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Redesigning the organization

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    Redesigning the organization Redesigning the organization Presentation Transcript

    • 11.1 11. REDESIGNING THE ORGANIZATION WITH INFORMATION SYSTEMS
    • CONTENTS
      • SYSTEMS AS PLANNED ORGANIZATIONAL CHANGES
      • SYSTEMS DEVELOPMENT & ORGANIZATIONAL CHANGE
      • OVERVIEW OF SYSTEMS DEVELOPMENT
      • UNDERSTANDING BUSINESS VALUE OF INFO SYSTEMS
      • *
      11.4
      • CHALLENGES:
      • RISKS AND UNCERTAINTIES IN SYSTEMS DEVELOPMENT
      • BENEFITS LARGELY INTANGIBLE
      • *
      INFORMATION SYSTEMS PLAN 11.5
      • 1 ) STRATEGIC BUSINESS PLAN – BUSINESS DRIVERS
      • 2 ) CURRENT S ITUATION - DIAGNOSIS
      • 3 ) VISION - OBJECTIVES
      • 4) STRATEGY
      • 5) NEW DEVELOPMENTS
      • 6) IMPLEMENTATION PLAN
      • 7) BUDGET
      • *
      INFORMATION SYSTEMS PLAN 11.6
    • INFORMATION SYSTEMS PLAN
      • 1 . STRATEGIC BUSINESS PLAN:
      • BUSINESS DRIVERS
      • CURRENT BUSINESS SITUATION
      • ORGANIZATION
      • CHANGING ENVIRONMENT
      • MAJOR GOALS OF BUSINESS PLAN
      • *
      11.8
    • INFORMATION SYSTEMS PLAN
      • 2 . CURRENT S ITUATION - DIAGNOSIS :
      • MAJOR SYSTEMS SUPPORTING BUSINESS FUNCTIONS
      • SWOT ANALYSIS
      • MAJOR CURRENT CAPABILITIES
        • PERSONNEL
        • HARDWARE
        • SOFTWARE
        • DATABASE
        • TELECOMMUNICATIONS
      • DIFFICULTIES MEETING REQUIREMENTS
      • ANTICIPATED FUTURE DEMANDS
      • *
      11.9
    • INFORMATION SYSTEMS PLAN
      • 3 . VISION - OBJECTIVES :
      • COMMUNICATION, MOTIVATION AND ALIGNMENT
      • PRECISELY DESCRIBE WHAT NEEDS TO BE DONE
      • METRICS
      • INSPIRING
      • PROFILE – ACTIONS
      • BASED ON BUSINESS DRIVERS
      • *
      11.7
    • INFORMATION SYSTEMS PLAN
      • 4. STRATEGY :
      • MAIN GUIDELINES TO REACH VISION AND OBJECTIVES
      • KEY DRIVERS
      • OPERATING PRINCIPLES - STANDARDS
      • ORGANIZATIONAL REALIGNMENT
      • INTERNAL REORGANIZATION
      • MAJOR TRAINING INITIATIVES
      • PERSONNEL STRATEGY
      • VALUE-RISK MATRIX
      • VALUE-PERFORMANCE MATRIX
      • *
      11.10
    • INFORMATION SYSTEMS PLAN
      • 5 . NEW DEVELOPMENTS (TACTICS) :
      • NEW SYSTEM PROJECTS
        • PROJECT DESCRIPTIONS
        • BUSINESS RATIONALE
      • NEW CAPABILITIES REQUIRED
        • HARDWARE
        • SOFTWARE
        • DATABASE
        • TELECOMMUNICATIONS
      • *
      11.10
    • INFORMATION SYSTEMS PLAN
      • 6. IMPLEMENTATION PLAN
      • MILESTONES & TIMING FOR PROJECTS
      • ACQUISITION PLANS
      • ANTICIPATED DIFFICULTIES IN IMPLEMENTATION
      • PROGRESS REPORTS
      • *
      11.11
    • INFORMATION SYSTEMS PLAN
      • 7. BUDGET
      • REQUIREMENTS
      • POTENTIAL SAVINGS
      • FINANCING
      • ACQUISITION CYCLE – CASH FLOW
      • *
      11.11
    • SPECTRUM OF ORGANIZATIONAL CHANGE
      • AUTOMATION: Using technology to perform tasks efficiently / effectively
      • RATIONALIZATION OF PROCEDURES: Streamline SOPs; eliminate bottlenecks
      • BUSINESS REENGINEERING: Radical redesign of processes to improve cost, quality, service; maximize benefits of technology
