Redesigning the organization

11.1

CONTENTSCONTENTS

• SYSTEMS AS PLANNED SYSTEMS AS PLANNED ORGANIZATIONAL CHANGESORGANIZATIONAL CHANGES

• SYSTEMS DEVELOPMENT & SYSTEMS DEVELOPMENT & ORGANIZATIONAL CHANGEORGANIZATIONAL CHANGE

• OVERVIEW OF SYSTEMS DEVELOPMENTOVERVIEW OF SYSTEMS DEVELOPMENT• UNDERSTANDING BUSINESS VALUE OF UNDERSTANDING BUSINESS VALUE OF

INFO SYSTEMSINFO SYSTEMS

**

11.4

CHALLENGES:CHALLENGES:• RISKS AND UNCERTAINTIES IN SYSTEMS RISKS AND UNCERTAINTIES IN SYSTEMS

DEVELOPMENTDEVELOPMENT• BENEFITS LARGELY INTANGIBLEBENEFITS LARGELY INTANGIBLE

**

INFORMATION SYSTEMS PLANINFORMATION SYSTEMS PLAN

11.5

11) STRATEGIC BUSINESS PLAN) STRATEGIC BUSINESS PLAN – – BUSINESS DRIVERSBUSINESS DRIVERS

22) CURRENT S) CURRENT SITUATION - DIAGNOSISITUATION - DIAGNOSIS33) ) VISION - OBJECTIVESVISION - OBJECTIVES4) 4) STRATEGYSTRATEGY5) 5) NEW DEVELOPMENTSNEW DEVELOPMENTS6) IMPLEMENTATION PLAN6) IMPLEMENTATION PLAN7) BUDGET7) BUDGET

**


11.6


11. STRATEGIC BUSINESS PLAN:. STRATEGIC BUSINESS PLAN:• BUSINESS DRIVERSBUSINESS DRIVERS• CURRENT CURRENT BUSINESS BUSINESS SITUATIONSITUATION• ORGANIZATIONORGANIZATION• CHANGING ENVIRONMENTCHANGING ENVIRONMENT• MAJOR GOALS OF BUSINESS MAJOR GOALS OF BUSINESS

PLANPLAN

**

11.8


22. CURRENT S. CURRENT SITUATION - DIAGNOSISITUATION - DIAGNOSIS::• MAJOR SYSTEMS SUPPORTING BUSINESS MAJOR SYSTEMS SUPPORTING BUSINESS

FUNCTIONSFUNCTIONS• SWOT ANALYSISSWOT ANALYSIS• MAJOR CURRENT CAPABILITIESMAJOR CURRENT CAPABILITIES

– PERSONNEL– HARDWARE– SOFTWARE– DATABASE– TELECOMMUNICATIONS

• DIFFICULTIES MEETING REQUIREMENTSDIFFICULTIES MEETING REQUIREMENTS• ANTICIPATED FUTURE DEMANDSANTICIPATED FUTURE DEMANDS

**11.9


33. . VISION - OBJECTIVESVISION - OBJECTIVES::• COMMUNICATION, MOTIVATION AND COMMUNICATION, MOTIVATION AND

ALIGNMENTALIGNMENT• PRECISELY DESCRIBE WHAT NEEDS TO BE PRECISELY DESCRIBE WHAT NEEDS TO BE

DONEDONE• METRICSMETRICS• INSPIRINGINSPIRING• PROFILE – ACTIONSPROFILE – ACTIONS• BASED ON BUSINESS DRIVERSBASED ON BUSINESS DRIVERS

**11.7


4. 4. STRATEGYSTRATEGY::• MAIN GUIDELINES TO REACH VISION AND OBJECTIVESMAIN GUIDELINES TO REACH VISION AND OBJECTIVES• KEY DRIVERSKEY DRIVERS• OPERATING PRINCIPLES - STANDARDSOPERATING PRINCIPLES - STANDARDS• ORGANIZATIONAL REALIGNMENTORGANIZATIONAL REALIGNMENT• INTERNAL REORGANIZATIONINTERNAL REORGANIZATION• MAJOR TRAINING INITIATIVESMAJOR TRAINING INITIATIVES• PERSONNEL STRATEGYPERSONNEL STRATEGY• VALUE-RISK MATRIXVALUE-RISK MATRIX• VALUE-PERFORMANCE MATRIXVALUE-PERFORMANCE MATRIX

