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MITS4001CaseStudyandPresentation.pdf

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MITS4001

Business Information Systems

Case Study and Presentation

July 2019

MITS4001 Case Study and Presentation - 1

Case Study Report (Individual Assignment) - 10% (Due week 5)

INSTRUCTIONS

For this component of assessment you are to prepare a report based on the case study below and the questions that follow it. Your report should be limited to approx. 1400 words (not including references). Use 1.5 spacing with a 12 point Times New Roman font. You should include references in your report and these and must be in the IEEE style.

Case Study: Cutting out paper speeds up the process

The Chinese are credited with inventing paper nearly two millennia ago, and in spite of more

recent inventions, such as the integrated circuit, computerised storage, and networking, it is

still heavily used. So is the world moving closer to ushering out the old in favour of the new?

The paperless office has long been a dream, but can it be achieved?

Liverpool Direct is doing its best. The company is a partnership between BT and Liverpool City

Council, which at the turn of the decade was seen as one of the worst councils in the UK at

revenue collection and benefit payments. ‘The service was deemed to be failing’, says David

McElhinney, chief executive of Liverpool Direct, which was formed in 2001 to help modernise

the council's operations. ‘The average time to turn around a benefit claim was 140 days, and

there was a backlog of 50,000 cases.’ The paper was holding everything up. Each week, 20,000

pieces of mail would arrive at the benefit office, including everything from benefit claims to

notifications that an individual's circumstances had changed. The mail would be stamped, and

filtered through different teams depending on what information it held until it reached a file.

It would then be sent to more people for manual assessment. Bottlenecks would delay the

paperwork, and files would be buried on someone's desk when they were needed most. 'A

claimant might pay a personal visit, and we wouldn't be able to locate their file', Mr

McElhinney says. 'The average wait was about two hours.' Not only did the paper cause

significant delays, but also took up £750,000-worth of office space a year. Ridding the office

of paper began with refocusing the system around the end-user. A series of 'one stop shop'

contact centres was set up to handle customer queries and visits, and the organisation opted

for what Mr McElhinney calls a 'single version of the truth' - a single electronic document that

MITS4001 Case Study and Presentation - 1

can be referred to by all parties at any time. Now, when a document is received, it is scanned

and put into a digital file. Data can be attached to the documents, which is archived into

different folders by a dedicated team, based on the content. Software-based flags can then

be set for the document that can trigger actions necessary for that letter. One trigger might

cause a letter with a particular response to be generated, for example.

One of the biggest challenges when re-engineering a paper-based system is to minimise

disruption, but some interruption is inevitable. ‘It’s one of those systems where you can’t run

things in parallel’, explains Mr McElhinney. The systems were turned off for six weeks, and

buildings including 15 post rooms where closed; one post room was retained to scan all

incoming correspondence; the paper storage building was sold in March 2006, generating

£4.5m for the city. Stripping away old ways of working was an important part of the project's

benefits: ‘Know your processes, and challenge them to make them more efficient’, says Roddy

Horton, central systems manager at the Hyde Group, a housing association with 1,200

employees serving more than 75,000 people. This month, the Hyde Group computerised its

recruitment process, stripping 58,000 sheets of paper a year out of the system.

Before the recruitment process was digitised, candidates would receive an information pack

and application form in the post. They filled in and returned the form and copies were sent

to the recruiting manager and up to five people on the review panel. The recruiting manager

would then fill out various forms following the interview and return them to human

resources, which would then send a decision letter to the candidate. 'Now, all the details are

on the website', explains Mr Horton. An online application form is logged in a database and

sent to the recruitment manager, who then electronically forwards it to the interviewing

panel. Once the decision is reported to human resources, the candidate receives an e-mail.

The recruitment application is built on a database from Northgate HR that the company had

bought in 2001 to manage some human resources information. It then purchased ePeople, a

human resources application from Northgate that enables the company to provide a self-

service front end to the database. The developers built workflow rules into the system that

coordinated these communications electronically. The recruitment applications join an

already-deployed paperless expense claims and training request application, also designed to

strip paper from the system.

MITS4001 Case Study and Presentation - 1

Before the introduction of that system, paper-based expense claims and time sheets needed

to be signed by a manager, who would often be out surveying sites, dealing with housing

issues, or visiting other offices. 'It might be weeks before you saw your manager', says Mr

Horton. 'Staff were not being paid on time, and they were also going to huge amounts of

effort to claim those payments.’

The electronic system handles those communications digitally, so staff enter their expenses

claims directly into the computer. The Hyde group also refined the expenses process by

making it possible within the system to request that another person sign a document, if the

first choice of manager was absent, for example. Both Liverpool Direct and Hyde’s projects

had a common challenge in getting people to change the way they work – especially senior

staff used to do things a certain way. Mr Horton found that electronically signing documents

was counterintuitive for many staff: ‘I had problems proving that an electronic signature is

just as sound as a paper one’, he says, explaining that employees ‘sign’ an e-mail in the

workflow system by e-mailing it to the server, which then e-mails the next person in the

workflow chain.

‘Sometimes, people can also be nervous of introducing efficiencies because they see it as a

job threat', Mr Horton warns. He had to reassure several people as systems were rolled out.

But how much paper do such projects really get rid of? Neither of these organisations are yet

paperless. Liverpool Direct has achieved the greatest success, having stripped about 70

percent of the paper from the process. None of the paper that is personally bought into the

one-stop shop centres and scanned is retained, but any postal correspondence is retained for

30 days after being digitised. The Hyde Group's attempt at digital deforestation has been

more muted. Since the recruitment system was digitised, about one-third of its paper has

been eliminated. It hopes to increase that to 80 percent by digitising supplier invoices,

tenancy agreements, and possibly tenancy repair requests, Mr Horton says.

Nevertheless, even though an entirely paperless office may not be plausible, stripping even

this much paper out of the system can have positive effects. For example, in Liverpool the

caseload backlog has been reduced from 50,000 to zero, while the average processing time

for benefit claims has dropped from 133 days to 19. Abandoned call rates to its contact centre

have dropped from 50 percent to just 5 percent, and the waiting time for personal visits

MITS4001 Case Study and Presentation - 1

concerning benefit claims has been reduced from the original two hours to four minutes.

Hyde will always have some paper, even if it is not strictly speaking in the office. The company

is reluctant to get rid of paper-based tenancy agreements altogether, and keeps them stored

in an off-site location for legal purposes. Nevertheless, with the paperless recruitment system

now in place, and with its previous paper saving efforts, it has eradicated 153,000 sheets of

paper a year from its operations.

In reality, the totally paperless office may still be as far off as the paperless newsagent - but

organisations can go a long way towards reducing what they use and increasing the efficiency

of their work along the way.

Questions

1. Why is it important to strip away old ways of working when introducing systems such as those brought in by Liverpool Direct and Hyde?

2. Using the Internet as a resource, locate information regarding a simple document management system, such as Scansoft's PaperPort Office. How useful is such a product likely to be within a department of a large company or a small business?

3. What is the likelihood that the paperless office will ever be achieved?

4. If a company implements a workflow management system such as the one described in the case study, what would be the expected changes in the business processes. What do you think would be the drivers for success of such a project?

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MITS4001 Case Study and Presentation - 1

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