practical knowledge built on the base of the participation in B2B systems implementation show that it is worthwhile to continue the research process related to the issues presented in the article. It turns out that the Polish companies do not make analysis of the benefits achieved due to the B2B systems because this kind of IT systems  is something new for Polish enterprises. The interviews made with a number of IT companies  creating and implementing such systems also support the assumption that the technology used to build the B2B systems, IT business management systems and business applications associated with them have the influence on the production costs of the B2B systems and then the lower costs of business processes supported by the system.
System users and IT companies emphasized that they find the such research useful especially  if they are carried out on a larger scale that allows to develop an integrated model of evaluating  the effectiveness of the processes including three levels: economical, organizational and operational, carried out in the B2B  model.


References

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EFEKTYWNOŚĆ ZARZĄDZANIA PROCESAMI BIZNESOWYMI W MODELU B2B OPARTYM O TECHNOLOGIE INTERNETOWE


Streszczenie:

Dynamiczny postęp w rozwoju  technologii ICT opartych na modelu B2B  i ich zastosowanie w celu usprawnienia procesów biznesowych realizowanych pomiędzy przedsiębiorstwami i ich partnerami biznesowymi w ciągu ostatnich lat nabrały dużego znaczenia. Wpływ na to mają takie czynniki jak rozwój i zacieśnianie współpracy krajowej oraz międzynarodowej, wysoka konkurencyjność, presja czasu, dążenie do poprawy jakości obsługi  klientów i kontrahentów. O ile w literaturze przedmiotu można znaleźć wiele pozycji dotyczących efektywności procesów to okazuje się, że brakuje badań o wielkości tej efektywności na poziomie ekonomicznym, operacyjnym i organizacyjnym mierzonej po zastosowaniu systemu informatycznego typu B2B.
Biorąc pod uwagę powyższe przesłanki,  w artykule dokonano analizy i oceny poziomu efektywności procesów biznesowych przedsiębiorstwa w wyniku zastosowania platformy integracyjnej opartej na modelu B2B zbudowanej z wykorzystaniem wybranej technologii informatycznej ICT typu Electronic Data Interchange.

Słowa kluczowe: zarządzanie procesami biznesowymi, efektywność, B2B, ICT, Elektroniczna Wymiana Danych (EDI)

有效性的業務流程管理B2B模式的

摘要:在發展的基礎上的B2B ICT技術的,以及他們為了提高開展企業及其業務合作夥伴之間的業務流程應用程序的動態進展,已經在最近幾年獲得了很大的重視。它是由等因素的開發和緊縮國家和國際合作,高競爭力,時間壓力,爭取改善客戶和業務合作夥伴的服務質量的影響。而參考書提供了許多頭銜指的是流程的有效性,事實證明,沒有足夠的研究這個效果對經濟,運營和組織層面的卷上,並在應用B2B系統後測量。
考慮到上述原因,本文提供了一種分析和企業的業務流程的有效性水平的評估,從集成平台基於B2B模式,並採用電子數據交換類型來選擇信通技術創建的應用程序產生的。
關鍵詞: B2B,業務流程管理,信息和通信技術,電子數據交換(EDI ), Web技術。


 
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