BUSINESS PROCESS REENGINEERING :BUSINESS PROCESS REENGINEERING By: Garip Önder Özen


DEFINITION :DEFINITION Hammer and Champy (1993) define BPR as "... the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance, such as cost, quality, service, and speed."


DEFINITION :DEFINITION Thomas Davenport (1993), another well-known BPR theorist, uses the term process innovation, which he says ”encompasses the envisioning of new work strategies, the actual process design activity, and the implementation of the change in all its complex technological, human, and organizational dimensions”.


DEFINITION :DEFINITION Finally, Johansson et al. (1993) provide a description of BPR relative to other process-oriented views, such as Total Quality Management (TQM) and Just-in-time (JIT), and state: "Business Process Reengineering, although a close relative, seeks radical rather than merely continuous improvement. It escalates the efforts of JIT and TQM to make process orientation a strategic tool and a core competence of the organization. BPR concentrates on core business processes, and uses the specific techniques within the JIT and TQM ”toolboxes” as enablers, while broadening the process vision."


DEFINITION :DEFINITION BPR derives its existence from different disciplines, and four major areas can be identified as being subjected to change in BPR organization technology strategy people


WHY REENGINEERING? :WHY REENGINEERING? Customers Demanding Sophistication Changing Needs Competition Local Global


WHY REENGINEERING? :WHY REENGINEERING? Change Technology Customer Preferences


WHY REENGINEERING? :WHY REENGINEERING? Complacency Resistance New Developments Fear of Failure


WHAT DOES IT SEEK? :WHAT DOES IT SEEK? BPR seeks Cost Quality Service Speed, improvements


The role of information technology :The role of information technology Information technology (IT) plays an important role in the reengineering concept It is considered as a major enabler for new forms of working and collaborating within an organization and across organizational borders.


The role of information technology :The role of information technology Shared databases, making information available at many places Expert systems, allowing generalists to perform specialist tasks Telecommunication networks, allowing organizations to be centralized and decentralized at the same time Decision-support tools, allowing decision-making to be a part of everybody's job Wirelss data communication and portable computers, allowing field personnel to work office independent Interactive videodisk, to get in immediate contact with potential buyers Automatic identification and tracking, allowing things to tell where they are, instead of requiring to be found High performance computing, allowing on-the-fly planning and revisioning


Key Steps :Key Steps


Select the Process & Appoint Team :Select the Process & Appoint Team Two Important Tasks Select the process to be reengineered Appoint a process team


Select the Process :Select the Process Review business strategy and customer requirements Select core processes Understand customer needs No assumption


Select the Process :Select the Process Select correct path for change Ask - questionnaires, meetings, focus


Appoint the Process Team :Appoint the Process Team Identify process owners Develop executive improvement team Provide training to executive team


Core Skills Required :Core Skills Required Capacity to view the organization as a whole Ability to focus on end-customers Ability to challenge fundamental assumptions Courage to deliver into unknown areas


Core Skills Required :Core Skills Required Ability to assume individual and collective responsibility


Understand the Current Process :Understand the Current Process Develop a process overview Clearly define the process Mission Scope Boundaries Set business and customer measurements Understand customers expectations from the process


Understand the Current Process :Understand the Current Process Identify Improvement Opportunities Quality Rework Document the Process Cost Time Value Data


Develop & Communicate Vision of Improved Process :Develop & Communicate Vision of Improved Process Communicate with all employees so that they are aware of the vision of the future Always provide information on the progress of the BPR initiative - good and bad. Demonstrate assurance that the BPR initiative is both necessary and properly managed


Develop & Communicate Vision of Improved Process :Develop & Communicate Vision of Improved Process Promote individual development by indicating options that are available Indicate actions required and those responsible


Identify Action Plan :Identify Action Plan Develop an improvement plan Appoint process owners Simplify the process to reduce process time


Identify Action Plan :Identify Action Plan Remove no-value-added activities Standardize process and automate where possible Up-grade equipment Plan/schedule the changes


Execute Plan :Execute Plan Qualify/certify the process Perform periodic qualification reviews Define and eliminate process problems Evaluate the change impact on the business and on customers Benchmark the process Provide advanced team training


Benefits From IT :Benefits From IT Assists the Implementation of Business Processes Enables Product & Service Innovations Improve Operational Efficiency Coordinate Vendors & Customers in the Process Chain


Common Problems :Common Problems Process simplification is common - true BPR is not Desire to change not strong Commitment to existing processes too strong


Common Problems with BPR :Common Problems with BPR Process under review too big or too small Reliance on existing process too strong The Costs of the change seem large Allocation of resources Poor timing and planning Keeping the team and organization on target


Slide 29:THANK YOU...