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Systems Analysis
We we came from…
Planning
Analysis
Design
Implementation
Identify Problem/Value.Feasibility Analysis.Project Management.
Systems Analysis
Planning
Analysis
Design
Implementation
Understand as-is system.Identify Improvements.Develop concept forthe to-be system.
Three major methods Business Process Automation Business Process Improvement Business Process Reengineering
Business Process Automation
Goal:
Efficiency for users
Root Cause AnalysisSymptoms
ROOT CAUSES
Symptoms
Identify symptoms Trace each back to its
causes
Business Process Improvement
Business Process Reengineering
Radical
redesign
of
business
processes
Example: Processing a Loan
ReceiveRequest.Date/Time.
Dept. A
BillPappas
Dept. B
Dept. C
Dept. D
Dept. E
Dept. F
JohnMalone
SharonDabaloosky
TrischMashius
JuneWayne Tom Mooka
VerifyEmploymt.& Eligibil. Verify
Acct. Statusfor amount. Term &
Amountapproval.
Createamort.schedule.
Process &sendcheck.
Tom Lauer
HR Database:Employment
&Eligibility
AccountDatabase:Amounts
AmortizationProgram
17 Minutes vs. 22 days!!
BASIS FOR REENGINEERING(source: Hammer)
The usual methods for boosting performance - process rationalization and automation - have not yielded the dramatic improvements companies need.
Companies tend to use technology to mechanize old ways of doing business.
Often, existing processes are left intact, and computers are used simply to speed them up.
Many processes are geared toward efficiency and control. BUT, new watchwords are innovation, speed, service, and quality.
WHAT IS REENGINEERING?(source: Hammer)
Discontinuous thinking - recognize and break away from outdated rules and fundamental assumption that underlie operations.
Looking at fundamental processes of the business from a cross-functional perspective.
Striving for dramatic levels of improvement. Using IT not to automate an existing process
but to enable a new one.
Processing a Loan
ReceiveRequest.Date/Time.
Dept. A
BillPappas
Dept. B
Dept. C
Dept. D
Dept. E
Dept. F
JohnMalone
SharonDabaloosky
TrischMashius
JuneWayne Tom Mooka
VerifyEmploymt.& Eligibil. Verify
Acct. Statusfor amount. Term &
Amountapproval.
Createamort.schedule.
Process &sendcheck.
PRINCIPLES OF REENGINEERING(source: Hammer) Organize around outcomes, not tasks. Have those who use the output of the process
perform the process. Subsume information processing work into the real
work that produces information. Treat geographically dispersed resources as
though they were centralized. Link parallel activities instead of integrating their
results. Put the decision point where the work is performed. Capture information once at the source.
Example: Ford - BEFORE and After
PurchasingVendor
Receiving
AccountsPayable
ReceivingDocument
Goods
PurchaseOrder
Copy ofPurchaseOrder
Invoice
500 AP employees! Most timespent on mismatches.
Payment
Example: Ford - Before and AFTER
PurchasingVendor
Receiving
AccountsPayable
Goods
PurchaseOrder
Database
Payment
“Don’t sendus invoices”
75% reduction in head count.
Characteristics of Analysis Strategies
Business Business BusinessProcess Process ProcessAutomation Improvement Reeingineering
Potential Business Low-Moderate Moderate HighValue
Project Cost Low Low-Moderate High
Breadth of Analysis Narrow Narrow-Moderate Very Broad
Risk Low-Moderate Low-Moderate Very High
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