In the spectrum of organizational change ,which is the most radical type of change: automation, rationalization of procedures, business reengineering, or paradigm shifts? (You are expected to read an article about this question) .. at least 3000 words
Organization, as defined by Wikipedia, is a social arrangement which pursues collective goals, controls its own performance, and has a boundary separating it from its environment. One thing that never change is that things are always changing.Change is a thing that we must all face. Other chnges are caused by advances in technology, particularly information technology. Orgnizations nowaday wants to create an organizzational environment that is accessible to change. The fast change in our environment affects every organization. In the range of organizational change, there are different manner of change in an organization. As elaborated from the given question, they are automation, rationalization of procedures, business reengineering and paradigm shifts.
The world is rapidly changing into something that no one can easily predict and rather difficult to calculate. Hundreds of opportunities and drawbacks passed every now and then. Many business companies today are thinking of what would be the best thing to do in order to survive and grow and be competitive with the others. There are numerous techniques, solutions and methods that was declared helpful enough in improving the productivity, quality and customer satisfaction in a business. To really understand organizational change, it would be much recommended that you willl begin by understanding the basic systems and structures in organizations. This also includes the typical terms and roles in an organization.
Discussing the effect of automation, rationalization of procedures, business reengineering and paradigm shifts would be a great help for us to know its role in organizational change. Elaborate their effects on the organization. In automation, there are two factors that are basically responsible for this change. This is based on the Air University Review of Lieutenant Colonel J.R Brown ( July-August 1967 ). First is the totalsystem concept, which is on input and data-base oriented, and the other is the improvement in computer communication links. There are numerous tactics to the subject of automation and its effect on organization. These approaches are concern with: assignment of programmers and systems analyst, management of the data processing functions, the possible change in organizational structure resulting from advancementsin the design and development of informationsystems and the speed. Automation uses the computer to speed up the performance of existing tasks. It is a common form of Information Technology enabled change. With automation, it enable to assist the employees perform their tasks more effieciently and effectively. Rationalization of procedures is the streamlining of existing operating procedures, eliminating obvious bottlenecks so that automation makes operating procedures more efficient. It follos quickly from the early automation. Example of rationalization of procedures is the Toshiba who had rationalize its procedures down to the level of installation manuals and software instruction and had to create standard names and formats for the data items in its global data warehouse. If we would try to think deeper, without a large amoutn of business process rationalization, computer technology would have been useless. Business reengineering or business process reengineering, as defined from my resources, is the main way which organizations become more effecient and modernize. Business process reengineering (BPR) transforms an organization in ways that directly affect performance. It is the key to transforming how people work. To be successful, BPR projects needs to be top down.Business Process Reengineering is the radical redesign of business processes, combining steps to cut waste and eliminating repetitive, paper-intensive tasks to improve cost, quality, and service and to maximize the benefits of information technology. Involves radical rethinking, can change the way organization conducts its business and it strikes fear, its expensive, very risky and its extremely difficult to carry out and manage. BPR builds a prototype of the new process, identify the opportunities in applying Information Technology, and understan and measure the performnce of existing processes. Paradigm Shift is a radical reconceptualization of the nature of busniess and the nature of the organization. Example of a paradigm shift is the e-business. Paradigm shift is new for me. So I surf the internet to know more about paradigm shift. Paradigm shift is defined as a means of revolutionary change in methodologies, systems and structures. It focuses more on the people’s movement. I have read a journal article excerpt that talks about organizational change as paradigm shift:analysis of the change process in a large, public university by Hasan Simsek and Karen Seashore Louis. According to what I have read, the term “paradigm” and “paradigm shift” are part of the popular language of change at the present time. The concept of paradigm is typically used to refer to any set of beliefs that swifts action. The article shares that organizations are defined by their paradigms and the radical change in organizations may be constued or a discontinous shift in this socially constructed reality.
I have read two articles from Yogesh Malhorta, the founder and chief knowledge architect of @Brint.com (a leading online sponsor of high-profile worldwide knowledge management and E-business events), which is entitled “Knowledge Management and New Organizational Forms: A Framework for Business Model Innovation” and “Knowledge Management for E-business Performance: Advancing Information Strategy to ‘Internet Time’”. Both articles discussed about the four type of change in the field of organizational change: automation, rationalization of procedures, business reengineering and paradigm shifts and both piece focuses on knowledge management.
As what I have understood, the impression about knowledge management is common and familiar in an information systems practice and research. Many companies use models of knowledge management that will match the industrial era. In the earlier period of information system, changes are relatively slow and predictable that most formal information system can translate and control. The traditional organizational business model aims to guarantee optimization and efficiencies that was based on developing agreements, junctions and observations. Throughout this age, information systems that was based on programs that will convey effectiveness based on the given business contexts.
