ABSTRACT
Transformation process redesign (TPR) is based on notions of core competencies (CC), critical success factors (CSF), and Transaction Cost Economics (TCE). It integrates these concepts and theories into a two-phase hortative process that can lead to sourcing decisions that are sustainable and robust. TPR involves an integrated approach to making comprehensive changes in the processes of a business by considering a wide variety of options for each micro-level activity and each process and then integrating them to maximize the overall benefit to the enterprise. TCE provides some general guidance for the macro-level process sourcing choices. The analogy of both TCE and sub-optimality to sourcing is straightforward. The micro-level activity sourcing decisions can be assumed to minimize costs or to optimize some other set of objectives related to each activity. TPR provides managers with a wider range of sourcing options which should be of benefit in achieving the complex set of objectives that they actually pursue rather than the simplistic guidelines.
