Process Business Integration - Literature review Example

? Business Process Integration Integrated business process strategies implemented by modern organizations have been identified to continuously change with the intention to obtain better control on different functional areas, especially on the supply chain management dimension. The rapid pace of innovation observed in the contemporary business environment have further steered marketers to highly focus on conducting effective business integration processes in order to make the supply chain management more flexible and competitive. This report intends to identify and critically assess the key areas of business process integration linked with the modern framework of supply chain management aided with technology innovation. In accordance, two literature studies by McAdam and McCormack (2001) and Cagliano, Caniato and Spina (2006) have been referred in this report, which aimed at evaluating the linkage between the two dimensions of integrated business process and supply chain management. It has been observed from both the cases that modern organizations are generally motivated by the influential development of the present supply chain management mechanism that enables them to cope with changing business trends. Moreover, the discussion has also revealed various roles of supply chain management that facilitate organizations to achieve better alignment of the overall business process and enable them to gain competitive advantages to secure long-run sustenance. Keywords: supply chain management, integrated business process, organizational performance, strategies Introduction Business process integration has long been regarded as a key to continuous organizational development. Undoubtedly, the recent challenges of the globalised world, has made the phenomenon more apparent in the dimension of organizational management. In the present era, exhibiting continuous alterations in the global business environment, organizations can be observed as highly inclined towards practicing innovative leadership strategies, in alignment with unconventional, advanced technology aided business models influencing its supply chain (Cagliano, Caniato, & Spina, 2006). Moreover, the 21st century leadership practices can also be observed to emphasize reinventing effective measures in order to establish a better communication channel between the customers, suppliers and other groups of stakeholders. This apparently advocates corporate measures to integrate the supply chain functions at almost every phase. The two most apparent drivers of these changes in organizational leadership practices can be identified as the continuous development of global business culture and the trend of continuous expansion within the corporate world (McAdam & McCormack, 2001). Emphasizing the present transformational changes in the contemporary business environment, the primary purpose of this essay will be to critically identify the key areas of business process integration in relation to the unconventional approaches of supply chain management practiced by modern organizations. In establishing this particular aim, evidences provided by McAdam and McCormack (2001) and Cagliano, Caniato and Spina (2006) will be referred and critically reviewed with prime significance throughout the study. Brief Discussion of the Cases “Integrating business processes for global alignment and supply chain management” by Rodney McAdam and Daniel McCormack When addressing the linkage between business process integration with supply chain management practices in the modern era, McAdam & McCormack (2001) were able to connote few noteworthy aspects, which can be examined as the major determinants of the currently exhibited challenges and proficiencies of the corporate world. McAdam & McCormack (2001) subsequently explained that an integrated supply chain management ensures improvement of operational functions to a substantial extent offering added managerial control on organizational performance. Based on their empirical study, McAdam & McCormack (2001) were of the view that modern business organizations need to focus upon developing at least two significant aspects in order to sustain in this competitive era. These aspects comprise the supply chain management procedure and integration of business mechanisms (McAdam & McCormack, 2001). To be specific, conducting a case study analysis of Norte Network Corporation’s supply chain integration and market repositioning activities, McAdam & McCormack (2001) identified that defining the roles of the supply chain participants unambiguously has a profound impact on the overall performance of businesses. Emphasizing the benefits that Nortel, the sample organization considered in the study, it can be observed that the integrated process of the organizational functions in line with the changing market trends enabled it to provide inclusive telecommunication facilities to the customers as per their desires and expectations. The network strategy adopted by the organization was further assessed on the basis of the increased number of global partners aiding the company with innovative technology assistance. Contextually, investments made when incorporating an integrated Supply Chain Management (SCM) process to perform various operational functions efficiently, can be regarded as one of the major factors enabling the organization to build new partners within the global telecommunication industry. McAdam & McCormack (2001) further revealed that abidance to the European Foundation for Quality Management (EFQM) principles also provide Nortel with considerable assistance to maintain effective quality of its wide ranging telecommunication services. Furthermore, the score-card process in the approach helped the organization to measure the performance of its workers along with their quality deliverance abilities, both at the individual level and at the organizational level. Altogether, effective integration of appropriate business strategies associated with organizational structure and culture, along with other external drivers such as technology, also supported the organization to strengthen its sustainable position in the global telecommunication industry (McAdam & McCormack, 2001). The linkage between supply chain integration and manufacturing improvement programmes by Raffaella Cagliano, Federico Caniato and Gianluca Spina Based on their empirical survey and hypotheses testing, Cagliano, Caniato, & Spina (2006) ascertained that the incorporation of lean production model imposes significant influences on two major supply chain integration variables i.e. ‘integration of information flows’ and ‘integration of physical flows’, which further causes a direct impact on the business performances. The findings