The Role Of IT In BPR Information Technology Essay
Change is the only constant thing in this world. Planed and consistent innovation in the process and the structure of the Business is called as Business Process Reengineering (BPR). All the resources of the firm like physical and human are subject to change in Business Process Reengineering. Information Technology works as a soul of BPR. Information technology helps the process of Reengineering is different ways like computerization of manual systems, expending specific location market to a virtual market and effective and efficient alteration in the processes of the business. In most of the cases we classify the transformation of business activities as BPR. Like radical changes in processes, procedures, rules and regulation, subsystem and some time in overall system(s).
Hammer has provided the following definition The dramatically radical changes in the in the measures of performance like quality, quantity , revenue and cost through the redesigning and rethinking is regarded as the Reengineering where as the set of activities which are mean for getting some specific output or the instructing about “how work is done” is regarded as process. Before going in detail of the importance of Information Systems and Information Technology in Business Process Reengineering, and analyzing the implementation of IS/IT during each step of the reengineering process it better to discuss what Information Technology is.
All the electronic means through which communication can be done can be included broadly in this term. From a small digital watch on hand to the huge satellite in the skies are the examples of the information technology. In business environment IT has played an important role for making things efficient and effective like office automation, networking LAN WAN etc, Multimedia communication, computer added software for designing and modeling etc. the basic advantages of using information technology in Business process reengineering are:
To decrease cost
To achieve accuracy in the process
Coordination at real time
Integration of team work
Effective and Efficient system
To make the system user friendly
The Role of IT in BPR
Business process Reengineering needs some tools to take place these tools are called enablers , as it is the processes of having something new at work, it may be about that how to do the work or how to acquire the work, whatever the main concern of BPR, Information Technology is the main enabler. Scott-Morton (1991).
IT has an important role in the reengineering to be set in , many studies have proved it that IT is the Basic capacitor to change in the process or redesigning of the system
Naisbitt and Aburdene (1985)
IT and Processes
As discussed earlier the process is the set of activites which are combained for completion of one task. Every process is having two different dimensions in terms of degrees like Mediation and collaboration degress.
Teng et al. (1994). Degree of mediation means the step by step data flow from the participant functions in the process. Whereas the collaboration is the rate of information exchange between the functions.
Some of the examples of using IT in the process are: the use of relational database, technology of imaging, data exchange on electronic mode and funds management. The as the degree of collaboration will be higher the effectiveness of the system will be more. The processes can be define in to three different types like inter-organization processes, inter-function processes and interpersonal processes these classifications have been made on the bases of entities and activates involves in it Davenport and Short (1990) The example of the use of information technology in inter-organization process is like using relational data bases, networking like LAN and exchange of data within the organization. On the other hand inter-functional process includes the teleconferences and other networks through telecom. The use of IT in inter-personal process includes biometrics systems implementation for the purpose of security.
Another classification of process have been given by Gunasekaran and Nath (1997) he define the as per implementation of information systems or IT the processes can be classified in to operational processes and management processes. Operational processes can be reengineered through the IT as an enabler like the softwares like Data Base Management Systems and emails. They have a direct impact on the cost effectiveness of the system. The Managerial processes involve the executive tasks like decision making for this purpose the information technology tools like Decision support system and Expert systems are used.
Currently marketing is the core activity of any type of business; BPR is also having its influence on marketing activities and information technology is the main enabler at each and every step of processes reengineering. Information Technology has its own effect on Market Mix like Product, Price, Promotion and Placement. Special software is available for making CAD for Products Design. For doing marketing research regarding BPR information technology is having multiple tools like email feedbacks, SMS responses and telephonic interview.
Information technology is defined as possibilities offered to organisations computers, software applications, and telecommunication for data; provide information and knowledge to individuals and processes. For long, the industrial engineers have used in the processing industry as analytical and modelling appliances. Common use of IT in the industry includes production planning and control, process modelling, material management information systems, and logistical. IT has the agency and the service environment since the 80s penetrated. The shift from mainframe to PC-based technology down communication barriers between employees and customers. Now that design managers and employees of various departments and monitor complex business information systems. Formerly led by centralized MIS departments. IT is possible means to improve information access and coordination across organizational units. IT is a powerful tool so that the new process design options can actually lead rather than to make it easy to support. In his new book, Business @ the Speed Ã¢â‚¬â€¹Ã¢â‚¬â€¹of Thought argues, Bill Gates (1999) as the ’80s were about quality and the ’90s were about reengineering, then the 2000s will be about speed. He analyzes all the implications of the absolute version of IT in the era of the Internet economy, society, policies, and life. He shows how IT is the lifestyle of consumers and their expectations of affairs will change. Only managers who will be the process of managing IT and the digital universe to achieve competitive advantage. The defenders of the gates full digitization of all aspects of life. He argues that in the digital age to be successful, companies must develop a new digital infrastructure similar to the human nervous system.
Phase 1. Before the process is designed (as an enabler)
It is difficult to assess how much scope there for radical process change in the business world today. However, there are opportunities to improve existing business and identifying and defining new business processes for radical change. BPR is a strategic action and requires a clear understanding of customers, market, industry and competitive direction. Furthermore, as another strategic action, it requires consistency between the corporate business strategy and vision. Defining business strategy and developing strategic vision requires understanding the strengths and weaknesses of the company and the market structure and opportunities.
This phase determines if it ya really the potential for the reingeniery or if other models of improvement such as the management of total quality can be suitable. The activities of this phase can include/understand:
o work out a strategic vision;
Identification of the objectives of the customer;
Establishing of the objectives and the targets related to the share of market, costs, the increase in incomes, or profit margins;
To evaluate the potential of the reingeniery;
The definition of the limits and the range of the suitable processes;
of management of maintenance committed.
