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Bpr 01 Introduction

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Business process reengineering

Business process reengineering

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  • 1. Business Process Re-engineering 01 – History & Introduction
  • 2. BPR - Evolution
    • Organisations aim to increase productivity & quality service and to reduce cost
    • Traditional organisation structure, customer services and business methods are out-dated
    • Low barriers to entry, hence stiffer competition - locally & globally
    • Current business are:
      • customer-focused and market driven
      • process-focused and team-oriented
      • Focused on speed & response time
      • focused on customer relationships
  • 3.
    • Business concepts of 1990
    • Rework of TQM, continuous improvement
    • Survey results shows that BPR was unsuccessful
    • BPR leaders - James Champy; Thomas Davenport
    • Deming and Juran discussed about BPR in TQM reports
    • BPR was introduced in 70’s to the manufacturing environment
    BPR - Origins
  • 4. Business Process Davenport & Short’s definition ” a set of logically related tasks performed to achieve a defined business outcome . A structured, measured set of activities designed to produce a specified output for a particular customer or market. It implies a strong emphasis on how work is done within an organization” - Davenport & Short, 1990
  • 5. Business Process
    • Generic Definition
    • “ a set of activities that transform a set of inputs into a set of outputs (goods or services) for another person or process using people and tools”
    • “ a collection of business activities that creates value for the customer”
    Inputs Supplier Process Customer Outputs
  • 6. Business Process
    • What are Business processes?
    • sequences and combinations of business activities.
    • management processes control and coordinate these activities and ensure that business objectives are delivered.
    • support processes, the name implies, provide infrastructural and other assistance to business processes.
    • Business Processes can be further differentiated into knowledge-based and operational processes .
  • 7.
    • What are Knowledge-based processes?
    • Product development, research activities, advertisement, and management consulting.
    • These processes typically are of non-standard nature
    • They rely on the knowledge and creativity of the persons involved.
    • Knowledge-based processes are not dominant in
    • Business Reengineering projects.
    • - Davenport; Jarvenpaa; Beers, 1996
    Knowledge-based Processes
  • 8. Operational Processes
    • What are Operational processes ?
    • Customer service, procurement, and manufacturing. They are at the heart of most Business Reengineering efforts.
    • They are classified by their relative stability, standardisation and repeatability.
    • Operational processes are further classified into key and
    • secondary processes. Key processes directly support the
    • mission and the strategies of the company.
  • 9. Business Process Components
    • They have people / customers (internal or external)
    • They have information and decision made
    • They have channels to transmit information
    • They cross organizational boundaries, i.e., they occur across or between organizational sub-units
  • 10.
    • Generic Customer
      • Marketing & Sales
      • Product/Service Development
      • Manufacturing
      • Distribution
      • Billing
      • Order Processing
      • Customer Service
    Business Process Examples
  • 11. Business Process Examples
    • Industry-specific Customer
      • Loan processing (Banking)
      • Claims (Insurance)
      • Grant allocation (Government)
      • Merchandise return (Retail)
      • Food order & preparation (Restaurant)
      • Baggage handling (Airlines)
      • Reservations (Airlines)
  • 12. Business Process Examples
    • Generic Administration
      • Budgeting
      • Training
      • Human Resource
      • Facilities Management / Maintenance
      • Purchasing
      • IT
      • Finance / Accounts
  • 13.
    • Objectives
    • Process Streamlining
    • Flexibility & Responsiveness
    • Global competitiveness
    • Corporate rightsizing
    • Drivers
    • Competition is Intense
    • Globalisation has become a norm
    • Change has become constant
    • Customers have become powerful
    Objectives & Drivers of BPR
  • 14. Forces reshaping businesses
        • Previous Now
    • Competition : Local/regional National/Global
    • Markets: Mass Focused
    • Operations: Controlled Flexible
    • Focus: Performance Best service
    • Performance: Short term Sustained
  • 15.
    • All things to all people?
    • Documenting procedures and processes to ISO standards?
    • Systems implementation?
    • IS strategy deployment?
    What is BPR ?
  • 16. Business Process Re-engineering
    • Business Process Re-engineering is :
    • “ the fundamental rethinking and radical design of entire business processes enabled by information technology to achieve dramatic improvements in business performance “
    • - Hammer & Champy
  • 17.
    • Business Process Re-design is :
    • “ the analysis and design of workflows and processes within and between organizations “
    Business Process Re-design
  • 18. Fundamental Rethinking
    • Why do we do what we do?
    • Why do we do it the way we do?
    • Re-engineering first determines what a company must do, then how to do it
    • It takes nothing for granted
    • It ignores what is and concentrates on what should be
  • 19.
    • It means getting to the root of things
    • It means starting all over again and isn’t about fixing things
    • It is low in cost with problem at the design stage rather than at the execution stage
    • It means enabling new or existing processes using IT
    Radical Redesign
  • 20.
    • BPR is an integrated program of change which has a major impact on an organization for several reasons:
      • Sponsored by senior management
      • Driven from the top down. Begins and ends with customer value
      • Applies to multiple business functions, departments and locations
      • Involves cultural, organizational and role changes that must be managed
      • Radical improvements will take place
    BPR & Change
  • 21. BPR – Challenging current practices BPR: Challenge current practices + = + = Analyse process. Fix if broken Automate process Outdated processes reinforced - no radical improvement Understand current situation and future vision of the enterprise Invent new ways of working & design new process. Use IT to enable change Conventional: Automate existing process Clearly defined processes integrated to meet customer needs and add value
  • 22. ?