Evaluating the role of 'Disruptive Technology' in IT-driven reengineering

Pao Yue-kong Library Electronic Theses Database

Evaluating the role of 'Disruptive Technology' in IT-driven reengineering


Author: Tam, Oi-lan Irelan
Title: Evaluating the role of 'Disruptive Technology' in IT-driven reengineering
Degree: M.Sc.
Year: 1995
Subject: Information technology -- Management
Reengineering (Management)
Hong Kong Polytechnic University -- Dissertations
Department: Dept. of Computing
Pages: x, [141], [28] p. : ill. ; 30 cm
Language: English
InnoPac Record: http://library.polyu.edu.hk/record=b1205677
URI: http://theses.lib.polyu.edu.hk/handle/200/4532
Abstract: This dissertation intends to evaluate the role of "Disruptive Technology" in an IT-driven Reengineering. As Hammer and Champy (1993) cited that Information Technology is shattering old business, rules and inhibitors and allowing organization to make dramatic improvement in cycle times, quality and cost. But to realize these benefits, company must make fundamental change to their business. In a dynamic and competitive environment, companies need an operating core to be flexible, cost effective and process-oriented. This required extensive lateral cooperation and functional integration. With the advent of Business Process Reengineering (BPR) a new way of managing is emerging where a set of core business processes that are central to competitive success are managed, not functions. Each process will have its own process vision with the aim at improving performance and customer expectations, such as cost reduction, time reduction, quality improvement and employee empowerment, which are discussed in the study. Authors like Davenport (1993) and Hammer and Champy (1993) emphasis the role of Information Technology for conducting and implementing BPR. New type of technologies on database, communication and computation are generally identified as one of the enablers for reengineering in achieving organizational effectiveness. To manage the organizational change successfully is an critical issue in relation to undertaking BPR. The main purpose of this research is to study the strategic role of these new types of Information Technology - "Disruptive Technology" - as a key driver in BPR and how to mange the organizational change during the IT-driven reengineering. The research methodology adopted is the Case Study Approach and semi-structured questionnaire, interviews and participant observation are research instruments in this research. The study is consisted of two parts. The first part is on IT-driven framework building and the second part is a case study to investigate the change framework. Having examined the motivation for reengineering, a literature review is followed by discussing BPR frameworks by Hammer and Champy, Davenport and the Breakingpoint Strategy. A four step approach are proposed for IT-driven BPR. The four steps are: Step 1 Process Identification and Diagnosis Step 2 Develop Process Vision Step 3 Identify Change Drivers Step 4 Develop new process Prototype Four types of key business drivers are discussed. They are the change in customer's requirements, keen competitive pressure, cost reduction pressure and the organizational strategies. New Technologies provide critical opportunities in the redesign processes. The eight types of "Disruptive Technology" are identified in three distinctive types: Database technology, Computing technology and Communication technology. With these new technology generate an undercurrent of process thinking, IT is recognized not only as the driver for BPR but also as a driver in organizational change process. BPR is reconigze as a change management process which include process and structure changes, role and responsibilities change and cultural change. The case study is to illustrate these changes and its impact on organization. The new organziation is created with key feature on team-based structure which required "Disruptive Technology" to support its operations. Managers will have broadened skills and shared values an got empowerment. "Decisional" role become more important than before. Organizational culture concerning values and beliefs are the critical factors in BPR implementation. The organization must accept and institiutionalize the new values that are created by this new structure. Employees must learn to value the technology to accept it as part of their working life and to integrate it into the daily operation. Controls and performance measures must be redesigned to emphasize process goals, collaborative or teamwork behaviour and new dimensions of performance. An more "open" culture which allows good understanding and communication can eliminate some obstacles in the organizational change process. In addition, learning capability across ane within the organization can reduce the resistences during BPR implementation. The potential of "Disruptive Technology" are not merely lie in streamlining internal operations, but undergo fundamental transformations to an "Networked" Organization with information flows blurring traditional intracompany boundaries (Rockart and Short, 1990). This strategic transformation in terms of shifting in business competence and business network roles warrant future research studies.

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