Information TechnologyAssessing The Impact on Process Innovation
Impact
• Client• Internal processes• Inter-organizational processes
IT Impact on Process Innovation
• Automational• Informational• Sequential• Tracking• Analytical• Geographical• Integrative• Intellectual• Disintermediating
Automate
Capture and use information
Share and distribute information
Impact and IT
Automation Capture and use information
Share and distribute information
Client
Internal
Inter-organizational
Key questions
• What capability does a particular information technology give me?
• Can I afford the upfront capital costs?• Can I afford the maintenance costs?
AutomationalEliminate human labor from process
• Value created for clients:– Speed up the process of service e.g. ATMs, electronic tax-filing, grocery
checkout– Decreases chances of “clerical error”
• Value created for internal processes– Cuts in unskilled labor
• “Labor cost” savings only result if capital expenses of IT plus hiring of IT maintenance personnel do not exceed costs of unskilled labor
– Decreases in errors/deception• Cash “leakage” in situations where cash-handling is replaced by automation• Data-entry – automation may cut number of times data are entered
– Transfers responsibility of data-entry to clients
• Inter-organizational value– Improved supply chain management– Clear assignment of responsibility for action (minimizes chance of something
getting “lost.”)
InformationalCapturing information
• Client– Easier access
• 24/7 when combined with automation – web-based, automated telephones
– In format that is ready for analysis• Government statistics such as census bureau
– Increases variety of formats – visual (pictures, text-based), oral• Internal processes
– Effective informational capture in format ready for analysis• Measurement techniques• Speed at which information is available
– Enhanced when automated – water district gathers information automatically from each home
• Inter-organizational– Improved coordination through sharing of information
SequentialChanging the process sequence
• Clients– Ease of record retrieval when dealing with customer service representative
• Ability to “pull up your record” in real time – IRS case next time– Push information onto clients that they can then respond to, rather than have
them seek the information• listservs
• Internal processes– Scanned documents can be “worked on” by more than one person at a time
without a pile up of paper– Networked, shared documents can be worked on in parallel
• Inter-organizational– Ability to work on a project in parallel across organizational lines– Push information onto potential partners
• Sign up for automatic notification of bidding opportunities, e.g. State of Washington WEBS
– http://www.ga.wa.gov/WeBS/index.html
TrackingGoods and services through the process
• For clients, internal processes, and inter-organizational relations– Ability to identify easily where WIP is in process– Ability to identify easily when steps in process will
take place• E.g. FedEx, UPS, Post Service systems
– UPS “Brown” ads highlight the utility of third-party tracking system for internal and inter-organizational tracking
AnalyticalAnalyze information you have gathered
• IT is good at producing information, but that information must be analyzed and used
• Client benefits from– Potential for greater objectivity and transparency
• E.g. Automated Underwriting and Credit Scoring?– Ability to conduct own analysis on data from agency
• Internal processes– Rapid flow of information, and automated aggregation and
manipulation of data allow for quicker decisions• MIS in microfinance
• Inter-organizational– Potential for more responsive coordination if information-sharing in
the right format is possible
GeographicalA particular type of information
• Geographical information is simply a particular type of information• In public sector and non-profit situations, much of the value-delivery and –creation is
location-specific– Government jurisdictions– Service areas
• Client impact– Able to identify services available to them geographically – plug in an address to a school district web
site and you can find which school your child will be going to; then check the test scores of that school; then decide whether you want to buy the house at that address
– Ease the ability to cross jurisdictional boundaries – bar-code scanning of passports• Internal processes
– Ease boundary-drawing tasks– Control borders more effectively– Establish transportation routes more efficiently – on-line grocery stores set up routes for delivery
trucks flexibly on a “just-in-time” basis• Inter-organizational processes
– Clear boundary delineations– Effective border control can improve relations – “good fences make good neighbors”
IntegrativeIT that integrates all components of the organization
• Client– One-stop shopping
• Internal processes– Decrease duplication of data-entry– Real time, integrated information
• Inter-organizational– Potential to share information in an integrated manner – updating
internal information also updates relevant external information• SAP – the integration of financial and operational data to
provide real time data on financial and operational status of organization– E.g. ordering a part results in the automatic upgrading of the financials
as well as the status of parts inventory
IntellectualCapturing situation-specific information
• Knowledge databases• How good are they at tapping tacit
knowledge?