Business Re-Engineering

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Business Renewal

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Business Re-Engineering

  1. 1. Business Re-Engineering(Renewal)<br />K V Ramesh<br />© 2010 K V Ramesh<br />
  2. 2. BPR -> Functions to Process<br />BPR – Business Process Reengineering was formalized by Dr. Michael Hammer, MIT<br />Process focus has reached a level of maturity in the last two decades (Functional Silos still exist)<br />BPR efforts have largely been IT-enabled to gain Process Efficiencies, and Strategic Outsourcing<br />Time has come for Business Re-Engineeringthat would<br />redefine the business and NOT just the processes<br />
  3. 3. Net Income<br />Assets<br />Revenue<br />X<br />X<br />ROE = <br />Revenue<br />Assets<br />Common Equity<br />ROE = Profit Margin X Asset Utilization X Leverage<br />ROE = BPR XOutsourcing X Renewal<br />Shareholder Value<br />
  4. 4. Drivers for Renewal<br />Markets<br />Technology<br />Delivery<br />Aspirations<br />Infrastructure Assets<br />Businesses need to continually rewrite the assets to stay on top<br />The renewal process accelerates with time<br />
  5. 5. Few Examples<br /><ul><li>Computing – Mainframe to Cloud Computing
  6. 6. Telecom – Fixed Line to Wireless/Analog to Digital
  7. 7. Electronic ICs – Memory to Processing to ASIC to FPGA
  8. 8. Nanotechnology – Property Usage to Property Design of Materials </li></li></ul><li>Paradigm Shift<br />Causing Change -> Success<br />Reacting to Change -> Survival<br />
  9. 9. Market Segments<br />Customers<br />Concepts<br />And R & D<br />Design<br />Order<br />Fulfillment<br />Knowledge Capabilities<br />Strategy Management<br />Competency Management<br />Servicing Capabilities<br />Processing Capabilities<br />Sourcing Capabilities<br />Leading the Renewal<br />Renewal demands the active management of the Capability Portfolio<br />
  10. 10. Renewal Governance<br />Board<br />Mandate<br />Managed<br />Disruption<br />Feedback<br />Management<br />Process <br />Implementation<br />Capability Portfolio<br />Management<br />
  11. 11. Renewal Challenges<br />The omnipresent Corporate Inertia !<br />
  12. 12. Going Overboard!<br />Did something go wrong in the renewal process?!<br />Contact me for further discussion at<br />the.kvr@gmail.com<br />

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