IT and Work Systems

1. IT and Work Systems John A. Hengeveld

2. Agenda for Today • Case Writeups, Business Communication (0:45) • Pearlson Chapter 3 (0:40) • Work Systems 101 • Break (0:15) • Pearlson Chapter 5 (0:45)

3. Case Writeups and Business Communication • Most case writeups should form an ARGUMENT • A logical sequence of reasoning leading to a conclusion resolving a specific set of issues • The recommendation needs to be complete • Solves the problem inherent in the business situation • Addresses issues create by the risks of implementation

4. Convincing the skeptical world • Why do we do cases? • What is the burden of proof on a case analysis? • How do you fulfill your burden?

5. Common Problems • Too much analysis and facts, not enough pulling that information behind your course of action. • Too much recommendation, no supporting evidence or framework of the decision. • Develop criteria for a decision then don’t use them • Soft statements.. “Reconsider” or “might do blah” • Leading with the analysis NOT the action. (most executives have neither the patience nor the inclination to read through your analysis… that’s what they pay you for as a manager!

6. Convincing an Executive • Make a clear argument as to what to do • Clear supporting facts and analysis as to why. • Show that you considered solid alternatives(when the CEO asks .. Have you considered this…and you havent… poof.. See ya) • Show that you understand the risks • Show that you REALLY truly deeply and totally understand the problem that the EXECUTIVE is facing in making the decision. (what is the executives intention?) • Show that YOU are a reliable interpreter of the situation so they can trust you! • Finally, make it engaging and interesting for them to be a part of the decision process.

7. Now add the MBA stuff • Use the tools of the class where possible. Profs really like that. • Be insightful, look for non obvious connections • Write concisely.. While your boss may not have 34 other reports to read tonight.. I do. • Nice figures, tables graphs and charts make an impact.

8. The Rogers Commission Report • The Challenger Disaster

9. Okay.. For Next Week- Amazon.com • Compare walmart, amazon and barnes and noble websites.. What are strengths and weaknesses? • In the case, what is Amazon’s current strategy?Will Amazon ever achieve profitability? • What strategy should Amazon.com adopt? • What are the risks/issues with current and proposed strategy? • What are the keys to e-business success for Amazon.com?

10. Okay.. For Next Week- Amazon.com • Compare hotjobs, flipdog and monster.com websites.. What are strengths and weaknesses? • In the case, what is Monster.com (TMP’s) current strategy? • What strategy should Monster.com (TMP) adopt? • What are the risks/issues with current and proposed strategy? • What are the keys to e-business success for Monster.com?

11. Pearlson Chapter 3

12. JOB DESIGN FRAMEWORK • What tasks will be performed? • How will the work be performed? • Who will do the work? • Where will the work be performed? • How can IS increase performance, satisfaction and effectiveness of the workers doing the work?

13. What tasks need to be performed? What is the best way to have these tasks done? Done by a person Done by a computer Who is going to do these tasks? Automate the tasks Where is that person when doing the work? Figure 3.1 Framework for job design impacts How can IT enhance the worker efficiency and satisfaction?

14. New Ways to do Traditional Work • The introduction of IT can greatly change workers’ day-to-day tasks. • IT changes workers’ communication patterns • Workers using mobile devices can send and receive message and tap into databases, affecting sales and service tasks. • The cost and time needed to access information is dramatically lower, giving workers new tools. • Work has become much more team oriented an effect amplified by the Internet.

15. Creating New Types of Work • Since the early 1980s, increased IS/IT use has created many new types of jobs. • Consulting firms have become widespread that specialize in IS-related work. • Examples of newly created jobs now common in traditional organizations include: • knowledge managers, • systems analysts, • database and network administrators, • webmasters and web site designers.

16. Figure 3.2 Changes in employee supervision and evaluation Supervision Evaluation

17. Figure 3.3 Summary of IT’s effects on employee life Work It creates millions of new jobs, some in entirely new industries. Working More work is team-oriented, enabled by Arrangements communications and collaboration technologies. Geographic constraints of some professions are eliminated, enabling telecommuting. Human New strategies are need to supervise, Resources evaluate, and compensate remotely performed, team-oriented work. IT requires new skills workers often lack.

18. The Growth of Telecommuting • Telecommuting has gained popularity since the late 1990s because: • Lowers corporate overhead since workers who are at home don’t take up office space lowering facilities costs • Workers who are giving increased flexibility are more productive and express higher levels of job satisfaction • 2/3’s of Cisco employees occasionally work from home. The policy has saved the company $1M in expenses, while workers prefer to set their own schedules and work in more comfortable surroundings.

19. Figure 3.4 Telecommuting’s driving factors Driver Effect

20. Figure 3.6 Advantages and disadvantages of telecommuting Employee Advantages Potential Problems

21. Figure 3.5 Mobile Workers Technology Used by Impacts

22. Groupware and Electronic Collaboration • Groupware tools such as Lotus Notes, Microsoft Outlook and technologies, such as video conferencing have made it cost-effective for workers in distant locations to create, edit and share electronic documents and processes. • Collaboration adds value to many types of tasks, particularly those that benefit from exchange of ideas.

23. Whirlpool’s Product Design Management (PDM) system • PDM unites design teams electronically using a central data repository. • Engineers around the world collaborate online to create several basic designs using PDM. • Each region then customizes generic design for local use. • PDM cuts design time in half, thereby saving money and brings products to market more quickly.

24. Ford Motor Company • Ford now develops cars for world markets by electronically linking design and engineering centers via videoconferencing and corporate intranets. • Faster more efficient communication allows Ford to design and produce cars in less time.

25. Does IS/IT Investment Improve Worker Productivity? • Some researchers argue ongoing costs outweigh productivity gains • Other research suggests employee productivity is rising • Some argue the measurement of productivity is flawed; e.g., fails to capture gains in service. • Controversy remains unresolved after many years of research.

