B5 business process management journey of hkhs

Business Process Management

Journey of HK Housing Society

Peter Miao

Head of IT

15 Nov 2013

Graphic Section Divider

Background of HK Housing Society

Found in 1948 with a donation of £14,000 from the Air Raid Distress Fund of the Lord Mayor (London)

Aims to serve the needs of the HK community in housing and related services

NGO, not-for-profit, self-financed Work closely with the Government to help

implementing housing policies Housing laboratory Web site : www.hkhs.com

~1,300 Employees

~1,200 PC’s

~80 Physical Servers

60+ Site Offices

Our Products & Services

1. Public Rental Housing

2. Property Management & Commercial Leasing

3. Building Mgt & Maintenance Scheme

4. Urban / Rural Improvement Schemes

5. Various Subsidized Interest Loans Schemes

6. Flat For Sale Scheme

7. Sandwich Class Housing Scheme

8. Senior Citizen Residence (SEN)

9. Quality Retirement Living & more …….

2 Pilot SEN Projects (All 576 units already let and currently 500+ applicants at the waiting list)

Cheerful Court (2004) - 333 units

Jolly Place (2003) - 243 units

Home Feel - Non-Institutional

Living Room

Bedroom

Kitchen Bathroom

Design - Tailor-made for elderly

Wireless Watch Transmitter & Nurse Call

Barrier-free Security Viewer (high/low)

Hobby Room Swimming Pool Library

Tanner Hill 588 Units

Size: 31-104 m² SA Target Completion: early 2015

Main Entrance

Residence Garden

Tanner Hill

Members’ Club

Banquet Room

Library

RCHE Day Care Centre

214 Private Flats ( 12/F - 42/F )

Shopping Arcade

Basement Carpark

Club House

60 Rental Flats for Elderly ( 6/F - 11/F )

Cross–generation Care and Support

H21 Mixed Development

Estimated Completion: December 2014

Harmony Place No. 333 Shau Kei Wan Rd. Hong Kong

Coming Soon

Note: excluding foreign domestic helpers

Demographics Characteristics in HK

Source: Hong Kong Population Projections 2012-2041, C&S Dept.

Soon-to-be old

Population Pyramid of Hong Kong, Mid-2011

Age Group

No. of persons (Thousands)

0100200300400

0-4

5-9

10-14

15-19

20-24

25-29

30-34

35-39

40-44

45-49

50-54

55-59

60-64

65-69

70-74

75-79

80-84

85+

0 100 200 300 400

0-4

5-9

10-14

15-19

20-24

25-29

30-34

35-39

40-44

45-49

50-54

55-59

60-64

65-69

70-74

75-79

80-84

85+

Male Female

Demographics Characteristics in HK Projected Population Pyramid of Hong Kong, Mid-2041

0100200300400

0-4

5-9

10-14

15-19

20-24

25-29

30-34

35-39

40-44

45-49

50-54

55-59

60-64

65-69

70-74

75-79

80-84

85+

0 100 200 300 400

0-4

5-9

10-14

15-19

20-24

25-29

30-34

35-39

40-44

45-49

50-54

55-59

60-64

65-69

70-74

75-79

80-84

85+

After 30 years

Male Female

No. of persons (Thousands)

Note: excluding foreign domestic helpers

Source: Hong Kong Population Projections 2012-2041, C&S Dept.

Age Group

I R M

Integrated Redevelopment Model

HS Senior Housing Initiatives

1970s 1999 2005 2008 2010

1996 Study

2003 Study 2007 Study

H21

Mixed Development

Joyous Living project Universal Design

Guidebook

Elderly Units in Rental Estates

SEN projects

Elderly Resources Centre

Ageing-In-Place

HKHS’ 4 Core Values

• Conduct Tenant Survey Annually • Learn Tenants’ Expectation • Tenants’ Satisfaction Rate > 90%

• Enforce Stringent Expenditure Controls • Conduct Processes Re-engineering • Use IT to Speed Up Processes and Reduce Cost

Typical Procurement Process of HKHS

Business

Plan

Agreed

Annual

Budget

Approved

Expenditure

Commitment

Approval

Tendering

& Contract

Award

Payment

Approval

(Goods

& Services

Received)

