CONFIDENTIAL 2 BM/MAY 2016/ASM652/OSM652

PART A: Short essay questions (20 marks)

QUESTION 1

a) Discuss this statement. Improvement is always desirable.

(3 marks)

b) State four (4) steps to facilitate the process of vision and goal setting.
(8 marks)

QUESTION 2

a) List FIVE (5) types of members in business reengineering team structures.

(5 marks)

b) Explain any two (2) key words stated/found in the definition of business process
reengineering.
(4 marks)

PART B: Case Study (30 marks)

BESTDIC CORP.: SOLUTION TO CONSOLIDATE DISPARATE BUSINESS PROCESS

Bestdic Corp. (BC) is a health care company that is part of $4 billion family companies that
finances and delivers health care services across New York, including the major cities of
Syracuse, Elmira, Rochester, Utica, and Buffalo. As New York States largest non-profit
health plan, the organization provides health insurance to more than 2 million people, and
employees of more than 6000 New Yorkers. It is the result of a merger of several health
care organizations serving New York.

From the merger, BC found that there were few enterprise architecture (EA) standards
embraces by all of the previously independent entities. This will lead to duplication of work
conflict among employees. BC formed a group within the IT department to focus on EA as it
consolidate business and IT systems and reduced the amount of technical diversity within
the organization. With multiple platforms and environments, it was extremely challenging to
create smoothly running and cohesive business procedure without a clear understanding of
what processes and systems were serving each organization. Many of these legacy
systems, some in place for more than 30 years and didnt have adequate documentation.
The work processes was not effectively design and there were parts of the systems that
were completely unknown.

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CONFIDENTIAL 3 BM/MAY 2016/ASM652/OSM652

Before making sweeping policy or platform decisions, we recognized the importance of

identifying all company functions and the processes used to implement them, explained Mr.
Miller, the project director of integration team at Bestdic Corp. He added, This was the first
step in our effort to reduce duplicate processes that were a normal result of merger. We had
to develop single systems for claims processing, provider contracting, member registration,
and more, but could not do that until we fully understood and mapped the existing
processes. To ensure the efficient implementation of the new single system, BC need to
document clear policies, practices and feedback as a guide to be applied throughout the
organization.

BC recognized that a key success factor would be a service-oriented architecture (SOA)

approach. SOA is offering the ability to devise flexible architecture that relies on smaller part
of services, rather than larger huge solutions. Being able to implement the architecture in
parts gives the company more choices and allows for variation in particular components to
adapt to a shifting market demand for products. It was clear that going forward with big
systems implementations would drive both risks and financial resources to unacceptable
levels.

The SOA implementation which is the core idea that will be part of many strategies (e.g:
eBusiness/self-service, transaction processing), is supported by MEGA, which is providing
the modelling and repository to aid in this implementation. According to Mr. Miller, by having
MEGA Modelling Suite, the Bestdic Corp. are gaining a clearer understanding of the
processes and have put the information in one place so that they can maintain consistency,
starting at the architectural or planning level.

QUESTION 1

Identify and briefly explain the TWO (2) warning signs that indicated the need for
reengineering in Bestdic Corp. Cite an example from the situation for each of the warning
signs.
(10 marks)

QUESTION 2

Describe THREE (3) key factors that contributed to the success of the business process
reengineering in Bestdic Corp. Provide an example for each factor.
(12 marks)

QUESTION 3

Explain TWO (2) significant redesign principles followed by Bestdic Corp. when undertaking
the business reengineering project. Cite an example for each principle.
(8 marks)

END OF QUESTION PAPER

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