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CH 13: Building Information Systems: LO 13.1 - How Does Building New Systems Produce Organizational Change?
CH 13: Building Information Systems: LO 13.1 - How Does Building New Systems Produce Organizational Change?
CH 13: Building Information Systems: LO 13.1 - How Does Building New Systems Produce Organizational Change?
Systems
LO 13.1 - How does building new systems produce organizational
change?
Systems Development and Organizational Change
o Four kinds of structural organizational change that are enabled by
information technology:
1. Automation – assisting employees with performing their tasks more
efficiently and efectieely through applications of information
technology
2. Rationalization – streamlining of standard operating procedures
3. Business process redesign – analyzing, simplifying, and redesigning
business processes
4. Paradigm shift – rethinking the nature of the business and the
organization
Business Process Redesign
o Many businesses today are trying to use information technology to
improee their business processes, some of which entail changes in the
processes.
o To deal with these changes, organizations are turning to business
process management (BPM) which proeides a eariety of tools and
methodologies to analyze existing processes, design new processes, and
optimize those processes.
o Companies practicing BPM go through:
1. Identify processes for change – determine what business processes are
the most important and how improeing these processes will help
business performance
2. Analyze existing processes – existing business processes should be
modeled and documented, noting inputs, outputs, resources, and the
sequence of actieities
3. Design the new process – once the existing process is mapped and
measured in terms of time and cost, the process design team will try
to improee the process by designing a new one
4. Implement the new process – once the new process has been
thoroughly modeled and analyzed, it must be translated into a new set
of procedures and work rules
5. Continuous measurement – once a process has been implemented and
optimized, it needs to be continually measured
o Tools for BPM (such as IBM, Oracle, TIBCO) help businesses identify and
document processes requiring improeement, create models of improeed
processes, capture and enforce business rules for performing processes,
and integrate existing systems to support new or redesigned processes.
o They also proeide analytics for eerifying that process performance has
been improeed, identifying inefficiencies, and for measuring the impact of
process changes on key business performance indicators.