Information Technology Assessing The Impact on Process Innovation

1. Information TechnologyAssessing The Impact on Process Innovation

2. Impact • Client • Internal processes • Inter-organizational processes

3. IT Impact on Process Innovation • Automational • Informational • Sequential • Tracking • Analytical • Geographical • Integrative • Intellectual • Disintermediating Automate Capture and use information Share and distribute information

4. Impact and IT

5. Key questions • What capability does a particular information technology give me? • Can I afford the upfront capital costs? • Can I afford the maintenance costs?

6. AutomationalEliminate human labor from process • Value created for clients: • Speed up the process of service e.g. ATMs, electronic tax-filing, grocery checkout • Decreases chances of “clerical error” • Value created for internal processes • Cuts in unskilled labor • “Labor cost” savings only result if capital expenses of IT plus hiring of IT maintenance personnel do not exceed costs of unskilled labor • Decreases in errors/deception • Cash “leakage” in situations where cash-handling is replaced by automation • Data-entry – automation may cut number of times data are entered • Transfers responsibility of data-entry to clients • Inter-organizational value • Improved supply chain management • Clear assignment of responsibility for action (minimizes chance of something getting “lost.”)

7. InformationalCapturing information • Client • Easier access • 24/7 when combined with automation – web-based, automated telephones • In format that is ready for analysis • Government statistics such as census bureau • Increases variety of formats – visual (pictures, text-based), oral • Internal processes • Effective informational capture in format ready for analysis • Measurement techniques • Speed at which information is available • Enhanced when automated – water district gathers information automatically from each home • Inter-organizational • Improved coordination through sharing of information

8. SequentialChanging the process sequence • Clients • Ease of record retrieval when dealing with customer service representative • Ability to “pull up your record” in real time – IRS case next time • Push information onto clients that they can then respond to, rather than have them seek the information • listservs • Internal processes • Scanned documents can be “worked on” by more than one person at a time without a pile up of paper • Networked, shared documents can be worked on in parallel • Inter-organizational • Ability to work on a project in parallel across organizational lines • Push information onto potential partners • Sign up for automatic notification of bidding opportunities, e.g. State of Washington WEBS • http://www.ga.wa.gov/WeBS/index.html

9. TrackingGoods and services through the process • For clients, internal processes, and inter-organizational relations • Ability to identify easily where WIP is in process • Ability to identify easily when steps in process will take place • E.g. FedEx, UPS, Post Service systems • UPS “Brown” ads highlight the utility of third-party tracking system for internal and inter-organizational tracking

10. AnalyticalAnalyze information you have gathered • IT is good at producing information, but that information must be analyzed and used • Client benefits from • Potential for greater objectivity and transparency • E.g. Automated Underwriting and Credit Scoring? • Ability to conduct own analysis on data from agency • Internal processes • Rapid flow of information, and automated aggregation and manipulation of data allow for quicker decisions • MIS in microfinance • Inter-organizational • Potential for more responsive coordination if information-sharing in the right format is possible

11. GeographicalA particular type of information • Geographical information is simply a particular type of information • In public sector and non-profit situations, much of the value-delivery and –creation is location-specific • Government jurisdictions • Service areas • Client impact • Able to identify services available to them geographically – plug in an address to a school district web site and you can find which school your child will be going to; then check the test scores of that school; then decide whether you want to buy the house at that address • Ease the ability to cross jurisdictional boundaries – bar-code scanning of passports • Internal processes • Ease boundary-drawing tasks • Control borders more effectively • Establish transportation routes more efficiently – on-line grocery stores set up routes for delivery trucks flexibly on a “just-in-time” basis • Inter-organizational processes • Clear boundary delineations • Effective border control can improve relations – “good fences make good neighbors”

12. IntegrativeIT that integrates all components of the organization • Client • One-stop shopping • Internal processes • Decrease duplication of data-entry • Real time, integrated information • Inter-organizational • Potential to share information in an integrated manner – updating internal information also updates relevant external information • SAP – the integration of financial and operational data to provide real time data on financial and operational status of organization • E.g. ordering a part results in the automatic upgrading of the financials as well as the status of parts inventory

13. IntellectualCapturing situation-specific information • Knowledge databases • How good are they at tapping tacit knowledge?