Business Process Reengineering

Topics: Business process reengineering, Business process management, Process management Pages: 9 (2991 words) Published: December 3, 2010
Q. Describe each of the four kinds of organizational change that can be promoted with information technology. What is business process reengineering? What steps are required to make it effective? How does it differ from business process management? Explain with example.

In an organization, there are major risks and uncertainties in systems development that need to be addressed by the management. Determining when new systems and business processes can have the greatest impact is involved in these challenges. This may be the reasons why organizational change and development is becoming a common scenario to talk about involving management, organizations, business, and leadership. With the fast-changing environment, business conditions bring consequences in management both in inner and outer factors. That is why in most cases, most of the managerial activities revolve around decision – making. Knowledge plays a major role in organizational development. Organizational changes are also usually described, including management and employee training requirements, recruiting efforts, changes in business processes and changes in authority, structure or management practices. Information technology can promote various degrees of organizational change, ranging from incremental to far-reaching. There are actually four types of organizational change enabled by information technology: automation, rationalization, reengineering, and paradigm shifts. [pic]

This figure shows the four degrees of organizational change. Automation is the easiest and the most common form of change. Being the most common form of IT-enabled change, the using of computer to speed up the performance of existing tasks is an example of automation. This involves assisting employees perform their tasks more efficiently and effectively.

Automation is the use of control systems and information technologies to reduce the need for human work in the production of goods and services. In the scope of industrialization, automation is a step beyond mechanization. Although automation speeds up performance of tasks, it does not guarantee a very high effectivity in business success. It is just the same as repeating the old manual way of disorders but in a faster way. However, this type of change, although common, is slow – moving, thus producing slow returns. Organizations using automation produce the same products and services as before but changes the way the organization functions. Example of automation in business are calculating paychecks and payroll registers, automated checkout and inventory system employed by many supermarkets. and giving bank tellers instant access to customers deposit records.

Rationalization of procedures causes the organization to examine its standard operating procedures, eliminate those no longer needed, and make the organization more efficient. It is the streamlining of existing operating procedures, eliminating obvious bottlenecks so that automation makes operating procedures more efficient. Rationalization follows quickly from automation. Both types of change cause some disruption, but it's usually manageable and relatively accepted by the people.

A more powerful type of organizational change is business process reengineering, in which business processes are analyzed, simplified and redesigned. Using information technology, organizations can rethink and streamline their business processes to improve speed, service and quality. Business reengineering reorganizes work flows, combining steps to cut waste and eliminating repetitive, paper intensive tasks. It is usually much more ambitious than rationalization of procedures, requiring a new vision of how the process is to be organized. Business process reengineering in simpler words is Radical redesign of processes to improve cost, quality, and service, to maximize the benefits of technology. Process...
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