INTERACTIVE SESSION Chapter 13 Building Information Systems 525 ORGANIZATIONS Business Process Redesign at DP World DP World is one of the leading port operators in the world, involved in marine and inland terminal opera- tions while providing technology-driven solutions to clients. Headquartered in Dubai, it has 78 terminals and businesses in around 40 countries spread over 6 continents, with a market capitalization of around $12 billion and revenue of $8.5 billion. DP World employs around 50,000 people and moves up to 174,000 containers every day. In 2019, it handled an equivalent of 71.2 million containers. DP ‘World is growing aggressively and Is always looking for ways to improve how it handles cargo. To do this, it has to incorporate technology, which today encom- passes everything from middleware to the latest in blockchain applications, Several processes at DP World used to be manual and paper-based, and therefore repetitive, time-con- suming, and prone to errors. Managers had to spend time and resources on operational issues and ensure that their employees remained motivated while also resolving the problems that resulted from duplicated manual tasks, In its search for ways to enhanos its services, DP. World (then known as Dubai Port Management) recognized that customer service could be vastly im- proved by reducing transaction time and making the process simpler. For instance, at the time, customers often had to submit multiple copies of the same doc- uments or different versions of the same documents to several departments. This not only caused delays during the process but also unnecessarily duplicated it over the course ofits life cycle. Using IBM's WebSphere MQ technology, DP World created a centralized system that sends validated ver- sions of documents to all related departments. IBM's WebSphere technology is a middleware product, which is an interface to communicate between dift ferent applications. IBM's WebSphere MQ technology is also extremely flexible, robust, and scalable, which meant DP World did not need to worry about chang- ing the system anytime soon—after implementing it, it connected its three existing systems seamlessly using the middleware. The whole implementation simplified the overall system and significantly re- duced the time it took to finish a process. DP World has also partnered with Oracle to drive digital transformation across its business operations. Oracle's cloud applications (SaaS) are enabling DP World to standardize by redesigning business pro- cosses that include human resources, procurement, finance, and operations in an integrated technol- ogy platform. The objective is to create value for all stakeholders through intelligent logistics, with a focus on reducing cost and improving efficiency. ‘This integrated technology platform incorporates Al, ToT, and blockchain technology. Ports generate a huge amount of data, and Al's job is to use this data to transform port operations and make them more efficient. Robots are becoming Increasingly more “intelligent” and flexible in thelr earning capabilities, and Al can help planners find, ‘optimal solutions for ideal stowage and to plan ship- yards’ layouts. Although DP World does not currently use physical robots, it does use ATdriven chatbots for various tasks. Another use is in fleet management; JoT can monitor the conditions and location of assets through sensors and send information about possible delays or damage to goods. It can also send tempera: ture and humidity data for analysis and plan things: accordingly across the process. Use of blockchain is especially exciting for DP World. Blockchain is a distributed transaction data- ‘base that uses encryption to identify participants and, products as they move through the supply chain, Blockchain has enormous potential to transform portrelated activities by making it possible to track petroleum products from the well all the way to the retailers throughout the world. The increasing com- plexity of port operations has led to less transparency in the whole process. Terrorism and illegal trade are prominent concerns, and this is where blockchain comes in: the highly secure and scalable system will be invaluable for tracking goods, contract exchanges, and payments. DP World’s management strongly believes that supply chain intelligence, blockchain, and Al will make the global supply chain quicker, more cost: fictive, and more productive. They sec blockchain in particular as a transformative technology offering, the promise of innovation in goods visibility across526 Part Four Building and Managing Systems the supply chain. The whole idea is to add business value and differentiate DP World in the market, help- ing it to keep growing as a digitized global trade en- abler. DP World is also implementing Oracle Fusion ERP as a platform to build consistency across its mul- tiple geographies and has begun to deploy it across its various operations. for nad SSeS 1, What is business process redesign? Why might BPR fail in an organization? 2, Do you think the IBM WebSphere MQ technology adopted by DP World was a good solution? What advantages can you identify? 3. Do you think AI could have other uses in port operations? Sours: DP World website, ww dpworld.com, accessed January 13, 2021; Naushad Cherrayil, “DP World Deploys Disruptive ‘Technologies to Rev Up. Digital Transformation Tourney? techradercom, March 1, 2020; Louise Tegner, "DP World Extends Seratogie Collaboration with Oracle to Accelerate Global Dial ‘Transformation in the Cloud,” blogomaclecom, May 21, 2018; James Dartnel, “The § Technologies That Will Transform DP ‘World, Tuhaultech com, March 1, 2018; "DP World Jumps on the Dightization Bandwagon," World Maritime News, January 31, 2018; ‘Matthew Southwell, "Dubai Ports and Customs Accelerates Impart/ [Export with TM,” Arabian Business, February 25, 2002, 4. Explain [oT technology and the possible problems ‘that may arise in implementing it. 5. What are the four types of organizational change? Give an example of each type from this case. Case contributed by Saadat Alhashmi, University of Sharjah Paradigm shifts and business process redesign often fail because extensive or- ganizational change is so difficult to orchestrate (see Chapter 14). Why, then, do s0 many corporations contemplate such radical change? Because the rewards are equally high (see Figure 13.1). In many instances, firms seeking paradigm shifts and pursuing reengineering strategies achieve stunning, order-of-magni- tude increases in their returns on investment (or productivity). Some of these success stories, and some failure stories, are included throughout this book. Business Process Redesign Like DP World, described in the Interactive Session on Organizations, many businesses today are trying to use information technology to improve their business processes. Some of these systems entail incremental process change, but others require more far-reaching redesign of business processes. To deal with these changes, organizations are turning to business process management. Business process management (BPM) provides a variety of tools and meth- odologies to analyze existing processes, design new processes, and optimize those processes. BPM is never concluded because process improvement re- quires continual change. Companies practicing business process management go through the following steps: 1. Identify processes for change: One of the most important strategic deci- sions that a firm can make is not deciding how to use computers to improve business processes but understanding what business processes need im- provement. When systems are used to strengthen the wrong business model or business processes, the business can become moro efficient at doing what it should not do. As a result, the firm becomes vulnerable to competitors who may have discovered the right business model. Considerable time and cost