      • PARADIGM SHIFT: Rethinking the nature of the business and the nature of the organization
      • *
      11.16
    • RISKS & REWARDS 11.18 RISK RETURN Low Low High High
    • PARADIGM SHIFT
      • PARADIGM IS A COMPLETE MENTAL MODEL OF HOW A COMPLEX SYSTEM FUNCTIONS
      • A PARADIGM SHIFT INVOLVES RETHINKING THE NATURE OF THE BUSINESS, THE ORGANIZATION; A COMPLETE RECONCEPTION OF HOW THE SYSTEM SHOULD FUNCTION
      • *
      11.17
    • RE INGENIERIA
      • CONCEPTO DE ESPACIOS BLANCOS
      • CONCEPTO DE PROCESO, EJEMPLO
      • CONCEPTO DE DIVISION DEL TRABAJO DE TAYLOR: LA EFICIENCIA SE LOGRA A TRAVES DE LA DIVISION DEL TRABAJO Y LA ESPECIALIZACION
      • VERDADERO PARA LOS TRABAJOS EMINENTEMENTE FISICOS (OPERARIOS DE PRODUCCION, OBRAS CIVILES)
      • PARA EL CASO DE TRABAJADORES DE LA INFORMACION ?
      • *
      11.21
    • RE INGENIERIA
      • PARA TRABAJOS RELACIONADOS CON MANEJO DE INFORMACION ES PREFERIBLE:
        • PROCESOS SENCILLOS
        • POCOS TRABAJADORES INVOLUCRADOS
        • ELIMINAR BUROCRACIA
        • UTILIZAR TECNOLOGIA PARA ALMACENAR Y TRANSMITIR LA INFORMACION
      • *
      11.21
    • RE INGENIERIA
      • CYCLE TIME vs. TASK TIME
      • EL CLIENTE DEL PROCESO SOLO PERCIBE EL TIEMPO DE CICLO
      • CASO PARADIGMATICO: CASO DE CUENTAS DE PAGAR EN FORD
      • *
      11.21
    • RE INGENIERIA
      • REINGENIERIA IMPLICA LA BUSQUEDA DE CAMBIOS RADICALES EN LOS PROCESOS Y BENEFICIOS SUSTANCIALES (ej.: 60 % de reducción de costos; o bajar los tiempos de un proceso a la mitad)
      • UN PROYECTO QUE BUSCA MEJORAS MARGINALES NO ES UNA REINGENIERIA
      • *
      11.21
    • RE INGENIERIA
      • REINGENIERIA: Concepto surgido en el artículo seminal “Reengineering Work: Don’t Automate, Obliterate” de Michael Hammer en Harvard Business Review
      • REINGENIERIA vs. AUTOMATIZACION
      • CLEAN SLATERS vs. MODERADOS
      • *
      11.21
    • RE INGENIERIA
      • LIBROS:
        • “ Reingeniería” (M. Hammer)
        • “ Process Innovation” (T. Davenport)
      • ARTICULO DE M. HAMMER: “The Superefficient Company” (Harvard Business Review - Septiembre 2001)
      • *
      11.21
      • 1. Identify process to be redesigned
      • 2. Develop business vision, process objectives and case for action
      • 3. Understand, measure performance of existing processes
      • 4. Define new process; identify opportunities for applying information technology
      • 5. Implementation plan; technical specs; build PROTOTYPE of new process
      • *
      BUSINESS REENGINEERING STEPS: 11.22
    • TOTAL QUALITY MANAGEMENT (TQM)
      • RESPONSIBILITY FOR QUALITY SHARED BY ALL PEOPLE IN ORGANIZATION
      • *
      11.23
    • IT CONTRIBUTIONS TO TQM
      • SIMPLIFY PRODUCT OR PROCESS
      • BENCHMARKING: Strict standards for measuring performance
      • LISTEN TO CUSTOMER DEMANDS
      • REDUCE CYCLE TIME
      • IMPROVE QUALITY AND PRECISION OF DESIGN
      • INCREASE PRECISION OF PRODUCTION
      • *
      11.24
      • SYSTEMS ANALYSIS
      • SYSTEM DESIGN
      • PROGRAMMING
      • TESTING
      • CONVERSION
      • PRODUCTION & MAINTENANCE
      • *
      SYSTEM DEVELOPMENT PROCESS 11.25
      • ANALYSIS OF PROBLEM TO BE SOLVED WITH AN INFORMATION SYSTEM
      • FEASIBILITY STUDY: CAN PROBLEM BE SOLVED WITHIN CONSTRAINTS?
