Redesigning the Organization with Information Systems (II)

Soetam Rizky

Buy, Build or Lease ?

Business Process Restructuring• Business goals• System Requirement• Problems Identification

Business Partners• IT Infrastructure• How, what, which

Testing, Installation, Integration• Deployment• Maintenance• Replacement

Buy ?Advantage Disadvantage

May not exactly match

No modification

No control over software

Uncertain vendor

Time saving

Different types

No IT guy needed

Lower Price

Lease ?Advantage Disadvantage

Time saving

Better installation

No IT guy needed

Full warranty

Dependancy

Company privacy

Increasing

contract value

Build ?Advantage Disadvantage

Exactly match

Great flexibility

Long-run efficiency

Full privacy

Expensive

Slow Process

Internal conflict

Before we continue…….

• So, which one is better :–Build–Buy–Lease ?

When we must buy or lease……

Software Vendor

SelectionIdentify

Determine the

Evaluation Criteria

Evaluate Vendors and

Packages

Negotiate A Contract

Establish A Service Level Agreement-

(SLA)

When we must buy or lease……

Software Selection

Usability

Cost and financial

terms

Reputation and

availability

Flexibility and

scalability Necessary resources

Ease of integration

Cross Impact

Integration and impact

Cost and necessary resources

Usability, flexibility and scalability

Negotiate and establish contract

Identify and evaluate vendor

Quick Summary

Choosing which one to buy or

lease

Business Process Redesign - Restructuring

Management suited to strategy

Better response to Opportunities and Threats

Higher morale

Developing Culture

Control

Business Process Redesign – Change Management

Organization transformation

Radical transformation

Magnitude of the change

Training and implementation

Different Role

Before we continue…….

• Change : Slow or Radical ?• Redesign : Humanity or

Profit ?• Magnitude : Bomb , Machine

gun or Revolver ?

Magnitude of change

Radical transformation

Transforming organization and

role

Control and moraleManagement

strategyRedesign

Quick Summary

MANAGERIAL ISSUES

Importance of change

Ethical and legal issues

User involvement

Behavior problems

Risk level

Questions / Comments ?