Business Process Re-engineering

Business Process Re-engineering : 

Business Process Re-engineering

Business Process Re-engineering : 

Business Process Re-engineering Reengineering is the fundamental rethinking and redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed. (Hammer & Champy, 1993)

Business process ReengineeringCycle : 

Business process ReengineeringCycle

Deceptive Concept : 

Deceptive Concept Automation Downsizing Outsourcing

BPR Versus Process Simplification : 

BPR Versus Process Simplification Process Reengineering Vision-Led Change Attitudes & Behaviors Director-Led Limited Number of Initiatives Process Simplification Process-Led Assume Attitudes & Behaviors Management-Led Various Simultaneous Projects

BPR Versus Continuous Improvement : 

BPR Versus Continuous Improvement Process Reengineering People & Technology Focus High Investment Rebuild Leader Driven Continuous Improvement People Focus Low Investment Improve Existing Work Unit Driven

What is a Process? : 

What is a Process? A specific ordering of work activities across time and space, with a beginning and an end, and clearly identified inputs and outputs: a full structure for action. (Davenport, 1993)

What is a Business Process? : 

What is a Business Process? A group of logically related tasks that use the firm's resources to provide customer-oriented results in support of the organization's objectives

Why Reengineer? : 

Why Reengineer? Customers Demanding Sophistication Changing Needs Competition Local Global

Why Reengineer? : 

Why Reengineer? Change Technology Customer Preferences

Performance : 

Performance BPR seeks improvements of Cost Quality Service Speed

Key Characteristics : 

Key Characteristics Global Perspective on Business Processes Integrated Change People Centred Focus on End-Customers

Process Based : 

Process Based Added Value BPR Initiatives must add-value over and above the existing process Customer-Led BPR Initiatives must meet the needs of the customer

Radical Improvement : 

Radical Improvement Sustainable Process improvements need to become firmly rooted within the organization Stepped Approach Process improvements will not happen over night they need to be gradually introduced Also assists the acceptance by staff of the change

People-Centred : 

People-Centred Business Understanding Empowerment & Participation Organizational Culture

Focus on End-Customers : 

Focus on End-Customers Process improvements must relate to the needs of the organization and be relevant to the end-customers to which they are designed to serve

BPR Symbols : 

BPR Symbols

Business Process Flowchart Symbols : 

Business Process Flowchart Symbols An Activity A Document A Decision Data (input as outputs)

Business Process Flowchart Symbols : 

Business Process Flowchart Symbols A Predefined Process The Start of a Process The End of a Process Representing a Relation Start End

Business Process Flowchart Symbols : 

Business Process Flowchart Symbols Continuation of the process at the same page at an equal symbol with the same number. Used when a relation arrow crosses another relation arrow Off-Page Connector - Process will continue on the next page Integration Relation - A relation to another module is identified and described

Data Flowchart Symbols : 

Data Flowchart Symbols Manual Data Item A Database File Continuation Off-Page Connector

Implementing a BPR Strategy : 

Implementing a BPR Strategy

Key Steps : 

Key Steps Select The Process & Appoint Process Team Understand The Current Process Develop & Communicate Vision Of Improved Process Identify Action Plan Execute Plan

Select the Process & Appoint Process Team : 

Select the Process & Appoint Process Team Two Crucial Tasks Select The Process to be Reengineered Appoint the Process Team to Lead the Reengineering Initiative

Select the Process : 

Select the Process Review Business Strategy and Customer Requirements Select Core Processes Understand Customer Needs Don’t Assume Anything

Select the Process : 

Select the Process Select Correct Path for Change Remember Assumptions can Hide Failures Competition and Choice to Go Elsewhere Ask - Questionnaires, Meetings, Focus Groups

Appoint the Process Team : 

Appoint the Process Team Appoint BPR Coordinator Identify Process Owners Establish 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 and venture into unknown areas

Core Skills Required : 

Core Skills Required Ability to assume individual and collective responsibility

Use of Consultants : 

Use of Consultants Used to generate internal capacity Appropriate when a implementation is needed quickly Ensure that adequate consultation is sought from staff so that the initiative is organization-led and not consultant-driven Control should never be handed over to the consultant

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 (staff including process team)

Understand the Current Process : 

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

Understand the Current Process : 

Understand the Current Process Carefully resolve any inconsistencies Existing  New Process Ideal  Realistic Process

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 Tackle any actions that need resolution Direct communication to reinforce new patterns of desired behavior

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

Information Technology & BPR : 

Information Technology & BPR

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

Computer Aided BPR (CABPR) : 

Computer Aided BPR (CABPR) Focus Business Processes Process Redesign Process Implementation

BPR Challenges and Summary : 

BPR Challenges and Summary

Criticisms of BPR : 

Criticisms of BPR It never changed management thinking Lack of management support for the initiative and thus poor acceptance in the organization. Exaggerated expectations regarding the potential benefits from a BPR initiative and consequently failure to achieve the expected results. Underestimation of the resistance to change within the organization. Implementation of generic so-called best-practice processes that do not fit specific company needs. Over trust in technology solutions. Performing BPR as a one-off project with limited strategy alignment and long-term perspective. Poor project management.

Summary : 

Summary Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements BPR has emerged from key management traditions such as scientific management and systems thinking Rules and symbols play an integral part of all BPR initiatives BPR is fundamental rethinking of business processes so we cannot assume anything