Chapter 10 IntroductionAgendaLearning ObjectivesRedefine/Define ConceptRedefine/Define What?Product and Service Delivery ProcessChange ManagementConclusionsChapter 10Slide 10Slide 11Slide 12Slide 13Slide 14Slide 15Slide 16Slide 17Slide 18Redefine and/or Define The BusinessRedefine and/or Define Products or ServicesRedefine and/or Define Business ProcessesSlide 22Slide 23Slide 24Slide 25Slide 26Slide 27ReengineeringMichael Hammer VideotapeReengineering Business ProcessesBusiness ProcessesReengineering MotivationReengineering GuidelinesReengineering MethodologySlide 35Slide 36Slide 37Slide 38Slide 39Resistance to Change?Graying of Auto IndustryImpact of ChangeLet’s Not ForgetIT Related ChangeOld Paradigms Die Hard!Slide 46Selecting a Change StrategyNecessary QuestionsSlide 49Change Management SkillsMiddle Management is KeyTransition Versus ChangeBurning Platform DecisionCelebrate Your VictoriesChange Management GuidelinesSlide 56ChapterChapter 1010 IntroductionIntroductionThe Redefine and/or Define ConceptandChange ManagementAgendaAgendaLearning ObjectivesLearning ObjectivesRedefine/Define ConceptRedefine/Define ConceptThe Product and Service Delivery ProcessThe Product and Service Delivery ProcessThe Challenge of Change ManagementThe Challenge of Change ManagementConclusionConclusionLearning ObjectivesLearning Objectives1.1.To understand the second of the two core To understand the second of the two core concepts of the structured analysis concepts of the structured analysis approach.approach.2.2.To appreciate the importance and To appreciate the importance and significance of change management significance of change management within an organization.within an organization.3.3.To remember that information systems is To remember that information systems is viewed as a major cause of change within viewed as a major cause of change within a company.a company.Redefine/Define ConceptRedefine/Define ConceptRedefine = ChangeDefine = ClarifyHow an organization can change and clarify the role of IS to achieve and sustain competitive advantage?Redefine/DefineRedefine/Define What?What?Options:Options:The businessThe businessProducts and/or servicesProducts and/or servicesBusiness processesBusiness processesWhy bother?Why bother?Value to customerValue to customerProduct and Service Delivery Product and Service Delivery ProcessProcessIs the delivery process of the product more important than the product itself?Value-Add ProcessWhat the CustomerBuysProduct/ServiceDelivery ProcessProduct/ServiceValue to CustomerFigure 10-1Change ManagementChange ManagementFour Challenging Factors:Four Challenging Factors:The pace and time pressures of change.The pace and time pressures of change.Financial controls may not allow increase in Financial controls may not allow increase in the number of employees despite growth.the number of employees despite growth.Shifting of productivity and other Shifting of productivity and other operational objectives to IT.operational objectives to IT.Dramatic improvements in IT price, Dramatic improvements in IT price, performance, and function.performance, and function.ConclusionsConclusionsChange is the norm in most businesses.Change is the norm in most businesses.Information technology can be a catalyst or Information technology can be a catalyst or vehicle for change.vehicle for change.Organizational change must be carefully Organizational change must be carefully managed.managed.Employees and management must Employees and management must understand and accept the need for change.understand and accept the need for change.Chapter 10Chapter 10The Redefine and/or Define Conceptand Change ManagementWe live in a word of change, yet we act on the basis of continuity.The Challenge of ChangeMillions of ordinary, psychologically normal people will face an abrupt collision with the future. Many of them will find it increasingly painful to keep up with the incessant demand for change that characterizes our time.Alvin ToflerFuturistDefinition of ChangeDefinition of ChangeMaking an essential difference often amounting to a loss of original identity or a substitution of one thing for another.Equipping a company with the latest technology doesn't mean a thing if you don't alter how your employees think and how management leads them.Chad FrostPresidentFrost Inc.As we change what computers can do, we must change what we can do with computers. Max Hopper Former CIO Information Systems AMR and American AirlinesRedefine Change Define ClarifyCompanies that achieve a sustainable strategic advantage with information technology generally redefine the factors of competition rather than using technology in a traditional way.Competitive Advantage Competitive Advantage Through Use of IS?Through Use of IS?******************Redefine and/or Define:1. The Business2. Products and/or Services3. Business ProcessesTo Provide Value to CustomerMcDonald’s as Concept Source•Defined its products.•Redefined processes to make the product.•Defined customer service as quality, product predictability, fast service, cleanliness and friendliness.•Set standards for these and trained its employees accordingly.•Redefined the “hamburger business.”Peter Drucker’s Assessment:Redefine and/or Define Redefine and/or Define The BusinessThe BusinessUSA TodayAmerican AirlinesAmerican President CompaniesAmazon.comeBayRedefine and/or Define Redefine and/or Define Products or ServicesProducts or ServicesCharles SchwabBanc OneAny company that has introduced an E-commerce approach in addition to an existing brick and mortar operation.Redefine and/or Define Redefine and/or Define Business ProcessesBusiness ProcessesBoeing LL BeanAll of your ATP companies—intranets, extranets, E-Business processesWhen making a purchase decision does the delivery process become more important than the product or service?Value to Customer Product/ServiceDelivery ProcessProduct/ServiceValue Add ProcessWhat the Customer BuysFigure 10-1• Stock, Bond and Mutual Fund Trades• Financial Product Options • Competitive Fees• Timely Execution of Trades and Money Transfer• Personal Service• Confidence in Financial Custodial ResponsibilityCharles Schwab & Co.• Computer Based Trades• Client Broker Service Street Smart Telebroker Equalizer•
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