business process reengineering
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BUSINESS PROCESS BUSINESS PROCESS REENGINEERINGREENGINEERING
By: Garip Önder ÖzenBy: Garip Önder Özen
DEFINITIONDEFINITION
Hammer and Champy (1993) define BPR Hammer and Champy (1993) define BPR asas "... the fundamental rethinking and "... the fundamental rethinking and radical redesign of business processes to radical redesign of business processes to achieve dramatic improvements in critical achieve dramatic improvements in critical contemporary measures of performance, contemporary measures of performance, such as cost, quality, service, and speed."such as cost, quality, service, and speed."
DEFINITIONDEFINITION
Thomas Davenport Thomas Davenport (1993), another well-(1993), another well-known BPR theorist, uses the term known BPR theorist, uses the term process innovation, which he saysprocess innovation, which he says ”encompasses the envisioning of new ”encompasses the envisioning of new work strategies, the actual process design work strategies, the actual process design activity, and the implementation of the activity, and the implementation of the change in all its complex technological, change in all its complex technological, human, and organizational dimensions”.human, and organizational dimensions”.
DEFINITIONDEFINITION Finally, Johansson Finally, Johansson et al.et al. (1993) provide a description of (1993) provide a description of
BPR relative to other process-oriented views, such as BPR relative to other process-oriented views, such as Total Quality Management Total Quality Management (TQM) and (TQM) and Just-in-timeJust-in-time (JIT), (JIT), and state:and state: "Business Process Reengineering, although a "Business Process Reengineering, although a close relative, seeks radical rather than merely close relative, seeks radical rather than merely continuous improvement. It escalates the efforts of JIT continuous improvement. It escalates the efforts of JIT and TQM to make process orientation a strategic tool and TQM to make process orientation a strategic tool and a core competence of the organization. BPR and a core competence of the organization. BPR concentrates on core business processes, and uses the concentrates on core business processes, and uses the specific techniques within the JIT and TQM ”toolboxes” specific techniques within the JIT and TQM ”toolboxes” as enablers, while broadening the process vision."as enablers, while broadening the process vision."
DEFINITIONDEFINITION
BPR derives its existence from different BPR derives its existence from different disciplines, and four major areas can be disciplines, and four major areas can be identified as being subjected to change in identified as being subjected to change in BPRBPRorganization organization technology technology strategy strategy people people
WHY REENGINEERING?WHY REENGINEERING?
CustomersCustomersDemandingDemandingSophisticationSophisticationChanging NeedsChanging Needs
CompetitionCompetitionLocalLocalGlobalGlobal
WHY REENGINEERING?WHY REENGINEERING?
ChangeChangeTechnologyTechnologyCustomer PreferencesCustomer Preferences
WHY REENGINEERING?WHY REENGINEERING?
ComplacencyComplacency
ResistanceResistance
New DevelopmentsNew Developments
Fear of FailureFear of Failure
WHAT DOES IT SEEK?WHAT DOES IT SEEK?
BPR seeks BPR seeks
CostCostQualityQualityServiceServiceSpeedSpeed, improvements, improvements
The role of information technologyThe role of information technology
Information technology (IT) plays an Information technology (IT) plays an important role in the reengineering important role in the reengineering concept concept
It is considered as a major enabler for new It is considered as a major enabler for new forms of working and collaborating within forms of working and collaborating within an organization and across organizational an organization and across organizational borders. borders.
