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Government

Business ProcessTransformation:

From Automation to Paradigm Shift;From Localized Exploitation to

Business Scope Redefinition

Dr. Cletus K. Bertin

E-Government & Sectoral Development in CaribbeanStates: Charting an Agenda for Action

Commonwealth Network of Information Technologyfor Development (COMNET-IT) Workshop

February 10th

-12th

, 2004Castries, Saint Lucia

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Range ofOrganizational Change

1. AUTOM

ATION

: Using technology to performcurrent tasks more efficiently & effectively

2. RATIONALIZATIONOF PROCEDURES:

Streamline Standard Operating Procedures; eliminatebottlenecks

3

. BUSINESS REENGINEERING: Radical redesignof processes to improve cost, quality, service;

maximize benefits of technology

4. PARADIGM SHIFT

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PARADIGM SHIFT

PARADIGM: a Complete Mental Model of

how a Complex System Functions

A Paradigm Shift Involves:

Rethinking the Nature of the Business,

Overhaul of the Organization; A Complete Reconception of How The

System Should Function

*

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RISKS & REWARDS

RISKRISK

RETURNRETURN

LowLow

LowLow HighHigh

HighHigh

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B u s in e s s S c o p e

Rede f in i t i on

B u s i n e s s P r o c e s s

R e d e s i g n

In te rna l I n teg ra t ion

B u s i n e s s N e t w o r k

R e d e s i g n

Lo ca l ised E xp lo i ta t ionDegr

eeofBusinessTransformation

R a n g e o f P o te n t i a l B e n e f its

Low

High

L o w H i g h

Levels of Organisational Transformation

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Levels of

Transformation

Distinctive Characteristics

Localized

Exploitation

Leveraging of IT to redesign focused, high-value areas

Internal

Integration

Use of IT capability to create a seamless organizational process,

encompassing both technical interconnectivity and organizational

interdependence

Business Process

Redesign

Redesigning key processes to derive organizational capabilities for

competing in the future

Business Network

Redesign

Redesign of the nature of exchange among participants in a business

network for the enhanced provision of products and services,

coordination, control and to learn from the extended network

Business Scope

Redefinition

Redefining the corporate scope, adjustment of internal activities, new

partnerships and alliances along the value chain

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Bus iness Scope

Redefini t ion

Bus iness Process

Redes ign

Internal Integrat ion

Bus iness N etwork

Redes ign

L o c a l ised E x p l o i t a t i o nDeg

reeofBusiness

Transformation

R a n g e o f P o te n t i a l B e n e fits

Low

High

L o w H i g h

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Bus iness Scope

Redefini t ion

Bus iness Process

Redes ign

In te r n a lIn te g r a t i o n

Bus iness N etwork

Redes ign


reeofBusiness

Transformation


Low

High

L o w H i g h

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Bus iness Scope

Redefini t ion

B u s in ess P r o c ess

R edes ig n


Bus iness N etwork

Redes ign


reeofBusiness

Transformation


Low

High

L o w H i g h

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B u s i ss cfi iti

Bus i ess r ess

Re d es i

I te r lI te r t i

Bus i ess N e t rk

R e d es i

lise d E xp l it tiDe

reeofBusiess

Tr

sfor

tion

Ra

n g e o f o te n tia

lB

e n e f i ts

Low

High

Low H igh

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Elimination of activities where the focal

organization may not have the requiredlevel of competence

Exploration & exploitation of sources of

competence in the larger business network

(beyond what is available within the focal

organization)

Business Network Redesign

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Business Network Redesign

Redesign of the nature of exchange among

participants in a business network through

effective deployment of IT capabilities

Exploiting the IT function to learn from the

extended network, as well as to enhance

coordination and control

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B us in ess S c o p e

R ed e finition

B u s in ess P r o c ess

R edes ig n


B u s in ess N e t w o r

R edes ig n


reeofBusiness

Transformation


Low

High

L o w H i g h

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Why TransformWhy Reform?

Fundamental question: what is the

reason for business process redesign?

