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Government Business Process Transformation: From Automation to Paradigm Shift From Localized Exploit

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Title: Government Business Process Transformation: From Automation to Paradigm Shift From Localized Exploit


1
Government Business Process Transformation
From Automation to Paradigm Shift From
Localized Exploitation to Business Scope
Redefinition
Dr. Cletus K. Bertin E-Government Sectoral
Development in Caribbean States Charting an
Agenda for Action Commonwealth Network of
Information Technology for Development
(COMNET-IT) Workshop February 10th -12th, 2004

Castries, Saint Lucia
2
Presentation Outline
  • Range and Levels of IT-enabled Change
  • Drivers for Business Process Transformation?
  • Process Transformation the Eastern Caribbean
    Tourism Sector
  • Organisational Lag From Technological
    Innovation to Process Innovation

3
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4
Range of Organizational Change
  • AUTOMATION Using technology to perform current
    tasks more efficiently effectively
  • RATIONALIZATION OF PROCEDURES Streamline
    Standard Operating Procedures eliminate
    bottlenecks
  • BUSINESS REENGINEERING Radical redesign of
    processes to improve cost, quality, service
    maximize benefits of technology
  • PARADIGM SHIFT

5
PARADIGM SHIFT
  • PARADIGM a Complete Mental Model of how a
    Complex System Functions
  • A Paradigm Shift Involves
  • Rethinking the Nature of the Business,
  • Overhaul of the Organization
  • A Complete Reconception of How The System Should
    Function

6
RISKS REWARDS
7
Levels of Organisational Transformation
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9
Levels of Organisational Transformation
10
Levels of Organisational Transformation
11
Levels of Organisational Transformation
12
Business Process Redesign
  • Reengineering of key processes to derive the
    organizational capabilities for competing in the
    future
  • Benefits from IT functionality cannot fully be
    realized when superimposed on current business
    processes, however integrated they may be

13
Levels of Organisational Transformation
14
Business Network Redesign
  • Elimination of activities where the focal
    organization may not have the required level of
    competence
  • Exploration exploitation of sources of
    competence in the larger business network (beyond
    what is available within the focal organization)

15
Business Network Redesign
  • Redesign of the nature of exchange among
    participants in a business network through
    effective deployment of IT capabilities
  • Exploiting the IT function to learn from the
    extended network, as well as to enhance
    coordination and control

16
Levels of Organisational Transformation
17
Why TransformWhy Reform?
  • Fundamental question what is the reason for
    business process redesign?
  • Is it to rectify current deficiencies or to
    create capabilities for tomorrow?
  • Characterised as seeking efficiency and
    enhancing capacities, respectively.

18
Efficiency vs Capacity?
  • Enhancing capacity, as opposed to Seeking
    efficiency
  • Catalyst for more substantial meaningful
    organisational change
  • The driver being business processes
    eventually, intellectual capital, relationships
    and cooperation

19
Efficiency vs Capacity?
  • As opposed to being driven by technological
    infrastructure and software applications.
  • The approach needed for successful BPR process
    redesign is enhancing capacity.
  • This entails the creation of strategic
    capabilities for future competition increased
    collaboration

20
Enhancing Capacity
  • Starts with the articulation of business scope
    and the corresponding logic for business network
    redesign, in order to specify which business
    processes need to be redesigned and under what
    guiding conditions

21
Levels of Organisational Transformation
Seeking Efficiency
Enhancing Capacity
22
Why Tourism?
23
Why Tourism?
Source Forrester Research, 2002
24
Why Tourism?
  • Average contribution of visitor expenditure to
    GDP for the OECS - 45
  • Approximately three (3) million jobs
  • Generated US37.4 billion in economic activity in
    2001
  • Thirty one percent (31) of the regions gross
    domestic product (GDP)
  • The Caribbean is the most tourism dependent
    region in the world (World Travel and Tourism
    Council, 2002).

25
Conception-Reality Gap Analysis
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28
Tourism
  • The difficulty lies in different levels of
    understanding and appreciation for technology
    within the organisationthis is needed to enable
    a greater degree of transformation, to take it to
    the next levelbut not everyone is ready for that
    higher level of change

29
Management
  • Top-down management reinforces fear, distrust and
    internal competition and reduces collaboration
    and cooperation
  • It leads to compliance, but a high capacity to
    change requires commitment

30
Structure Gaps
  • Bureaucracy has been design to resist change
    (Waterman, 1990).
  • It is necessary for establishing consistency and
    stabilitybut hierarchies make the free exchange
    of knowledge more difficult and thus, limit the
    organisational capacity to change. (Gretzel, Yuan
    and Fesenmaier, 2000)

31
Qualitative Data
  • Top management, while acknowledging that the
    Internet is necessary, do not fully grasp how it
    should be integrated into current programmes

32
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Organizational Lag
  • Process innovations in organisations tends to lag
    behind Technological innovations
  • Technological innovations
  • are more observable
  • have higher trialability
  • are perceived to be relatively more advantageous
    and less complex than administrative innovations.

34
Organizational Lag
  • Between administrative innovation and
    technical innovation
  • Between technological innovation and process
    innovation
  • Technological innovation is an enabler of process
    innovation.

35
Organizational Lag
36
Recommended Reading
Reinventing Government in the Information Age
International Practice in IT-enabled Public
Sector Reformby Richard Heeks (Editor)
37
Recommended Reading
  • Bajjaly, S. (1999), Managing Emerging
    Information Systems in the Public Sector, Public
    Productivity and Management Review, volume 23,
    number 1, pp. 40-47.
  • Bellamy, C. and Taylor, J. (1994), Exploiting
    Information Technology in Public
    Administration-Towards the Information Polity?
    Public Administration, volume 72, Spring, pp.
    1-12.
  • Benjamin, R. and Levinson, E. (1993), A
    Framework for IT-Enabled Change, Sloan
    Management Review, Summer.
  • Butler, R. (1994), Reinventing Government A
    Symposium, Public Administration, volume 72,
    summer, pp. 263-270.
  • Grint, K. (1994), Reengineering History Social
    Resonances and Business Process Reengineering,
    Organization, volume 1, number 1, pp. 179-201.
  • Halachmi, A. (1996), Business Process
    Reengineering in the Public Sector Trying to get
    another frog fly?, National Productivity Review,
    Summer, pp. 9-18.

38
Recommended Reading
  • Halachmi, A. and Bovaird (1997), Process
    Reengineering in the Public Sector Learning Some
    Private Sector Lessons? Technovation, volume 17,
    number 5, pp.227-235.
  • Venkatraman, N. (1994), IT-Enabled Business
    Transformation From Automation to Business Scope
    Redefinition, Sloan Management Review, Winter
    73-87.
  • Willcocks, L.P. and Mark, A.L. (1989), IT
    Systems Implementation Research Findings from
    the Public Sector, Journal of Information
    Technology, volume 4, number 2.
  • Willcocks, L.P. Carrie W. and Jackson S. (1997),
    In Pursuit of the Reengineering Agenda in Public
    Administration, Public Administration, volume,
    winter, pp. 617-649.
  • . www.e-devexchange.org

39
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