reengineering work: don’t automate, obliterate jason c.h. chen, ph.d. professor of mis school of...

Reengineering Work:Don’t Automate, Obliterate

Jason C.H. Chen, Ph.D.

Professor of MIS

School of Business Administration

Gonzaga University

Spokane, WA 99258

chen@jepson.gonzaga.edu

Roles/Evolutions of Information Systems

Roles/Evolutions of Information Systems

Automates(Automation)Automates

(Automation)Innovates/TransformsInnovates/Transforms

Informates(Information)Informates

(Information)

Efficiency (process huge data)

Effectiveness(Decision Making)

Innovation(Competitive Advantage)

Late 1950-1970 Early 1980-2000 2000 and Beyond

Tools:Traditional

programming languages

Tools:DBMS, DSS (Decision

Support Systems)

Tools:BI and others

Innovation as a Response to Change in Market and Technology

Innovation as a Response to Change in Market and Technology

_____________

Socio-politicalChanges

Technological Opportunities

Advances in Technology

New Products and Services

Market Needs

EFFICINCY

EFFECTIVENESS

INNOVATION

Time Market

INNOVATION

What is Business Process and Business Reengineering?

Business process: A set of logically related tasks performed to achieved a defined business outcome

Business reengineering means radically changing how people work - changing business policies and controls, systems and technology, organizational relationships and business practices, and reward programs.

Dr. Chen, The Trends of the Information Systems Technology TM -4

Principles of Re-engineering(by Michael Hammer)

Organize around outcomes, not tasks Have those who use the output of the process

perform the process Include information processing work into the real

work that produces the information Treat geographically dispersed resources as though

they were centralized Link parallel activities instead of integrating their

results Put the decision point where the work is performed.

BPR

Radical Change = New organization + IT

Types ofOrganizational =Strategies

IndustryStructure +

CompetitiveStrategies +

CooperativeStrategies

Examples?

1. Develop business vision, process objectives

2. Identify process to be redesigned

3. Understand, measure performance of existing processes

4. Identify opportunities for applying information technology

5. Build PROTOTYPE of new process

BUSINESS REENGINEERING STEPS:

Dr. Chen, The Trends of the Information Systems Technology TM -7

Reengineered Accounts Payable Process (from Hammer[1])

Before

Purchasing

Vendor

Receiving

Accounts Payable

Goods

Payment

Invoice

Receiving Document

Copy of Purchase Order Purchase

Order

Reengineered Accounts Payable Process (from Hammer[1])

After

Purchasing

Vendor

Receiving

Accounts Payable

Goods

Purchase Order

Payment

Database

Deconstruction of the newspaper industry

Figure 6.9 (p.196) –e-Biz (Chen)

Old newspaper industry value chain

Journalists

Columnists

Editors Printers Distributors Readers

New newspaper industry value chain

Journalists

Columnists

Editors

ReadersInternet

Implementing Re-engineering

The key activities of re-engineering can be organized into three phases referred to as the 3R’s Re-engineering– Redesign– Retool– Reorchestrate

Tools for BPR

Simulation Flow diagrams Work analysis Application development Workflow software

Risks of Radical Redesign

Research shows some of the common reasons why companies fail to reach their goals:– Lack of senior management support.– Lack of coherent communications.– Introducing unnecessary complexity.– Underestimating the amount of effort needed.– Combining reengineering with downsizing.

Source: Managing and Using Information Systems, Pearlson and Saunders (4e), p. 144

________ out of FIVE are related to “Human Elements”FOUR

The C’s related toOrganization Re-engineering Projects

The 3C’s of organization Re-engineering:

The 4C’s of effective teams:

- Customers

- Competition

- Change

- Commitment

- Cooperation- Communication

- Contribution

ENVISION

DESIGN

BUILD

OPERATE

SDLCANALYAIS

DESIGN

IMPLEMENTATION

MAINTENANCE

MANAGMENT IS DEVELOPMENT

REENGINEERING

INFLUENCE CAPABILITY

LEADERSHIP

CONTROL

MANAGERS IS PROFESSIONALS

BUSINESS ENVIRONMENT IS CHANGING RAPIDLY RADICALLY and PERPLEXINGLY

BUSINESS ENVIRONMENT