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IS 788 [Process] Change Management

Wednesday, August 29

Current event Lecture ‘Failed Project’ presentation and

discussion

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Increasing rate of process change

Technology Web-enabled processes Mobile (and tomorrow?) Supply chain emphasis Data mining (more information, more quickly to

define change) Competitiveness

Healthy organizations continuously seek improvement – typical process redesigns yield 20% (time, $)

China, India, EU

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Increasing rate of process change

Governmental mandates Inter-healthcare provider compatibility Homeland Security – i.e. new worker

status validation legislation Sarbanes-Oxley

As of 2003, 82% of US companies were involved in significant process redesign

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Changing processes

Its been around forever Adam Smith’s pin factory Fredrick Taylor Henry Ford

Term du jour – Process _____ Reengineering (hot then not) Redesign or design Improvement

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Beyond stopwatch and clipboard Top organizations have progressed well

beyond ’50’s style industrial engineering (efficiency experts)

Multiple methods have been developed for multiple types of processes

Repeatability of process change based on CMM for software development – i.e. treat process change as a development project

OMG has developed a process model based on CMM

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Different problems, different techniques

Process Improvement Incremental (continuous) change, i.e. Six Sigma,

TQM Process design (or redesign):

major effort whether entirely new or radical change as per the original notion of BPR

Process automation New processes emerge continually. They are

usually manual at first and then automated as transaction volume mounts

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!! Alignment !! Just as for IT projects, many of which

are process change assist efforts, process changes should always be aligned with organizational goals

Just as for IT projects, this frequently is not the case! Local optimization, global

suboptimization Lack of organizational architecture or

coherent, explicit mission

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Organizations as systems

We will discuss two different ‘lenses’ or ways of viewing an organization: As a dynamic, self organizing system As a machine

The two views generate radically different mechanisms for implementing change ;-)

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The ‘ol value chain: how goods get produced and marketed

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The most significant processes span the value chain

In the beginning there were functional centers. They make sense to workers and managers and have value, so it is unlikely they will fade away.

However, processes naturally span functional centers and we are still learning how to build and manage these processes

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A simple cross functional process

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Workflow and ERP

Computer based workflow systems move information based work artifacts among employees and monitor the progress. Insurance companies were the first big users.

Harmon suggests that ERP systems (modular IT applications) are a form of worklflow.

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IT and Process Change Most process changes are initiated by

non-IT personnel Some processes are not amenable to

assistance by information technology However, “Increasingly IT is being

asked to anticipate new business goals in order to assure that its infrastructure will be ready to respond…”

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IT and Process Change “… IT is increasingly relying on its

own enterprise modeling and business modeling techniques.”

Even in large organizations IT can be left out of top-level strategizing.

Even in progressive organizations, management techniques for coordinating IT with business strategy are still developing (see p. 38)

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The right tool for the job

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