1. IS 788 1.21 IS 788 [Process] Change Management  Wednesday, August 29  Current event  Lecture  ‘Failed Project’ presentation and discussion

2. IS 788 1.22 Increasing rate of process change  Technology Web-enabled processes Mobile (and tomorrow?) Supply chain emphasis Data mining (more information, more quickly to define change)  Competitiveness Healthy organizations continuously seek improvement – typical process redesigns yield 20% (time, $) China, India, EU

3. IS 788 1.23 Increasing rate of process change  Governmental mandates Inter-healthcare provider compatibility Homeland Security – i.e. new worker status validation legislation Sarbanes-Oxley  As of 2003, 82% of US companies were involved in significant process redesign

4. IS 788 1.24 Changing processes  Its been around forever Adam Smith’s pin factory Fredrick Taylor Henry Ford  Term du jour – Process _____ Reengineering (hot then not) Redesign or design Improvement

5. IS 788 1.25 Beyond stopwatch and clipboard  Top organizations have progressed well beyond ’50’s style industrial engineering (efficiency experts)  Multiple methods have been developed for multiple types of processes  Repeatability of process change based on CMM for software development – i.e. treat process change as a development project  OMG has developed a process model based on CMM

6. IS 788 1.26

7. 7 Different problems, different techniques  Process Improvement Incremental (continuous) change, i.e. Six Sigma, TQM  Process design (or redesign): major effort whether entirely new or radical change as per the original notion of BPR  Process automation New processes emerge continually. They are usually manual at first and then automated as transaction volume mounts

8. IS 788 1.28 !! Alignment !!  Just as for IT projects, many of which are process change assist efforts, process changes should always be aligned with organizational goals  Just as for IT projects, this frequently is not the case! Local optimization, global suboptimization Lack of organizational architecture or coherent, explicit mission

9. IS 788 1.29

10. 10 Organizations as systems  We will discuss two different ‘lenses’ or ways of viewing an organization: As a dynamic, self organizing system As a machine  The two views generate radically different mechanisms for implementing change ;-)

11. IS 788 1.211 The ‘ol value chain: how goods get produced and marketed

12. IS 788 1.212 The most significant processes span the value chain  In the beginning there were functional centers. They make sense to workers and managers and have value, so it is unlikely they will fade away.  However, processes naturally span functional centers and we are still learning how to build and manage these processes

13. IS 788 1.213 A simple cross functional process

14. IS 788 1.214 Workflow and ERP  Computer based workflow systems move information based work artifacts among employees and monitor the progress. Insurance companies were the first big users.  Harmon suggests that ERP systems (modular IT applications) are a form of worklflow.

15. IS 788 1.215 IT and Process Change  Most process changes are initiated by non-IT personnel  Some processes are not amenable to assistance by information technology  However, “Increasingly IT is being asked to anticipate new business goals in order to assure that its infrastructure will be ready to respond…”

16. IS 788 1.216 IT and Process Change  “… IT is increasingly relying on its own enterprise modeling and business modeling techniques.”  Even in large organizations IT can be left out of top-level strategizing.  Even in progressive organizations, management techniques for coordinating IT with business strategy are still developing (see p. 38)

17. IS 788 1.217 The right tool for the job

18. IS 788 1.218