Is it to rectify current deficiencies or to

create capabilities for tomorrow? Characterised as seeking efficiency

and enhancing capacities, respectively.

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Efficiency vs Capacity?

Enhancing capacity, as opposed to Seeking

efficiency

Catalyst for more substantial & meaningful

organisational change

The driver being business processes &eventually, intellectual capital, relationships

and cooperation

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Efficiency vs Capacity?

As opposed to being driven by technological

infrastructure and software applications.

The approach needed for successful BPR

process redesign is enhancing capacity.

This entails the creation of strategiccapabilities for future competition & increased

collaboration

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Enhancing Capacity

Starts with the articulation of business

scope and the corresponding logic for

business network redesign, in order to

specify which business processes needto be redesigned and under what

guiding conditions

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B u s in e s s S c o p e

Rede f in i t i on

B u s i n e s s P r o c e s s

R e d e s i g n

In te rna l I n teg ra t ion

B u s i n e s s N e t w o r k

R e d e s i g n

Lo ca l ised E xp lo i ta t ionDegreeofBusinessTransformation

R a n g e o f P o te n t i a l B e n e f its

Low

High

L o w H i g h


Seeking

Efficiency

Enhancing

Capacity

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Why Tourism?

83%

30%

63%

13%

33%

11%

49%

87%

28%

3%

27%

8%

43%

2%

28%

5%

64%

13%

33%

3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

ANG ANT BDS BVI DOM GRN MNT SKN SLU SVG

Economic Significance ofTourism to the OECS

Visit r itur s % fGDP % C tributi f H t ls & Restur ts t GDP

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Why Tourism?

Global Growth Sectors

7.9

1.96 1.24 1.2 0.85

32

12.54

3.29 3.28

4.28

0

5

10

15

20

25

30

35

Travel ardware Software Books Musi

US$bn 2001

2006

Source: Forrester Research, 2002

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Why Tourism?

Average contribution of visitor expenditure toGDP for the OECS - 45%

Approximately three (3) million jobs

Generated US$37.4 billion in economic activityin 2001

Thirty one percent (31%) of the regions gross

domestic product (GDP)

The Caribbean is the most tourism dependent

region in the world (World Travel and Tourism Council, 2002).

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Conception-Reality Gap Analysis

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G ap D im e n s io n s

1 . 7 3

2 .13

2 . 2 0

2 . 3 7

2 . 4 0

2 . 5 3

2 .67

3 .20

3 . 5 7

3 . 6 3

3 . 7 0

3 . 8 3

2 . 9 3

0 .0 0 0 .5 0 1 .0 0 1 .5 0 2 .0 0 2 .5 0 3 .0 0 3 .5 0 4 .0 0 4 .5 0

M a n a g e m e n t

U p g ra d e

S ta f f A c c e p ta n c e

C m m u n ic a t i n

O b je c t iv e s

S kills

In f rm a t i n

T e c h n o lo g y

S e n s e o f U rg e n c y

In t e g ra t io n

E m p h a s is

P ro c e s s e s

M o n e y

N o G a p (F i t) N a r ro w M o d e ra te W id e

M a n a g e m e n t U p g ra d e S ta f f A c c e p ta n c e C o m m u n ic a t io n

O b je c t iv e s S k i lls In fo rm a t io n T e c h n o lo g yS e n s e o f U rg e n c y In te g ra t io n E m p h a s is P ro c e s s e s

M o n e y

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Gap Measure: rocess

1

2

2.5

3

3.50

3.70

4

5

0 1 2 3 4 5 6

NoGap (Fit)

Narrow

Narrow - Moderate

Moderate

Moderate - Wide

Process

Wide

Very Wide

Very Wide

Wide

ProcessModerate - Wide

Moderate

Narrow - Moderate

Narrow

NoGap (Fit)

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Tourism

The difficulty lies in different levels of

understanding and appreciation for

technology within the

organisationthis is needed to enable

a greater degree of transformation, to

take it to the next levelbut not

everyone is ready for that higher level

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Management

Top-down management reinforces fear, distrust

and internal competition and reduces

collaboration and cooperation

It leads to compliance, but a high capacity to

change requires commitment

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& Structure Gaps

Bureaucracy has been design to resist change

(Waterman, 1990).

