Business Reengineering at CIGNA Corporation: Experiences and Lessons Learned from the First Five Years

Caron, J. Raymond; Järvenpää, Sirkka L.; Stoddard, Donna B.

doi:10.2307/249617

Cited by 196 publications

(91 citation statements)

References 4 publications

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“…The organization redesigned and created self-focused teams and trained generalists to handle customer service. Business practices such as enterprise-wide metrics, application of skills where added value was achieved, and a common view of the customer were implemented [15].…”

Section: Process Reengineeringmentioning

confidence: 99%

Information Technology Payoff in the Health-Care Industry: A Longitudinal Study

Devaraj

Kohli

2000

Journal of Management Information Systems

439

236

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He has worked on several projects for companies examining the impact ofthe technological environment, justin-time manufacturing, work teams, and perfonnance evaluation systems on manufacturing performance. He has also studied the impact of technology investments and technology usage in the health-care industry. In the field of service quality, Dr. Devaraj conducts research on consumers' perception of service and product quality in the automotive industry. He teaches courses in management of technology, operations management, and business statistics. ABSTRACT: With the enormous investments in Information Technology (IT), the question of payoffs from IT has become increasingly important. Organizations continue to question the benefits from IT investments especially in conjunction with corporate initiatives such as business process reengineering (BPR). Furthermore, the impact of technology on nonfmancial outcomes such as customer satisfaction and quality is gaining interest. RAJIV KOHLI is the ProjectHowever, studies examining the IT-^erformance relationship have been far from conclusive. The difficulty in identifying impacts from technology has been the isolation of benefits of IT from other factors that may also contribute to organizational performance. Furthermore, benefits from technology investments may be realized over an extended period of time. Finally, IT benefits may accrue when they are done in concert with other organizational initiatives such as business process reengineering. This calls for studies that take into account control variables as well as data that span time periods.In this study, we examine monthly data collected from eight hospitals over a recent three-year time period. We specify propositions that relate investments in IT to performance, and the combined effect of technology and BPR on performance. We draw DEVARAJ AND KOHLIupon the literature in health-care management to incorporate appropriate control variables in the analyses. Our results provide support for the IT-^erfonnance relationship that is observed after certain time lags. Such a relationship may not be evident in cross-sectional or snapshot data analyses. Also, results indicate support for the impact of technology contingent on BPR practiced by hospitals.KEY WORDS AND PHRASES: business process reengheering, health-care infonnation systems, infonnation technology payoff, information technology productivity. CHANGES IN THE HEALTH-CARE BUSINESS RESULTING FROM CAPITATION and de-clining reimbursement have led to cost-cutting measures through improved operations. In some cases, failure to cut costs threatens the fmancial viability of healthcare organizations. While on the one hand investment in IT is seen as an enabler of efficiency and competitiveness, it is also a significant fmancial investment that, if not linked to improved organizational performance, can hasten the decline of an organization. Given this scenario, the issue of IT payoff has come under close scmtiny.While IT payoff has long been a subject of research and intens...

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Section: Process Reengineeringmentioning

confidence: 99%

Information Technology Payoff in the Health-Care Industry: A Longitudinal Study

Devaraj

Kohli

2000

Journal of Management Information Systems

439

236

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“…According to Lewin, who works in organizational change, found these methods to be successful. Both organizational change theorists and specifically BPR theorists (Al-Mashari, et al, 2010;Baer & Frese, 2003;Berthon, Mac Hulbert, & Pitt, 2004;Black & Porter, 1996;Brown & Leigh, 1996;Caron, Jarvenpaa, & Stoddard, 1994;J. A. Champy & Nohria, 1996) agree with Lewin's findings.…”

Section: Leadership and Bpr Performancementioning

confidence: 76%

“…Although there is no set formula (Caron et al, 1994), several different approaches have been proposed. Evans (1994) uses a bridging metaphor to describe a broad framework for BPR projects.…”

Section: Processes Procedures and Bpr Performancementioning

confidence: 99%

“…from the top management, so the transition of process ownership is very important and necessary. The employees, who work with new processes have to own them, otherwise the project, will tend to fail (Caron, et al, 1994). Most companies lack process owners or they are defined to a minor extent, which is the consequence of a traditional organization of people and their thinking, which is not process oriented (Hammer & Champy, 2009).…”

Section: Processes Procedures and Bpr Performancementioning

confidence: 99%

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The CSFs, Quality Governance, BPR Performance and Gaining Competitive Advantage

Smith¹,

Meade²,

Wolf³

et al. 2013

IJBM

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Business process reengineering (BPR) is a popular management approach, which enables organizations to conduct substantial business and technological improvements. Successful implementation of BPR can assist organizations to change their old-fashioned practices into innovative processes through reorganizing and eliminating some processes and/or finding innovative ways to conduct business activities. Studies have shown, successful BPR implementation can. 1) create higher customer satisfaction, 2) increase productivity, 3) build higher flexibility in business processes, 4) improve organizational integrity which shall lead to sustainable competitive advantage for the firm. However, findings by different researches illustrate that up to 70% of BPR's failures are at implementation stage due to lack of understanding of involved factors by different levels of management in an organization. This paper has exclusively developed the model, which can address the role of different factors in the implementation of Business Process Reengineering (BPR) performance and the ultimate outcome as competitive advantage. In addition, this research studies the influence of company size and business type as a moderator in the relationship between independent variables of study and BPR performance. The proposed model here aims to help planners in identifying a set of critical processes that are aligned with the firm's strategic performance and then become candidate processes for further implementation.

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“…Strong evidence indicates that an organisation's own experiences provide a knowledge base to guide future actions (Caron et al, 1994;Yetton et al, 1994;Robey & Newman, 1996;Ang et al, 1997;Robey et al, 2000).…”

Section: Learning and It Implementation: Looking For A Theorymentioning

confidence: 99%

The Relevance of Learning Processes for IT Implementation

Bondarouk

Sikkel

2007

Advances in Information Resources Management

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The starting point of this paper is the belief that it is neither the quality of the technology, nor that of the individual users, but the interactions among people in groups of users concerning a new system that determines the success or failure of IT implementation. Aiming at conceptualization of the role of group learning in IT implementation, we first develop a theoretical framework based on the experiential learning cycle that includes five processes: collective acting, group reflecting, knowledge disseminating, sharing understanding, and mutual adjustment. Second, we illustrate the roles of learning processes in three case studies. Analysis of the interviews with 98 users of information technologies has revealed a unique function of group learning in the IT implementation. It is shown that group learning emerges immediately after a new IT is introduced to the targeted users; it may take different directions (for or against adoption of the technology); it itself can develop during the IT implementation and either progress or take a turn for the worse. The paper elaborates on three organizational conditions important for directing the constructive group learning: managerial support issues, structural and non-structural group characteristics, and technological features that turn group learning in a positive direction.

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Business Reengineering at CIGNA Corporation: Experiences and Lessons Learned from the First Five Years

Cited by 196 publications

References 4 publications

Information Technology Payoff in the Health-Care Industry: A Longitudinal Study

Information Technology Payoff in the Health-Care Industry: A Longitudinal Study

The CSFs, Quality Governance, BPR Performance and Gaining Competitive Advantage

The Relevance of Learning Processes for IT Implementation

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