Process Innovation: Reengineering Work Through Information Technology
The business environment of the 1990s demands significant changes in the way we do business. Simply formulating strategy is no longer sufficient; we must also design the processes to implement it effectively. The key to change is process innovation, a revolutionary new approach that fuses information technology and human resource management to improve business performance. The cornerstone to process innovation's dramatic results is information technology--a largely untapped resource, but a crucial "enabler" of process innovation. In turn, only a challenge like process innovation affords maximum use of information technology's potential. Davenport provides numerous examples of firms that have succeeded or failed in combining business change and technology initiatives. He also highlights the roles of new organizational structures and human resource programs in developing process innovation. Process innovation is quickly becoming the byword for industries ready to pull their companies out of modest growth patterns and compete effectively in the world marketplace.
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achieve activities activity-based costing agement analysis applications approach aspects automated behavior benefits Boston business process business process improvement business unit Chapter communications companies competitive computers context corporate cost create cross-functional cross-functional teams culture databases Digital Equipment Corporation discussed electronic employees enablers of innovation enablers of process environment example executive information system executives existing process expert systems firm's firms focus Frito-Lay functions goals Harvard Business Review Harvard Business School human resource identified implementation important industry information engineering information systems information technology integrated involve logistics major manufacturing marketing mation measures ment novation operational order management process organization organizational change planning proc process change process design process improvement process innovation initiatives process objectives process vision product development programs prototyping Rank Xerox redesign relationship role senior management Shoshana Zuboff specific strategy structure successful suppliers tegic tion workers Xerox
Page 7 - In definitional terms, a process is simply a structured, measured set of activities designed to produce a specified output for a particular customer or market.
Page 3 - Objectives of 5% or 10% improvement in all business processes each year must give way to efforts to achieve 50%, 100% or even higher improvement levels in a few key processes. Today, firms must seek not fractional, but multiplicative levels of improvement - lOx rather 10%.
Page 3 - Davenport (1993a, p. 1): process innovation combines the adoption of a process view of the business with the application of innovation to key processes.