Information TechnologyAssessing The Impact on Process Innovation

Impact

• Client• Internal processes• Inter-organizational processes

IT Impact on Process Innovation

• Automational• Informational• Sequential• Tracking• Analytical• Geographical• Integrative• Intellectual• Disintermediating

Automate

Capture and use information

Share and distribute information

Impact and IT

Automation Capture and use information

Share and distribute information

Client

Internal

Inter-organizational

Key questions

• What capability does a particular information technology give me?

• Can I afford the upfront capital costs?• Can I afford the maintenance costs?

AutomationalEliminate human labor from process

• Value created for clients:– Speed up the process of service e.g. ATMs, electronic tax-filing, grocery

checkout– Decreases chances of “clerical error”

• Value created for internal processes– Cuts in unskilled labor

• “Labor cost” savings only result if capital expenses of IT plus hiring of IT maintenance personnel do not exceed costs of unskilled labor

– Decreases in errors/deception• Cash “leakage” in situations where cash-handling is replaced by automation• Data-entry – automation may cut number of times data are entered

– Transfers responsibility of data-entry to clients

• Inter-organizational value– Improved supply chain management– Clear assignment of responsibility for action (minimizes chance of something

getting “lost.”)

InformationalCapturing information

• Client– Easier access

• 24/7 when combined with automation – web-based, automated telephones

– In format that is ready for analysis• Government statistics such as census bureau

– Increases variety of formats – visual (pictures, text-based), oral• Internal processes

– Effective informational capture in format ready for analysis• Measurement techniques• Speed at which information is available

– Enhanced when automated – water district gathers information automatically from each home

• Inter-organizational– Improved coordination through sharing of information

SequentialChanging the process sequence

• Clients– Ease of record retrieval when dealing with customer service representative

• Ability to “pull up your record” in real time – IRS case next time– Push information onto clients that they can then respond to, rather than have

them seek the information• listservs

• Internal processes– Scanned documents can be “worked on” by more than one person at a time

without a pile up of paper– Networked, shared documents can be worked on in parallel

• Inter-organizational– Ability to work on a project in parallel across organizational lines– Push information onto potential partners

• Sign up for automatic notification of bidding opportunities, e.g. State of Washington WEBS

– http://www.ga.wa.gov/WeBS/index.html

TrackingGoods and services through the process

• For clients, internal processes, and inter-organizational relations– Ability to identify easily where WIP is in process– Ability to identify easily when steps in process will

take place• E.g. FedEx, UPS, Post Service systems

– UPS “Brown” ads highlight the utility of third-party tracking system for internal and inter-organizational tracking

AnalyticalAnalyze information you have gathered

• IT is good at producing information, but that information must be analyzed and used

• Client benefits from– Potential for greater objectivity and transparency

• E.g. Automated Underwriting and Credit Scoring?– Ability to conduct own analysis on data from agency

• Internal processes– Rapid flow of information, and automated aggregation and

manipulation of data allow for quicker decisions• MIS in microfinance

• Inter-organizational– Potential for more responsive coordination if information-sharing in

the right format is possible

GeographicalA particular type of information

• Geographical information is simply a particular type of information• In public sector and non-profit situations, much of the value-delivery and –creation is

location-specific– Government jurisdictions– Service areas

• Client impact– Able to identify services available to them geographically – plug in an address to a school district web

site and you can find which school your child will be going to; then check the test scores of that school; then decide whether you want to buy the house at that address

– Ease the ability to cross jurisdictional boundaries – bar-code scanning of passports• Internal processes

– Ease boundary-drawing tasks– Control borders more effectively– Establish transportation routes more efficiently – on-line grocery stores set up routes for delivery

trucks flexibly on a “just-in-time” basis• Inter-organizational processes

– Clear boundary delineations– Effective border control can improve relations – “good fences make good neighbors”

IntegrativeIT that integrates all components of the organization

• Client– One-stop shopping

• Internal processes– Decrease duplication of data-entry– Real time, integrated information

• Inter-organizational– Potential to share information in an integrated manner – updating

internal information also updates relevant external information• SAP – the integration of financial and operational data to

provide real time data on financial and operational status of organization– E.g. ordering a part results in the automatic upgrading of the financials

as well as the status of parts inventory

IntellectualCapturing situation-specific information

• Knowledge databases• How good are they at tapping tacit

knowledge?