Tuesday, January 27, 2009

Paradigm Shift: Radical Structural Change


Being in a business, one of the most thought of question is "What can be done to make the business survive and grow?". In this ever changing world, business processes must also adapt to the changes in the environment to ensure success thus making the business develop.

But how can one adapt? There are a few, if not thousands of techniques, solutions and methods that claim to help business improve productivity, quality and customer satisfaction. And in response to this confusion, one of the choices to consider is to have the company undergo an organizational change.

Typically, the phrase “organizational change” is about any substantive modification to some part of the organization, such as reorganization or adding a major new product or service. In Systems Development, there are four kinds of structural change, specifically: Automation, Rationalization of procedures, Business process reengineering, and Paradigm Shift.

Lets us now be familiar with this four structural changes. Automation refers mechanizing procedures or industrial automation by using of machines or computers to control industrial machinery and processes, reducing the need for human intervention to speed up the performance of existing tasks. Rationalization of procedures means the streamlining of standard operating procedures.

Business process re-engineering is the analysis and redesign of business processes to reorganize work flows and reduce waste and repetitive tasks. It is as described by Hammer and Champy is 'the fundamental reconsideration and the radical redesign of organizational processes, in order to achieve drastic improvement of current performance in cost, services and speed'. One should try to see the firm in a new and fresh perspective that leads to elevating and improving the business processes. While Paradigm shift is the radical reconceptualization of the nature of the business and the nature of the organization.



Which is more radical?? Radical being defined as departing markedly from the usual or customary or extreme I think that amongst the four, Paradigm shift is the most radical. As seen from the image above, a conclusion can be drawn that truthfully enough the return/rewards is highest in the paradigm shift but it has also the biggest risks. When you think about it, automation and rationalization of procedures seems all to normal these days. And that leads us to choose between BPR and paradigm shifts which are both radical in their own ways but paradigm shift is more "revolutionary" than the other. In paradigm shift one really tends to move away from old habits, processes and traditions and seeks to create new and improved processes, tasks and functions.


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