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Transforming IT Thinking: Business Process Reengineering and New Ways of IT Thinking

This chapter explores the shift from traditional IT thinking to new ways of thinking, focusing on business process reengineering (BPR). It discusses the old mindset and tools being replaced, as well as the benefits and challenges of adopting new technologies and solutions. The chapter also delves into the concept of disruptive technology and its impact on decision-making, employee empowerment, customer contact, and resource location. Ultimately, it emphasizes the importance of rethinking and redesigning business processes for achieving significant improvements in performance measures.

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Transforming IT Thinking: Business Process Reengineering and New Ways of IT Thinking

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  1. Chapter 4 IT Enabling

  2. Agenda • Old ways of IT thinking • New ways of IT thinking • Business process reengineering (BPR)

  3. Old IT Thinking • New tool replacing old tool • Pencil by PC • Magnetic tape by disk • Changing HOW something’s done not WHAT is being done

  4. Old IT Thinking • Method: deductive reasoning • Start with existing mindset • Define the problem • Seek alternatives • Select the best alternative • Problem definition limits possible solutions • The continuous problem

  5. Agenda • Old ways of IT thinking • New ways of IT thinking • Business process reengineering (BPR)

  6. New Way of Thinking • Break existing rules that limit how to conduct work • What • Who • Where • When • Method: inductive reasoning • Find new powerful technology & solution • Seek problem it might fit • Problems firm doesn’t know it has YET!

  7. New Way of Thinking • Old rule (OLD) • Disruptive technology (DT) • New rule (NEW) • Gain

  8. Information Transfer • OLD: independent information appears in only one place at one time • DT: database & telecommunication • NEW: integrated information appear simultaneously in as many places as need • GAIN: decrease cycle time

  9. Complex Work • OLD: experts perform • DT: expert systems (ES) • NEW: generalists perform • GAIN: decreased expert cost Employee empowerment Consistent decision

  10. Centralization or Decentralization • OLD: firm chooses one only • DT: telecommunication & networks client/server • NEW: firm can have both • GAIN: local autonomy (quality) Minimal loss of control

  11. Decision-making Level • OLD: mangers decide • DT: expert systems (ES) decision support systems (DSS) • NEW: decision-making part of all jobs • GAIN: cycle time employee empowerment quality productivity

  12. Central Office • OLD: employees need office • DT: portable computers telecommunication & networks databases • NEW: telecommuting • GAIN: cycle time productivity

  13. Customer Contact • OLD: best customer contact is personal contact • DT: Internet • NEW: tailed customer contact • GAIN: customer commitment

  14. Location Resources • OLD: find where resources are • DT: automatic ID/tracking systems • NEW: systems locate the items • GAIN: cycle time/real-time

  15. Agenda • Old ways of IT thinking • New ways of IT thinking • Business process reengineering (BPR)

  16. Business Process Reengineering (BPS) • Rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance • Methods • Redesign (process) • Retool (information system) • Reorchestrate (network-type organization)

  17. Business Process • A set of tasks that directly support the achievement of business objectives by providing a product or service for a customer

  18. BPR Sequence • Assess firm’s competitive position • Demand chain • Supply chain • Management • Build the vision of future • Decrease cycle time • Decrease costs • Increase quality • Increase customer satisfaction • Add value

  19. BPR Sequence • Use new ways of IT thinking to turn the vision into reality • Management integration • Mass customization (collaborative, adaptive, cosmetic, transparent) • Empowerment/self-directed team • Redundancy elimination • Networked organization • Virtual organization

  20. Points to Remember • Old ways of IT thinking • New ways of IT thinking • Business process reengineering (BPR)

  21. Discussion Questions • How do you use Internet to change the critical processes for • A university? • A manufacturing firm? • A department store? • What kind of benefits will be encountered by the management from the usage of Internet? • What kind of problems will be encountered by the management from the usage of Internet?

  22. Assignment • Review technology guides 1-2 & chapters 1- 4 • Read chapters 5, & technology guide 4 • Group Assignment • Research paper

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