You are on page 1of 13

Organisational Changes

Successful implementation of Information Systems requires organisational change. The process of building a new information system is one kind of planned organizational change.

Systems Development and Organizational Change


Four kinds of structural organizational change which are enabled by information technology are: y Automation: y Rationalization of procedures: y Business process reengineering: (BPR) y Paradigm shift:
y

Organizational change carries risks and rewards

Business Process Reengineering(BPR)


It involves radical restructuring of business processes before applying information technology to make them more efficient Radical redesign of business processes. Remove procedural steps. Eliminate paper-based tasks. Improve costs, quality and service. Medium-high risk, medium-high return.

Steps in Effective Reengineering


Effective reengineering requires understanding which business processes need improvement and how this improvement helps the firm execute its strategy.
a strategic analysis identifying pain points

Strategic Analysis
it means senior managers identify the business processes that are most important for the firms success and focus efforts on these processes What are their organisational goals?
y

Identifying pain points


y

it means senior managers identify the processes that produce the most complaints.

Once the proper business process has been selected, firms engage in the following activities.
y

Identify the inputs and outputs to a business process.


Inputs refer to tangible and intangible items that flow from the environment into the process, including customer requests for products or services from vendors

y Identify the

flow of products or

services.

All processes are composed of a flow of goods or services

Identify the network of activities and buffers in the process.


Processes are collections of related business activities such as receiving requests from customers, filling orders, filing papers, and talking with vendors.

Identify all resources.


All processes consume capital, labor and time. Because cost reduction is a major objective of business process design.

Identify the information flow and structure


Business processes are informed and supported by a flow of information required to make decisions.

Identify the process owners


Processes are owned by decision makers who have primary responsibility for the process and decisions.

Identify process actors and decision makers.


Processes involve a network of activities and decisions.

By, Nice George