2. Agenda
• Old ways of IT thinking
• New ways of IT thinking
• Business process reengineering (BPR)
3. Old IT Thinking
• New tool replacing old tool
– Pencil by PC
– Magnetic tape by disk
• Changing HOW something’s done not
WHAT is being done
4. Old IT Thinking
• Method: deductive reasoning
– Start with existing mindset
– Define the problem
– Seek alternatives
– Select the best alternative
– Problem definition limits possible solutions
– The continuous problem
5. Agenda
• Old ways of IT thinking
• New ways of IT thinking
• Business process reengineering (BPR)
6. New Way of Thinking
• Break existing rules that limit how to conduct
work
– What
– Who
– Where
– When
• Method: inductive reasoning
– Find new powerful technology & solution
– Seek problem it might fit
– Problems firm doesn’t know it has YET!
7. New Way of Thinking
• Old rule (OLD)
• Disruptive technology (DT)
• New rule (NEW)
• Gain
8. Information Transfer
• OLD: independent information appears in
only one place at one time
• DT: database & telecommunication
• NEW: integrated information appear
simultaneously in as many places as need
• GAIN: decrease cycle time
10. Centralization or Decentralization
• OLD: firm chooses one only
• DT: telecommunication & networks
client/server
• NEW: firm can have both
• GAIN: local autonomy (quality)
Minimal loss of control
11. Decision-making Level
• OLD: mangers decide
• DT: expert systems (ES)
decision support systems (DSS)
• NEW: decision-making part of all jobs
• GAIN: cycle time
employee empowerment
quality
productivity
12. Central Office
• OLD: employees need office
• DT: portable computers
telecommunication & networks
databases
• NEW: telecommuting
• GAIN: cycle time
productivity
13. Customer Contact
• OLD: best customer contact is personal
contact
• DT: Internet
• NEW: tailed customer contact
• GAIN: customer commitment
14. Location Resources
• OLD: find where resources are
• DT: automatic ID/tracking systems
• NEW: systems locate the items
• GAIN: cycle time/real-time
15. Agenda
• Old ways of IT thinking
• New ways of IT thinking
• Business process reengineering (BPR)
16. Business Process Reengineering
(BPS)
• Rethinking and radical redesign of business
processes to achieve dramatic
improvements in critical contemporary
measures of performance
• Methods
– Redesign (process)
– Retool (information system)
– Reorchestrate (network-type organization)
17. Business Process
• A set of tasks that directly support the
achievement of business objectives by
providing a product or service for a
customer
18. BPR Sequence
• Assess firm’s competitive position
– Demand chain
– Supply chain
– Management
• Build the vision of future
– Decrease cycle time
– Decrease costs
– Increase quality
– Increase customer satisfaction
– Add value
19. BPR Sequence
• Use new ways of IT thinking to turn the vision
into reality
– Management integration
– Mass customization (collaborative, adaptive, cosmetic,
transparent)
– Empowerment/self-directed team
– Redundancy elimination
– Networked organization
– Virtual organization
20. Points to Remember
• Old ways of IT thinking
• New ways of IT thinking
• Business process reengineering (BPR)
21. Discussion Questions
• How do you use Internet to change the critical
processes for
– A university?
– A manufacturing firm?
– A department store?
• What kind of benefits will be encountered by the
management from the usage of Internet?
• What kind of problems will be encountered by the
management from the usage of Internet?
22. Assignment
• Review technology guides 1-2 & chapters
1- 4
• Read chapters 5, & technology guide 4
• Group Assignment
• Research paper
