IT's Impact on Business Process Reengineering

The assignment examines the crucial role information technology (IT) plays in business process reengineering (BPR). It analyzes how IT facilitates BPR initiatives, the benefits it brings to organizations, and the challenges that may arise during implementation. The document further explores the concept of online deception, discussing its prevalence and the linguistic cues used in detecting it. It draws upon various sources including academic papers, industry reports, and legal documents to provide a comprehensive understanding of these interconnected topics.

Running Head: RESEARCH PROPOSAL 1
Business Research Method
Student’s Name
Institutional Affiliation
Date of Submission

RESEARCH PROPOSAL 2
Executive Summary
Most global multi-business organizations use the strategy of business unit divestiture to have
their portfolios adjusted. The same happens to have resulted from regulatory pressures, legal
pressures or rather a response towards the ever changing business strategies. In accordance to a
divestiture that is typical, systems used in the past to deliver efficient and seamless IT operations
needed to be discarded with regards to regulatory compliances and time demand constraints.
However, with the current acquisition and merger projects, many business organizations find
themselves going for carve-out projects. These projects critically depend on IT systems thus they
are likely to be excluded from processes of due-diligence. This paper will, not only present a
typical carve-out project case study analysis (with regards to a business unit divest) but also
discuss the learned lessons concerning IT management in divestiture of business units. In the
paper, we shall learn that business organizations have the potential of creating IT environments
which are divestiture-ready. By so doing, these organizations have themselves prepared IT-
structured carve-out projects. All in all, this paper will outline a professional research proposal
aimed at proving a projection on the existing relationship between business and IT. The report
will also answer the research question of whether the relationship between IT and business is
effective for companies as it seems or not. Basically, the paper bases its research activity on
Australian data (Agarwal, Tanniru & Wilemon, 1997).

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Table of Contents
Introduction.................................................................................................................................................4
i) Problem Statement........................................................................................................................4
ii) Research Questions and Research Aim........................................................................................5
Literature Review........................................................................................................................................5
i) IT Work Stream in Divestitures...................................................................................................5
1. IT Infrastructure...........................................................................................................................6
2. IT Applications............................................................................................................................6
3. IT Organization............................................................................................................................6
4. IT Contracts.................................................................................................................................6
5. Country Coordination..................................................................................................................6
ii) IT Infrastructure...............................................................................................................................7
iii) IT Theories.............................................................................................................................8
iv) IT Role in Processes Implementation.................................................................................10
Methodology.............................................................................................................................................11
i) Data Collection.............................................................................................................................11
ii) Data Analysis...............................................................................................................................11
Findings and Analysis...............................................................................................................................14
Discussion.................................................................................................................................................14
i) Managerial Implications.............................................................................................................14
Conclusion.................................................................................................................................................15
i) Addressing Research Questions and Aims.................................................................................15
ii) Limitations and Recommendations............................................................................................15

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Introduction
In business strategic management, a technique of business unit divestiture is mostly employed.
Basically, one organization’s acquisition is another one’s divestiture. There are lots of reasons
for divestiture. However, some of the reasons include organizational focus changes, economic
performance being weak and also capital needs. Other reasons as to why business organizations
sell business units may also include contractual obligations or antitrust regulations. Up to now, as
many as 20,000 divestitures have been conducted globally (Repko & Szostak, 2017). The total
value of such processes exceeds an approximation of $900 billon. With regards to many
acquisition and merger research projects, the IT function’s role in a “carve-out” process could be
rather complex. The same function is likely to be of serious strategic and financial implications
for the buyers and the sellers. Let’s take a case study of a company known as Roche
Pharmaceuticals which experienced the same financial implications (Jones, 1991). In its case, the
company was involved in the selling of vitamins division. During the process, it happened to
have underestimated the IT disentanglement cost. The factor of underestimation was about
twenty. Using our described case study and several other cases of risks business organizations
undertake to achieve its objectives after activities of divestiture, we will discuss some of the
responses business organizations make to curb the same challenges faced in such processes of
carving-out. The responses we are interested in, in this case, are those that are focused on IT
components.
i) Problem Statement

