Zuboff’s theory on the changing role of IS/IT - Automate, Informate and Transformate

(correlates to Automation, Rationalisation and Reengineering.)

Automate

The initial introduction of IS into organisations involves the automation of repetitive and costly manual tasks. These processes are seldom redesigned. The system is used as a tool to directly replace the human or at least speed up the human task.

The most common form of IT-enabled organisational change is automation. The early applications of information technology involved assisting employees in performing their tasks more efficiently and effectively. Low risk strategy.

Examples are, word processing, office automation systems, automatic booking scheduling systems, giving bank tellers instant access to customer records, and developing a nationwide network of airline terminals. Automation is akin to putting a larger engine in an existing car. Most of the benefits of automation are financial; implementation tends to lead to improvements in economy and efficiency.

Early automation in retail businesses meant the introduction of electronic cash registers, keeping till receipts, balancing individual tills, leading on to basic Point of Sales systems. Basic stock recording systems, listing items that fall below a pre-set reorder level.

Informate

This stage defines the change in attitude of the users and the organisation. Users start to request more information, better information or faster information. The potential of IS systems is beginning to become realised and some processes are redesigned to exploit that potential. Thus with information, the IS systems start to do things that humans never did.

Businesses now begin to question the existing processes, taking a logical view of processes, viewing the business in terms of what it does as opposed to how it does it. The streamlining of standard operating procedures, eliminating obvious bottlenecks so that automation makes operating procedures more efficient.

Informate may involve integrating sections or departments by making changes to the infrastructure. Linking the order processing system with the stock control system. This integration may lead to the development of corporate databases enabling all members of a company to share data. Provides support to the analysis and presentation of information for managerial decision-making. Informate is a low to medium risk strategy.

Example; retail business, automatic sales analysis, trend analysis, linking many of the everyday business functions to an integrated inventory system, sales, stock recording, purchasing and general order processing activities. Many of the benefits of information are related to improving the effectiveness of the organisation – making it more profitable.

Transformate

This stage of development is when the systems provide the organisation with opportunities to change the way business is done. Thus with the transformate stage the systems allow the organisation to conduct business in a way that was previously not possible.

The redesign of business processes, combining steps to cut waste and eliminating repetitive, paper-intensive tasks to improve cost, quality and service and to maximise the benefits of IT. Information technology is being used to restructure work by transforming business processes. A business process is any set of activities designed to produce a specified output for a customer or market. Business Process Reengineering (BPR) ‘the fundamental rethinking and radical design of business processes to achieve dramatic improvements, such as cost, quality, service, and speed’. It focuses on the how and why of business process so major changes can be made in how work is accomplished.

Transformation may involve complete changes in a company’s structure to enable this redesign to take place. This is a very high-risk strategy, which goes much further than rationalisation of processes. Revolution as opposed to evolution of business strategy.

Example; retail business deciding to develop Internet technology could be viewed as a fundamental change.

Within the banking sector the introduction of 24 hour banking. ATMs. The transformation stage has permitted the general development of e-business strategies. The major benefits of this stage are related to competitive advantage. When all rivals have reached the informate stage, they look for more and more opportunities to reduce cost, differentiate services or focus on customer needs.