Power of Information Technology for Organizations - Research Paper Example

? Power that Information Technology opens up in Information technology-led organizational. According to Hammer and Champy (2001, p.88), information technology is power and knowledge needed in conveying information from one place or body to another one. Knowledge is power such that knowing helps in intervening, guiding and changing a given situation. Thus, one has power over somebody or something. On the other hand, Power is knowledge such that when applied, observed, normalize and examine; through comparisons of each case is compared and ranked in relation to the norm and out of comparisons there is a generation of new knowledge. The rise of the discipline of statistics was an outcome of the will of the state to get knowledge of the population and its tendencies such as mortality, health, work or life styles and to control it better. To discuss how information technology has opened up the power and knowledge to information technology companies, the cases on the learning process and Business process reengineering and Enterprise Resource Process will be evaluated (Hammer and Champy (2001, p.39). Hammer and Champy (2001, p.89) state that learning process is a process of knowledge conversion, and it involves four modes. The assumption that knowledge is created through the relations between inferred and clear knowledge enables us to categorize the four modes: from tacit knowledge to tacit knowledge known as socialization, from tacit knowledge to explicit knowledge called externalization, from explicit knowledge to explicit knowledge known as combination and lastly from explicit knowledge to tacit knowledge also referred to as internalization. Socialization acts as a connection with the theories of group processes and culture of the organization. Combination entails processing of information while internalization is related to learning in organizations. Externalization is, however, neglected and has not closely been considered in many cases. Socialization is a process of experience sharing thus, creation of inferred knowledge such as mental modes, which are shared, and technical skills. Someone can acquire inferred knowledge from others directly without involvement of language. An outstanding example being that of apprentices who normally work beside their masters and learn craftsmanship, not by any mode of conversation but rather through observation, imitation, and practice. All that somebody requires to acquire is knowledge and experience (Hammer and Champy, 2001, p.103). According to Hammer and Champy (2001, p.103), experiences helps one by, projecting him into another individual’s thinking process and gain something. For example, Matsushita Electric industrial Company in Japan, a major problem in developing an automatic bread making machine in the late 1980s at the Osaka based Company concentrated on mechanizing the process of dough-kneading, which is essentially inferred knowledge processed by master bakers. Socialization also occurs between product developers and customers. Interactions of customers with product developers and after market introductions are, in, fact, a never ending process of sharing inferred knowledge and idea creation for improvement. Hammer and Champy (2001, p.100) argues that externalization such as from tacit to tacit to explicit is a process of articulating tacit knowledge into clear concepts. It is a typical knowledge creation process in that inferred knowledge becomes clear, taking the figures of metaphors, analogies, concepts, hypotheses, or models. By conceptualizing a figure, we express its essence mostly in language writing in an act of converting inferred knowledge into achievable knowledge. Words are often inadequate, insufficient and inconsistent. Such variations and breaks between figures and expressions, nevertheless, assist in promoting expression and interaction between individuals. Knowledge conversion of externalization mode is typically seen in the action of creation of concepts and is triggered by dialogue (Hammer and Champy, 2001, p.88). According to Hammer and Champy (2001, p.88), combination of induction and deduction is the common method in concept creation. As an example, Mazda combined the two logic methods when it modeled the new concept of RX-7, described as a dependable sport vehicle that provides a comfortable and exciting drive. The idea was deduced from the car maker’s corporation slogan; create the new values and present, joyful driving pleasures. The same can be applied Information technology-led organizations to invent new programs for efficiently working environment. Hammer and Champy (2001, p.94) state that combination is the process of systematizing ideas into a system of knowledge. This conversion mode of knowledge involves joining various bodies of clear knowledge. Individuals combine and exchange knowledge through such forms as telephone conversations, documents, computerized communication networks and meetings. Reconfiguration of the available information through arrangement, adding, combining, and categorizing of explicit knowledge can lead to new knowledge, which can be, useful. Creation of knowledge carried out in Information technology -led organizations training takes this form. In the Information technology -led organizations context, the mode of combination of conversion knowledge is often seen when middle managers split down and operationalise organization visions, information technology concepts, or products concepts. Middle management plays a significant duty in the creation of new ideas through codified knowledge and information networking. Creative uses of large scale databases facilitate this mode of knowledge and conversion computerized communication networks (Hammer and Champy, 2001, p.98). Hammer and Champy (2001, p.105) claim that internalization is the process of embodying clear knowledge into inferred knowledge, which is essentially learning by doing. When experiences through all the other learning processes are internalized into individual’s inferred knowledge bases in the form of shared mental modes or technical know-how, they become useful