      • *
      SYSTEMS ANALYSIS 11.26
    • FEASIBILITY
      • TECHNICAL: Assess hardware, software, technical resources
      • ECONOMIC: Will benefits outweigh costs ?
      • OPERATIONAL: Is solution desirable within existing conditions ?
      • INFORMATION REQUIREMENTS
      • Detailed statement of new system needs
      • *
      11.27
    • SYSTEM DESIGN
      • DETAILS HOW SYSTEM WILL MEET NEEDS:
      • LOGICAL DESIGN: Components, data as needed by applications
      • PHYSICAL DESIGN: Physical location of components and data
      • *
      11.28
    • DESIGN SPECIFICATIONS
      • OUTPUT
        • MEDIUM; CONTENT; TIMING
      • INPUT
        • ORIGINS; FLOW; DATA ENTRY
      • USER INTERFACE
        • SIMPLICITY; EFFICIENCY; LOGIC
        • FEEDBACK; ERRORS
      • DATABASE DESIGN
        • LOGICAL DATA RELATIONS
        • VOLUME, SPEED REQUIREMENTS
        • FILE ORGANIZATION & DESIGN
        • RECORD SPECIFICATIONS
      • *
      11.29
      • PROCESSING
        • COMPUTATIONS
        • PROGRAM MODULES
        • REQUIRED REPORTS
        • TIMING OF OUTPUTS
      • MANUAL PROCEDURES
        • WHAT ACTIVITIES
        • WHO PERFORMS THEM
        • WHEN
        • HOW
        • WHERE
      • *
      DESIGN SPECIFICATIONS 11.30
      • CONTROLS
        • INPUT
        • PROCESSING
        • OUTPUT
        • PROCEDURAL
      • SECURITY
        • ACCESS CONTROLS
        • CATASTROPHE PLANS
        • AUDIT TRAILS
      • DOCUMENTATION
      • *
      DESIGN SPECIFICATIONS 11.31
      • CONVERSION
        • TRANSFER FILES
        • INITIATE NEW PROCEDURES
        • SELECT TESTING METHOD
        • CUT OVER TO NEW SYSTEM
      • TRAINING
        • SELECT TRAINING TECHNIQUES
        • DEVELOP TRAINING MODULES
        • IDENTIFY TRAINING FACILITIES
      • ORGANIZATIONAL CHANGES
        • TASK REDESIGN
        • JOB DESIGN
        • PROCESS DESIGN
        • OFFICE / ORGANIZATION STRUCTURE DESIGN
        • REPORTING RELATIONSHIPS
      • *
      DESIGN SPECIFICATIONS 11.32
    • ROLE OF END USERS
      • USERS DRIVE SYSTEMS EFFORT
      • MUST HAVE SUFFICIENT CONTROL TO ENSURE SYSTEM REFLECTS BUSINESS PRIORITIES, NEEDS
      • FUNCTIONAL USERS DRIVE SYSTEM NEEDS
      • MAJOR CAUSE OF FAILURE: insufficient user involvement
      11.33
    • COMPLETING SYSTEM DEVELOPMENT PROCESS
      • PROGRAMMING: Translating system specifications into program code
      • TESTING: Does system produce desired results?
      • *
      11.34
    • TESTING
      • UNIT TESTING: Tests each program separately
      • SYSTEM TESTING: Tests system as a whole to determine if modules will function together as planned
      • ACCEPTANCE TESTING: Final certification by users and mgmt
      • TEST PLAN: Preparations for tests to be performed
      • *
      11.35
    • CONVERSION
      • Process of changing from old system to new one
      • PARALLEL: Old & new systems are run together until is assured that new one functions correctly. Safest.
      • DIRECT CUTOVER: Risky conversion to new system
      • PILOT: Introduce new system into one area of the organization. Does it work? Yes: introduce into other area
      • PHASED: Introduce new system in stages
      • CONVERSION PLAN: Schedule for conversion
      • DOCUMENTATION: Description of how system works
      • *
      11.36
    • PRODUCTION & MAINTENANCE
      • PRODUCTION: Constant review by users & operators. Does it meet goals?
