IT Enabling

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Chapter 4

• IT Enabling

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Agenda

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

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Old IT Thinking

• New tool replacing old tool
• Pencil by PC
• Magnetic tape by disk
• Changing HOW somethings done not WHAT is being
  done

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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

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Agenda

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

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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 doesnt know it has YET!

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New Way of Thinking

• Old rule (OLD)
• Disruptive technology (DT)
• New rule (NEW)
• Gain

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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

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Complex Work

• OLD experts perform
• DT expert systems (ES)
• NEW generalists perform
• GAIN decreased expert cost
• Employee empowerment
• Consistent decision

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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

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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

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Central Office

• OLD employees need office
• DT portable computers
• telecommunication networks
• databases
• NEW telecommuting
• GAIN cycle time
• productivity

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Customer Contact

• OLD best customer contact is personal
• contact
• DT Internet
• NEW tailed customer contact
• GAIN customer commitment

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Location Resources

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

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Agenda

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

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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)

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Business Process

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

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BPR Sequence

• Assess firms competitive position
• Demand chain
• Supply chain
• Management
• Build the vision of future
• Decrease cycle time
• Decrease costs
• Increase quality
• Increase customer satisfaction
• Add value

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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

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Points to Remember

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

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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?

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Assignment

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