are the results of a process enablers –are a special kind of input or resource that facilitates a process feedback –is a special kind of measurement created by a business process that is then returned to the system to control the system’s future inputs, processes and outputs normally, this feedback will include information such as error or failure rates, processing speeds, process costs, and information on approvals and controls required in the process and if they are being respected business process reengineering (BPR) –is the study of business processes to find ways of making them more efficient the goals of BPR are usually to reduce costs, increase throughput and speed, and increase quality and service by undertaking BPR and achieving these goals, a business will likely increase its competitive advantage Defining competitive advantage competitive advantage = quality of insight + speed of execution + cost competitiveness Applying IT to create business value IT can be applied to value chain activities to create business value in three ways: oAutomating oInformating oTransforming Automating to do things faster Automating –uses technology to perform tedious or repetitive tasks faster, cheaper and more consistently The organization uses technology to do the same things as before, but with greater efficiency and accuracy, and also to do new things
When applying automation within an organization to a single process, management considers questions such as: oWhat is the main goal, and what are the steps of the process? oWhat data and information are required to carry out the process? how does data flow between the steps? oHow is the process affected by other processes? When should it occur? What starts it? how does the output affect other processes The most critical issues when applying IT automation are related to how the process fits the business organization and its goals Informating to do things better Informating –is recognizing that executing processes also creates new data and information. An organization may then process the new data to improve its decision making and to change or improve the process itself With an informating view, IT can deliver more long term benefits than from automation alone Informating allows a business to identify flaws in the process and then use its new found knowledge to do things in entirely new ways To gain the benefits of informating when applying IT to a process, a business needs to step back from the details of executing the process and ask three crucial questions: oDoes the IT store data so that it can also be used for learning and decision making? oIs the business process being IT-enabled already optimized for high performance?
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- Spring '11
- Computer network, World Wide Web