**

11.10


55. NEW DEVELOPMENTS. NEW DEVELOPMENTS (TACTICS) (TACTICS)::• NEW SYSTEM PROJECTSNEW SYSTEM PROJECTS– PROJECT DESCRIPTIONS– BUSINESS RATIONALE

• NEW CAPABILITIES REQUIREDNEW CAPABILITIES REQUIRED– HARDWARE– SOFTWARE– DATABASE– TELECOMMUNICATIONS

**

11.10


6. IMPLEMENTATION PLAN6. IMPLEMENTATION PLAN• MILESTONES & TIMING FOR PROJECTSMILESTONES & TIMING FOR PROJECTS• ACQUISITION PLANSACQUISITION PLANS• ANTICIPATED DIFFICULTIES IN ANTICIPATED DIFFICULTIES IN

IMPLEMENTATIONIMPLEMENTATION• PROGRESS REPORTSPROGRESS REPORTS

* *

11.11


7. BUDGET7. BUDGET• REQUIREMENTSREQUIREMENTS• POTENTIAL SAVINGSPOTENTIAL SAVINGS• FINANCINGFINANCING• ACQUISITION CYCLEACQUISITION CYCLE – CASH FLOW – CASH FLOW

* *

11.11

SPECTRUM OF SPECTRUM OF ORGANIZATIONAL CHANGEORGANIZATIONAL CHANGE

• AUTOMATION:AUTOMATION: Using technology to perform tasks Using technology to perform tasks efficiently / effectivelyefficiently / effectively

• RATIONALIZATION OF PROCEDURES:RATIONALIZATION OF PROCEDURES: Streamline Streamline SOPs; eliminate bottlenecksSOPs; eliminate bottlenecks

• BUSINESS REENGINEERING:BUSINESS REENGINEERING: Radical redesign of Radical redesign of processes to improve cost, quality, service; processes to improve cost, quality, service; maximize benefits of technologymaximize benefits of technology

• PARADIGM SHIFT: PARADIGM SHIFT: Rethinking the nature of the Rethinking the nature of the business and the nature of the organizationbusiness and the nature of the organization

**

11.16

RISKS & REWARDSRISKS & REWARDS

11.18

RISKRISK

RETURNRETURN

LowLow

LowLow HighHigh

HighHigh

PARADIGM SHIFTPARADIGM SHIFT

• PARADIGMPARADIGM IS A COMPLETE MENTAL IS A COMPLETE MENTAL MODEL OF HOW A COMPLEX SYSTEM MODEL OF HOW A COMPLEX SYSTEM FUNCTIONSFUNCTIONS

• A PARADIGM SHIFT INVOLVES A PARADIGM SHIFT INVOLVES RETHINKING THE NATURE OF THE RETHINKING THE NATURE OF THE BUSINESS, THE ORGANIZATION; A BUSINESS, THE ORGANIZATION; A COMPLETE RECONCEPTION OF HOW COMPLETE RECONCEPTION OF HOW THE SYSTEM SHOULD FUNCTIONTHE SYSTEM SHOULD FUNCTION

**

11.17

REREINGENIERIAINGENIERIA• CONCEPTO DE ESPACIOS BLANCOSCONCEPTO DE ESPACIOS BLANCOS• CONCEPTO DE PROCESO, EJEMPLOCONCEPTO DE PROCESO, EJEMPLO• CONCEPTO DE DIVISION DEL TRABAJO DE CONCEPTO DE DIVISION DEL TRABAJO DE

TAYLOR: LA EFICIENCIA SE LOGRA A TRAVES DE TAYLOR: LA EFICIENCIA SE LOGRA A TRAVES DE LA DIVISION DEL TRABAJO Y LA LA DIVISION DEL TRABAJO Y LA ESPECIALIZACIONESPECIALIZACION

• VERDADERO PARA LOS TRABAJOS VERDADERO PARA LOS TRABAJOS EMINENTEMENTE FISICOS (OPERARIOS DE EMINENTEMENTE FISICOS (OPERARIOS DE PRODUCCION, OBRAS CIVILES)PRODUCCION, OBRAS CIVILES)

• PARA EL CASO DE TRABAJADORES DE LA PARA EL CASO DE TRABAJADORES DE LA INFORMACION ?INFORMACION ?