Create ECA

Approval

Manual Tendering or

Quotation Process

Create ITB

Payment Request or

Goods Receipts

Approval Approval

Read budget and

account data from

ERP

Update ERP Update ECA and add PO to ERP

Read ECA and

supplier data from

ERP

Read PO data from

ERP

Update PO and accrual account in ERP

Workflow Systems

The Typical “Procure to Pay” Process

ECA Approval Contract Award Payment Approval

Budget Tracking From End to End

Cash

Based

Actual

$40

Budget

Variance/

Balance

$60

Original

Budget

$100 $35

Contract

Commit-

ment

$25

ECA

Fund

Approval

$30 $5

Addit’l

Fund

$10 $15

Timely monitoring of compliance with Expenditure &

Procurement policies

All exceed budget items can be tracked more efficiently

1. 1st e-process launched in Dec 2003

2. Dozen e-processes implemented between

2004 to 2006

3. Identified many business rules and workflow

services repeatedly used in many e-processes

4. Decided to use Rules Engine and Service

Oriented Architecture (SOA) Approach in

Mid 2006

The Journey Highlights (I)

The Journey (III)

SOA: Service Oriented Architecture

Packaged Application

Custom Developed Application

Service

Composite Application

Service Repository

Building Maintenance Loan System

Arrears Application Vetting Interview Drawdown Collection

Ap

plica

tion

Ballo

ting

Ve

tting

Inte

rvie

w

De

clara

tion

Application System

Dra

w D

ow

n

Inte

rest H

olid

ay

Co

llectio

n

Arre

ars

Ea

rly S

ettle

me

nt

Loan Administration System

Service

The Journey (IV)

SOA Example

The Journey (V)

HKHS BPM/SOA Application Architecture

Switched to

Oracle BPM

Suite in mid 2011

due to limitations

of the legacy

Workflow

platform, upgrade

of ERP & revamp

of our Chart of

Accounts (COA)

The Journey (VI) Examples on Business Services Exposed form ERP

1. Get account info – check the general information of COA,

e.g. Accounts type, Accounts description, Accounts Head,

posting nature, annual budget or job budget etc.

2. Budget Checking function - customized a budget check

function into 9 options by annual or job budget and

different nature of COA.

3. General Ledger Creation Service - Provide various kind of

ledger transaction creation services with auto posted.

4. Payment Voucher Creation Service – Provide various type

of a Payment Voucher creation service

Web Service

Web Service

Web Service

Web Service

The Journey (VII) Integration by Web Service

Works

Order

CA

ECA

Oracle

Service

Bus

iHousing Web Service

JDE

Web Service

eLeave Web Service

The Journey (VIII) Examples on Automated Business Processes

E-Leave Approval

Expenditure Commitment Application (ECA) [& Revised]

Approval

ECA Closure Approval

Contract Award (CA) [& Revised] Approval

Payment Request Approval

Works Order (day2day & term contract)Approval

Fixed Fee Service Contract Approval

General Purchase (being implemented) & Many More ……..

All approval of ECA/Works Order/PO/Payment can be easily

traced & tracked

Shortened procurement cycle time through electronic routing

and approval (by 35% to 95%)

Accurate and up-to-date funding approval accrual and actual

accounts for performance and progress monitoring

Improved Agility without scarifying control

Better Tenant Satisfaction due to much faster response to

tenants’ needs on repairs and maintenance requests

Easy work around to tackle business and organizational changes

Millions of paper saved (ISO 14000) and more ……

The Journey (IX) Benefits Gained

BPM Journey is an Evolution

It starts with the Strong Will:

• to pursue Continual Improvement and Service Excellence

• to Understand Business; and

• to become a Valuable Partner of Frontline Business.

3 Most Important Attributes to Success

1. Continual Improvement (要不斷地自我檢討和改進)

2. Principles & Ethics (要有原則和操守)

3. Appreciate & Respect others (懂得欣賞,

感謝和尊重別人)

Who is this guy?

“I am prepared to die.” “I’ve learned how to respect” Nelson Mandela

slide 29

Contact details:

Peter Miao

Head of IT of HK Housing Society

(Email) peter@hkhs.com

(Tel) 852-28943398

Chairman of itSMF (HK Chapter)

(Email) info@itsmf.org.hk

Thank You