A Lesson Learn from ICT as Enable of Business Process Reengineering

Abstract

The terminology of first appeared in information and communication technology (ICT) field and has emerge into a vast change process. Hammer and Champy (1993) presented process of reengineering as the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed. The concept of reengineering is relevant to all types of organizations regardless of size, type of business and geographical location. Whereas business process is a selection of activities that once attained will resolve an organization's goal.Macbook, iPads, iPhones. These are some basic form of technology to get our message across. In last decade, there has been a drastic change in improvements of technology. What does term information technology means? Information technology covers all computing technology, such as networking, hardware, software, Internet, or people that work with these technologies.Today, information technology/system plays a significant role in running everyday businesses. ICT can been seen playing its part in data processing. For example, banks. They are vast users of ICT providing services such as online banking, ATM machines, and their own internal system. In past, businesses had to go through lengthy processes. Without ICT., communication was slower, electronic storage, and protection of records were not available. Records were kept as logs and need to be updated manually. Furthermore, information-sharing was limited because physical storage of data were kept in one source of location only. In 1980s, Total Quality Management (TQM) – theory of management and business process, based on Japanese philosophy of Kaizen or continuous improvement – has become mainstream. Business process reengineering (BPR) as a concept became popular in 1990s, demanding radical change to business processes and performance, as opposed to incremental approach in TQM.