**

11.21

REREINGENIERIAINGENIERIA

• PARA TRABAJOS RELACIONADOS CON PARA TRABAJOS RELACIONADOS CON MANEJO DE INFORMACION ES MANEJO DE INFORMACION ES PREFERIBLE:PREFERIBLE:– PROCESOS SENCILLOS– POCOS TRABAJADORES INVOLUCRADOS– ELIMINAR BUROCRACIA– UTILIZAR TECNOLOGIA PARA ALMACENAR Y

TRANSMITIR LA INFORMACION

**

11.21


• CYCLE TIME vs. TASK TIMECYCLE TIME vs. TASK TIME

• EL CLIENTE DEL PROCESO SOLO EL CLIENTE DEL PROCESO SOLO PERCIBE EL TIEMPO DE CICLOPERCIBE EL TIEMPO DE CICLO

• CASO PARADIGMATICO: CASO DE CASO PARADIGMATICO: CASO DE CUENTAS DE PAGAR EN FORDCUENTAS DE PAGAR EN FORD

**

11.21


• REINGENIERIA IMPLICA LA BUSQUEDA REINGENIERIA IMPLICA LA BUSQUEDA DE CAMBIOS RADICALES EN LOS DE CAMBIOS RADICALES EN LOS PROCESOS Y BENEFICIOS PROCESOS Y BENEFICIOS SUSTANCIALES (ej.: 60 % de reducción de SUSTANCIALES (ej.: 60 % de reducción de costos; o bajar los tiempos de un proceso costos; o bajar los tiempos de un proceso a la mitad)a la mitad)

• UN PROYECTO QUE BUSCA MEJORAS UN PROYECTO QUE BUSCA MEJORAS MARGINALES NO ES UNA REINGENIERIAMARGINALES NO ES UNA REINGENIERIA

**

11.21


• REINGENIERIA: Concepto surgido en el REINGENIERIA: Concepto surgido en el artículo seminal “Reengineering Work: artículo seminal “Reengineering Work: Don’t Automate, Obliterate” de Michael Don’t Automate, Obliterate” de Michael Hammer en Harvard Business ReviewHammer en Harvard Business Review

• REINGENIERIA vs. AUTOMATIZACIONREINGENIERIA vs. AUTOMATIZACION• CLEAN SLATERS vs. MODERADOSCLEAN SLATERS vs. MODERADOS

**

11.21


• LIBROS:LIBROS:– “Reingeniería” (M. Hammer)– “Process Innovation” (T. Davenport)

• ARTICULO DE M. HAMMER: “The ARTICULO DE M. HAMMER: “The Superefficient Company” (Harvard Superefficient Company” (Harvard Business Review - Septiembre 2001)Business Review - Septiembre 2001)

**

11.21

1. Identify process to be redesigned1. Identify process to be redesigned

2. Develop business vision, process objectives and case 2. Develop business vision, process objectives and case for actionfor action

3. Understand, measure performance of existing 3. Understand, measure performance of existing processesprocesses

4. Define new process; identify opportunities for applying 4. Define new process; identify opportunities for applying information technologyinformation technology

5. Implementation plan; technical specs; build 5. Implementation plan; technical specs; build PROTOTYPEPROTOTYPE of new process of new process

**

BUSINESS BUSINESS REENGINEERING STEPS:REENGINEERING STEPS:

11.22

TOTAL QUALITY TOTAL QUALITY MANAGEMENT MANAGEMENT (TQM)(TQM)

RESPONSIBILITY FOR QUALITY RESPONSIBILITY FOR QUALITY SHARED BY ALL PEOPLE IN SHARED BY ALL PEOPLE IN

ORGANIZATIONORGANIZATION

**

11.23

IT CONTRIBUTIONS TO TQMIT CONTRIBUTIONS TO TQM• SIMPLIFY PRODUCT OR PROCESSSIMPLIFY PRODUCT OR PROCESS• BENCHMARKING: Strict standards for BENCHMARKING: Strict standards for

measuring performancemeasuring performance• LISTEN TO CUSTOMER DEMANDSLISTEN TO CUSTOMER DEMANDS• REDUCE CYCLE TIMEREDUCE CYCLE TIME• IMPROVE QUALITY AND PRECISION OF DESIGNIMPROVE QUALITY AND PRECISION OF DESIGN• INCREASE PRECISION OF PRODUCTIONINCREASE PRECISION OF PRODUCTION

**

11.24

• SYSTEMS ANALYSISSYSTEMS ANALYSIS

• SYSTEM DESIGNSYSTEM DESIGN

• PROGRAMMINGPROGRAMMING

• TESTINGTESTING

• CONVERSIONCONVERSION

• PRODUCTION & MAINTENANCEPRODUCTION & MAINTENANCE

**

SYSTEM DEVELOPMENT PROCESSSYSTEM DEVELOPMENT PROCESS

11.25

ANALYSIS OF PROBLEM TO BE ANALYSIS OF PROBLEM TO BE SOLVED WITH AN INFORMATION SOLVED WITH AN INFORMATION

SYSTEMSYSTEM

FEASIBILITY STUDY: CAN FEASIBILITY STUDY: CAN PROBLEM BE SOLVED WITHIN PROBLEM BE SOLVED WITHIN CONSTRAINTS?CONSTRAINTS?

