Part 5 Information Technology and Changing Business Processes

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Part 5 Information Technology and Changing Business Processes Managing and Using Information Systems: A Strategic Approach by Keri Pearlson & Carol Saunders

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Learning Objectives List how IT empowers business change Identify routes in which IT can block business change Understand the issues that are brought about by the practical (storehouse) viewpoint of a business Identify how the procedure point of view keeps the comprehensive view in view and how IT can be utilized to encourage this point of view Define TQM and BPR and clarify how they are utilized to change a business Explain an undertaking framework and how they are utilized to execute authoritative change Copyright 2010 John Wiley & Sons, Inc.

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Real World Examples Cemex, a solid organization situated in Mexico, expected to "change" the way they worked together. Following 16 years they changed their client key procedures. The CEO did this by testing administration to address the procedures that brought about late shipments and unforseable request. Cemexnet was worked to connection the majority of the plants together and to stay up with the latest on free market activity issues. GPS framework was actualized to deal with their armada of trucks. They likewise made an arrangement of worldwide procedures that empowered clients, providers, and wholesalers to deal with their requests. Emotional results happened because of this change. Conveyance windows went from 3 hours to 20 minutes with a 98% rate. Deals expanded 19% in the primary quarter. Their notoriety was significantly improved. Cemex reset the bar for all others in the business with their client introduction, utilization of innovation and process overhaul Copyright 2010 John Wiley & Sons, Inc.

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SILO PERSPECTIVE VERSES BUSINESS PROCESS PERSPECTIVE Copyright 2010 John Wiley & Sons, Inc.

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Silo (Functional) Perspective The storehouse viewpoint sees the business as discrete capacities (bookkeeping, deals, generation, and so forth.). Figure 5.1 demonstrates a conventional authoritative outline which is the manner by which an utilitarian business is sorted out. Each utilitarian territory decides its center capabilities and spotlights on what it excels at. Points of interest: Allows enhancement of mastery. Gather like capacities together to learn. Weaknesses: Significant sub-enhancement. Have a tendency to dismiss general hierarchical goals. Copyright 2010 John Wiley & Sons, Inc.

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Figure 5.1 Hierarchical Structure Copyright 2010 John Wiley & Sons, Inc.

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Process Perspective Keeps the 10,000 foot view in view. Concentrates on work being done to make ideal esteem for the business. Process is characterized as an interrelated, successive arrangement of exercises and undertakings that transforms contributions to yields, and incorporates the accompanying: A starting and an end Inputs and yields An arrangement of assignments ( subprocesses ) that change the contributions to yields An arrangement of measurements for measuring adequacy Copyright 2010 John Wiley & Sons, Inc.

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Process Perspective Examples of business procedures include: client arrange satisfaction assembling, arranging and execution finance money related reporting acquirement (see figure 5.2) Copyright 2010 John Wiley & Sons, Inc.

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Figure 5.2 – Sample business prepare Copyright 2010 John Wiley & Sons, Inc.

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Process Perspective Advantages: Helps stay away from or diminish copy work. Encourage cross-practical correspondence. Streamline business forms. Figure 5.3 demonstrates the cross-practical perspective of procedures as they cross divisions (capacities). Copyright 2010 John Wiley & Sons, Inc.

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Figure 5.3 Cross-useful nature of business procedures Copyright 2010 John Wiley & Sons, Inc.

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Process Perspective When chiefs pick up the procedure point of view they start to lead their associations to change. Address existing conditions. Try not to acknowledge "on the grounds that we have constantly done it that path" as a response to why business is done especially. Permits directors to break down business' procedures in light of bigger objectives. Zara is a decent case of a procedure viewpoint business (see section 2). Copyright 2010 John Wiley & Sons, Inc.

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Figure 5.4 Comparison of Silo Perspective and Business Process Perspective Copyright 2010 John Wiley & Sons, Inc.

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THE TOOLS FOR CHANGE Copyright 2010 John Wiley & Sons, Inc.

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Incremental Change Total Quality Management (TQM) is a device for change that utilizations little incremental changes. Staff frequently respond positively to TQM. More prominent staff control and proprietorship. Change is seen as to a lesser extent a risk. Six-Sigma is one prominent way to deal with TQM Copyright 2010 John Wiley & Sons, Inc.

