IT-enabled organizational transformation: a case study of BPR failure at TELECO

This case study describes a business process reengineering (BPR) initiative undertaken by a US telecommunications company (TELECO) in response to imminent survival-threatening competitive pressures in its traditionally monopolistic market. The case study, first, highlights some of the seldom talked-about problems faced during the redesigning of business processes such as: the lack of detailed knowledge about functional areas; hidden agendas of top management; lack of knowledge of (and over-reliance on) computer-based BPR tools; poor choice of metaphors in the organizational language; and the lack of communication. Thereafter, the case study identifies critical problems faced in implementing redesigned processes. These problems include: the difficulty in creating an atmosphere of open communication; pressures against selecting IT vendors on merit; lack of awareness of the lead times associated with IT; uncoordinated implementation of HR and IT strategies; and discontinuities in the leadership. While we hope that the reader will be sensitized to the issues highlighted in the narrative and will individually derive lessons for application in familiar contexts, we nevertheless provide a discussion on three issues that, in our opinion, significantly contributed to BPR “failure” at TELECO. q 1999 Elsevier Science B.V. All rights reserved.