26. Work Systems 101 Thanks to Neil.. I’m borrowing his slides here 

27. WORK SYSTEM Human participantsperforming a business processusing information and technology to produce products and services for internal or external customers. (the environment) (Plus: Strategy) (the work system)

28. Some initial points on the framework… o The work system is larger than the business process it contains. For example, note how a given process may be performed well or poorly, depending on the characteristics of the participants, information, and technology involved. o Things to think about: [1] Architecture– what the current work system consists of and how it operates. [2] Performance - how well the work system functions. [2] Design – what can be done to improve the the work system’s performance.

29. Customers Architecture: o People who use and receive direct benefits from the products and services produced by the work system. o May be external and/or internal. Performance: o Customer satisfaction. o Consider the customer’s own work system(s) in which he/she/it uses your product/service. o Consider the ‘lifecycle’ of the customer’s involvement with your product/service.

30. Products & Services Architecture: o Combination of physical things, information, and services that the work system produces for its customers. o Products and services may be “final” ( outside customer) or intermediate ( internal “customer”). Performance: o cost o quality o responsiveness o reliability o conformance to standards, regulations

31. Business Process Architecture: o The set of work steps or activities that are performed within the work system o These may be relatively structured (prescribed and repetitive) or unstructured. Performance: o output rate o productivity o consistency (including error rate) o integrity, security

32. Performance: o output rate o productivity o consistency (including error rate) o integrity, security

33. Participants Architecture: o The people who perform the work steps in the business process. o A participant may also be a customer. Performance: o job satisfaction o motivation o attention to tasks o skills level o illegal activity

34. Information Architecture: o The information used by the participants to perform their work. o Includes information created (or modified) within the work system and information “imported” from outside. o Includes information “computerized” and not. Performance: o quality (accuracy, relevance, timeliness) o accessibility o presentation o security

35. Technology Architecture: o The hardware, software, and other tools & equipment used by the participants in doing their work. o Includes computer & telecommunications technologies, plus “manual” technologies. Performance: o functional capabilities (what it does) o ease of use o TCO (total cost of ownership) o maintainability o compatibility

36. Infrastructure o The shared technical and human resources the work system in question relies on, even though these resources exist and are managed outside of it. o The technical side is pretty obvious… e.g., networks, shared databases, etc. o More readily overlooked: the human aspects of infrastructure, e.g., I.S. personnel, training staff. o (The IT infrastructure is a crucial source of the organization’s capabilities in information integration… More on this later.)

37. Context o The organizational, competitive, technical, and regulatory realm within which the work system operates. o A.k.a. environmental factors: The system doesn’t rely on them in order to function (so they’re not part of the infrastructure), but they still affect the system’s performance. o Examples: management support, organizational culture, internal political environment, labor markets, governmental regulation, competitive factors, …

38. Examples of Work Systems • For each of the following people roughly speculate on the work system around them • Briefly summarize: • Customer, Context and Product • For each element.. • Architecture • Performance

39. Examples of Work Systems Analysis • INKE, Fight Club: • Would you like Fries with that? The store manager at McDonalds • SuperBowl Week.. Defensive Coordinator for the STBWC Oakland Raiders • A Team, Great Wine: Spring Break is coming… • Cruise Director on the Love Boat (old TV Series) • Wine Buyer for a Hotel Restaurant • BANCS, Crutch: • New Account Officer for the Bank • Ski Slope Operator

40. Introduction • Chapter 5 enables a manager to understand how IT enables business change. • The chapter looks at: • Change management. • The need for increased speed of change in order to stay competitive. • Business Process Reengineering (BPR) and Total Quality Management (TQM) as tools to support changes in business processes.

41. Transforming business processes • What are business process? • Some examples? • How do they work? • Why would they need to be changed?

42. Figure 5.1 Hierarchical Structure Executive Offices CEO President operations marketing accounting finance administration

43. Limits to functionally organized organizations • Functionally organized firms tend to perform sub-optimally for three reasons: • Individual departments duplicate information maintained elsewhere. • Communications gaps often exist between functional groups. • Functional structure tends to become ingrained, inhibiting reorganization.

44. Managing from a business process perspective • Functional organization tends to result in lower performance, • As a consequence managers may take a business process perspective on value creation.

45. Figure 5.2 Simple business process • Each business processes includes the following: • A beginning and an end • Inputs and outputs • Subprocesses that turn inputs into outputs • A set of metrics for measuring effectiveness Receive requirement for goods/ services Create and send purchase order Receive goods Verify invoice Pay vendor Processes cross functional boundariesFocus on the process tends to get functions out of their silosand think about the business as a whole

46. Figure 5.3 Cross-functional nature of business processes Functions O P E R A T I O N S M AR KETING A C COUNTING F I N ANCE A D M I N Business Processes

47. Optimizing value • Taking a process perspective begins to optimize the value that customers and stakeholders receive. • A process focus creates value by: • Identifying the customers of processes • Identifying these customers requirements • Clarifying the value that each process adds to the overall goals of the organization • Process-oriented managers also become change agents, helping others think about how IS and organizational strategies support overall business strategy (Figure 5.4).

48. Radical vs. Incremental Change • Two broad categories of process improvement techniques are now in use: • TQM • Business Process Reengineering

49. Total Quality Management (TQM) • What is it? • Why does it work? • Anybody been involved in a TQM effort?

50. Business Process Reengineering (BPR) • Goal is to fundamentally rethink and redesign business processes to achieve radical improvements. • Key aspects of BPR include: • The need for radical change • A cross-functional process perspective • Challenging old assumptions • Networked (cross-functional) organizing • Empowerment of individuals involved in the process • Use of metrics tied directly to business goals