      • MAINTENANCE: Changes in system to correct errors, meet new requirements or improve processing efficiency
      • *
      11.37
    • SYSTEMS DEVELOPMENT CORE ACTIVITY DESCRIPTION SYSTEMS ANALYSIS IDENTIFY PROBLEM(S) AND OPPORTUNITIES SPECIFY SOLUTIONS ESTABLISH INFORMATION REQUIREMENTS SYSTEMS DESIGN CREATE LOGICAL DESIGN SPECS CREATE PHYSICAL DESIGN SPECS MANAGE TECHNICAL REALIZATION OF SYSTEM PROGRAMMING TRANSLATE DESIGN SPECS INTO PROGRAM CODE 11.38
    • SYSTEMS DEVELOPMENT CORE ACTIVITY DESCRIPTION TESTING UNIT TEST SYSTEMS TEST ACCEPTANCE TEST CONVERSION PLAN CONVERSION PREPARE DOCUMENTATION TRAIN USERS & TECHNICAL STAFF PRODUCTION & OPERATE SYSTEM MAINTENANCE EVALUATE SYSTEM MODIFY SYSTEM 11.39
    • CAPITAL BUDGET:
      • INFORMATION SYSTEMS ARE CONSIDERED LONG-TERM CAPITAL INVESTMENTS PROJECTS.
      • CAPITAL BUDGET: PROCESS OF ANALYZING AND SELECTING CAPITAL EXPENDITURES
      • PAYBACK METHOD (“PERIODO DE REPAGO”)
      • RETURN ON INVESTMENT (ROI)
      • COST-BENEFIT RATIO
      • NET PRESENT VALUE
      • PROFITABILITY INDEX
      • INTERNAL RATE OF RETURN
      • *
      11.41
      • CAPITAL BUDGETING MODELS
      • LIMITATIONS:
      • Assume all relevant alternatives have been examined; cost & benefits are known and can be expressed as $$
      • Ignore intangible benefits (e.g. more efficient customer service or enhanced decision making)
      • *
      UNDERSTANDING BUSINESS VALUE OF INFO SYSTEMS 11.40
      • COSTS:
      • HARDWARE
      • TELECOMMUNICATIONS
      • SOFTWARE
      • SERVICES
      • PERSONNEL
      • *
      COSTS & BENEFITS: 11.42
      • TANGIBLE BENEFIT:
      • INCREASED PRODUCTIVITY
      • LOW OPERATING COSTS
      • REDUCED WORK FORCE
      • LOWER COMPUTER EXPENSES
      • LOWER VENDOR COSTS
      • LOWER CLERICAL/PROFESSIONAL COSTS
      • REDUCED GROWTH OF EXPENSES
      • REDUCED FACILITY COSTS
      • *
      COSTS & BENEFITS: 11.43
      • INTANGIBLE BENEFIT:
      • IMPROVED ASSET USE; RESOURCE CONTROL; PLANNING
      • INCREASED FLEXIBILITY
      • MORE TIMELY INFORMATION
      • INCREASED ORGANIZATIONAL LEARNING
      • ATTAIN LEGAL REQUIREMENTS
      • ENHANCED EMPLOYEE GOODWILL, JOB SATISFACTION, DECISION MAKING, OPERATIONS
      • HIGHER CLIENT SATISFACTION
      • BETTER CORPORATE IMAGE
      • *
      COSTS & BENEFITS: 11.44
    • PORTFOLIO ANALYSIS:
      • ANALYSIS OF POTENTIAL APPLICATIONS TO DETERMINE RISKS & BENEFITS AND SELECT AMONG ALTERNATIVES OF INFORMATION SYSTEMS
      • DETERMINE DESIRABLE FEATURES AND ACCEPTABLE RISKS OF REQUIRED SYSTEM
      • GENERATE PORTFOLIO OF CHARACTERISTICS AND RISKS FOR EACH ALTERNATIVE
      • SCORING MODEL
      • *
      11.45
    • SCORING MODEL:
      • IDENTIFY DESIRABLE FEATURES
      • PROVIDE WEIGHTS FOR EACH (ADD TO 1.00)
      • LOOK AT EACH ALTERNATIVE:
        • WHICH FEATURES ARE PRESENT?
        • TO WHAT EXTENT (as an amount)?
        • SCORE THE ALTERNATIVE
      • RANK-ORDER THE ALTERNATIVES
      • SELECT HIGHEST RANKED OPTION
      • *
      11.46
    • 11.48 11. REDESIGNING THE ORGANIZATION WITH INFORMATION SYSTEMS