Role of Information Technology on Business Process Re-engineering

1. Chapter 5
The Enabling role of Information
Technology

2. Functional Information System

3. Introduction :
FIS supports the organization, processes and business model

4. Characteristic of FIS :
Composed of smaller system
Integrated or independent
Interfacing
Supportive of different level

5. Types of FIS
Marketing and sales information system
Production and material management information system
Accounting and finance information system
Human resource management information system

6. Marketing and sales information system

7. Production /
material mgt
Cost/profit analysis
customer
Marketing
/ sales
Human resource
Accounting/finance
Sales order data
Order
status
Sales
orders
Hiring needs and
Personnel information
Legal requirement
&
Job information
Product availability data
and order status
Sales forecast &
sales order

8. Production and material
management information system

9. Production /
material mgt
Sales forecast and
Sales order
supplier
Marketing
/ sales
Human resourceAccounting
/ finance
Product availability
data & order status
Order
For new material
Raw material
availability
Hiring needs and
Personnel information
Legal requirement
&
Job information
Sales data and
Manufacturing
Cost analysis
Production plan,
material and inventory

10. Accounting and finance information system

11. Production /
material mgt
Sales
order
data
customer
Marketing
/ sales
Human resource
Accounting
/ finance
Cost / profit
analysis
Invoice and
Credit memo
Payment
Hiring needs and
Personnel information
Legal requirement
& Job information/
payroll/ and benefit
expense data
Production plan,
Material and
Inventory data
Sale data and
manufacturing
Cost analysis

12. Human resource management information system

13. Production /
material mgt
Marketing
/ sales
Human
resource
Accounting
/ finance
payroll and benefit/
Expense data , legal
Requirement and
Job information
Hiring needs and
Personnel information
Legal requirement
&
Job information
Hiring needs and
Personnel information
Legal requirement
&
Job information
Hiring needs and
Personnel information

14. The Enabling role of Information
Technology
Company that equates technology with automation cannot
reengineer
IT must be used properly, though. Not using IT correctly
Misuse of technology can block reengineering altogether by
reinforcing old ways of thinking and old behavior patterns

15. The Enabling role of Information
Technology
It is critical that managers and executives begin to think
inductively; most only know how to think deductively

16. Inductive vs. Deductive Thinking
Inductive Thinking
 ability to first recognize a powerful
solution and then seek the problems it
might solve
 Thinking inductively will allow major,
not just marginal, improvements
 It will allow companies to respond
better to customer needs
 Many of these needs are ones that
customers are not currently aware of !
Deductive Thinking
 defining problem (s), then seeking and
evaluating different solutions to it.

17. Disruptive Technology
A disruptive technology or disruptive innovation is an
innovation that helps create a new market and value network
, and eventually goes on to disturb an existing market and
value network (over a few years or decades), displacing an
earlier technology.