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The Role Of Information Technology In Business Process Reengineering In The Contemporary Business Firm:

2527 words - 11 pages




The Role Of Information Technology In Business Process Reengineering In The Contemporary Business Firm:
A Case Study Of A Leading Bank In Kenya.

Prepared by
Paul B. Mureithi
Reg. No. 5NB100/01
April 2003.


|1 |Research Topic |1 |
|2 |Background |1 |
|3 |Research ...view middle of the document...

Many customers have a fairly developed sense of value for money. Organizations thus find themselves continually striving to meet and exceed these constantly changing needs.

These changes in business conditions have resulted in many tactical adjustments to processes in response to customer demands. Entrenched company policies/culture have also caused similar adjustments to business processes. In some cases, technology has been applied in an attempt to fix ailing processes, and to take care of changing environmental needs for the business. Often, this has forced many organizations to add resources and develop workarounds in order to even implement technology. In so doing, processes have gradually become cluttered, inefficient and stale.

Organizations tend to become set in their ways over time. They inherit a mix of traditions from their past and/or their industry, and more modern organizational inventions. As resources and customer expectations continue to shift and change, organizations have come to challenge the traditions, norms and paradigms that exist in them, critically assessing their value to the organization and its stakeholders. The concern of many organizations is that there is an expanding discrepancy between technological change and the organizational change responses.

A business process can be described as a specific arrangement of activities across time and place, with a beginning and an end, and with inputs and outputs.[1] It aims at producing an output that supports the achievement of a firm’s targets, and cuts across functions, departments and in some cases across boundaries of an organization. Business processes are simply a set of activities that transform a set of inputs to a set of outputs.[2]

Business process reengineering involves the analysis, simplification and redesign of business processes. Redesign of business processes is the analysis and design of workflows and processes within organizations to achieve breakthrough improvements in performance measures. Business process reengineering reorganizes workflows and combines steps to cut waste, thus eliminating repetitive non-value-adding tasks. It can be seen as a rigorous management method of fundamentally rethinking and redesigning how an organization accomplishes its work. The redesign should yield a dramatic improvement in customer satisfaction, rationalization of costs, timeliness and quality of goods and services produced as well as the organization’s responsiveness to customer requests, problems and needs. The redesign can either be radical or incremental, but should tend towards bold change in a relatively short time. The redesign will likely capitalize on the use of innovative technology. By using information technology, organizations can rethink and streamline their business processes to improve speed, service and quality. The basic premise of business process reengineering is that enterprises can no longer excel with fixed, static organization setups...

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