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System Development & Organizational Change



Building a new information system is one kind of planned organizational change. The
introduction of a new information technology involves much more than new hardware &
software. Information technology can promote various degree of organizational change, ranging
from incremental to far-reaching. The four major kind of structural organizational changes
enabled by information technology are given below which carry different rewards & risks:
1. Automation: The most common form of IT-enabled organizational change is automation.
Information technology involves assisting employees performing their tasks more efficiently &
effectively. The examples of early automaton are calculating paychecks & payroll registers,
giving bank tellers instant access to customer deposit records, and developing a national wide
network of airline reservation terminals.
2. Rationalization: a deeper form of organizational change one that follows quickly from early
automation-is rationalization of producers. Rationalization of producers is the streamlining of
standard operating producers whereas automation frequently reveals new bottlenecks in
production & makes the existing arrangement of procedures & structures painfully cumbersome.
Without this rationalization of procedures, the new Web services software & associated
technology would not have been so useful which helps redesign business processes, work flows,
& user interfaces.
3. Reengineering: A powerful type organizational change is business process reengineering, in
which business process is analyzed, simplified, and redesigned. It can help organization rethink
and streamline their business process to improve speed, service, & quality. It recognizes work
flows, combining steps to cut waste and eliminating repetitive, paper-intensive tasks. It is much
more ambitious than rationalization of producers, requiring a new vision of how the process is to
be organized.
4. Paradigm shift: The more radical form of business change is called a paradigm shift which
involves rethinking the nature of the business & the nature of the organization. Paradigm shift &
reengineering often fail because extensive organizational change is difficult to orchestrate. Yet
many corporations contemplate such radical change because the rewards are equally high like
achieving stunning, order-of-magnitude increase in their productivity/ returns on investment. A
new information system development causes the above changes which, in fact, affect specific
business process & the organization as a whole.

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