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Six Sigma Six Sigma states that – Continuous endeavors to accomplish steady and unsurprising procedure results are of crucial significance to business achievement. Assembling and business forms have attributes that can be measured, investigated, enhanced and controlled. Accomplishing maintained quality change requires duty from the whole association, especially from top-level administration. It tries to dispose of imperfections from any procedure. Copyright 2010 John Wiley & Sons, Inc.

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Radical Change Business Process Reengineering (BPR) is a more "radical" change administration apparatus. Achieve forceful change objectives. Objective is to make a quick, achievement affect on key measurements. Figure 5.6 demonstrates the distinction after some time of the radical (BPR) and incremental (TQM) ways to deal with change. More noteworthy resistance by faculty. Utilize just when significant change is required. Copyright 2010 John Wiley & Sons, Inc.

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Figure 5.5 Comparison of radical and incremental change Copyright 2010 John Wiley & Sons, Inc.

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The Process for Radical Redesign The diverse methodologies for radical update all include: Begin with a dream of which execution measurements best mirror the accomplishment of general business system. Roll out improvements to the current procedure. Measure the outcomes utilizing the foreordained measurements. Figure 5.6 delineates a general perspective of radical outline. Figure 5.7 represents a strategy for updating a business procedure. Apparatus used to comprehend a business procedure is a work process graph. Copyright 2010 John Wiley & Sons, Inc.

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Figure 5.6 – Conceptual stream of process plan Copyright 2010 John Wiley & Sons, Inc.

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Figure 5.7 – Method for upgrading a business procedure Copyright 2010 John Wiley & Sons, Inc.

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Risks of Radical Redesign Lack of senior administration bolster. Absence of a lucid interchanges program. Bringing pointless many-sided quality into the new procedure plan. Bringing pointless intricacy into the new procedure outline. Joining reengineering with cutting back Copyright 2010 John Wiley & Sons, Inc.

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AGILITY AND CONSTANTLY REDISGNING PROCESSES

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Agile Processes Agile procedures are procedures that repeat through a consistent restoration cycle of outline, convey, assess, overhaul, et cetera. Extreme objective for some are nimble procedures that reconfigure themselves as they 'learn. For a procedure to be lithe requires a high level of utilization of IT. Forms that run totally on the Internet are contender for getting to be lithe procedures. Copyright 2010 John Wiley & Sons, Inc.

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Shared Services Horizontal joining - term for looking past individual business forms and considering the greater, cross useful photo of the organization. Coordinated databases, web 2.0 advancements and administrations, and normal foundation are the instruments IT conveys to the execution of flat combination. Numerous associations have rebuilt their basic business forms into a common administrations demonstrate. This model combines all people from all specialty units into a solitary association, run halfway, and used by every specialty unit. Copyright 2010 John Wiley & Sons, Inc.

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Business Process Management (BPM) Systems Copyright 2010 John Wiley & Sons, Inc.

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BPM In the 1990s, a class of frameworks rose to oversee work processes in the business. They principally followed report based procedures where individuals executed the means of the work process. They go path past the report administration capacities, including highlights that oversee individual to-individual process steps, framework to-framework steps, and those procedures that incorporate a mix. Frameworks incorporate process demonstrating, reproduction, code era, handle execution, checking, and coordination capacities for both organization based and electronic frameworks. The apparatuses permit an association to effectively oversee and enhance its procedures from start to finish. Copyright 2010 John Wiley & Sons, Inc.

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Figure 5.8   Sample BPM Architecture: Appian Enterprise Copyright 2010 John Wiley & Sons, Inc.

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ENTERPRISE SYSTEMS Copyright 2010 John Wiley & Sons, Inc.

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Enterprise Systems An arrangement of data frameworks instruments used to empower data stream inside and between procedures. Venture frameworks are extensive programming bundles. ERP (Enterprise Resource Planning) programming bundles are the most every now and again talked about sort of big business framework. Intended to deal with the conceivably several frameworks all through a huge association. SAP is the most generally utilized ERP programming bundle. Copyright 2010 John Wiley & Sons, Inc.

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Characteristics of Enterprise Systems Integration – consistently incorporate data streams all through the organization. Bundles – they are business bundles obtained from programming sellers (like SAP, Oracle, Peoplesoft, and so forth.). Best practices – reflect industry best practices. Some get together required – the frameworks should be coordinated with the current equipment, OS's, databases, and broadcast communications. Developing – the frameworks keep on changing to fit the requirements of the different commercial center. Copyright 2010 John W

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