1.

0 Introduction

Several world class companies have redesigned or re-engineered their business
process with considerable success. Entrepreneurs used traditional business
structures beIore the wide availability oI inIormation technology and went
through substantial restructuring and development in order to adapt the new
demands set by technological change (Kleindl, 2001,p.2).

Traditionally, the business structure consisted oI deIinite management levels with
;0rtical slow and collaborati;0 downwards communications (Chen, 2001,
p.13). Ext0nsi;0 in;0stm0nt was needed in the development oI this structure and
this gradually 0m0rg0d as an obstacl0 for comm0rcial growth. Study
conducted by Klerk and Kroon(2007) on networking in South AIrican businesses
has identiIied Iive types and characteristics oI traditional business structures as
below:-

2.0 %raditional busin0ss structur0s

i. In th0 simpl0 structur0s a strong centralization oI control exists, with the
owner as manager (Hall, 2001,p.40). High levels oI interpersonal
competence and management skills are necessary Ior eIIective
management, control and handle changes in the market and business. This
structure works well in small to small medium businesses where the
diIIerent job description are clearly deIined (Chell, 2001, p.7).

ii. %h0 machin0 bur0aucracy structure is an extension oI the simple
structure and the business Iunctions are derived Irom the standardization oI
work processes (Hall, 2001, p.40). Technology dictates the business design
and control is centralized. ConIlict can be occur between vertical and
horizontal cross divisions and Iunctions. Because oI its permanents
routines and programs the structure is too rigid to adapt to the changing
needs to society and the markets (Chell, 2001, p.7).



iii. In th0 prof0ssional bur0aucracy structur0 the standardization oI skills
and knowledge in a speciIic Iield oI production or the rendering oI
services can serve as the basis oI the structure (Hall, 2001:40). Since
proIessional committees are involved in the decision making oI the
business, processes are slowed down and the business becomes inIlexible.

iv. %h0 di;isional busin0ss form is most associated with large businesses in
the private sector and is based upon the standardize oI output. Middle
management level Iorms the basic core oI the business with structural
division to address market diversity (Hall,2001, p.41). This structure tends
to protect the weak parts oI business and minimized the control oI general
manager, making it too Iormal and rigid to be competitive.

v. dhocracy is where a structure is established Ior a speciIic but temporary
purpose. It is based upon mutual adjustment with inIormal
communications and temporary work teams that move Irom one project to
another to support business staII (Hall, 2001, p.41).

3.0 od0rn busin0ss structur0s
ast change and uncertain developments urged the modern business to combine
the hierarchical long-term relationships, consisting the agreements and Iormal
contracts, with the constant availability oI competitive labour and services in the
market in order to be successIul (Wickham, 2001,p.110). Among the modern
types oI business structures as highlighted also by Klerk and Kroon (2007) as
Iollows:-

i. %h0 0xt0nd busin0ss structur0 makes use oI extended resources that are
available through the long-term, supportive and mutually beneIicially
relationships with other businesses, saving cost and time (Wickham, 2001,
p.114). They have the same distribution channels, share inIormation
regarding customers and markets and share costs, such as selling and
distribution costs. The customer can also beneIit Irom these relationships
between businesses, since products are oI a better quality, and are more
available.

ii. %h0 hollow busin0ss structur0 creates value through making existing
business structures more eIIicient by keeping the Iormal business structure
small. The business does not manuIacture, distribute or market products
and or/services. DiIIerent business are brought together to perIorm these
Iunctions. The coordinating business is rewarded according to the value
that is derived through the coordination (Wickham, 2001, p.115).


