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Business Process Re-engineering07 Role of IT in BPR

BPR and IT

BPR requires taking a broader view of both IT andbusiness activity, and of the relationships between

them. IT should be viewed as more than an automating ormechanizing force: to fundamentally reshape the way

business is done.

- Davenport & Short, 1990

BPR and IT

IT and BPR have recursive relationship. IT capabilities should support businessprocesses, 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

Process Innovation 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 theirproduct delivery processes and pass on savings to customers

Exploiting IT

Impact of IT on Process Innovation

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

IT enablers of Process Innovation

IT enablers of Process Innovation

Innovation through IT 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 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.

Business Transformation Graph Evolutionary stage

Localised exploitation Internal integration (technical & organisational)

Revolutionary stage Business process redesign Business network redesign Business scope redefinition

Business Transformation benefitsMIT identified 5 levels of transformation

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Localised exploitation Islands of automation Lack of integrated infrastructure

Internal integration Data sharing/communication Common applications

Business process redesign Limited/controlled business transformations

Business Transformation benefits Business network redesign

New value webs/alliances Business scope redefinition

New business ventures, new markets New ways of doing business

Business Transformation (5-level) Graph

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