SYSTEM INTERDEPENDENCE BUSINESS Strategy Strategy Rules Rules Procedures Procedures ORGANIZATION INFORMATION SYSTEM HARDWARE SOFTWAREDATABASE TELE- COMMUNICATIONS 1.19INTERDEPENDENCE

SPECTRUM OF ORGANIZATIONAL CHANGE AUTOMATION: Using technology to perform tasks efficiently / effectivelyAUTOMATION: Using technology to perform tasks efficiently / effectively RATIONALIZATION OF PROCEDURES: Streamline SOPs; eliminate bottlenecksRATIONALIZATION OF PROCEDURES: Streamline SOPs; eliminate bottlenecks BUSINESS REENGINEERING: Radical redesign of processes to improve cost, quality, service; maximize benefits of technologyBUSINESS REENGINEERING: Radical redesign of processes to improve cost, quality, service; maximize benefits of technology PARADIGM SHIFTPARADIGM SHIFT* 11.16

PARADIGM SHIFT PARADIGM SHIFT PARADIGM IS A COMPLETE MENTAL MODEL OF HOW A COMPLEX SYSTEM FUNCTIONSPARADIGM IS A COMPLETE MENTAL MODEL OF HOW A COMPLEX SYSTEM FUNCTIONS A PARADIGM SHIFT INVOLVES RETHINKING THE NATURE OF THE BUSINESS, THE ORGANIZATION; A COMPLETE RECONCEPTION OF HOW THE SYSTEM SHOULD FUNCTIONA PARADIGM SHIFT INVOLVES RETHINKING THE NATURE OF THE BUSINESS, THE ORGANIZATION; A COMPLETE RECONCEPTION OF HOW THE SYSTEM SHOULD FUNCTION* 11.17

RISKS & REWARDS RISKS & REWARDS RISK RETURN Low LowHighHigh

IT CAPABILITIES & IMPACTS ANALYTICAL: Can bring complex analytical methods to bear on processANALYTICAL: Can bring complex analytical methods to bear on process INFORMATIONAL: Makes vast amounts of detailed information availableINFORMATIONAL: Makes vast amounts of detailed information available SEQUENTIAL: Enables changes in sequence, parallel tasksSEQUENTIAL: Enables changes in sequence, parallel tasks* Source: Davenport & Short “The New Industrial Engineering”(1990)

IT CAPABILITIES & IMPACTS KNOWLEDGE MANAGEMENT: Allows capture, dissemination of knowledge, expertiseKNOWLEDGE MANAGEMENT: Allows capture, dissemination of knowledge, expertise TRACKING: Allows detailed tracking of task status, inputs, outputsTRACKING: Allows detailed tracking of task status, inputs, outputs DISINTERMEDIATION: Connects parties who otherwise depend on an intermediaryDISINTERMEDIATION: Connects parties who otherwise depend on an intermediary* Source: Davenport & Short “The New Industrial Engineering”(1990)

BUSINESS PROCESS REENGINEERING (BPR) WORK-FLOW MANAGEMENT: Streamlining process to move documents easily, efficientlyWORK-FLOW MANAGEMENT: Streamlining process to move documents easily, efficiently REENGINEERINGREENGINEERING* 11.21

1. Develop business vision, process objectives 2. Identify process to be redesigned 3. Understand, measure performance of existing processes 4. Identify opportunities for applying information technology 5. Build PROTOTYPE of new process * BUSINESS REENGINEERING STEPS: BUSINESS REENGINEERING STEPS: 11.22

TOTAL QUALITY MANAGEMENT (TQM) RESPONSIBILITY FOR QUALITY SHARED BY ALL PEOPLE IN ORGANIZATION * 11.23

CONTRIBUTIONS OF TQM SIMPLIFY PRODUCT OR PROCESSSIMPLIFY PRODUCT OR PROCESS BENCHMARKING: Strict standards for measuring performanceBENCHMARKING: Strict standards for measuring performance LISTEN TO CUSTOMER DEMANDSLISTEN TO CUSTOMER DEMANDS REDUCE CYCLE TIMEREDUCE CYCLE TIME IMPROVE DESIGNIMPROVE DESIGN INCREASE PRECISION OF PRODUCTIONINCREASE PRECISION OF PRODUCTION* 11.24