iii. %h0 matrix and t0am structur0s consists oI permanent multi and cross
Iunctional teams that stimulate innovation and creativity, while expanding
markets and production Iacilities across country borders. The traditional
project and Iunctional business structures are combined to support, solve
problems and make decisions (Hall, 2001, p.24), resulting in better
business perIormance (Chell,2001, p.10)

iv. %h0 n0twork structur0 consists oI relationships established on a Iormal
or contractual agreement or inIormal basis, through strategically chosen
partners that contribute in their own way to business success in strategic
alliances (Chell, 2001, p.10). These relationships are based on mutual
market-led decisions, Iormal contracts, expectations and trust and are
instrumental Ior increased innovation (Wickham, 2001 p.112), increased
eIIectiveness, improved communication and cooperation, as well as
creativity (Sudweeks and Romm, 2000, p.24).


v. In th0 ;irtual busin0ss to traditional business rules stays the same.
Technology makes it easier to change the business strategy (Korper and
Ellis, 2001, p.6). Geographical barriers can be overcome with this
structure by the technology inIrastructure that consists oI new
technologies, such as telephones lines; Iax machine and basic computer
soIt and hardware that is available almost everywhere in the world (Chell,
2001, p.10).

.0 usin0ss proc0ss0s

Redesigned oI business process is one oI the most topical items in business
management. This enthusiasm Ior business process redesign (BPR) has been
propelled by the claims oI these companies to have achieved up to 80 percent
savings on time and costs by restructuring business process and organization.

.0 0finitions of busin0ss proc0ss0s

Due to large interest in business processes there is a great deal oI variety
concerning the deIinitions oI processes and process redesign. Terminology
Irom inIormation systems, manuIacturing, logistics,as well as organization and
strategy studies are oIten used and mixed as can be seen Irom %abl0 1 as p0r
app0ndix attach0d.

6.0 %hr00 p0rsp0cti;0s to busin0ss proc0ss0s

Eventhough an analysis oI BP deIinitions show an emphasis on operational
aspects, Tinnila (1995) has managed to recognized that there are three
perspectives on process redesign as Iollow:-

i. The original perspective on business process has been to use IT as enabler
in improving operative eIIiciency and ultimately, to achieve competitive
advantage. The Iocus oI most BPR projects so Iar has been streamlining
operative processes by using inIormation systems and network. This
outlook was launched by Hammer with Davenport and Short (1993)
establishing the axiom oI 'using the power oI modern inIormation
technology to radically redesign business processes in order to achieve
dramatic improvement in perIormance.

ii. The second observes the potential oI business processes in redesign
organizations/as organizational units. BPR improves corporate
perIormance by tackling cross-Iunctional business process, organization
and human resources and inIormation technology needs all together.

iii. The third recognizes business processes as units oI strategic planning and
thereIore acknowledges the need to connect them more closely to business
strategies. Stalk 09, (1992) maintain that the building blocks oI corporate
strategy are not products and markets but business processes. These key
processes have to be transIormed into strategic capabilities providing
superior value customers.

igur0 1 as p0r app0ndix attach0d shows the three recognized perspectives on
business processes. Operational perspective deals with operative processes with
deIinite inputs and outputs, where the process is known, as well as its outputs (or
products) and customers. InIormation technology plays an important role
connecting the nodes oI processes.
Organizational processes are those extending over diIIerent Iunctions and having
customers as well as suppliers. Marketing, delivery and support processes are
examples oI these. The organizational perspective Iocuses on the development oI
these processes with predetermined customer segments, suppliers and products.
Strategic perspectives deal with strategic processes using resources to meet
service needs. The perspective is more comprehensive as it includes suppliers and
their suppliers; that is, the channels involved and the control oI these channels.
The Iocus is on adjusting the business process portIolio oI the Iilm, when
products, customers as well as technology solutions to change.




8.0 N0twork and Sw0dish school of n0tworks
The view oI networks as reIlected in research by the Swedish school oI networks
(e.g. Hakansson and Snehota, 1995) is oI individual relationships as parts oI a
larger whole a network oI interdependent relationships. The Swedish school`s
network model suggested that the key elements oI any network are actors,
activities and resources (Hakansson, 1982) as igure 5, attached Trust is an
important concept