By Hollander, Denna, Cherrington PowerPoint slides by: Bruce W. MacLean, Faculty of Management, Dalhousie University Accounting, Information Technology, and Business Solutions, 2nd Edition Irwin/McGraw-Hill  The McGraw-Hill Companies, Inc., 2000 Chapter 9 Business Solutions, Change, and the Solution Professional: Challenges and Opportunities

 The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Chapter Objectives n Explain the nature of integrated business solutions. n Explain the principles of managing change. n Describe the opportunities confronting today’s accounting and IT professionals.

 The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill The Nature of Business Solutions n Successful business solutions adhere to the following principles and characteristics: ä First, solutions must integrate 5 key components: –Business processes and events –Business strategy –Organization structure and individual stewardship responsibilities –IT architecture –Measurements ä Second, the solution must be aligned with the organization’s culture. ä Third, solutions must constantly adapt to a complex, changing world in real-time.

 The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Culture S1 Business Processes/ Events Business Solution Framework Strategy Information Technology People and Structures Measurements

 The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Business Information Warehouse Audit and Record Business Events Finance View Production View Marketing View Executive View IT Application Architecture: Record, Maintain and Report

 The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Business Event Owners Salesperson Shipping Clerk Customer Payment Clerk Solution Support Professional Process Owner Multiple Process Owner Process Owner Organization Structure Based on Business Processes

 The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Business Event Functional Views System D Edit Audit Calculate Summarize Stored Data System C Edit Audit Calculate Summarize Stored Data System B Edit Audit Calculate Summarize Stored Data System A Edit Audit Calculate Summarize Stored Data Functional Views Functional Views Functional Views Traditional View-Driven IT Application Architecture

 The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Operating Event (and other decision support) Data Enterprise-wide Information Customers Operating Events Useful Information Business Data Repository Business Event Processor Reporting Facility (instructions for generating outputs) IT Application Architecture: Record, Maintain, and Report

 The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Business requirements statement Systems Planning Systems Support Systems Implementation Systems Design Systems Analysis Existing system details and limitations Planned application development projects Technical design statement Production information system Existing system details and limitations Systems Development Process

 The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Types of Organizational Change n Organizational change can be classified according to its scope and depth. ä Developmental change is the improvement of an existing system ä Transitional change is the implementation of a known new state ä Transformational change is the emergence of a new state.

 The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Types of Organizational Change n Some important questions to ask when determining the type of change best suited for an organization include: ä How far do we want to go? Is it too far or not far enough? ä What type of result do we want: short term or long term? ä How much change can the organization absorb in on change and cumulatively? ä Can the changes contemplated be presented positively? If not, why? ä What happens if we don’t change?

 The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Deciding When to Change n The decision about when to change is as important as what to change and how much to change. ä Change when things are going well. ä Change when results are mixed. ä Change demanded by a full-fledged crisis.

 The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Managing Change and Creating a Common Vision n Organization Culture n Participation n Performance Evaluation n Dysfunctional Human Behaviour

 The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Organization Culture n Each organization has a unique culture that distinguishes it from all others. n Changes should support rather than challenge the organization’s culture.

 The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Participation n Allowing people to participate in identifying the problem, the solution approach, and the final product is the most powerful technique for creating a common vision and the support to achieve it.

 The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Performance Evaluation n Because changes often alter people’s responsibilities, organization and system changes often impact the way individual performance should be measured and evaluated. n Unless the performance evaluation process is updated, changes may obscure personal performance, thus creating disincentives for supporting the proposed changes.

 The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Dysfunctional Human Behaviour n Most dysfunctional human behaviour is manifest in one, or more, of three ways: ä Aggression involves any attempt by an individual or group to damage the organization or its information system. ä Projection involves any effort to blame the system for problems that people face. ä Avoidance involves any attempt to avoid using the system.

 The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Culture Strategy Business processes IT architecture (technical/ application) Measurements Stewardships and structures Culture S3 Culture S2 Culture S1 Business processes/ events Information technology Measurements Strategy People and structures IS Professionals Provide Integration and Structure

 The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Responsibilities for Managing Change n Management should: ä Openly support efforts to continually improve all aspects of the organization. ä Determine timing for enterprise-wide changes. ä Approve suggestions for improvement. ä Monitor progress of approved changes and insure that measurement systems are adjusted quickly. ä Assist in resolving problems resulting from change.

 The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Responsibilities for Managing Change n Employees should: ä Commit to continual individual and organization improvement. ä Actively participate in suggesting and implementing changes. ä Demand creative solutions to business and information problems.

 The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill Responsibilities for Managing Change n Change agents (those who guide or develop the business solutions) should: ä Understand the impact of IT as a change agent. ä Deal with problems in a timely and effective manner.