BPR - Unit 4


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BPR - Unit 4

  1. 1. Business Process MCA I Year G. Roy Antony Arnold Roy Antony Arnold G Lecturer Panimalar Engineering College, Chennai
  2. 2. <ul><li>IT brings a transformation in the business arena. </li></ul><ul><li>Through an Innovative development of IT the organizations have a good future </li></ul><ul><li>Ubiquitous Electronic Cash Register – Increases the response time and region wise sales are easily monitored. </li></ul><ul><li>Handheld Computers for planning appointments, maintaining cash collection, etc. </li></ul><ul><li>Bar-Code methods fasten the delivery and easy management </li></ul>
  3. 3. <ul><li>IT is the driving force in every business sector and organization </li></ul><ul><li>Example: </li></ul><ul><ul><li>General Motors allows their customer to design their car color, music system etc., in their showrooms. </li></ul></ul><ul><ul><li>This design would then be transmitted through the network to the design office. </li></ul></ul><ul><ul><li>Orders for each component would be consolidated and placed through EDI (Electronic Data Interchange) facilities to various component suppliers. </li></ul></ul><ul><ul><li>The production plan and schedules were monitored and the end-product delivered on time to the customer. </li></ul></ul>
  4. 4. <ul><li>IT has enabled all factories to shrink in size, such that only critical activities are done in-house and all others are sub-contracted. </li></ul><ul><li>Now outsourcing is increased in organizations through EDI and Inter-organizational Systems. </li></ul><ul><li>Japanese introduced new concepts like Just-in-time, total quality management, cycle time reduction and above all bringing in human and social values like honesty, integrity and mutual trust through their IT implementation. </li></ul><ul><li>In india ????? </li></ul>
  5. 5. <ul><li>In early times, the computers were used to support the tasks. </li></ul><ul><li>Next, Batch Processing systems were used. </li></ul><ul><li>The business process and IT, had no organic connection and stood distanced from each other. </li></ul><ul><li>So, in the old era, the business processes were not completely affected by the IT. </li></ul>
  6. 6. <ul><li>Telexes are used to send urgent orders. </li></ul><ul><li>E-mails are completely replaced the postal communication </li></ul><ul><li>Transfer of data is very easy between branches because of networks (Intranet) </li></ul><ul><li>The new trend, e-business evolved. </li></ul>
  7. 7. <ul><li>Now the business entered into a new method called “anytime marketplace” where the customers have choice. </li></ul><ul><li>This affects cycle times of the producer (monthly, weekly etc.) </li></ul><ul><li>But the technology enables to monitor production on an anytime basis, and reliable order information. </li></ul><ul><li>A single point capture is introduced instead of maintaining four or five registers. </li></ul>
  8. 8. <ul><li>Synergy is rarely captured in organization because IT application has always been left to the technologist. </li></ul><ul><li>Apart from sanctioning funds, they do not play much of an active role in its application. </li></ul><ul><li>It is left to the computer wizards to figure out means of making effective use of available technology. </li></ul><ul><li>But, now IT has become more user friendly. So, the business people have to realize its potential. </li></ul>
  9. 9. <ul><li>In India, many showing aversion to discard old systems and outdated technology. </li></ul><ul><li>The cost of not scrapping the old system is the price we pay by rendering the new system dysfunctional and ineffective. </li></ul><ul><li>Our attitude of not scrapping anything has resulted in a situation where antiques and relics are masquerading as functional systems. </li></ul><ul><li>Elimination of the old ‘task-oriented mindset’ would necessitate parallel elimination of the old systems also – HW & SW </li></ul><ul><li>Example: Indian Railway Computers </li></ul>
  10. 10. <ul><li>Assists the Implementation of Business Processes </li></ul><ul><ul><li>Enables Product & Service Innovations </li></ul></ul><ul><ul><li>Improve Operational Efficiency </li></ul></ul><ul><ul><li>Coordinate Vendors & Customers in the Process Chain </li></ul></ul>
