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Chapter 9

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Department
Information Technology Management
Course
ITM 102
Professor
Vikraman
Semester
Summer

Description
Chapter 9Developing Information SystemsOpening CaseProtecting Patients by Tracking Instruments this case illustrates steps to design and develop new IS hospitals managing and tracking instruments through storage use and sterilization is a manual paperbased process that is common with errors that could lead to crosscontamination and infection the Ottawa hospital relied on this method but then had switched to a computer based instrument tracking program that was known as Alex Gold this was less time consuming and doctors and nurses could choose the correct instrument when they were asked and they knew how to sterilize a specific instrument This took more than a year this system can even budget and track maintenance costs and the new system flags instruments that need to be sent out for maintenance lets hospital monitor how many instruments are being processed to allow the hospital to determine proper staffing levels of sterilization technician 91 Systems as Planned Organizational Changedeveloping new IS involve new hardware software changes in jobs skills management and organization redesigning the whole organization Systems Development and Organizational Change4 kinds of structural organization change 1automationmost common involves assisting employees with performing their task more efficiently and effectively calculating pay cheques and payroll registers reveals new bottlenecks in productions and makes the existing arrangement of procedures and structures heavy 2rationalizationstreamlining of standard operating procedures ex case effective not only because of computer technology but also because its design enables the organization to operate more efficiently had codes for each instruments and each location and entering info online 3reengineeringbusiness processes are analyzed simplified and redesigned organizations can rethink and streamline their business processes to improve speed service and quality Reorganizes work flows combining steps to cut waste and eliminating repetitive paperintensive tasks eliminates jobs Limits to specific parts of a business4paradigm shift rethinking the nature of the business and the nature of the organization this and reengineering often fail because extensive organizational change is so difficult to arrangeMany businesses still do this because of the rewards can be high and achieve stunning orderofmagnitude increases in their returns on investment or productivityBusiness Process Reengineering some systems projects represent radical restructuring of business processes while others are more incremental process change if organizations rethink and radically redesign their business processes before applying computing power than can obtain large payoffs from their investments in IT work flow managementprocess of streamlining business procedures so that documents can be moved easily and efficiently automates processes such as routing documents to different locations securing approvals scheduling and generating reports 2 people can work at the same time less time is involves and they can retrieve files in different ways Steps in Effective Reengineering most strategic decision a firm can make is not deciding how to sue information systems to improve business processes but rather understanding what business processes need improvement you will need to determine what business processes are the most important to focus on when applying new IT and how improving these processes will help the firm execute its strategy need to understand and measure the performance of existing process as a baseline Ex objective of process redesign is to reduce time and cost in developing a new product or filling an order you will need to measure the time and cost consumed by the unchanged process Process Improvement Business Process Management Total Quality Management and Six SigmaBPR expensive and organizationally disruptive Business processes management and quality improvement programs provide for more incremental and ongoing types of business process change Business Process Managementenables organizations to manage incremental process changes that are required simultaneously in many areas of the business provides methods and tools for dealing with the organizations ongoing need to revise and optimize its internal business processes and processes shared with other organizations enables organization to make continual improvements to many business process simultaneously and to use processes as the fundamental building blocks of corporate IS includes work flow management business process modeling quality management change management and tools for recasting firms business processes into a standardized form where they can be continually manipulated use process mapping tools to identify and document existing IS automatically management processes across the business extract data from various sources and databases and generate transactions in multiple related systems includes process monitoring and analytics organizations must be able to verify that process performance has been improved and measure the impact of process changes on key business performance indicators Total Quality Management and Six Sigmaanother area of continuous process improvement increasing organizational efficiency companies fine tune their business processes to improve quality in their products services and operationsusing concept of TQMmake quality the responsibility of all people andfunctions within an organization holds that achievement of quality control is an end in itselfSix sigmaa specific measure of quality representing 34 defects per million opportunities most companies cant achieve this but use six sigma as a goal to implement a set of methods and techniques for improving quality and reduce costs study shows earlier in the business cycle a problem is fixed the
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