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Unit 2: ERP and Related Technology




          The Myth of Re-engineering Novelty: Re-engineering, although about familiar concepts, is new in   notes
          that these concepts are combined in a new synthesis. These key components have never been together
          before.
          The  Myth  of  the  Clean  Slate:  Regardless  of  Hammer’s  (1990)  exhortation,  “Don’t  automate,
          obliterate!” clean slate change is rarely found in practice. Or, as Davenport and Stoddard (1994)
          state, A “blank sheet of paper” used in design usually requires a “blank check” for implementation.
          Hence,  a  more  affordable  approach  for  most  companies  is  to  use  Clean  Slate  Design  which
          entails a detailed vision for a process without concern for the existing environment. However,
          the  implementation  is  done  over  several  phased  projects.  Also  supported  by  preliminary
          findings of Stoddard & Jarvenpaa 1995: their findings ran contrary to Hammer (1990), “although
          re-engineering can deliver radical designs, it does not necessarily promise a revolutionary approach
          to change. Moreover, a revolutionary change process might not be feasible given the risk and cost
          of revolutionary tactics.”

          The Myth of Information Systems Leadership: In contrast to the much touted leadership role,
          Information Systems (IS) is generally viewed as a partner within a cross- functional team that
          is generally headed by a non-IS project leader and a non-IS business sponsor who have better
          control over the processes that are being redesigned.
          The Myth of Re-engineering vs. Quality: Unlike Hammer & Champy’s (1993) call for all out
          “radical  change,”  most  companies  have  a  portfolio  of  approaches  to  organizational  change
          including re-engineering, continuous improvement, incremental approaches, and restructuring
          techniques.
          The Myth of Top-Down Design: The implementation and execution of the redesigned processes
          depends upon those who do the work. Hence, the participation, and more importantly, acceptance
          and ownership, at the grass roots level is essential for successful BPR.
          The  Myth  of  Re-engineering  vs.  Transformation:  BPR  is  a  process  that  contributes  to
          organizational transformation (OT), however it is not synonymous with transformation. OT is
          defined as, “Profound, fundamental changes in thought and actions, which create an irreversible
          discontinuity in the experience of a system” (Adams 1984). OT is generally about the emergence
          of a new belief system and necessarily involves reframing, which is a discontinuous change in
          the organization’s or group’s shared meaning or culture. It also involves broad changes in other
          organizational dimensions besides the work processes: such as organizational structure, strategy,
          and business capabilities.
          The  Myth  of  Re-engineering’s  Permanence:  Davenport  &  Stoddard  (1994)  speculate  that  re-
          engineering has peaked in the US in 1994 and would probably become integrated with much
          broader organizational phenomena: such as another synthesis of ideas that includes the precepts
          of re-engineering; its integration into existing change methods; or its combination with quality
          and other process-oriented improvement approaches into an integrated process management
          approach.

          What is the relation between Bpr & information technology?

          Hammer (1990) considers information technology (IT) as the key enabler of BPR which he considers
          as “radical change.” He prescribes the use of IT to challenge the assumptions inherent in the work
          processes that have existed since long before the advent of modern computer and communications
          technology.  He  argues  that  at  the  heart  of  re-engineering  is  the  notion  of  “discontinuous
          thinking  –  or  recognizing  and  breaking  away  from  the  outdated  rules  and  fundamental
          assumptions underlying operations... These rules of work design are based on assumptions about
          technology, people, and organizational goals that no longer hold.” He suggests the following
          “principles of re-engineering”: (a) Organize around outcomes, not tasks; (b) Have those who use
          the output of the process perform the process; (c) Subsume information processing work into the
          real work that produces the information; (d) Treat geographically dispersed resources as though



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