IT systems are typically brought in to automate and formalise business processes. Over time, systems are upgraded and new applications are integrated to support new products and organisational changes such as business process outsourcing.
Every time these changes occur, there is an opportunity to re-visit the business processes to check that they are still valid or could be further improved. Most of the technical projects that I encounter ignores the business process improvement opportunity. For those projects that attempts to improve the processes as well as the supporting systems, the process improvement is hampered by functional silos and outdated business policies. Too many business leaders and managers are clinging to the status quo and not looking forwards. Why is that? Usually because the improvement initiative isn't theirs and they have not fully bought into it.
Example: the current policy is to credit check all new customers before providing them with a service. When a new product is launch that carries negligible financial risk the old credit check policy is still applied (and reducing sales). In this example, the business needs to change its policies, processes and IT systems. Any one area is not enough on its own. The alignment from business purpose and strategic goals, through operational policies, to business processes and systems need to be re-assessed whenever a change proposed to any of the above. A change to one area will impact the others as sure as night follows day.
Every time these changes occur, there is an opportunity to re-visit the business processes to check that they are still valid or could be further improved. Most of the technical projects that I encounter ignores the business process improvement opportunity. For those projects that attempts to improve the processes as well as the supporting systems, the process improvement is hampered by functional silos and outdated business policies. Too many business leaders and managers are clinging to the status quo and not looking forwards. Why is that? Usually because the improvement initiative isn't theirs and they have not fully bought into it.
Example: the current policy is to credit check all new customers before providing them with a service. When a new product is launch that carries negligible financial risk the old credit check policy is still applied (and reducing sales). In this example, the business needs to change its policies, processes and IT systems. Any one area is not enough on its own. The alignment from business purpose and strategic goals, through operational policies, to business processes and systems need to be re-assessed whenever a change proposed to any of the above. A change to one area will impact the others as sure as night follows day.
Business strategy must drive projects.
With the right approach, such impact assessments can be done with minimal efforts and time. Done badly, it can consume vast amounts of time and resources, and jeopardise the whole project.
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