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Process Innovation: Reengineering Work Through Information Technologyby Thomas H Davenport
Synopses & Reviews
Process innovation - a revolutionary new approach that fuses information technology and human resource management - can dramatically improve business performance. In the demanding environment of the 1990s, simply formulating strategy is no longer sufficient; it is also essential to design the processes to implement strategy effectively. Built around new technologies and motivated workers, process innovation begins with a commitment to a strategic vision from senior management. Its scope is vast and crosses multiple business functions. Its goals are ambitious - companies embarking on process innovation often seek tenfold improvements in cost, time, or quality. For example, IBM reduced the preparation time for quotes on buying or leasing a computer from seven days to one, while preparing 10 times as many quotes. The Internal Revenue Service collected 33% more from delinquent taxpayers, with only half the staff and one-third the branch offices. One analysis of the New York Stock Exchange suggests that a redesign of trading processes could save buyers and sellers hundreds of millions of dollars each year. The cornerstone to process innovation's dramatic results is information technology - a largely untapped resource, but a crucial "enabler" of process innovation. In turn, only a challenge like process innovation affords maximum use of information technology's potential. Thomas Davenport provides numerous examples of firms that have succeeded or failed in combining business change and technology initiatives. He also highlights the role of new organizational structures and human resource programs in facilitating this process. Process innovation is quickly becoming the byword for managersready to lead their companies out of modest growth patterns and into highly effective competition in the global marketplace. This book should be read by general and functional managers, quality and information technology professionals, and industrial engineers - in short, by an
The business environment of the 1990s demands significant changes in the way we do business. Simply formulating strategy is no longer sufficient; we must also design the processes to implement it effectively. The key to change is process innovation, a revolutionary new approach that fuses information technology and human resource management to improve business performance. The cornerstone to process innovation's dramatic results is information technology--a largely untapped resource, but a crucial "enabler" of process innovation. In turn, only a challenge like process innovation affords maximum use of information technology's potential. Davenport provides numerous examples of firms that have succeeded or failed in combining business change and technology initiatives. He also highlights the roles of new organizational structures and human resource programs in developing process innovation. Process innovation is quickly becoming the byword for industries ready to pull their companies out of modest growth patterns and compete effectively in the world marketplace.
About the Author
Thomas H. Davenport is the Presidents Distinguished Chair at Babson College and a research fellow at the MIT Center for Digital Business.
Table of Contents
The nature of process innovation — Selecting processes for innovation — Information technology as an enabler of process innovation — Processes and information — Organizational and human resource enablers of process change — Creating a process vision — Understanding and improving existing processes --Designing and implementing the new process and organization — Process innovation and the management of organizational change — Implementing process innovation with information technology — Product and service development and delivery processes — Customer-facing processes — Management processes — Summary and conclusions — Appendix A: Companies involved in the research — Appendix B: The origins of process innovation.
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