Slide 5.1

Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009

Using IS to rethink business processes-Ch 5. Boddy et al.

• Rethinking and innovating business processes

• Approaches to innovating processes

• The role of IS in process change

• Examples of IS-enabled process change

• Managing process innovation

• Case: Inditex-Zara

Slide 5.2

Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009

Figure 5.1 Evolution of IS in organisations

Evolution of IS

Slide 5.3

Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009

Rethinking and innovating business processes

A set of logically related tasks performed to achieve a defined business outcome

A business outcome is a product or service which is delivered to a customer.

Slide 5.4

Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009

Figure 5.2 Phases of process innovation

Organising business process innovation

Slide 5.5

Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009

Criteria for prioritising business processes

• Health of a process

• Criticality of a process

• Feasibility of innovation

Slide 5.6

Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009

Approaches to process innovation

• Systematic redesign: identify and analyse existing processes, evaluate them critically and plan major improvements

• Clean sheet: fundamentally rethink the way that the product or service is delivered and design new processes from scratch

Slide 5.7

Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009

Levels of process detail

Figure 5.4 An illustration of how successive process diagrams can provide more detail

Slide 5.8

Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009

Process mapping example

Figure 5.5 Old process at hospital

Slide 5.9

Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009

Process mapping example (Continued)

Figure 5.6 New process at hospital

Slide 5.10

Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009

Analysing a process

Is it possible to eliminate process steps?

Is it possible to simplify process steps?

Is it possible to integrate process steps?

Is it possible to automate process steps?

Slide 5.11

Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009

Process interactions

Figure 5.7 Interaction between processes, IS and people

Slide 5.12

Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009

Design Discount Selling Distribu-

tion Manufac-

turing

Purchase raw materials

Traditional business processes

Figure 5.8 Traditional fashion business process (8–12 months)

Slide 5.13

Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009

Design Discount Selling Distribu-

tion Manufac-

turing

Purchase raw materials

Zara’s business processes

Figure 5.9 Zara’s business process (1–2 weeks)

Slide 5.14

Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009

Managing process innovation – the

organisational consequences

• Work units change

• Jobs change

• People’s roles change

• Focus of performance shifts

• Values change

Source: Willcocks and Smith (1995).