Mentioned on the two articles of Malhorta, automation, rationalization of procedures and business reengineering is under the information-processing paradigm of knowledge management. Over the last few decades, information-processing view of knowledge management has been established and common in information systems practice and research. The evolution of the information-processing paradigm during the past four decades to build intelligence and manage change in business functions and processed over three phases: Automation, Rationalization of Procedures, and Reengineering.
The three phases are defined as follows:
Automation
- Increased efficiency of operations.
Rationalization of procedures
- Streamlining of procedures and eliminating obvious bottlenecks that are revealed by automation for enhanced efficiency of operations.
Reengineering
- Radical redesign of business processes that depends upon information technology intensive radical redesign of work flows and work processes.
The following three phases of information-processing paradigm are characterized by technology-intensive, optimization-driven, and efficiency-seeking organizational change. The operation of information technologies in each phases are build on a relatively predictable view of products and services as well as contributory organizational and industrial procedures.
If there is change, there is also risk. So, in an organizational change risks are always associated. Here is a figure that will show the three phases and its risk and relevant return.
If we will observe the figure given, in every phase there is an increase on the risk. In spite of the increase risk and the corresponding returns applicable to the three kinds of information technology allowed organizational change, there was a bit emphasis on business model innovation. The figure illustrates the old world of business. Most Net-based start-ups have realized that although technology is important, business model innovation is the key lever for global market share. Business model innovations represent paradigm shift that characterized not only the transformation at the level of business process and process workflows.
In the new world of business, achievements or disappointment for most project depends on the organization’s ability to continually question and adapt their programmed logic of the way things are done. The new world of business was described as a ‘world of re-everything’. The old world’s guidelines to achieve success would still exist side by side with the new world or world of re-everything. In this new world of business is more on understanding and adapting the unstoppable changing of environment.
I have to illustrations from the two article of Malhorta. And if we will try to observe them both you will see its similarities.
From the article entitled “Knowledge Management for E-Business Performance: Advancing Information Strategy to Internet Time”
From an article entitled “Knowledge Management and New Organization Forms: A Framework for Business”
As what I have observed on the two figures, new business models serve Paradigm shifts. The nature of business and the nature of the organization itself characterize paradigm shifts that are the trademark of business model innovation. An example of a new business models include Amazon.com and eToys, which are relatively new applicant that can threaten the traditional business models personified in organizations. Such business model innovations represent paradigm shifts that are characterized not on the transformation of the level of business process and process workflows but on the fundamental rethinking of the business as well as the dividing lines between an organization and the industry. The paradigm shift gives a bigger risk and larger returns than the combination of the automation, rationalization of procedures and business reengineering, which is part on the old world of business. The estimated risk and returns would be 70 percent.
Essentially, the corporate world is now encountering not only unprecedented pace of change but also radical discontinuities in such change that make yesterday’s best practices tomorrow’s core rigidities. In the new world of E-business, literally everything is up for grabs, including traditional concepts of industries, organizations, products, services, and channels of marketing, sales and distribution. The new world imposes a greater need for ongoing questioning of the programmed logic and for a very high level of adaptability to incorporate dynamic changes into the business and information architecture and grow systems that can be readily adapted for the dynamically changing business environment.
If we check the exhibit 4: From the “old world” to E-World Business: Knowledge Management for “Paradigm Shifts”, from automation wherein we replace humans with machine which means the work of the human is programmed into machine, then points into rationalization, a streamlining bottlenecks, and then point into reengineering, defined as information-technology-intensive radical redesign. These three are categorized as part of the old world, which then point towards the new world, or E-World of Business, a knowledge management for paradigm shifts.
If I were to choose which of the four, automation, rationalization of procedures, business reengineering and paradigm shift, is considered as the most radical type of change I guess all of them are radical but if I were to choose only one that would be the automation. As what I have understood the three first mentioned are all part on the old world of business and paradigm shifts belongs to the world of re-everything. The old world of business is still present on the today’s modern world of business. As the years increase, changes also escalate. However, what I considered as the fundamental or the original type of change is the automation. Why I choose automation? It is because the rapid changes in an organization are caused when human is changed with machines and information technology is always appearing now and then. In addition, without automating everything, there is still change but not that rapid. As what we have observed, everything is automated, computerized and work are becoming easy because of these innovations. Technology nowadays is fast evolving and throughout the years many new inventions and technologies are appearing. Therefore, I assume that the radical type of change in an organization is the automation.
Reference:
http://www.airpower.maxwell.af.mil/airchronicles/aureview/1967/jul-aug/brown.html
http://www.teamtechnology.co.uk/business-process-reengineering.html
http://www.jstor.org/pss/4105562
Articles:
Malhorta, Y. (2000). Knowledge Management for E-Business Performance: Advancing Information Strategy to Internet Time. @Brint.com LLC, USA.
