Chapter 2

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Chapter 2

  1. 1. Teguh I Santoso, MBATeguh I Santoso, MBA RETHINKING BUSINESS PROCESSRETHINKING BUSINESS PROCESS Chapter 2Chapter 2
  2. 2. QuitQuitXX BPR Four key wordsBPR Four key words 1. Fundamental means business people have to ask themselves with a fundamental question, such as why, what and how we do the business. 2. Radical means, ‘if it did not exist today, how would we create it’ and then destroying the old system to create the new one 3. 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 4. Process means a group of distinct tasks that together create a product or service desired by one or more stakeholders
  3. 3. QuitQuitXX ProcessProcess 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. 4. QuitQuitXX Process CharacteristicsProcess Characteristics Processes have two important characteristics: 1. They have customers (internal or external) 2. 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. 5. QuitQuitXX Flow of ProcessFlow of Process CEO OPR ACC.MKT Customer Request Order Fulfillment
  6. 6. QuitQuitXX Process DimensionsProcess Dimensions Processes may be defined based on three dimensions 1. Entities Processes take place between organizational entities. They could be Interorganizational (e.g. EDI),Interfunctional or Interpersonal. 2. Objects Processes result in manipulation of objects. These objects could be Physical or Informational. 3. 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. 7. QuitQuitXX InovasiInovasi “ Peluncuran sesuatu yang baru dengan tujuan untuk menimbulkan perubahan besar yang radikal “
  8. 8. QuitQuitXX Process InnovationProcess 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. 9. QuitQuitXX Improvement vs. InnovationImprovement vs. Innovation Dimension Improvement Innovation (BPR) Level of Change Incremental Radical Starting Point Existing Process Clean Slate Frequency of Change One-time/Continuous One-Time Time Required Short Long Participation Bottom-Up Top-Down Typical Scope Narrow, within function Broad, cross-functional Risk Moderate High Primary Enabler Statistical Control Information Technology Type of Change Cultural Cultural/Structural Source: Davenport, 1993
  10. 10. QuitQuitXX Kerangka Inovasi ProsesKerangka Inovasi Proses Mengidentifikasi Proses untuk Inovasi Mengidentifikasi Pemungkin Perubahan Mengembangkan Visi Proses Memahami Proses-proses yang ada Merancang & Membuat Prototype Proses Baru
  11. 11. QuitQuitXX Thank You

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