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This paper will have to describe the milestones and phases of an IT structured divestiture project
as one means of meeting the objectives of the research. The description is then followed by
outline of challenges by business organizations during divestiture contracts. The final step is
sharing lessons learned with regards to proper IT structured carve-out project design and
management. The identified issues of concern will be solved after the identification of IT
divestiture project phases. Regarding the same, there are four IT carve-out project phases in a
typical organization. As shown in figure 1 above, the first phase is Pre-Signing. This phase is
whereby all preparations and negotiations are performed before signing of the divestiture
contract. In the same phase, a “data room” is established. The room contains a large volume of
files and folders. The folder or files have confidential information like contracts, financial data
and information regarding employees and customers. The purpose of this room is to give the
buyer a chance of conducting due diligence so as to have a basis for the contract at hand. The
second phase is PreClosing. It is at this point that separation jobs get planned followed by the
preparation of systems. The third phase is the Transition. This is the phase in which the bulk of
separation activities get done. The post cutting phase is then the last in the hierarchy. This is the
step in which the physical separation gets done (Sudhakar, 2012).
ii) Research Questions and Research Aim
As mentioned before, this research proposal paper has discussed a typical carve-out project case
study in the introductory section. However, the main activity involving the discussion of learnt
lessons concerning IT management in divestiture of business units is yet to be done. The main
objective of this paper is to solicit the feeling that business organizations have the potential of
creating IT environments which are divestiture-ready through the preparation of IT-structured
carve-out projects. All in all, the paper will prove that there exists a relationship between
business and IT. By doing so, the paper shall have answered the following research question:
1. Does a relationship exist between IT and business?
2. How effective is the relationship for companies?
Literature Review
i) IT Work Stream in Divestitures

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The work stream of IT, in this case, is made up of four other sub-streams. These sub-streams
include:
1. IT Infrastructure
This sub-stream is made up of networks, desktop PC, voice, access issues of business partners
and data centers.
2. IT Applications
It is made up of data pertaining to GC applications, IPS applications, local and financial
reporting applications.
3. IT Organization
This sub-stream is made up of HR issues like key personnel.
4. IT Contracts
This section is responsible for the assessment and identification of legal issues and licenses with
regards to hardware and software transfer. However, there is another sub-stream that came to be
added after complexities associated with IT sites. The sub-stream is:
5. Country Coordination
It is associated with the management of carve-out impacts.

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ii) IT Infrastructure
In the closing phase, the WAN separation, back-office services and voice operations are essential
in the satisfaction of compliance requirements. The same are also vital in the delivery of IT
services to buyers in the entire Transition phase. In the current business world, most
organizations use SAP and Microsoft technology for groupware, e-mail and resource planning.
Having the support services transferred is less problematic. As match as there could be
separation difficulties at times, standard applications usage makes the system able to be moved
with ease. The same also creates an easy integration route for IT support staff of any transacting
companies (Limbach & Jong, 014).

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iii) IT Theories
There are a lot of revolutionary changes that have influenced the manner in which the business
organizations employ IT in their operations. The major concern for most IT managers is the
integration of IT in the development of strategies (Hammer & Stanton, 1995). To ensure success,
many business organizations have strive to breach the gap of IT and business alignment through
the application of different IT frameworks. One such framework is reengineering of business
processes. Such processes are business activities with direct effects on customers. Almost every
organization in the current business world has such a processes integrated in the company
system. Some of these business processes include:
a) Manufacturing
b) Processing of orders
c) Generation of invoices
d) Payment of bills
e) Provision of customer service

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All the named processes can also be reengineered. The steps associated with efforts of
reengineering of business process are outline in the table below:
During the activity of process reengineering, the business organization’s processes that require
reengineering need to be identified. Some of the outcomes associated with processes of
reengineering include:
a) Profit increase
b) Costs reduction
c) Quality improvement
d) Provision of better services.
For this particular activity, a reengineering team is needed. The process of reengineering also
requires commitment from the management body. To ensure that the engineering process is
smoothly executed, the engineer in charge is required to have a profile that includes:
1. Process–orientation
2. Perspectives that are holistic
3. Creativity
4. Restlessness
5. Enthusiasm
6. Optimism

