IT Management Challenges Business Process Reengineering Works

IT Management Challenges

Business Process Reengineering works with changes in structures and processes within the business environment. Information technology plays a highly critical part in BPR as it deals with the provision of office automation, gives an allowance for companies to make quick deliveries, work in a flexible manner, and operate in different locations. In addition, new technologies are helping organizations to have paperless transactions. In simple terms, BPR allows an efficient and effective change in the form in which work is performed (Davenport & Beers, 2005).

Describe how you see your role in integrating software, hardware, and business management capabilities.

As the head of IT management team, I would bring transformational solutions to magnum by sharing perspectives and commissioning research. Faster deployment and lower costs would shrink IT budgets, and exert pressure to deliver quality using less. Although, the new softwares integrated in the system would come with challenges, each challenge will be properly handled. To address such concerns, I will commission a research on the best way of integrating new applications into magnum's legacy environment. I will help the company with guidance by weighing the benefits new technological applications and recommend alternative integration options. Applications such as Saas would be of immense benefit to the company: it needs less cost in order to function; payments can be predicted based on usage, quick implementation, and minimum needs for IT support staff. This application provides the best security, recovery and back up procedures in place (Cunningham & Froschl, 2009).

I will use the Saas application in order to manage any security risks. Magnum worries that information and data that live on shared infrastructure such as websites can be hacked by other users of the infrastructure. However, experts have raised concerns over the issue that the availability of this software. Unlike other softwares, which are traditionally installed, and are available once the computer is switched on, Saas can only be accessed if the computer is connected to fast internet. This concern is not justified because a simple business email containing company information and data can be violated. As a Saas expert, I will be able to secure information and data either within or outside the company using disaster recovery procedures. I will manage issues associated with hacking and privacy by designing and implementing the best security measures. This will demonstrates that Magnum's environment is secure (Chang, 2000).

In order to attain better efficiency, quality and more competitive production, BPR is an organizational style, which demands radical redesigning of the business process. It also improves operation and thus the outputs of the organization. This considers the analysis and alteration of the business processes in the organization. It has been established implementation of modern information technology does not deal with automation of managerial and production tasks only, it has a direct and the enormous impact on the quality of work done. As an IT expert, I will put to practice BPR to improve productivity and gain competitive advantage. Frequently mentioned problems which are related to BPR, include incapability to predict the result of a radical change accurately, difficulty in capturing existing processes in a formulated way, insufficiency of creativity in process redesign, the level of cost incurred while implementing the new process, or incapability to recognize the dynamic nature of the process (Davenport & Short 2000).

I would use CPI to integrate styles such as industrial engineering, total quality management, technical design, and analyzing designs and systems. Programs and initiatives that give emphasis on the incremental improvement in work processes and outputs are what I will use to ensure continuous improvements. Many researchers give the suggestion that the use of CPI increases dramatic gains (Davenport & Beers, 2005). For a project to be renovated thoroughly and effectively, some certain conditions should be met by Magnum before they can start a project. First, Magnum should get rid of previous regulation procedures and rules. I would recommend that people should learn to think inductively about technology throughout the reengineering process. Rules limiting the way in which work is performed are broken during application of information technology. Other organizational and production principles that are inadequate should be abandoned. Organizations such as Magnum are rethinking their business processes due to global competition, economic downturn, and the potential offered by new entrants (Davenport & Linder, 2004).

2. What challenges do you anticipate encountering as head of the IT management effort at Magnum?

Technological software and hardware can evolve as a barrier if they are not suited to support a process-based organization. For organizations that seek to store their high investment in hardware and software, this barrier is popular hoping that, the existing legacy system will serve the process requirements, as well. Information technology suppliers continue to run for process-oriented solutions. In addition, they have pointed their research and product development towards process based information technology solutions. A relative number of vendors have not been able to protect their investment and have faltered (Cunningham & Froschl, 2009).

In the e-business world, firms such as Magnum go through additional uncertainty, increasingly complex technology, and a greater pressure for speed. Its projects grow bigger and more intrusive, which guides to the structural challenges earlier mentioned. We can no longer avoid talent related challenges. E-business looks at increasingly involving organizational core competency so their source can be traced. Little can be done to retrieve, attract, retain, and gain ways of staying with those Gen Xers that are non-conforming and scarce. Recruitment, which is nowadays online, has become fearfully aggressive (Davenport, 2003).

3. By serving as the centerpiece of software, hardware, and management capabilities, how the efforts of you and your team make Magnum a better organization?

My team would give the service of a facilitator by saving time and application efficiency like business modeling and computer tools that are aided. This technology can have an effect on both the product design and process design, which is through its analyzing, structuring, and designing capabilities. IT in its first case is an initiator or driver, and this is mostly seen with firms that sell IT as they include reengineering solutions. The modeling of business, confirming the data, and stimulating CASE tools are an example of IT process designing which we will implement at Magnum (Davenport & Beers, 2005).

In the renovation of business process, my team would play a key role. In any way, higher levels of procedures are more of negative than positive results. Although, some of the goals of actions give an outcome of positive results, they create a barrier to managers from discovering opportunities that are of redesigned business process. First, we will look at the business process in order to know if their designs are good and are prepared for implementation into the new IT system. It is only then that Magnum can put expectation on quality improvement and reduced costs (Davenport & Short 2000).

