Matching intelligent systems with business process reengineering

According to Venkatraman (1991) five degrees of IT-induced business reconfiguration can be distinguished: (1) localized exploitation of IT, (2) internal integration, (3) business process redesign, (4) business network redesign, and (5) business scope redefinition. On each of these levels, different types of intelligent systems are applicable. On the level of localized exploitation of IT, the added value of standalone intelligent systems is limited. At the second level (i.e. the internal integration level), intelligent systems may play an important role, especially when they are integrated within information retrieval and messaging systems. On the last three levels, intelligent systems enable new business process solutions by means of knowledge reallocation. Knowledge reallocation is the process of separation of knowledge from its original resources by transporting it towards earlier stages of the business process. By packaging the knowledge in intelligent systems, the reallocated knowledge becomes usable in the earliest stages of the business process for non-specialized workers. Performance improvements caused by these systems are illustrated by examples in financial services organizations