BUSINESS PROCESS AND INFORMATION SYSTEMS:

The application of IT have an impact upon the

Individual, The functional unit and organization whole

IMPACT OF IT:

These application can be placed in three categories:

 Improve efficiency.
 Improve Effectiveness.
 Transformation.

Efficiency : It can be defined as doing thing right.

Effectiveness : It can be defined as doing the right things or as doing the things
that need to done to achieve important business results.

Transformation : It can be defined as using IT to change the way you do business

How application that achieve this objective :

Impact on individual:

A manger can use spread sheet to automate routing budget calculation. It

provide improving efficiency.
The secretary use DB to merge data with fallow up letters. By the way
improving effectiveness.
Transformation By using PC a manager can do the What-If analysis during sale
calls.

Impact on the functional unit:

Application that automatic specific business process, such as order entry or

credit card checking. It provide improving efficiency.
By using computer aid software improve the quality of the design shoes. . By
the way improving effectiveness.
A publishing company may sell business research information CD.

Impact on the organization:

Linking customer to order entry system . . It provide improving efficiency.

The organization provide better customer service. By the way improving
effectiveness.
The organization to introduce new product and service made possible by
technology.
THE REENGINEERING OF WORK:

EVERY EXIT IS AN ENTRY SOMEWHERE ELSE.

WHAT HAS CHANGED:

1. Customer have power over suppliers that they didn’t have before.
2. Competition has changed.
3. Technology changed –Ex. Wal-Mart use private satellite communication
their vendors and others.
Mangers in Wal-Mart communicate themselves
Videoconference sing method.
HOW ORGANIZATIONS AE REENGINEERING WORK:

The ability to serve customers will mean a fundamental shift in the way many
companies do business that will involve redesigning basic business process. The various
example are:

FORD MOTOR COMPANYS ACCOUNTS PAYABLE SYSTEM:

OLD NEW

Purchasing sent a purchase order to the vendor We pay when we receive the good instead of
and copy To A/C payable We pay when we receive the invoice.

Purchase order amount is entered into a

Vendor shipped goods a clerk is receiving completed a DB when a purchase order is generated.
Receiving document and sent it to A/C payable.

A/c Payable receive the document check the documents When a goods arrive a clerk in receiving checks
match with Purchase order. The terminal to determine in DB

If not match then more people became involved time and If the shipment is correct a check is sent to the
paper work Complicated the process. . Vendor.
IBM CREDIT

OLD
IBM Sales representative called in a credit request
The n a credit specialist entered the Information into
a computer system and check Borrowers creditworthiness
NEW
The deal structurer who is equipped with a desktop
Workstation with various DB needed to make the
credit authorization decision form beginning to end.

Credit specialist dispatched the result to the

Business practices department. And updated a computer
File..

Then the credit information was transmitted

To a pricer who keyed it into another computer file
Determine the interest rate.

Finally information on the credit decision was relayed

To a clerical group which generated a quote letter for
The salesperson to give to the customer.

This process took form six days to two Weeks.

.
XEROXS PRODUCT DEVELOPMENT PROCESS

OLD:
Original product development process was predominantly sequential, which meant that workers on part of the
process has to wait until previous steps were completed.

NEW:
The new process called Concurrent engineering ,using IS systems are integrated DB.

WAL-MARTS INVENTORY MANAGEMENT PROCESS:

OLD:
Vendor take control.

NEW:
The Wal marts know how much stock it moves from its distribution centers into its stores, and know how much it
needs to reorder.

HEWLETT-PACKARDS PURCHASING PROCESS:

OLD:
Old systems is decentralized process.

NEW:
New system is Centralized process. It could look up the corporate volume discounts.
THE PROCESS OF REENGINEERNG WORKS:

Reengineering work require the ability to rethink traditional work methods and procedures. The
process of reengineering work has several principles.

1.ORGNIZE AROUND OUTCOMES, NOT AROUND TASKS :

Assign the work either a person or team don’t assign the traditional assembly-line
approach.

2.HAVE THOSE WHO USE THE OUTPUT OF A PROCESS ACTUALLY PERFORM THE PROCESS.
Market manager want to purchase something , they submit a purchase request ion to the purchasing dep.
Why does a marketing manager have to be a customer of the purchasing dept. The reengineering allow to purchase
themselves.

3.TREAT GEOGRAPHICALLY DISPERSED UNITS AS IF THEY WERE CENTRALIZED:

Decentralized divisions all maintain their own information systems. Reengineering works everything in
centralized manner.

