An information system is a sociotechnical system that considers both technical and social elements. To effectively implement new information technology, organizations must redesign processes, structure, and culture. This involves enterprise resource planning to integrate core processes; business process reengineering to radically redesign processes; structural changes; and shifting organizational culture. Effective ERP implementation requires focusing on goals, top management commitment, organizational involvement, quality data, training, and change management.

1. Introduction
• An information system is a sociotechnical system, an arrangement of both
technical and social elements
• A sociotechnical system considers not only how inputs are transformed into
outputs but also how interpersonal and social relationships can be
developed for mutual gain by employees and the organization
• In sociotechnical system approach, both technical and social elements
receive high priority, and they are managed for the best possible integration.
• The fundamental objective is to design the whole work system that satisfies
employees, meet production requirements and serves the customer needs.
• In the sociotechnical approach , one cannot install new information
technology without considering the people who work with it.

2. • This requires redesigning the organization which includes
redesigning organizational processes and structure to make
effective utilization of resources and reshaping organizational
culture to maintain a balance between IT and organizational culture.
• For this the following 4 elements are important:
1. Enterprise resource planning
2. Business process reengineering
3. Structural change
4. Changing organizational culture

3. Enterprise resource planning
• In today’s competitive business environment , organizations need to
manage their resources in the most effective way to develop
competitive advantage.
• ERP enables the organization to achieve this integration.
• ERP can be defined as a fully integrated business management that
integrates the core business and management processes to provide
an organization a structured environment in which decisions
concerning demand, supply, operations , finance, logistics, etc are
fully supported by accurate and reliable real-time information.
• ERP encompasses all major valve points and consolidates these
into single, enterprise-wide solution that ensures seamless interface
within critical systems thereby allowing the organization to re-invent
itself to changing business needs swiftly and efficiently.

4. • The major objectives of ERP are to
1. Provide support for adopting best business practices
2. Implement these practices with a view towards enhancing
productivity and
3. Empower the customers and suppliers to modify the implemented
business processes to suit their need

5. Characteristics of ERP
1. Flexible
2. Modular and open
3. Integrated
4. Best business practices

6. Benefits of ERP
1. Better use of organizational resources
2. Lower operating costs
3. Proactive decision making
4. Decentralized decision making
5. Enhanced customer satisfaction
6. Flexibility in business operations

7. Limitations of ERP
• An ERP system provides current status only
• The methods used in ERP applications are not integrated with other
organizational or divisional systems.

8. ERP implementation
1. Defining need for ERP
2. Engaging consultant for ERP implementation
3. Reengineering the business processes
4. Identifying and evaluating ERP packages
5. Installing hardware and network
6. Implementing ERP package

9. Requirements for effective ERP implementation
• Focus on corporate goals
• Commitment of top management
• Involvement of entire organization
• Quality of data
• Commensurate training
• Organizational change

10. BUSINESS PROCES REENGINEERING
– The basic objective of any information system is to produce the best possible
results by eliminating those processes which are not central to the
organizational objectives and by changing those processes which are
central.
– This has led to emergence of BPR
– It is basically a fundamental process of redesigning business processes so
as to gain economy in performing these processes
– It is the fundamental rethinking, and radical redesign of processes to achieve
dramatic improvement in critical , contemporary measures of performance
such as cost, quality and speed
– It can be defined as radical scrutiny, questioning, redefinition and redesign of
business processes with the aim of eliminating all activities not central to
business goals.

11. OBJECTIVES OF BPR
• Elimination of unnecessary processes
• Reduced cycle time

12. PROCESS OF BPR
1. Developing business vision and process objectives
2. Identifying the processes to be designed
3. Measuring the performance of existing processes
4. Identifying the opportunity for applying information technology
5. Building the prototype of new process

13. 1. DEVELOPING BUSINESS VISION AND PROCESS OBJECTIVES:
• Before going through the process of redesigning business processes, it is
desirable that business vision is defined clearly so that business
processes function in tune with vision.
• Organizational vision represents the challenging portrait of what the
organization would be in future.
• It implies that the organization should create projections about where it
should go, and what major challenges lie ahead.
• Based on this the organization should define the objectives of business
processes.
• There may be different ways in which business process contribute to
business vision like, lowering costs by shortening process cycle time,
providing timely information to various stakeholders and so on.

14. IDENTIFYING THE PROCESSES TO BE DESIGNED
• After defining business vision and process objectives, the
organization should identify those processes that redesigning.
• At the initial stage it is desirable to identify these processes that are
performed repeatedly and have greatest potential payback such as
manufacturing process, order receiving and execution product
shipping, data entry, etc.
• The analysis should identify which organizational group owns a
process , which organizational functions/departments are involved in
the process, and what changes are required.

15. MEASURING THE PERFORMANCE OF EXISTING PROCESSES
• Before going through redesigning , performance of existing
organizational processes should be measured to find out the type of
reengineering needed.
• Two commonly used methods are benchmarking and process
evaluation.

16. Identifying the opportunity for applying information
technology
• With the development and widespread use of IT more emphasis is
being placed on how IT can be used to support a process and
redesign the process accordingly.

17. Building the prototype of new process
• The organization should design a new process on an experimental
basis , anticipating a series if revisions and improvements until the
redesigned process is put into actual operation
• the prototype must be tested to measure its performance and
incorporate needed changes.
• After the testing phase is over and necessary corrections are
incorporated , the process can be put into operation.