assets. For example, all the members of the Honda city project team, internalized their experiences in the late 1970s and are now making use of know-how and leading R and D projects in the company. For organizational knowledge creation like in the Information technology-led, to occur, the clear knowledge piled at the individual stage needs to be socialized with other members of the organizational, by starting a new spiral of knowledge creation. For explicit knowledge to become tacit, it assists if the knowledge is verbalized or diagrammed into documents, manuals, or oral stories. Documenting assists individuals internalize what they experienced, thereby inspiring their tacit knowledge. In addition, manuals or documents enhance the transfer of explicit knowledge to others indirectly (Hammer and Champy, 2001, p.164). According to Hammer and Champy (2001, p.38), Business Process Reengineering is defined as the design of workflows, and analysis of processes within an organization. While a business process is a series of reasonably linked tasks executed to achieve a definite business outcome. The reengineering concept has become the basis for development in management. Business Process Reengineering existence is derived from disciplines that are subject to change and include; areas organization, technology, strategy, and people. Reengineering is the radical redesign and fundamental rethinking of business activities to attain dramatic improvements in service, critical, contemporary performance measures such as quality, speed and cost. The primary driver of Business Process Reengineering initiatives is Business strategy. The organization dimension reflects the structural elements of the company that include; hierarchical levels, the work distribution and organizational unit’s composition. In Business Process Reengineering, Information technology is considered as playing a responsibility as facilitator of new forms of collaborating and organizing, rather than supporting existing business functions. The individuals deal with, training, education, and motivation systems (Hammer and Champy, 2001, p.35). The principles of reengineering are; Organization of tasks around outcomes, integration of the outcome users, processing of information at the point of production, centralization of geographically dispersed resources, Reduction of bureaucracy and work duplication, and reduction of data duplication. According to Hammer and Champy (2001, p.36), Business Process Reengineering brings dramatic change that include; the organizational structures overhaul, management systems, employee responsibilities and performance measurements, skills development, incentive systems, and the use of information technology. Business Process Reengineering can have an impact on how to conduct business today. Business Process Reengineering that is successful results cost and time reductions, as well as creating substantial improvements in customer service, quality, or in business objectives. The Reengineering process helps a company to stay on top and also to make a turnover in an organization that is almost bankrupt into an effective competitor. Business Process Reengineering projects have, however, failed to meet the high reengineering expectations, this is mainly due to; Business Process Reengineering tools Over-reliance and the lack of detailed knowledge in redesigning. The Other factor challenges of user resistance, limited resources, as well as poor trainings and lack of organizational readiness. Business Process Reengineering has not been successful due to the confusion surrounding how Business Process Reengineering should be performed. Organizations have recognized the need to make changes, but did not know which areas to change and how they should be changed. Thus, reengineering process is a management concept that has been through practical experience and has not had consistent outcomes (Hammer and Champy, 2001, p.35). Hammer and Champy (2001, p.88) argues that Enterprise resource planning is defined as systems that integrate internal and external management information across an entire organization. The system is automated with an integrated software application. The Enterprise resource planning process facilitates information flow between all business functions, both inside the organization and connections to outside stakeholders. The Enterprise Resource Planning process arose from the need to integrate disparate systems and share data across various departments and organizations. The process also enables flexibility, coordination across boundaries as well as the transformation of processes in information technology mediated procedures. According to Hammer and Champy (2001, p.93), The Enterprise resource planning process simplifies business processes by, firstly, lifting them out of their complexity, secondly, turning various processes into procedures and fourthly, setting boundaries to allow for closure thus reduction on external influence. The Enterprise resource planning has the benefits of, firstly, improving the quality and efficiency of a business which result to better outputs that will advantage the company such as manufacturing and customer service. Secondly, Provision of support to upper management level to provide them with critical decision making information. Thirdly, Creation of a company that can adapt to situations and changes as the company is made flexible and less rigidly structured to enhance internal and external business. The Enterprise resource planning, however, has a problem with customization, higher cost due to more integration, and the need to re-engineer business processes to fit the Enterprise resource planning system, which may damage competitiveness, as well as diverting focus from other critical activities. Other problems include; overcoming conflict to distribution of sensitive information among departments, incorporation of truly independent businesses that create dependencies, and Extensive training requirements according to Hammer and Champy (2001, p.89). Bibliography Hammer M. & Champy J. 2001. Reengineering the corporation: a manifesto for business revolution, London: Nicholas Brealey. Read More