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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