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7. Persistence
8. Tact
9. Team Player
10. Communication Skills.
All the highlighted skills are what would ensure that the engineer performs successful process
reengineering execution.
iv) IT Role in Processes Implementation
In the whole business process reengineering activity, IT gets introduced in the implementation
stage. Take for instance, companies dealing in the manufacture of automobile. Most of these
companies had centers for design activities in a given location and canters for manufacturing
activities in a different location. There was also a different location for marketing offices. In such
a case, information had to be drafted from one center of operation to the other. The sending of
information back and forth took a lot of weeks before the final process of manufacture
commenced. However, the introduction of communications technology and IT has ensured that
the transfer of information is faster than it used to be (Hammer & Stanton, 1995).
Information is sent to the Internet where every center requiring the same picks it from. In real
sense, the turn-around time happens to be reduced through the employment of IT. It is the
reengineering assignment output that then becomes the input for IT implementation. The above
illustration shows that the integration of IT reduces the cycle time required to attend to
customers. Other advantages associated with IT integration in reengineering processes include:
1. IT being used to reduce turn-around time
2. Reducing the chances of fraudulent activities
3. Reducing corruption chances
4. Assurance of increased precision and accuracy in case the IT systems are properly
implemented
5. Increased work quality in a reduced timeframe
6. Increased work results quality
7. Quick communication
8. Faster information dissemination between stakeholders and customers

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9. Efficient tracking of progress using IT tools
However, for an organization to have all the highlighted benefits achieved, the employees have
to be properly trained regarding the use of IT applications or any other technology likely to be
employed. Upon determining that processes are able to automate, IT tools, software and
hardware are able to be employed in the implementation of processes. It is the duty of IT project
managers to supervise this stage. In case the IT systems happen to be ready, they are made
available to employees and users within the organization. Some of the tools used in the
implementation of IT systems in this stage include:
1. Tools for project management
2. Database technologies
3. Voice and data communication technologies
4. Networking technologies
5. Web and ecommerce technologies
Methodology
i) Data Collection
The main aim of this paper is to outline a professional research proposal that gives a projection
on the existing relationship between business and IT. From the same, the report will then answer
the research question of whether the relationship between IT and business is effective for
companies as it seems or not. To solicit the required response the paper bases its research activity
on Australian data. According to the obtained information, there are key indicators regarding IT
implementation in business processes. They include:
1. Internet access
2. Broadband usage
3. Web presence
4. Presence of social media
5. Internet commerce
ii) Data Analysis

RESEARCH PROPOSAL 12
According to the above table:
a) More than 50% of Australia’s business population reported a web presence.
b) With regards to industrial report, a total of 76% of organizations with a web presence
reported the availability of recreation services and arts. This was the highest proportion.
c) Forestry agriculture and fishing industries gave 12% of organizations having a web
presence. This happened to be the lowest proportion.
d) Thirty-eight percent of Australian businesses reported presence of social media presence.
However, sixty-three percent of business organizations with a social media presence
happened to have recorded a range of 200 employees or more. Those organizations with
twenty to two hundred workers represented sixty three percent.
e) By the end of 2016, fifty-seven percent of business organizations used the Interne to
placed orders.
f) Another thirty-seven percent use the internet to receive orders. The income generated
from such orders totaled to approximately $321 billion (Bhattacherjee, 2001).

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According to the information provided in the table above:
1. Forty-nine percent of businesses happened to be innovation-active in 2015-16 financial
year.
2. Fifty-eight percent of businesses in the retail trade, manufacturing and recreation/arts
industries were innovation-active. This happens to be the highest proportion.
3. Forty-three percent of business organizations came up with at least one kind of
innovation.
4. Regarding the introduced innovations, managerial or organizational processes produced
the highest proportion which was 23%.
5. Twenty-four percent of businesses had ongoing innovation development processes.
6. Significantly improved or new marketing methods happened to be the innovation most
likely to be under development with a 12% proportion.