  11. 11. <ul><li>Focus </li></ul><ul><ul><li>Business Processes </li></ul></ul><ul><ul><li>Process Redesign </li></ul></ul><ul><ul><li>Process Implementation </li></ul></ul>
  12. 12. Business Process MCA I Year
  13. 13. <ul><li>User independence </li></ul><ul><li>The dramatic change dimension </li></ul><ul><li>The mirage (unrealistic) of Euphemism (an indirect word to refer unpleasant) </li></ul><ul><ul><li>Work in Progress i.e. work not in progress </li></ul></ul><ul><li>Management Perceptions </li></ul><ul><li>The EDP (Electronic Data Processing) Managers </li></ul><ul><li>Middle Management </li></ul>
  14. 14. Business Process MCA I Year
  15. 15. <ul><li>Energy is primarily in the form of non-matter. </li></ul><ul><li>It is available and accessible to every one. It is up to them to use it creatively </li></ul><ul><li>Any form of energy can provide extraordinary levels of empowerment </li></ul><ul><li>Energy has the capability to alter the individual’s mindset, and also change the social paradigms. </li></ul>
  16. 16. <ul><li>It is also non-matter </li></ul><ul><li>It is available because of database and networks. </li></ul><ul><li>It is not merely a resource. </li></ul><ul><li>As information evolves into knowledge, it becomes a source of energy. </li></ul>
  17. 17. <ul><li>Shakti was recognized in three forms – gyan shakti, icha shakti and kriya shakti </li></ul><ul><li>Knowledge energy is the mother energy which gives rise to desire energy, and when desire attains the critical mass, it simply reveals itself in action, that is, kriya shakti (action energy) </li></ul><ul><li>With every action there is a feedback to knowledge which is the key to continuous learning. </li></ul>
  18. 18. “ Gyan Shakti” Knowledge Energy “ Icha Shakti” Desire Energy “ Kriya Shakti” Action Energy
  19. 19. <ul><li>Today’s technology bridges gap between knowledge and information. </li></ul><ul><li>Example: Talking Computer </li></ul><ul><li>The real power of IT can be utilized only if information is seen as a form of energy. </li></ul><ul><li>Perceiving the full potential of any form of energy in its initial stages is difficult. </li></ul>
  20. 20. <ul><li>Any time–this mantra motivates instant service </li></ul><ul><li>Any place – world wide communication </li></ul><ul><li>No matter – Lasers and fibre optics are examples for NO MATTER mantra. </li></ul>
  21. 21. <ul><li>In future, non-matter would matter more and the so-called matter would matter less. </li></ul><ul><li>The most successful products or system are likely to stem from application of the ‘No Matter’ mantra. </li></ul><ul><li>In such a ‘No matter’ society, services are very important. </li></ul><ul><li>Services that contain very little ‘matter’ but provide immense value to the customer. </li></ul>THE ‘NO MATTER’ WORLD
  22. 22. <ul><li>In a service-dominated world a firm’s success depends heavily on how the interactions with customers are managed. </li></ul><ul><li>Jan Carlzon of Scandinavian Airlines calls these interactions “moments of truth”. </li></ul><ul><li>A “moment of truth” occurs anytime a customer comes in contact with a person of the service organization, and the customer’s impression about the organization is largely dependant upon the quality of interaction that takes place at this time. </li></ul>MOMENTS OF TRUTH
  23. 23. <ul><li>The empowerment of frontline people become a critical survival issue. </li></ul><ul><li>EX1: Receptionist have to speak politely with the customer and to give immediate response to their queries. </li></ul><ul><li>Ex2: Marketing Executive should not give false promises to the customers </li></ul><ul><li>Enough freedom should be given to the frontline employees to take their own decisions. </li></ul>FRONTLINE EMPOWERMENT
  24. 24. <ul><li>With advent of ‘real competition’, enterprises all round – public and private – will have to slim down to survive. </li></ul><ul><li>Every member need and demand empowerment to handle “moments of truth” and to influence peers and leaders to work for the growth of organization. </li></ul><ul><li>Mutual trust is a key behind the empowerment given to the employees. </li></ul><ul><li>The system enables to ensure that the empowered people are using their discretion in an intelligent and fair manner. </li></ul><ul><li>It also gives an opportunity to update them. </li></ul>EMPOWERMENT AND CONTROL
