Outline Identifying the right projects to implement (continued) Systems Analysis Approaches...
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Outline • Identifying the right projects to implement (continued) • Systems Analysis Approaches – automation, process improvement, process reengineering • Example of BPR • Insights on BPR versus Process Improvement
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Transcript of Outline Identifying the right projects to implement (continued) Systems Analysis Approaches...
Outline
• Identifying the right projects to implement (continued)
• Systems Analysis Approaches– automation, process improvement, process
reengineering
• Example of BPR
• Insights on BPR versus Process Improvement
Where do ideas for systems development projects come from?
Problems, and suggested solutions to problems that bubble up through the organization.
Strategic analysis of the organization and its business situation.
Serendipity -- bright ideas out of nowhere, or accidents that spark ideas about great opportunities.
Business Challenges
Management
Information Technology
Organization
Business ProcessesBusiness Solutions
Approaches to Information Systems Planning
Problem FocusLet a Thousand Flowers BloomBottom Up with Payoff Hurdle
Strategic FocusInformation Systems Centric View of the CorporationOrganizational Strategic + IS CapabilitiesBusiness Functional DecompositionStrategic Systems Perspectives
Strategic IS Planning: Figures 5-8, 5-11
Functional Decomposition: Figures 5-13, 5-14
(You do not have these slides. That’s okay!)
"Strategic information systems change the goals, operations, products, services or environmental relationships of organizations to help them gain or maintain an edge over competitors."
How Identify a Potential Strategic System?
Four Frameworks for Thinking about IS and Competitive Advantage:
Competitive Forces ModelValue Chain ModelCustomer Resource Life Cycle ModelIS Capability and Resource View of Firm
Bargaining Power of Suppliers
TraditionalInter-industryRivalry
Bargaining Power of Buyers
Threat of Substitute Products, Services
Potential New Entrants
Porter's Model of Competitive Forces
Porter's Value Chain
Inbound Logistics
Operations Outbound Logistics
Marketing and Sales
Service
Corporate Infrastructure
Human Resources
Technology Development
Procurement
Customer Resource Life Cycle Model
Requirements Establish Requirements Specify
Acquisition Select Source Order Authorize and Pay For Acquire Test and Accept
Stewardship Integrate Monitor Upgrade Maintain
Retirement Transfer or Dispose Account For
Competitive Advantage Vs. Sustained Competitive Advantage
Valuable, Rare, Inimitable
For How Long?
An Information Systems Capability as opposed to a particular Information System
Outline
• Identifying the right projects to implement (continued)
• Systems Analysis Approaches– automation, process improvement, process
reengineering
• Example of BPR
• Insights on BPR versus Process Improvement
Three Ways to Bring IT to Bear on the Business
Process automation
problem analysis vs. root cause analysis
Process improvement
duration analysis, activity based costing, benchmarking
Business Process Reengineering
outcome analysis; breaking assumptions, technology anal.
Activity elimination; Proxy benchmarking,
process simplification
For each:
As-Is models?; improvements; To-be models
Five primary concepts that make up reengineering (Davenport) A “clean sheet of paper” approach to org design and change
An orientation to broad, cross-functional business processes, or how work is done.
The need for, or possibility of radical change in process improvement
Information technology as an enabler of change in process performance
Changes in organizational and human arrangements that accompany change in technology.
Outline
• Identifying the right projects to implement (continued)
• Systems Analysis Approaches– automation, process improvement, process
reengineering
• Example of BPR
• Insights on BPR versus Process Improvement
Department
Vendor
Department
Budget/AcctInformation
VendorInformation
IssuePurchaseOrder
Request
Open P.O.File
Budget Availability
Available Vendors
P.O.
P.O.
Budget Commitment
Department
Vendor
Receipt of Goods File
R. of G.
Receive Goods
Notification of receipt
Bill of Lading
Signed Bill of Lading
Vendor
MakePayment
Open P.O.File
Receipt of Goods File
Invoice
Check
P.O.
R. of G.
Budget/AcctInformation
Expenditure
Department
Vendor
Information
VendorInformation
IssuePurchaseOrder
MakePayment
Request
Open P.O.File
Receipt of Goods File
Available Vendors
P.O.
P.O.
Bill of Lading
Signed BoL
Invoice
R. of G.
Check
Receive Goods
Notification of receipt
P.O.
R. of G.
Budget/Acct
Budget Availability
Bud Commit
Expenditure
Ford Motor Company
Attempted to automate the purchasing/payment process. Cut 20% of costs
Bought part in interest in Mazda, realized they did it for a fraction of that.
Reengineered the process, saving 80%.
Outline
• Identifying the right projects to implement (continued)
• Systems Analysis Approaches– automation, process improvement, process
reengineering
• Example of BPR
• Insights on BPR versus Process Improvement
Process Improvement vs. Process Innovation (Davenport, 93)
Improvement Innovation
Level of change Incremental Radical
Starting Point Existing Process Clean Slate
Frequency of Change One time/ Continuous One-time
Time required Short Long
Participation Bottom Up Top-down
Typical Scope Narrow, within Funct. Broad, cross Funct.
Risk Moderate High
Primary Enabler Statistical control Info Technology
CSC Index’s findings, The State of Reengineering (1995):
50% of companies responding said most difficult aspect of reengineering efforts is dealing with Fear and Anxiety in their organization
CSC Index’s findings, The State of Reengineering (1995):
50% of companies responding said most difficult aspect of reengineering efforts is dealing with Fear and Anxiety in their organization
73% said they were using reengineering to eliminate on average 21% of workforce
CSC Index’s findings, The State of Reengineering (1995):
50% of companies responding said most difficult aspect of reengineering efforts is dealing with Fear and Anxiety in their organization
73% said they were using reengineering to eliminate on average 21% of workforce
Of 99 completed reengineering efforts, 67% were judged as producing mediocre, marginal or failed results.
Davenports Lessons:
Implementation is harder than Design. Big Risks of Failure
Clean sheet of paper is expensive.
Top down hits rocks when it changes the way people do their work.
The big lesson is still that we must focus on improving our business processes
Information Technology is only useful if it helps people do their work better (and perhaps differently)
Stoddard and Jarvenpaa’s comments:
Distinguish between Design and Implementation.
Design must be radical (to be reengineering)
Radical Implementation is tough unless:self contained unitsan acknowledged crisis, battle for survivaldeep pockets[excellent project management skillsability to borrow from outsidewillingness to use revolutionary path]
Incremental Implementation translate it into a series of operation crisesmake it pay its wayfit into an organization culture of continuous
improvement