Data-processing capacities can provide a good outline of the existing conditions. TI is one of the facilitateurs several efforts BPR, including human resources and the organisational changes, that all must be considered together to bring changes in the processes of businesses. These facilitateurs must be identified at the beginning of the reingeniery of the processes so that the process of design includes/understands their capacities from the beginning.
Many companies are unaware of the data-processing capacities that after a process is conceived. An awakening of the data-processing capacities can and should influence the design of the processes, not only to supplement or support the process. Michael Hammer warns the companies not to make the error of “ways of the cow automation”. It recommends to the companies to redefine the first process and to automate the second (Hammer and Champy, 1993).
TI can as follows play an important part in this phase of efforts BPR:
The possibility that it gives is to use new and better technology to develop a strategic vision and to contribute to improve the processes of businesses before it is not conceived. For example, an important vision Wal-Mart was to remove the stages of distribution and the costs useless and to provide a value to the customers. With this intention, Wal-Mart worked out a strategy which in particular consists in attaching its suppliers to its retail stores.
organizational barriers plows useful in understanding the company’s strengths and weaknesses, and market structure and opportunities. IT applications would allow organizations to increase the amount and effectiveness of collaboration in ways that was not possible before.
The objective of this stage is in the search of approaches radically different to administer a process. These approaches can be found and be adapted the practices of the companies of outside the industry. The organization would have datum point to other industries and to combine it with the experience and the knowledge of the members of the equipment to adopt a technology of completely new process.
BPR requires a design of flexible organization. The rigid existing infrastructure of the organization must be modified to facilitate the cooperation between different departments by means of the use from multi-functional equipment instead of people who work in isolated departments.
Fundamental for the success of the redesign of business processes it is to make that the equipment object of yield of the organization and the design. In order to obtain the work in effective equipment, each worker would have to be developed several competitions. The organization of YOU is not an exception
Alliances and other methods of coordination between the company are becoming place common in the present enterprise surroundings. In an attempt to gain quotas of market, many companies have been united and collaborating with the suppliers and distributors.
Phase 3. After the design is complete (as an implementor)
Most of the efforts of reingenierÃa are in this phase. During this phase, the efforts of reingenierÃa include planning and the management of people, processes and technology and to impel the application towards the business vision.
IT can facilitate the application of the new process through use of the management of projects and tools of analysis process. These tools help to identify the structure and the estimation of all the associate activities.
The electronic communications allow to the communication in course and the real time of reingenierÃa of processes between the users and facilitadores. Aid to surpass the geographic barriers that are in a greater acceptance of the change process.
The evaluation of the investments and the potential gains of the efforts of reingenierÃa are absolutely essential in this phase. The key question is how can the value of any specific process of reingenierÃa in the operation of the questioned company of objective form?
A fundamental source of the difficulties for the companies that fight to apply reingenierÃa is the fact that the process was redesigned and the infrastructure is not thus. The rigid existing infrastructure of the organization must be modified to facilitate the cooperation and the barriers of functions crossed between the departments.
Like other divisions of businesses of being put under reingenierÃa of processes, organization of YOU must be improved to satisfy the increasing necessities with these divisions. For example, in 1993, CIGNA end reingenierÃa of its 1,000 people department of YOU – CIGNA Services of TecnologÃa (CTS).
The current state of reengineering
Many companies the impact of the process of reingenierÃa of businesses occurred to account and reingenierÃa considers that the advance of the productivity of the decade of 1990. The American companies spent more than $ 100 million dollars in diverse projects of reingenierÃa in the last decade. Many companies the impact of the process of reingenierÃa of businesses occurred to account and reingenierÃa considers that the advance of the productivity of the decade of 1990. The American companies spent more than $ 100 million dollars in diverse projects of reingenierÃa in the last decade. In many of these companies, that an important paper in the redesign of processes carried out. Applications of YOU are derived from a combination of innovating ideas and to modify the ideas that have been successful or not in other companies. In the last five years, the combination of the global competitive pressure and the inefficiency of frustration in the relations of work between the organizations and the clients/suppliers forced the companies to invent new forms to make businesses. In order to obtain a sustainable competitive advantage, the companies are using to the Processes to go beyond the projects of automatization easy to duplicate and to connect their organizations with other partners to create relation gain-to win.
THE IMPLEMENTATION OF IS/IT DURING EACH STEP OF THE REENGINEERING PROCESS
Initialization Step – Conceptulization of BPR.
Time Span: three to four days
Core Activates of This Step:
To provide the foundation to help management regarding successful outcome of BPR.
Actions taken and role of IT:
For narrating the commitment level of the project and it SWOT analysis with the help of Expert System and the decision support system.
2nd Step : Business dissection and defining measures
Suggested Time Span is nearly one month
Core Activates of This Step:
To identify areas within the process; where restructuring is required
To determine the variables this can be used as a possible readjustment.
Role of IT:
Ã¢â‚¬Â¢ Data flow diagram , Making computer added schedules.
3rd Step : selection of alternative for change and model selection
Role of IT:
To identify the strategic processes that are feasible to change
Ã¢â‚¬Â¢ To redesign and model the selected processes
4th Step : Technical Design
Role of IT:
To automate modeled business processes (step 2) using networks and workflow tools
To redesign and model the selected processes
Establish network connections between process team members.
Prepare intranet applications to exchange forms and documents between team
5th Mananging the change and enhancing the employee performance
Role of IT:
Providing computer added training and using software for controlling the new changes.Order Now