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  • 1. Teguh I Santoso, MBA RETHINKING BUSINESS PROCESS Chapter 2
  • 2. BPR Four key words
    • Fundamental
    • means business people have to ask themselves with a fundamental question, such as why, what and how we do the business.
    • Radical
    • means, ‘if it did not exist today, how would we create it’ and then destroying the old system to create the new one
    • Dramatic
    • means improvement in business result, not of 5%, not of 15% nor 20%, but in term of quantum leaps of 100%, 300%, 500% better result
    • Process
    • means a group of distinct tasks that together create a product or service desired by one or more stakeholders
  • 3. Process
    • Process
    • A specific ordering of work activities across time and space, with a beginning, an end, and clearly identified inputs and outputs: a structure for action
    • (Davenport, 1993)
    • Business Process
    • A collection of activities that takes one or more kinds of inputs and creates an output that is of value to the customer
    • Examples of processes include:
    • developing a new product;
    • ordering goods from a supplier;
    • creating a marketing plan;
    • processing and paying an insurance claim; etc
  • 4. Process Characteristics
    • Processes have two important characteristics:
      • They have customers (internal or external)
      • They cross organizational boundaries
    One technique for identifying business processes in an organization is the Value Chain method proposed by Porter and Millar (1985)
  • 5. Flow of Process CEO OPR ACC. MKT Customer Request Order Fulfillment
  • 6. Process Dimensions
    • Processes may be defined based on three dimensions
      • Entities
      • Processes take place between organizational entities.
      • They could be Interorganizational (e.g. EDI),Interfunctional or Interpersonal.
      • Objects
      • Processes result in manipulation of objects. These objects could be Physical or Informational.
      • Activities
      • Processes could involve two types of activities:
      • Managerial (e.g. develop a budget) and Operational (e.g. fill a customer order)
    • (Davenport & Short 1990)
  • 7. Inovasi
    • “ Peluncuran sesuatu yang baru dengan tujuan untuk menimbulkan perubahan besar yang radikal “
  • 8. Process Innovation
    • Involves stepping back from a process to inquire into its overall business objective, and then effecting creative and radical change to realize order-of-magnitude improvements in the way that objective is accomplished.”
    • “ Re-engineering is only part of what is necessary in the radical change of processes; it refers specifically to the design of the new process.”
    • “ The term process innovation 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.”
  • 9. Improvement vs. Innovation Source: Davenport, 1993 Cultural/Structural Cultural Type of Change Information Technology Statistical Control Primary Enabler High Moderate Risk Broad, cross-functional Narrow, within function Typical Scope Top-Down Bottom-Up Participation Long Short Time Required One-Time One-time/Continuous Frequency of Change Clean Slate Existing Process Starting Point Radical Incremental Level of Change Innovation (BPR) Improvement Dimension
  • 10. Kerangka Inovasi Proses Mengidentifikasi Proses untuk Inovasi Mengidentifikasi Pemungkin Perubahan Mengembangkan Visi Proses Memahami Proses-proses yang ada Merancang & Membuat Prototype Proses Baru
  • 11. Thank You