Transforming IT Thinking: Business Process Reengineering and New Ways of IT Thinking

1. Chapter 4 IT Enabling

2. Agenda • Old ways of IT thinking • New ways of IT thinking • Business process reengineering (BPR)

3. Old IT Thinking • New tool replacing old tool • Pencil by PC • Magnetic tape by disk • Changing HOW something’s done not WHAT is being done

4. Old IT Thinking • Method: deductive reasoning • Start with existing mindset • Define the problem • Seek alternatives • Select the best alternative • Problem definition limits possible solutions • The continuous problem

5. Agenda • Old ways of IT thinking • New ways of IT thinking • Business process reengineering (BPR)

6. New Way of Thinking • Break existing rules that limit how to conduct work • What • Who • Where • When • Method: inductive reasoning • Find new powerful technology & solution • Seek problem it might fit • Problems firm doesn’t know it has YET!

7. New Way of Thinking • Old rule (OLD) • Disruptive technology (DT) • New rule (NEW) • Gain

8. Information Transfer • OLD: independent information appears in only one place at one time • DT: database & telecommunication • NEW: integrated information appear simultaneously in as many places as need • GAIN: decrease cycle time

9. Complex Work • OLD: experts perform • DT: expert systems (ES) • NEW: generalists perform • GAIN: decreased expert cost Employee empowerment Consistent decision

10. Centralization or Decentralization • OLD: firm chooses one only • DT: telecommunication & networks client/server • NEW: firm can have both • GAIN: local autonomy (quality) Minimal loss of control

11. Decision-making Level • OLD: mangers decide • DT: expert systems (ES) decision support systems (DSS) • NEW: decision-making part of all jobs • GAIN: cycle time employee empowerment quality productivity

12. Central Office • OLD: employees need office • DT: portable computers telecommunication & networks databases • NEW: telecommuting • GAIN: cycle time productivity

13. Customer Contact • OLD: best customer contact is personal contact • DT: Internet • NEW: tailed customer contact • GAIN: customer commitment

14. Location Resources • OLD: find where resources are • DT: automatic ID/tracking systems • NEW: systems locate the items • GAIN: cycle time/real-time

15. Agenda • Old ways of IT thinking • New ways of IT thinking • Business process reengineering (BPR)

16. Business Process Reengineering (BPS) • Rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance • Methods • Redesign (process) • Retool (information system) • Reorchestrate (network-type organization)

17. Business Process • A set of tasks that directly support the achievement of business objectives by providing a product or service for a customer

18. BPR Sequence • Assess firm’s competitive position • Demand chain • Supply chain • Management • Build the vision of future • Decrease cycle time • Decrease costs • Increase quality • Increase customer satisfaction • Add value

19. BPR Sequence • Use new ways of IT thinking to turn the vision into reality • Management integration • Mass customization (collaborative, adaptive, cosmetic, transparent) • Empowerment/self-directed team • Redundancy elimination • Networked organization • Virtual organization

20. Points to Remember • Old ways of IT thinking • New ways of IT thinking • Business process reengineering (BPR)

21. Discussion Questions • How do you use Internet to change the critical processes for • A university? • A manufacturing firm? • A department store? • What kind of benefits will be encountered by the management from the usage of Internet? • What kind of problems will be encountered by the management from the usage of Internet?

22. Assignment • Review technology guides 1-2 & chapters 1- 4 • Read chapters 5, & technology guide 4 • Group Assignment • Research paper