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BUSINESS PROCESS REENGINEERING “An organizational make-over” “Reengineering is new, and it has to be done.” Peter F. Drucker

What is Reengineering:

What is Reengineering As defined by Hammer and Champy: The fundamental rethinking and radical design of business processes to achieve dramatic improvement in critical contemporary measures of performance such as cost, quality, service and speed.


BUSINESS PROCESS REENGINEERING The search for, and implementation of, radical change in business processes to achieve breakthrough results. Synonyms: business process redesign, business transformation, process innovation, business reinvention, change integration.

The Need for BPR:

4- 4 The Need for BPR Customers Competition Change Techniques lag behind technology Problem of the stovepipe Fragmented piecemeal systems Integration


Impact Companies need to be competitive. Companies need to think and act on: Meeting the needs and demands of customers. Increasing quality of products. Minimization of costs. Increase product life cycles. Better value for money and fast customer service. Flexibility

Characteristics of Business Process Reengineering:

Characteristics of Business Process Reengineering Several jobs are combined into one Employees make decisions Steps in business process: natural order Process may have multiple versions Work is performed where it makes the most sense

Slide 7:

Controls, checks, other non value-added work is minimized Reconciliation is minimized - minimize external contact points Hybrid centralized / decentralized operation is used A single point of contact is provided for the customer

Business Process Reengineering and Restructuring the Organization:

Business Process Reengineering and Restructuring the Organization Redesign of processes From mass production to mass customization Cycle time reduction Restructuring organizations

Implementing Reengineering:

Implementing Reengineering Redesign Retool Reorchestrate : Leadership Corporate values Cultural change Incentives Accountability Zeal


BPR: STRATEGY* Stakeholder Assessment - shareholders, customers, employees Determine which stakeholder expectations should be met to gain competitive advantage Determine how to redesign to meet expectations Map out IT solutions to support Develop & implement new processes, etc.

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