4.LINK PARALLEL ACTIVITIES DURING THE PROCESS RATHER THAN AT THE END OF THE
PROCESS
Multiple activities can be accomplished by different teams working concurrently with the use of shard
DB that make it possible to integrate the final result.

5.CAPTURE INFROMATION ONCE AT THE SOURCE:

One of the problem with traditional information systems is that the same information may be created,
maintained and used in many different places. In process of Reengineering an integrated DB is created.
ORANIZATIONAL IMPACT OF REENGINEERING:

The process of RE is difficult to accomplish because it challenges traditional work

method. The transformation that occurs as result of RE has a impact on jobs, organizational
structure, management practice and training.

ELEEMENT TRADITIONAL INFORMATIOIN

BASED
Job Design Narrow Broad
Structure Layered Flat
Carrere path Vertical Horizontal
Work standards Procedure Judgment
Management style Supervisor Leadership
People needed Structured Adaptive
Training Hard Skills Education
WHO WILL REENGINEER THE CORPORATION:

Some of the role in Business RE include as fallows:

Sponsor Sees the big picture

Provides the resources, people and
money.
Steering committee Represents the allocated units.
Provides guidance insight.
Design teams Knowledgeable operating managers.
Represent various functional units.
Collaborative creative.
Champion Middle manger with leadership role.
Coordinates multiple design teams.
Implementation Team Focuses on implementation.
Open to change.
IT AND BUSINESS PROCESS REDESIGN:

Business process redesign can be defined as the analysis and design of work flows and
processes within and between organizations .IT the capabilities offered by computers,
software and telecommunications is a key factor in making business process redesign
possible.

IT can have a critical and important impact on the redesign of BP. Possible impact of
Technology include rout transactions, bridging geographical boundaries, automating
human tasks. The following are the impact of IT.

Transactional : IT can transform unstructured process into routing transactions.

Geographical : IT Can transfer information with rapidly and across large distance.

Analytical : IT can bring complete analytical method.

Sequential : IT can allow multiple task to be worked on simultaneously.

Knowledge Mgt. : IT allows the capture and establish knowledge to improve the process.

Tracking : IT allows the tracking of task status, input and output.

STEPS IN BUSINESS PROCESS REDESIGN:

1. Develop business vision and process objective- Time and Cost.

2. Identify process to redesigned-Exhaustive approach(Time consuming, brings the priority).
High impact approach(What is broken)
3. Understand and measure existing processes.
4. Identify IT Levers.
5. Design and Build a prototype of the process.

TYPE OF BUSINESS PROCESS AND ROLE OF IT:

It determine how IT can support the redesign of BP with help of two additional framework.

The first frame work describe how IT can affect Entities including:
1.Inter organization process- Take two or more organization IT can lowering
transformation cost.
2. Inter functional process-IT can facilitates new product development.
3.Inter personal process –Involves within and across small work group. Ex Applying
bank loan consist of internal and external factor.
The second framework describing how IT support business it includes:

1. Operational activities : Include day-to-day work of the organization.

2. Managerial activities .

HOW IT APPLICATIONS IMPORVE BP

APPLICATION SUPPORTING PRODUCT DEVELOPEMNT PROCESS:

1.IT can support automated design process, improve the speed of the design.
2.Simulation technology.
3.Tracking system.
4.Decisione Analysis System.
5.Inter organizational communication system.

APPLICATION SUPPORTING ORDER FULFILLMENT PROCESS:- It support when a customer makes

request and end when revenue is collected

1.Product choice system.

2.Voice communication.
3.Electornic networking applications.
3.APPLICATION SUPPORTING LOGISTICAL PROCESS: - It deals with the
transmission of goods between the organization and its supplier

1.Locatinal systems.
2.Recognition systems.
3.Assets management system.
4. Logistical Planning system.
MANAGEMENT CHALLENGES: William Bridges provides ME

1. Figure out how people will have to modify their behavior and attitude to make the change work.
2. People need to understand what they must stop and what they are going to have to start.
3. Under stand who stands the most to close under the new system.
4. Allow mangers to experience the problem first hand.
5. Much feedback from individual as possible.
6. Stress effective communication.

Some specific guidelines for organizational change through BP:

1. Create task force with representative form key line groups.

2. Check have redesign team work closely with mangers and staff.
3. Encourage IS groups.
4. Build a new team of Industrial engineers the members have strong interpersonal skills.
5. Build IT technology platform.