**

SYSTEMS ANALYSISSYSTEMS ANALYSIS

11.26

FEASIBILITYFEASIBILITY• TECHNICAL:TECHNICAL: Assess hardware, software, Assess hardware, software,

technical resourcestechnical resources

• ECONOMIC:ECONOMIC: Will benefits outweigh costs ? Will benefits outweigh costs ?

• OPERATIONAL:OPERATIONAL: Is solution desirable within Is solution desirable within existing conditions ?existing conditions ?

INFORMATION REQUIREMENTSINFORMATION REQUIREMENTS

Detailed statement of new system needsDetailed statement of new system needs

**

11.27

SYSTEM DESIGNSYSTEM DESIGN

DETAILS HOW SYSTEM WILL MEET NEEDS:DETAILS HOW SYSTEM WILL MEET NEEDS:

• LOGICAL DESIGN:LOGICAL DESIGN: Components, Components, data as needed by applicationsdata as needed by applications

• PHYSICAL DESIGN:PHYSICAL DESIGN: Physical Physical location of components and datalocation of components and data

**

11.28

DESIGN SPECIFICATIONSDESIGN SPECIFICATIONS• OUTPUTOUTPUT

– MEDIUM; CONTENT; TIMING• INPUTINPUT

– ORIGINS; FLOW; DATA ENTRY• USER INTERFACEUSER INTERFACE

– SIMPLICITY; EFFICIENCY; LOGIC– FEEDBACK; ERRORS

• DATABASE DESIGNDATABASE DESIGN– LOGICAL DATA RELATIONS– VOLUME, SPEED REQUIREMENTS– FILE ORGANIZATION & DESIGN– RECORD SPECIFICATIONS

**

11.29

• PROCESSINGPROCESSING– COMPUTATIONS– PROGRAM MODULES– REQUIRED REPORTS– TIMING OF OUTPUTS

• MANUAL PROCEDURESMANUAL PROCEDURES– WHAT ACTIVITIES– WHO PERFORMS THEM– WHEN– HOW– WHERE

**

11.30

DESIGN SPECIFICATIONSDESIGN SPECIFICATIONS

• CONTROLSCONTROLS– INPUT– PROCESSING– OUTPUT– PROCEDURAL

• SECURITYSECURITY– ACCESS CONTROLS– CATASTROPHE PLANS– AUDIT TRAILS

• DOCUMENTATIONDOCUMENTATION

**

11.31


• CONVERSIONCONVERSION

– TRANSFER FILES

– INITIATE NEW PROCEDURES

– SELECT TESTING METHOD

– CUT OVER TO NEW SYSTEM

• TRAININGTRAINING

– SELECT TRAINING TECHNIQUES

– DEVELOP TRAINING MODULES

– IDENTIFY TRAINING FACILITIES

• ORGANIZATIONAL CHANGESORGANIZATIONAL CHANGES

– TASK REDESIGN

– JOB DESIGN

– PROCESS DESIGN

– OFFICE / ORGANIZATION STRUCTURE DESIGN

– REPORTING RELATIONSHIPS

**

11.32


ROLE OF END USERSROLE OF END USERS

• USERS DRIVE SYSTEMS EFFORTUSERS DRIVE SYSTEMS EFFORT• MUST HAVE SUFFICIENT CONTROL MUST HAVE SUFFICIENT CONTROL

TO ENSURE SYSTEM REFLECTS TO ENSURE SYSTEM REFLECTS BUSINESS PRIORITIES, NEEDSBUSINESS PRIORITIES, NEEDS

• FUNCTIONAL USERS DRIVE SYSTEM FUNCTIONAL USERS DRIVE SYSTEM NEEDSNEEDS

• MAJOR CAUSE OF FAILURE: MAJOR CAUSE OF FAILURE: insufficient user involvementinsufficient user involvement

11.33

COMPLETING SYSTEM COMPLETING SYSTEM DEVELOPMENT PROCESSDEVELOPMENT PROCESS

• PROGRAMMING:PROGRAMMING: Translating Translating system specifications into system specifications into program codeprogram code

• TESTING:TESTING: Does system produce Does system produce desired results?desired results?