Malhorta Y. (2000). Knowledge Management and New Organization Forms: A Framework for Business Model Innovation. @Brint.com LLC, USA.
Organization, as defined by Wikipedia, is a social arrangement which pursues collective goals, controls its own performance, and has a boundary separating it from its environment. One thing that never change is that things are always changing.Change is a thing that we must all face. Other chnges are caused by advances in technology, particularly information technology. Orgnizations nowaday wants to create an organizzational environment that is accessible to change. The fast change in our environment affects every organization. In the range of organizational change, there are different manner of change in an organization. As elaborated from the given question, they are automation, rationalization of procedures, business reengineering and paradigm shifts.
The world is rapidly changing into something that no one can easily predict and rather difficult to calculate. Hundreds of opportunities and drawbacks passed every now and then. Many business companies today are thinking of what would be the best thing to do in order to survive and grow and be competitive with the others. There are numerous techniques, solutions and methods that was declared helpful enough in improving the productivity, quality and customer satisfaction in a business. To really understand organizational change, it would be much recommended that you willl begin by understanding the basic systems and structures in organizations. This also includes the typical terms and roles in an organization.
Discussing the effect of automation, rationalization of procedures, business reengineering and paradigm shifts would be a great help for us to know its role in organizational change. Elaborate their effects on the organization. In automation, there are two factors that are basically responsible for this change. This is based on the Air University Review of Lieutenant Colonel J.R Brown ( July-August 1967 ). First is the totalsystem concept, which is on input and data-base oriented, and the other is the improvement in computer communication links. There are numerous tactics to the subject of automation and its effect on organization. These approaches are concern with: assignment of programmers and systems analyst, management of the data processing functions, the possible change in organizational structure resulting from advancementsin the design and development of informationsystems and the speed. Automation uses the computer to speed up the performance of existing tasks. It is a common form of Information Technology enabled change. With automation, it enable to assist the employees perform their tasks more effieciently and effectively. Rationalization of procedures is the streamlining of existing operating procedures, eliminating obvious bottlenecks so that automation makes operating procedures more efficient. It follos quickly from the early automation. Example of rationalization of procedures is the Toshiba who had rationalize its procedures down to the level of installation manuals and software instruction and had to create standard names and formats for the data items in its global data warehouse. If we would try to think deeper, without a large amoutn of business process rationalization, computer technology would have been useless. Business reengineering or business process reengineering, as defined from my resources, is the main way which organizations become more effecient and modernize. Business process reengineering (BPR) transforms an organization in ways that directly affect performance. It is the key to transforming how people work. To be successful, BPR projects needs to be top down.Business Process Reengineering is the radical redesign of business processes, combining steps to cut waste and eliminating repetitive, paper-intensive tasks to improve cost, quality, and service and to maximize the benefits of information technology. Involves radical rethinking, can change the way organization conducts its business and it strikes fear, its expensive, very risky and its extremely difficult to carry out and manage. BPR builds a prototype of the new process, identify the opportunities in applying Information Technology, and understan and measure the performnce of existing processes. Paradigm Shift is a radical reconceptualization of the nature of busniess and the nature of the organization. Example of a paradigm shift is the e-business. Paradigm shift is new for me. So I surf the internet to know more about paradigm shift. Paradigm shift is defined as a means of revolutionary change in methodologies, systems and structures. It focuses more on the people’s movement. I have read a journal article excerpt that talks about organizational change as paradigm shift:analysis of the change process in a large, public university by Hasan Simsek and Karen Seashore Louis. According to what I have read, the term “paradigm” and “paradigm shift” are part of the popular language of change at the present time. The concept of paradigm is typically used to refer to any set of beliefs that swifts action. The article shares that organizations are defined by their paradigms and the radical change in organizations may be constued or a discontinous shift in this socially constructed reality.
I have read two articles from Yogesh Malhorta, the founder and chief knowledge architect of @Brint.com (a leading online sponsor of high-profile worldwide knowledge management and E-business events), which is entitled “Knowledge Management and New Organizational Forms: A Framework for Business Model Innovation” and “Knowledge Management for E-business Performance: Advancing Information Strategy to ‘Internet Time’”. Both articles discussed about the four type of change in the field of organizational change: automation, rationalization of procedures, business reengineering and paradigm shifts and both piece focuses on knowledge management.
As what I have understood, the impression about knowledge management is common and familiar in an information systems practice and research. Many companies use models of knowledge management that will match the industrial era. In the earlier period of information system, changes are relatively slow and predictable that most formal information system can translate and control. The traditional organizational business model aims to guarantee optimization and efficiencies that was based on developing agreements, junctions and observations. Throughout this age, information systems that was based on programs that will convey effectiveness based on the given business contexts.