Strategies of an organization and the cultural corporate improvement are an essential aspect to enable business process renovation. There has been a discovery of links between the success to strategic plans of corporate and reengineering initiation (Davenport & Beers, 2005). We have also made explorations on how the system function of information could have an effect on reengineering initiative considering its maturity and influence. In addition, we must consider that IT mostly deals with an enabling role in order to alter with patterns of tradition and how work flows through projects reengineered. We have also established that informative business processes would give rise to many changes and enhancements at Magnum. Emphasis will focus on the strong effect IT has on standardization in several of business processes. Therefore, informatization will work better for the process that improves successful implementation. The strategy for implementing IT or BPR infrastructure comes from organizational strategy. This will facilitate the effective alignment and the success of business re-engineering project (Davenport, 2003).

The international network is a very vital aspect of information system for organizations such as Magnum. Companies have developed their new online models of their businesses through the internet. This has changed the normal ways in which organizations operate with external fraternity. Organizations have opted to build on their relationship with suppliers, implement product developments that are new and attractive, and inter-change functional information on a variety of issues. Internet as the global village assists organizations in integrating processes of business re-engineering projects (Davenport & Linder, 2004).

Part 2

1. Why is it important to take into account the views of operations, marketing, finance, and legal when working on strengthening e-business capabilities?

An effective re-engineering requires an organization re-organize its operational functions and structure according to the service or product offered. An organization must take into consideration the value chain, which involves linear business activities such as sales, production, and design. The organization employs these processes in order to deliver value to customers. As Michael Porter describes, these value chain processes of delivery seeks to attain efficiency and reduce costs through reducing costs and increasing efficiency of the business process. An organization can outsource each process because they are separable and independent steps. Nevertheless, the value chain does not explain the number of service oriented businesses in operation. Businesses can develop additional concepts of value network and value shop in order to handle different businesses (Cunningham & Froschl, 2009).

Businesses must be aware of the value that networks rely on growth for attracting additional customers. When there is an increase in the numbers of people using value network, the network becomes a site where transactions are made. This means that each participant must value the value network. The strategy of dominating on the networkforces other industry players to on the network to follow suit. Nonetheless, such competitors fail to reach the limits and end up merging with leading companies like eBay (Davenport & Beers, 2005). Companies going global through e-business must know how to manage their finances globally. Companies can use strategies that allow an array of accounting entries to be made in one transaction. This has been accepted locally and globally by the global accounting principles. Accounting principles such as GAAP allows businesses to remain consistent in their financial reporting while meeting local requirements. Businesses intending to go online can use new ledger software that offers the ability to merge legal applications into an organization's accounting system. All business parties can access a centralized trading platform through one data model. Through a centralized system of managing tax, businesses can obtain solutions by configuring their tax application and simplifying their financial reporting (Davenport & Short 2000).

The legal, business environment is directly affected by leading political powers, which carry the popular support from citizens of the area. For example, if the citizens are into big business, then there is a probability that the taxes will be modest. In addition, the rules regarding the environment will be linear. If the citizens appear to be pro-safety, there will be intense regulations and rules governing environmental and transport safety. This will make it more costly for foreign companies that have to ship their products. The policies and regulations developed by politicians may significantly affect the cost of operating any business. Further, these rules can have significant impacts on how businesses market services and products. For example, some countries have placed severe regulations on tobacco and alcohol advertisements (Davenport & Linder, 2004). The following are some of the examples, which might influence a business:

I. Rules that govern how a business interacts with companies overseas

II. Laws and regulations that limit or restrict importing and exporting

III. Laws that limit how foreign companies operate

IV. Rules and regulations that reflect cultural and social changes in the demographic framework of citizens

V. How special interest governments influence the national government

2. What are key technical challenges you will encounter in re-engineering the e-business function at Magnum? How can these be addressed (provide brief suggestions).

The challenge of technology is unenviable to all businesses including traditional organizations operating in the e-business environment. Technology has become a strategic necessity with which lies the survival of any organization. The only problem associated with technology is the fact that it is both easily imitable and infinitely innovative. Constant innovation efforts can be a source of competitive advantage and is easy to imitate these them thus masking the competitive advantage. For example, magnum may have used technology for tracking inventory (Cunningham & Froschl, 2009).

Despite the substantial benefits, the information system may not be central to the organization's ability to battle competition. I would recommend that Magnum must adopt systems for tracking inventory that coordinate with suppliers and monitor sales. As Magnum develops e-business, the company must harness web technology in order to design attractive, secure, and easy to navigate websites. All this is on the assumption that the new technology will enhance transactions within the business. Through the new technology system, Magnum will be able to obtain information that will facilitate their decision-making and battle the rapid technological changes. The company can become an e-business and offer the capability of online transactions. This will enable investors to have the ease of managing their portfolios (Chang 2000)

Although technological systems aid in decision-making, they are constantly changing and this shows that managing technology is a considerable challenge. Most people will view Magnum as a discount brokerage that has developed into an e-business company. Such brokerage would allow Magnum to attract additional investors. On the contrary, Magnum does not see itself as an investment brokerage. The company is experiencing problems because it has t fight in order to stay ahead of technological advancements. In order to ensure that needs and demands of customers are met, Magnum has to manage their product portfolios. The company is operating on the risk of losing its mission but has acknowledged the central importance of technology in fulfilling their mission (Davenport, 2003).

Magnum can obtain value through e-business in different ways. To begin with, they may obtain value from reduced costs through eliminating role duplication among the business units. Similarly, by creating one face, customer service will be enhanced. In addition, online procurement procedures can cut down on inventory thus increasing the purchasing power: this is likely to drive down costs of materials. While re-engineering the e-business function within Magnum, the integration challenge is likely to be paramount (Chang 2000). The various business segments are traditionally functioning with relative autonomy. This structure promotes a strict accountability and provides an entrepreneurial mindset for the business. In order for the company to realize, the benefits associated with e-business, the company must forfeit some of their autonomy in the autonomous business units.