International Business Overview

Management Information System

Chapter 13: BUILDING INFORMATION SYSTEMS

Structural organizational changes enabled by IT

1. Automation

• Increases efficiency

• Replaces manual tasks

2. Rationalization of procedures

• Streamlines standard operating procedures

• Often found in programs for making continuous quality improvements

– Total quality management (TQM)

– Six sigma

3. Business process redesign

• Analyze, simplify, and redesign business processes

• Reorganize workflow, combine steps, eliminate repetition

4. Paradigm shifts

• Rethink nature of business

• Define new business model

• Change nature of organization

ORGANIZATIONAL CHANGE CARRIES RISKS AND REWARDS

The most common forms of organizational change are automation and rationalization. These relatively slow-moving and slow-changing strategies present modest returns but little risk. Faster and more comprehensive change—such as redesign and paradigm shifts—carries high rewards but offers substantial chances of failure.

Business process management (BPM)

– Variety of tools, methodologies to analyze, design, optimize processes

– Used by firms to manage business process redesign

Steps in BPM

– Identify processes for change (e.g. customer ordering a meal, kitchen preparing & delivering that meal, etc. )

– Analyze existing processes

– Design the new process

– Implement the new process

– Continuous measurement

Variety of tools for BPM, to

– Identify and document existing processes

• Identify inefficiencies

– Create models of improved processes

– Capture and enforce business rules for