discussed by Cagliano, Caniato, & Spina (2006) evidently attributed that lack of integration between the external and internal functions of the organization generally leads to failure in terms of developing integration process in an efficient manner. According to the case, it has been viewed that the supply chain management associated functions need to be aligned with different internal activities that can facilitate the organization to develop its overall operational or business performances as expected to yield monetary as well as non-monetary returns from the investments made. Cagliano, Caniato, & Spina (2006) further argued that due to inappropriate amalgamation of internal and external functions, organizations are likely to face challenges of integrating supply chain activities with the manufacturing operations of the organizations. In order to critically assess the stated concern, Cagliano, Caniato, & Spina (2006) drew their inferences on the survey results providing empirical evidences that determined the necessity of integrating supply chain activities with the manufacturing functions at the organizational context. Correspondingly, the study revealed that practicing integrated SCM in alliance with the manufacturing functions can enable an organization to build effective coordination within its different organizational dimensions, resulting in better streamlining of the overall organizational performance. Expanding on the evidences obtained through the survey, Cagliano, Caniato & Spina (2006) propounded that external integration strategies need to be supported by internal integration practices followed within the firm. Hence, it can be affirmed that the effective integration of SCM require an effective coupling of the organizational production systems particularly with the suppliers, customers and the stakeholders. Additionally, the other sorts of integration mechanisms of the organization should focus on leveraging valuable information, which can further improve the internal functions along with the activities associated with operations management of the manufacturing organizations (Cagliano, Caniato & Spina, 2006). Cagliano, Caniato & Spina (2006) also indicated that the appropriate alignment of the supply chain functions with each production unit of an organization ensures a substantial increase in the performance of the manufacturing plants. In this regard, the integration of purchasing activities in an effective manner imposes considerable impact on the firms’ manufacturing performance. Moreover, the appropriate alignment between the supply chain activities with the manufacturing improvement programs tends to ensure deliverance of adequate opportunities for the organization to develop its overall business or operational performances (Cagliano, Caniato & Spina, 2006). Critical Evaluation of How Supply Chain Management can be influenced by Business Process Integration and Management Referring to the inferences drawn by McAdam and McCormack (2001) and Cagliano, Caniato and Spina (2006), it can be affirmed that an effective integration strategy associated with the adoption of integrated supply chain management within the business process merely provides adequate opportunity to the organizations in improving their overall performance. Deliverance of significant benefits to the organizations in terms of enhanced managerial control as well as innovative development potentials in various business or operational fields can be considered as few of the key advantages rewarded by integrated business process throughout the supply chain. For instance, Cagliano, Caniato and Spina (2006) has evidently identified that an effective link between the supply chain functions with the production unit can enable firms to develop their performances sustainably. Again, referring to the study of McAdam and McCormack (2001), it can be ascertained that the integration of supply chain within the business procedures is likely to facilitate the organizations in practicing updated business process strategies that further augments the quality prospects of its supply chain (Kobayashi, Tamaki, & Komoda, 2002). With reference to the above discussed cases, certain key areas can be apparently observed wherein supply chain management can be broadly influenced by business procedure integration. In this regard, the key areas comprise customer relationship along with customer service management, demand supervision, order accomplishment, product development, commercialization and manufacturing flow management. However, it is quite important for an organization to appropriately align supply chain functions and organizational processes with the changing market trends in order to streamline its performances in the present competitive business environment. In this context, the adoption of advanced Information and Communication Technology (ICT) based supply chain functions within the business process can significantly enable the firms to cope with the rapid competitive scenario of the contemporary business environment (Croxton, Garcia-Dastugue, Lambert, & Rogers, 2001). Conclusion Based on the understanding developed from the above discussion, it can be inferred that integrating effective supply chain strategy within the business procedures can prove as a key success driver to any organization. It often plays a decisive role for the organizations to effectively deal with various complexities resulting in developing overall business or operational performance. Broadening the scope for effective utilization of resources available to the organization, along with encouraging coordination among the various phases of the organizational structure, such mechanisms of integrated business processes can yield substantial benefits to its practitioners. Perhaps, it is owing to these benefits that the integration of an effective set of supply chain management process has become a widely accepted and a strategic priority leading the organizations to efficiently obtain their predetermined business goals. References Cagliano, R., Caniato, F., & Spina, G. (2006). The linkage between supply chain integration and manufacture improvement programmes. International Journal of Operation and Production Management, 26(3/4), 282-299. Croxton, K. L., Garcia-Dastugue, S. J., Lambert, D. M., & Rogers, D. S. (2001). The supply chain management processes. The International Journal of Logistics Management, 12(2), 13-36. Kobayashi, T., Tamaki, M., & Komoda, N. (2002). Business process integration as a solution to the implementation of supply chain management systems. Information & Management, 40, 769-780. McAdam, R., & McCormack, D. (2001). Integrating business processes for global alignment and supply chain management. Business Process Management Journal, 7(2), 113-130. Read More