Mentioned on the two articles of Malhorta, automation, rationalization of procedures and business reengineering is under the information-processing paradigm of knowledge management. Over the last few decades, information-processing view of knowledge management has been established and common in information systems practice and research. The evolution of the information-processing paradigm during the past four decades to build intelligence and manage change in business functions and processed over three phases: Automation, Rationalization of Procedures, and Reengineering.
The three phases are defined as follows:
Automation
- Increased efficiency of operations.
Rationalization of procedures
- Streamlining of procedures and eliminating obvious bottlenecks that are revealed by automation for enhanced efficiency of operations.
Reengineering
- Radical redesign of business processes that depends upon information technology intensive radical redesign of work flows and work processes.
The following three phases of information-processing paradigm are characterized by technology-intensive, optimization-driven, and efficiency-seeking organizational change. The operation of information technologies in each phases are build on a relatively predictable view of products and services as well as contributory organizational and industrial procedures.
If there is change, there is also risk. So, in an organizational change risks are always associated. Here is a figure that will show the three phases and its risk and relevant return.
If we will observe the figure given, in every phase there is an increase on the risk. In spite of the increase risk and the corresponding returns applicable to the three kinds of information technology allowed organizational change, there was a bit emphasis on business model innovation. The figure illustrates the old world of business. Most Net-based start-ups have realized that although technology is important, business model innovation is the key lever for global market share. Business model innovations represent paradigm shift that characterized not only the transformation at the level of business process and process workflows.
In the new world of business, achievements or disappointment for most project depends on the organization’s ability to continually question and adapt their programmed logic of the way things are done. The new world of business was described as a ‘world of re-everything’. The old world’s guidelines to achieve success would still exist side by side with the new world or world of re-everything. In this new world of business is more on understanding and adapting the unstoppable changing of environment.
I have to illustrations from the two article of Malhorta. And if we will try to observe them both you will see its similarities.
From the article entitled “Knowledge Management for E-Business Performance: Advancing Information Strategy to Internet Time”
From an article entitled “Knowledge Management and New Organization Forms: A Framework for Business”
As what I have observed on the two figures, new business models serve Paradigm shifts. The nature of business and the nature of the organization itself characterize paradigm shifts that are the trademark of business model innovation. An example of a new business models include Amazon.com and eToys, which are relatively new applicant that can threaten the traditional business models personified in organizations. Such business model innovations represent paradigm shifts that are characterized not on the transformation of the level of business process and process workflows but on the fundamental rethinking of the business as well as the dividing lines between an organization and the industry. The paradigm shift gives a bigger risk and larger returns than the combination of the automation, rationalization of procedures and business reengineering, which is part on the old world of business. The estimated risk and returns would be 70 percent.
Essentially, the corporate world is now encountering not only unprecedented pace of change but also radical discontinuities in such change that make yesterday’s best practices tomorrow’s core rigidities. In the new world of E-business, literally everything is up for grabs, including traditional concepts of industries, organizations, products, services, and channels of marketing, sales and distribution. The new world imposes a greater need for ongoing questioning of the programmed logic and for a very high level of adaptability to incorporate dynamic changes into the business and information architecture and grow systems that can be readily adapted for the dynamically changing business environment.
If we check the exhibit 4: From the “old world” to E-World Business: Knowledge Management for “Paradigm Shifts”, from automation wherein we replace humans with machine which means the work of the human is programmed into machine, then points into rationalization, a streamlining bottlenecks, and then point into reengineering, defined as information-technology-intensive radical redesign. These three are categorized as part of the old world, which then point towards the new world, or E-World of Business, a knowledge management for paradigm shifts.
If I were to choose which of the four, automation, rationalization of procedures, business reengineering and paradigm shift, is considered as the most radical type of change I guess all of them are radical but if I were to choose only one that would be the automation. As what I have understood the three first mentioned are all part on the old world of business and paradigm shifts belongs to the world of re-everything. The old world of business is still present on the today’s modern world of business. As the years increase, changes also escalate. However, what I considered as the fundamental or the original type of change is the automation. Why I choose automation? It is because the rapid changes in an organization are caused when human is changed with machines and information technology is always appearing now and then. In addition, without automating everything, there is still change but not that rapid. As what we have observed, everything is automated, computerized and work are becoming easy because of these innovations. Technology nowadays is fast evolving and throughout the years many new inventions and technologies are appearing. Therefore, I assume that the radical type of change in an organization is the automation.
Reference:
http://www.airpower.maxwell.af.mil/airchronicles/aureview/1967/jul-aug/brown.html
http://www.teamtechnology.co.uk/business-process-reengineering.html
http://www.jstor.org/pss/4105562
Articles:
Malhorta, Y. (2000). Knowledge Management for E-Business Performance: Advancing Information Strategy to Internet Time. @Brint.com LLC, USA.
Malhorta Y. (2000). Knowledge Management and New Organization Forms: A Framework for Business Model Innovation. @Brint.com LLC, USA.
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