It is necessary for establishing consistency and

stabilitybut hierarchies make the free

exchange of knowledge more difficult and

thus, limit the organisational capacity to

change. (Gretzel, Yuan and Fesenmaier, 2000)

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Qualitative Data

Top management, while acknowledging

that the Internet is necessary, do not fully

grasp how it should be integrated into

current programmes

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G ap D im e n s io n s

1 . 7 3

2 .13

2 . 2 0

2 . 3 7

2 . 4 0

2 . 5 3

2 .67

3 .20

3 . 5 7

3 . 6 3

3 . 7 0

3 . 8 3

2 . 9 3

0 .0 0 0 .5 0 1 .0 0 1 .5 0 2 .0 0 2 .5 0 3 .0 0 3 .5 0 4 .0 0 4 .5 0

M a n a g e m e n t

U p g ra d e

S ta f f A c c e p ta n c e

C o m m u n ic a t io n

O b je c t iv e s

S kills

In fo rm a t io n

T e c h n o lo g y

S e n s e o f U rg e n c y

In t e g ra t io n

E m p h a s is

P ro c e s s e s

M o n e y

N o G a p (F i t) N a r ro w M o d e ra te W id e

M a n a g e m e n t U p g ra d e S ta f f A c c e p ta n c e C o m m u n ic a t io n

O b je c t iv e s S k i lls In fo rm a t io n T e c h n o lo g yS e n s e o f U rg e n c y In te g ra t io n E m p h a s is P ro c e s s e s

M o n e y

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Organizational Lag

Process innovations in organisations tends tolag behind Technological innovations

Technological innovations:

are more observable;

have higher trialability;

are perceived to be relatively more

advantageous and less complex than

administrative innovations.

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Organizational Lag

Between administrative innovation and

technical innovation

Between technological innovation and

process innovation

Technological innovation is an enabler ofprocess innovation.

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Organizational Lag

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Recommended Reading

ReinventingGovernment in the

Information Age:

International Practicein IT-enabled Public

Sector Reform

byRichard Heeks (Editor)

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Recommended Reading Bajjaly, S. (1999), Managing Emerging Information Systems in

the Public Sector, Public Productivity and Management Review,volume 23, number 1, pp. 40-47.

Bellamy, C. and Taylor, J. (1994), Exploiting InformationTechnology in Public Administration-Towards the InformationPolity? Public Administration, volume 72, Spring, pp. 1-12.

Benjamin, R. and Levinson, E. (1993), A Framework for IT-Enabled Change, Sloan Management Review, Summer.

Butler, R. (1994), Reinventing Government: A Symposium,Public Administration,volume 72, summer, pp. 263-270.

Grint, K. (1994),

Reengineering History: Social Resonances andBusiness Process Reengineering, Organization,volume 1, number1, pp. 179-201.

Halachmi, A. (1996), Business Process Reengineering in thePublic Sector: Trying to get another frog fly?, National

Productivity Review, Summer, pp. 9-18.

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Recommended Reading

Halachmi, A. and Bovaird (1997), Process Reengineering in thePublic Sector: Learning Some Private Sector Lessons?

Technovation, volume 17, number 5, pp.227-235.

Venkatraman, N. (1994), IT-Enabled Business Transformation:

From Automation to Business Scope Redefinition, SloanManagement Review, Winter: 73-87.

Willcocks, L.P. and Mark, A.L. (1989), IT Systems

Implementation: Research Findings from the Public Sector,

Journal of InformationTechnology, volume 4, number 2.

Willcocks, L.P. Carrie W. and Jackson S. (1997), In Pursuit of

the Reengineering Agenda in Public Administration, Public

Administration, volume, winter, pp. 617-649.

.www.e-devexchange.org

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