IS IS 788 [Process] Change Management  Wednesday, August 29  Current event  Lecture  ‘Failed Project’ presentation and discussion

IS Increasing rate of process change  Technology Web-enabled processes Mobile (and tomorrow?) Supply chain emphasis Data mining (more information, more quickly to define change)  Competitiveness Healthy organizations continuously seek improvement – typical process redesigns yield 20% (time, $) China, India, EU

IS Increasing rate of process change  Governmental mandates Inter-healthcare provider compatibility Homeland Security – i.e. new worker status validation legislation Sarbanes-Oxley  As of 2003, 82% of US companies were involved in significant process redesign

IS Changing processes  Its been around forever Adam Smith’s pin factory Fredrick Taylor Henry Ford  Term du jour – Process _____ Reengineering (hot then not) Redesign or design Improvement

IS Beyond stopwatch and clipboard  Top organizations have progressed well beyond ’50’s style industrial engineering (efficiency experts)  Multiple methods have been developed for multiple types of processes  Repeatability of process change based on CMM for software development – i.e. treat process change as a development project  OMG has developed a process model based on CMM

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7 Different problems, different techniques  Process Improvement Incremental (continuous) change, i.e. Six Sigma, TQM  Process design (or redesign): major effort whether entirely new or radical change as per the original notion of BPR  Process automation New processes emerge continually. They are usually manual at first and then automated as transaction volume mounts

IS !! Alignment !!  Just as for IT projects, many of which are process change assist efforts, process changes should always be aligned with organizational goals  Just as for IT projects, this frequently is not the case! Local optimization, global suboptimization Lack of organizational architecture or coherent, explicit mission

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10 Organizations as systems  We will discuss two different ‘lenses’ or ways of viewing an organization: As a dynamic, self organizing system As a machine  The two views generate radically different mechanisms for implementing change ;-)

IS The ‘ol value chain: how goods get produced and marketed

IS The most significant processes span the value chain  In the beginning there were functional centers. They make sense to workers and managers and have value, so it is unlikely they will fade away.  However, processes naturally span functional centers and we are still learning how to build and manage these processes

IS A simple cross functional process

IS Workflow and ERP  Computer based workflow systems move information based work artifacts among employees and monitor the progress. Insurance companies were the first big users.  Harmon suggests that ERP systems (modular IT applications) are a form of worklflow.

IS IT and Process Change  Most process changes are initiated by non-IT personnel  Some processes are not amenable to assistance by information technology  However, “Increasingly IT is being asked to anticipate new business goals in order to assure that its infrastructure will be ready to respond…”

IS IT and Process Change  “… IT is increasingly relying on its own enterprise modeling and business modeling techniques.”  Even in large organizations IT can be left out of top-level strategizing.  Even in progressive organizations, management techniques for coordinating IT with business strategy are still developing (see p. 38)

IS The right tool for the job

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