The role of information technologyThe role of information technology
Shared databases, making information available at many places Shared databases, making information available at many places Expert systems, allowing generalists to perform specialist tasks Expert systems, allowing generalists to perform specialist tasks Telecommunication networks, allowing organizations to be Telecommunication networks, allowing organizations to be
centralized and decentralized at the same time centralized and decentralized at the same time Decision-support tools, allowing decision-making to be a part of Decision-support tools, allowing decision-making to be a part of
everybody's job everybody's job Wirelss data communication Wirelss data communication and and portable computersportable computers, allowing field , allowing field
personnel to work office independent personnel to work office independent Interactive videodisk, to get in immediate contact with potential Interactive videodisk, to get in immediate contact with potential
buyers buyers Automatic identification and tracking, allowing things to tell where Automatic identification and tracking, allowing things to tell where
they are, instead of requiring to be found they are, instead of requiring to be found High performance computing, allowing on-the-fly planning and High performance computing, allowing on-the-fly planning and
revisioning revisioning
Key StepsKey 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 & AppointSelect the Process & Appoint TeamTeam
Two Two Important Important TasksTasks
Select Select tthe he pprocess to be rocess to be rreengineeredeengineered
Appoint Appoint aa pprocess rocess tteameam
Select the ProcessSelect the Process
Review Review bbusiness usiness sstrategy and trategy and ccustomer ustomer rrequirementsequirements
Select Select ccore ore pprocessesrocesses
Understand Understand ccustomer ustomer nneedseeds
No assumptionNo assumption
Select the ProcessSelect the Process
Select Select ccorrect orrect ppath for ath for cchangehange
Ask - Ask - qquestionnaires, uestionnaires, mmeetings, eetings, ffocus ocus
Appoint the Process TeamAppoint the Process Team
Identify Identify pprocess rocess oownerswners
DevelopDevelop eexecutive xecutive iimprovement mprovement tteameam
Provide Provide ttraining to raining to eexecutive xecutive tteameam
Core Skills RequiredCore Skills Required
Capacity to view the organization as a wholeCapacity to view the organization as a whole
Ability to focus on end-customersAbility to focus on end-customers
Ability to challenge fundamental assumptionsAbility to challenge fundamental assumptions
Courage to deliver into unknown areasCourage to deliver into unknown areas
Core Skills RequiredCore Skills Required
Ability to assume individual and collective Ability to assume individual and collective responsibilityresponsibility
Understand the Current ProcessUnderstand the Current Process
Develop a Develop a pprocess rocess ooverviewverviewClearly define the process Clearly define the process
MissionMissionScopeScopeBoundariesBoundaries
Set business and customer measurements Set business and customer measurements Understand customers expectations from Understand customers expectations from
the processthe process
Understand the Current ProcessUnderstand the Current Process
Identify Improvement OpportunitiesIdentify Improvement OpportunitiesQualityQualityReworkRework
Document the ProcessDocument the ProcessCostCostTime Time Value DataValue Data
Develop & Communicate Vision of Develop & Communicate Vision of Improved ProcessImproved Process
Communicate with all employees so that they Communicate with all employees so that they are aware of the vision of the futureare aware of the vision of the future
Always provide information on the progress of Always provide information on the progress of the BPR initiative - good and bad.the BPR initiative - good and bad.
Demonstrate assurance that the BPR initiative is Demonstrate assurance that the BPR initiative is both necessary and properly managedboth necessary and properly managed
Develop & Communicate Vision of Develop & Communicate Vision of Improved ProcessImproved Process
Promote individual development by Promote individual development by indicating options that are availableindicating options that are available
Indicate actions required and those Indicate actions required and those responsibleresponsible
Identify Action PlanIdentify Action Plan
Develop an Develop an iimprovement mprovement pplanlan
Appoint Appoint pprocess rocess oownerswners
Simplify the Simplify the pprocess to rocess to rreduce educe pprocess rocess ttimeime
Identify Action PlanIdentify Action Plan
Remove no-value-added activitiesRemove no-value-added activities
Standardize Standardize pprocess and rocess and aautomate utomate wwhere here ppossibleossible
Up-grade Up-grade eequipmentquipment
Plan/schedule the changesPlan/schedule the changes
Execute PlanExecute Plan
Qualify/certify the processQualify/certify the processPerform periodic qualification reviewsPerform periodic qualification reviewsDefine and eliminate process problemsDefine and eliminate process problemsEvaluate the change impact on the Evaluate the change impact on the
business and on customersbusiness and on customersBenchmark the processBenchmark the processProvide advanced team trainingProvide advanced team training
Benefits From ITBenefits From IT
Assists the Implementation of Business Assists the Implementation of Business ProcessesProcessesEnables Product & Service InnovationsEnables Product & Service Innovations Improve Operational EfficiencyImprove Operational EfficiencyCoordinate Vendors & Customers in the Coordinate Vendors & Customers in the
Process ChainProcess Chain
Common ProblemsCommon Problems
Process Process ssimplification is implification is ccommon - ommon - ttrue rue BPR is BPR is nnotot
Desire to Desire to cchange hange nnot ot sstrongtrongCommitment to Commitment to eexisting xisting pprocesses rocesses ttoo oo
sstrongtrong
Common Problems with BPRCommon Problems with BPR
Process under review too big or too smallProcess under review too big or too smallReliance on existing process too strongReliance on existing process too strongThe Costs of the The Costs of the cchange hange sseem eem llargeargeAllocation of Allocation of rresourcesesourcesPoor Poor ttiming and iming and pplanninglanningKeeping the Keeping the tteam and eam and oorganization on rganization on
ttargetarget
THANK YOU...THANK YOU...