1. How Information Technology can be connected to Organizational Transformation / How Information Technology can be connected to Organizational Transformation /case study – 2007/ Balázs Szabó PhD Assistant professor Budapest University of Technology and Economics Faculty of Social and Economic Sciences Department of Management and Corporate Economics

2. BAlázs Szabó PhD2 Introduction Concept description Role of technology Opportunities presented by information technology The role of information system staff Hungarian Central Heating Company Capital Cleaning Company

3. BAlázs Szabó PhD3 Concept Description “strives to break away from the old rules about how we organize and conduct business. It involves recognizing and rejecting some of them and finding imaginative new ways of accomplishing work” (Hammer, 1990, pp.104-105).

4. BAlázs Szabó PhD4 Role of Technology Hammer (1990) provides a set of principles for using technology in re-engineered jobs:  Organization around outcomes rather than tasks  Have those who use the output of a process perform the process  Subsume information processing work into the real work that produces the information  Treat geographically dispersed resources as if they were centralized using IT to co-ordinate activities.  Link parallel activities instead of integrating their results  Put the decision point where the work is performed  Put control into the process  Capture information once at the source

5. BAlázs Szabó PhD5 Opportunities Presented by Information Technology Technology Infrastructure  Message to be sent to and received from anyone within the firm (cluster of interconnected LANs)  Documents (in the original form) to be sent to received from anyone within the firm  Sharing of programs and firm specific applications.  Sharing of data.  Sharing of special purpose hardware resources, such as printers and computational engines. Encoding of a Firm’s Knowledge

6. BAlázs Szabó PhD6 The Role of Information System Staff Lead the re-engineering project since they possess the problem-solving skills Initiate the re-engineering effort, but not lead it Participate as workers and support of the project Advisor rather than leader Removing barriers to effective work and enable and empowering workers is the new organizational change.

7. BAlázs Szabó PhD7 Main problems – 2 project Employee lack of understanding of IT Resistance of changing (mainly in IT) „Do not matter” „Not involved” „Not interested” Key factors is success!!!!!