**

11.34

TESTINGTESTING

• UNIT TESTING:UNIT TESTING: Tests each program separatelyTests each program separately• SYSTEM TESTING:SYSTEM TESTING: Tests system as a whole to Tests system as a whole to

determine if modules will function together as determine if modules will function together as plannedplanned

• ACCEPTANCE TESTING:ACCEPTANCE TESTING: Final certification by Final certification by users and mgmtusers and mgmt

• TEST PLAN:TEST PLAN: Preparations for Preparations for tests to tests to be performedbe performed

**

11.35

CONVERSIONCONVERSIONProcess of changing from old system to new oneProcess of changing from old system to new one• PARALLEL:PARALLEL: Old & new systems are run together until is Old & new systems are run together until is

assured that new one functions correctly. Safest.assured that new one functions correctly. Safest.• DIRECT CUTOVER:DIRECT CUTOVER: Risky conversion to new systemRisky conversion to new system• PILOT:PILOT: Introduce new system into one area of the organization. Introduce new system into one area of the organization.

Does it work? Yes: introduce into other areaDoes it work? Yes: introduce into other area• PHASED:PHASED: Introduce new system in stagesIntroduce new system in stages

CONVERSION PLAN:CONVERSION PLAN: Schedule for Schedule for conversionconversion

DOCUMENTATION:DOCUMENTATION: Description of how Description of how system system worksworks

**

11.36

PRODUCTION & MAINTENANCEPRODUCTION & MAINTENANCE

• PRODUCTION:PRODUCTION: Constant review by Constant review by users & operators. Does it meet users & operators. Does it meet goals?goals?

• MAINTENANCE:MAINTENANCE: Changes in system Changes in system to correct errors, meet new to correct errors, meet new requirements or improve requirements or improve processing efficiencyprocessing efficiency

**11.37

SYSTEMS DEVELOPMENTSYSTEMS DEVELOPMENT

CORE ACTIVITYCORE ACTIVITY DESCRIPTIONDESCRIPTION

SYSTEMS ANALYSISSYSTEMS ANALYSIS IDENTIFY PROBLEM(S) AND OPPORTUNITIESSPECIFY SOLUTIONSESTABLISH INFORMATION REQUIREMENTS

SYSTEMS DESIGNSYSTEMS DESIGN CREATE LOGICAL DESIGN SPECSCREATE PHYSICAL DESIGN SPECSMANAGE TECHNICAL REALIZATION OF SYSTEM

PROGRAMMINGPROGRAMMING TRANSLATE DESIGN SPECS INTOPROGRAM CODE

11.38

SYSTEMS DEVELOPMENTSYSTEMS DEVELOPMENT

CORE ACTIVITYCORE ACTIVITY DESCRIPTIONDESCRIPTION

TESTINGTESTING UNIT TEST SYSTEMS TEST ACCEPTANCE TEST

CONVERSIONCONVERSION PLAN CONVERSION PREPARE DOCUMENTATION TRAIN USERS & TECHNICAL STAFF

PRODUCTION &PRODUCTION & OPERATE SYSTEMMAINTENANCEMAINTENANCE EVALUATE SYSTEM

MODIFY SYSTEM

11.39

CAPITAL BUDGET:CAPITAL BUDGET:INFORMATION SYSTEMS ARE CONSIDERED LONG-TERM CAPITAL INFORMATION SYSTEMS ARE CONSIDERED LONG-TERM CAPITAL

INVESTMENTS PROJECTS.INVESTMENTS PROJECTS.

CAPITAL BUDGET: PROCESS OF ANALYZING AND SELECTING CAPITAL BUDGET: PROCESS OF ANALYZING AND SELECTING CAPITAL EXPENDITURESCAPITAL EXPENDITURES

• PAYBACK METHOD (“PERIODO DE REPAGO”)PAYBACK METHOD (“PERIODO DE REPAGO”)• RETURN ON INVESTMENT (ROI)RETURN ON INVESTMENT (ROI)• COST-BENEFIT RATIOCOST-BENEFIT RATIO• NET PRESENT VALUENET PRESENT VALUE• PROFITABILITY INDEXPROFITABILITY INDEX• INTERNAL RATE OF RETURNINTERNAL RATE OF RETURN