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Findings and Analysis
Basically, the conceptual framework and the hypotheses of the study got tested using
regressions. In the same way, the antecedents’ effect on the level of IT employment got
examined. From the obtained results, it is clear that IT embeddedness and project risk create a
positive relationship with the usage of IT. We can also conclude that the level of IT usage
portray the fact that project teams largely employ IT in case the project in question is vital to the
organization and thus, its failure is likely to cause a detrimental impact on the organization. With
the findings, we can support IT research activities arguing that project teams would collect and
disperse information through the use of various IT tools. Such would be to ensure that risks are
reduced as well as to enhance processes of decision making. The findings also show that there is
a great importance of having workers who are committed and enthusiastic. These individuals
should also be able to support and promote the use of given IT tools. The finding is in line with
previous research findings regarding the significance of innovation adoption. All in all, a positive
relationship between the extent of IT embeddedness and level of usage in business processes
shows how much important the integration of IT is vital. The same is significant in the
maximization of advantage.
Discussion
i) Managerial Implications
In the analysis section, the data provided was used to examine IT usage antecedents. The same
was also used to determine if the usage of IT influences product performance. From the result, an
empirical evidence can be solicited that the level at which IT is employed has a large impact on
overall managerial performance. As much as little evidence is provided regarding the level at
which IT affects market speed, much is provided regarding impacts on product performance
within the marketplace. We can, therefore, note that IT usage in organizations add more value
every process. It is important to note that speed to market, in this case, happens not to be the
rationale for investments; but rather, IT employment in processes like production among others.
According to other research activities on the same, unless an organization employs IT in its
processes and employee activities, benefits shall not be realized as expected (Armstrong
&Sambamurthy, 1999). Therefore, business organizations that need increase the employment of

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given IT tools integrate and incorporate those given tools in their processes of development.
Having these tools embedded in the efforts of product development involves:
1. Provision of training
2. Encouragement of champions
3. Supply of support
4. Use of particular tools
Projects or business organizations that fail in the outlined obligations always find themselves
using lots of cash on IT software and hardware with no benefits from such spending sprees.
Conclusion
i) Addressing Research Questions and Aims
In the abstract section, we discussed the fact that global multi-business organizations use the
strategy of business unit divestiture to have their portfolios adjusted. However, these business
unit divestiture originate from regulatory pressures, legal pressures or rather a response towards
the ever changing business strategies. On the contrary, with the current acquisition and merger
projects, many business organizations find themselves going for carve-out projects. These
projects critically depend on IT systems thus they are likely to be excluded from processes of
due-diligence (Anderson & Gerbing, 1991). From the same piece of information, this paper
presented a typical carve-out project case study analysis (with regards to a business unit divest)
and also discuss the learnt lessons concerning IT management in divestiture of business units. In
the paper, we learnt that business organizations have the potential of creating IT environments
which are divestiture-ready. By so doing, these organizations have themselves prepared IT-
structured carve-out projects. All in all, this paper has outlined a professional research proposal
aimed at proving a projection on the existing relationship between business and IT. The report
has also answered the research question of whether the relationship between IT and business is
effective for companies as it seems or not; basing the research activity on Australian data
(Anderson & Gerbing, 1991).
ii) Limitations and Recommendations

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Our proposal happens to be subject to inherent limitations regarding cross-sectional designs with
focus on single informants usage. On the contrary the question under discussion; the role of IT in
business processes has contributed in the mitigation of this particular weakness. As much as the
measures used in this discussion are acceptable, there is a possibility that they can be improved.
Research activities to be performed in the future need to refine and incorporate such measures
since they have just received theoretical attention but yet to obtain empirical attention. Research
activities to be done in future should also have IT usage examined as a way of determining
whether the IT usage antecedents and the relationship between performance and usage are
specific to a given organization. Further investigation should also be performed to determine the
relationship between speed to market and IT usage. Also, in as much as this research paper
shows the influences of given contextual factors with regards to IT usage, research activities that
would be performed in future need to analyze the existing dependencies between IT usage and
antecedent contextual factors; and also between product performance and IT usage. Such cases
should then be evaluated by modeling structural equations for the purpose of generating a picture
that is more complete (Aiken & West, 1991).

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iii)

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