Process Enabling Information Technologies PEIT

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Process Enabling Information Technologies (PEIT)
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Course Organization
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Functional View of Organizations
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Silo Information Systems
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Organizational Value Chains
Organization likely to have multiple value chains
that cut across functional areas. For example, a
bank has residential and commercial loans, each
treated as separate products (value chains) and
each is processed by multiple groups within the
bank.
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Business Process View of Organizations
Business processes cut across functional
areas. Each functional group has its own
information systemswhich are often not
integratedwith those of other functionalgroups.

What problems does this create?
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Business Process Definition

• A logical set of related activities taking
  inputs, adding value through doing things, and
  creating an output
• Any set of activities performed by a business
  that is initiated by an event, transforms
  information, materials or business commitments,
  and produces an output.

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Process Enabled Information Technologies

• Information technologies that are deployed across
  multiple organizational groups and specify entire
  business processes
• Implementing PEITs pose greater challenges to
  managers than other projects

Why?
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IT Investments can be Problematic

• 50 of IT initiatives are abandoned altogether
• Another 40 are delivered late and over budget
• 70 failure rates among IT-based change
  initiatives
• 30-60 failure rates among general efforts to
  improve work processes
• Only about 30 of all projects are considered by
  their sponsors to fully successful

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Number one reason for failure
Managerial Factors!
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Process Enabled IT (PEIT)

• Riskiest type of IT investment
• Because scope is so large, PEIT projects often
  effect the careers of the major players and can
  impact the viability of the organization
• 50 of all corporate IT investment
• Potential reward is high
• PEITs can have significant performance
  improvements and can positively affect company
  valuation

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Types of PEIT

• Enterprise Resource Planning (ERP)
• Supply Chain Management (SCM)
• Customer Resource Management (CRM)
• e-Procurement
• e-Marketplace