**

11.41

• CAPITAL BUDGETING MODELSCAPITAL BUDGETING MODELS

LIMITATIONS: LIMITATIONS: • Assume all relevant alternatives have been Assume all relevant alternatives have been

examined; cost & benefits are known and examined; cost & benefits are known and can be expressed as $$can be expressed as $$

• Ignore intangible benefits (e.g. more efficient Ignore intangible benefits (e.g. more efficient customer service or enhanced decision customer service or enhanced decision making)making)

**

UNDERSTANDING BUSINESS UNDERSTANDING BUSINESS VALUE OF INFO SYSTEMSVALUE OF INFO SYSTEMS

11.40

COSTS:COSTS:• HARDWAREHARDWARE• TELECOMMUNICATIONSTELECOMMUNICATIONS• SOFTWARESOFTWARE• SERVICESSERVICES• PERSONNELPERSONNEL

**

11.42

COSTS & BENEFITS:COSTS & BENEFITS:

TANGIBLE BENEFIT:TANGIBLE BENEFIT:

• INCREASED PRODUCTIVITYINCREASED PRODUCTIVITY

• LOW OPERATING COSTSLOW OPERATING COSTS

• REDUCED WORK FORCEREDUCED WORK FORCE

• LOWER COMPUTER EXPENSESLOWER COMPUTER EXPENSES

• LOWER VENDOR COSTSLOWER VENDOR COSTS

• LOWER CLERICAL/PROFESSIONAL COSTSLOWER CLERICAL/PROFESSIONAL COSTS

• REDUCED GROWTH OF EXPENSESREDUCED GROWTH OF EXPENSES

• REDUCED FACILITY COSTSREDUCED FACILITY COSTS

**

11.43


INTANGIBLE BENEFIT:INTANGIBLE BENEFIT:• IMPROVED ASSET USE; RESOURCE CONTROL; PLANNINGIMPROVED ASSET USE; RESOURCE CONTROL; PLANNING• INCREASED FLEXIBILITYINCREASED FLEXIBILITY• MORE TIMELY INFORMATIONMORE TIMELY INFORMATION• INCREASED ORGANIZATIONAL LEARNINGINCREASED ORGANIZATIONAL LEARNING• ATTAIN LEGAL REQUIREMENTSATTAIN LEGAL REQUIREMENTS• ENHANCED EMPLOYEE GOODWILL, JOB SATISFACTION, ENHANCED EMPLOYEE GOODWILL, JOB SATISFACTION,

DECISION MAKING, OPERATIONSDECISION MAKING, OPERATIONS• HIGHER CLIENT SATISFACTIONHIGHER CLIENT SATISFACTION• BETTER CORPORATE IMAGEBETTER CORPORATE IMAGE

**


11.44

PORTFOLIO ANALYSIS:PORTFOLIO ANALYSIS:ANALYSIS OF POTENTIAL APPLICATIONS TO ANALYSIS OF POTENTIAL APPLICATIONS TO

DETERMINE RISKS & BENEFITS AND SELECT DETERMINE RISKS & BENEFITS AND SELECT AMONG ALTERNATIVES OF INFORMATION AMONG ALTERNATIVES OF INFORMATION SYSTEMS SYSTEMS

• DETERMINE DESIRABLE FEATURES AND DETERMINE DESIRABLE FEATURES AND ACCEPTABLE RISKS OF REQUIRED SYSTEMACCEPTABLE RISKS OF REQUIRED SYSTEM

• GENERATE PORTFOLIO OF CHARACTERISTICS GENERATE PORTFOLIO OF CHARACTERISTICS AND RISKS FOR EACH ALTERNATIVEAND RISKS FOR EACH ALTERNATIVE

• SCORING MODELSCORING MODEL

**

11.45

SCORING MODEL:SCORING MODEL:• IDENTIFY DESIRABLE FEATURESIDENTIFY DESIRABLE FEATURES• PROVIDE WEIGHTS FOR EACH (ADD TO 1.00)PROVIDE WEIGHTS FOR EACH (ADD TO 1.00)• LOOK AT EACH ALTERNATIVE:LOOK AT EACH ALTERNATIVE:–WHICH FEATURES ARE PRESENT?– TO WHAT EXTENT (as an amount)?– SCORE THE ALTERNATIVE

• RANK-ORDER THE ALTERNATIVESRANK-ORDER THE ALTERNATIVES• SELECT HIGHEST RANKED OPTIONSELECT HIGHEST RANKED OPTION

**

11.46

11.48

Technology

Redesigning the organization