Bpr 07 Roleof It
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Transcript of Bpr 07 Roleof It
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Business Process Re-engineering07 – Role of IT in BPR
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BPR and IT
“ BPR requires taking a broader view of both IT and
business activity, and of the relationships between
them. IT should be viewed as more than an automating or
mechanizing force: to fundamentally reshape the way
business is done. “
- Davenport & Short, 1990
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BPR and IT
“ IT and BPR have recursive relationship. IT capabilities should support business processes, and
business processes should be in terms of the capabilities IT can provide. Its refer to this broadened,
recursive view of IT and BPR as the new industrial engineering. “
- Davenport & Short, 1990
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• Businesses must be viewed not in terms of functions, departments, divisions, but of key processes
• Firms seek not fractional (or incremental) but multiplicative levels of improvement (for e.g. 10 times instead of 10%)
• Can support low-cost producer strategies for e.g. eliminate costly aspects of their product delivery processes and pass on savings to customers
Process Innovation
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Exploiting IT
• In developing a process, information requirements should be identified
• Information must be transformed, stored, monitored and controlled
• Management considers information as raw materials for systems
• Issues on information :- why, what, whom, where, how much and format
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Impact of IT on Process Innovation
• No single business resource is better positioned than IT to bring about radical improvement in business processes
• IT itself cannot change processes• IT is a combination of technology and human factors
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Impact of IT on Process Innovation
• Automational - eliminating human labour from a process
• Informational – capturing process information for purposes of understanding
• Sequential – changing process sequence• Tracking – closely monitoring process status• Analytical – improving analysis of information and
decision making
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Impact of IT on Process Innovation
• Geographical – coordinating processes across distances
• Integrative – coordinating between tasks and processes
• Intellectual – capturing and distributing intellectual assets
• Disintermediating – eliminating interdependencies from a process
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IT enablers of Process Innovation
Some examples:• Business Intelligence (BI) tools• Computer –aided software engineering (CASE)• Data mining and warehousing• Artificial Intelligence• Process modeling tools• Prototyping• Storyboarding
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IT enablers of Process Innovation
Some examples:• E-Business / E-Commerce• Customer Relationship Management (CRM)• Supply Chain Management (SCM)• Mobile computing – Bluetooth; Wireless• Smart cards• Business Intelligence• SMS• e-HRM
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• CRM– Target customers; enterprise marketing automation– Sales force automation; data mining
• E-Commerce– Customer reach– Marketing & sales without boundaries
• EDI– Data link between two large B2B organisations
through a dedicated network– Cuts down manual transmission of data
Innovation through IT
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• Document Imaging & Workflow– Create electronic pictures of paper & store them– Better control over a single process that can be
monitored & tracked than mounds of paper– Significant savings of time & increased efficiency –
finding, sorting, copying, distributing• Mobile/Wireless Computing
– Enterprise SMS: reach out to customers & business associates
– Mobile Information on Demand: Customers can request for specific information for e.g. product info.; results etc.
Innovation through IT
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Business Transformation Graph
• Evolutionary stage– Localised exploitation– Internal integration (technical & organisational)
• Revolutionary stage– Business process redesign– Business network redesign– Business scope redefinition
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Business Transformation benefits
MIT identified 5 levels of transformation
• Localised exploitation– Islands of automation– Lack of integrated infrastructure
• Internal integration– Data sharing/communication– Common applications
• Business process redesign– Limited/controlled business transformations
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Business Transformation benefits
• Business network redesign– New value webs/alliances
• Business scope redefinition– New business ventures, new markets– New ways of doing business
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localised exploitation
internal integration
business process redesign
business network redesign
business scope
redefinition
LowHigh
High
Revolution
Evolution
Range of potential benefits
Deg
ree o
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sfo
rmati
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Business Transformation (5-level) Graph
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Business Transformation Graph
• Uses– How to develop strategic IT alignment– How to re-conceptualise the role of IT in business– How to identify the application related to strategic
aspects– How to reconfigure the business operation
• Stages– Organisational internal factors – evolutionary stage– Organisational external factors – revolutionary stage