  26. 26. <ul><li>Sivan does not represent destruction per se. It is destruction with the clear purpose of creating a new order. </li></ul><ul><li>This concept of SIVA is applied in Change Management process, so it is more easily carried out in India!!!. But it is NOT. </li></ul><ul><li>The fact is : we do not support change that involves destruction. Which simply means, we do not want change. </li></ul>REDISCOVERING INDIAN PARADIGM
  27. 27. <ul><li>Newton’s First Law (law of inertia): Every object will continue to be in its state of rest or equilibrium unless compelled by an external force to change that state. </li></ul><ul><li>The external force is essentially an energy or shakti. </li></ul>DYNAMICS OF CHANGE MANAGEMENT
  28. 28. Revisiting the Virtuous Triangle <ul><li>Knowledge Energy – First Force </li></ul><ul><ul><li>Knowledge of better new world and consequent dissatisfaction with the present. </li></ul></ul><ul><li>Desire Energy – Second Force </li></ul><ul><ul><li>The desire of a single individual is not enough the make change in organization. </li></ul></ul><ul><ul><li>This needs a sharing of the vision amongst all key players. Which gains critical mass. </li></ul></ul><ul><li>Action Energy – Third Force </li></ul><ul><ul><li>To spell out an action plan – at least the first few steps required to bring about the change. </li></ul></ul>
  29. 29. FORMULA OF THE CHANGE EQUATION <ul><li>The Change Model Formula (Change Equation) is: </li></ul><ul><li>D  x  V  x  F  >  R </li></ul><ul><li>Dissatisfaction  x  Vision  x  First Steps  >  Resistance to Change (Our Inertia) </li></ul>
  30. 30. DISSATISFACTION WITH THE PRESENT <ul><li>Majority of people not have dissatisfaction because of </li></ul><ul><ul><li>To start with, there is the ‘business as usual’ attitude </li></ul></ul><ul><ul><li>Making distance from the organization by saying “we are carrying out the tasks assigned to us and if the org. has got problems with the customers, it is up to the org. to sort it out”. </li></ul></ul><ul><ul><li>Even senior corporate management not being sufficiently dissatisfied with the existing one, sometimes. </li></ul></ul>
  31. 31. Achieving Shared Vision <ul><li>Any reengineering project necessarily leads to elimination of unnecessary works . </li></ul><ul><li>It is necessary to share the information with those people, who will be affected, and ask them to give their suggestions. </li></ul><ul><li>The quality of life can be improved through yoga. </li></ul><ul><li>Yoga will help more to recover from stress related problems </li></ul>
  32. 32. <ul><li>The role of theatre or cinema is an instrument of social change. </li></ul><ul><li>Theatre stands out in different forums as the single most powerful medium for social change in Indian Villages. </li></ul><ul><li>Social workers and religious leaders have been using theatre as a powerful tool for bringing about major changes. </li></ul><ul><li>The awareness can be created through theatre. </li></ul>USE OF THEATRE
  33. 33. First Few Steps <ul><li>This stage generally follows smoothly if a shared vision has been achieved in the earlier stage. </li></ul><ul><li>A few key steps are: </li></ul><ul><ul><li>Measurements for process objectives </li></ul></ul><ul><ul><li>Benefit / Beneficiary Identification </li></ul></ul><ul><ul><li>Training required at all levels, particularly middle management, for transformation of organization. </li></ul></ul><ul><ul><li>Resources in terms of Hardware/Software/People required for achieving the desired change. </li></ul></ul>
  34. 34. Contd.. With Indian Paradigm <ul><li>Reengineering, which, in effect, brought together the work, worker and workplace to enable a better control of the worker over his work. </li></ul>Karma – Palam (Result) Karman (Work) Kartha (Worker) Karma-Kshetra (Workplace)
  35. 35. Kaizen Learning Cycle <ul><li>This can be represented by virtuous circle. </li></ul>G. Roy Antony Arnold Vichara (Awareness) Prachara (Share) Achara (Experience)