Bpr 07 Roleof It

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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• 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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• 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

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f tr

an

sfo

rmati

on

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

Bpr 07 Roleof It

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