BPR OR Business Process Re-engineering


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what's BPR,what's radical chaging in business process and what's automation,what's re structring,and what's business re-engineering

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BPR OR Business Process Re-engineering

  1. 1. Business Process Re-engineering Name : Hamdard
  2. 2. Three C’s that Define Today’s Business Climate <ul><li>Customers </li></ul><ul><li>Competition </li></ul><ul><li>Change </li></ul>By: Zulfiqar Ahmed Farhan
  3. 3. Customers Take Charge <ul><li>Customers tell suppliers </li></ul><ul><ul><li>what they want </li></ul></ul><ul><ul><li>when they want it </li></ul></ul><ul><ul><li>how they want it </li></ul></ul><ul><ul><li>what they will pay. </li></ul></ul><ul><li>Customers, both consumers and corporations, demand products and services designed for their unique and particular needs. </li></ul>By: Zulfiqar Ahmed Farhan
  4. 4. Competition to the MAX <ul><li>Fewer trade barriers; it’s a world market </li></ul><ul><li>If a company cannot stand shoulder to shoulder with the world’s best in a competitive category, it soon has no place to stand at all </li></ul>By: Zulfiqar Ahmed Farhan
  5. 5. Change Becomes Constant <ul><li>Change has become both pervasive and persistent </li></ul><ul><li>The pace of change has accelerated due to globalization of the economy and technological advancements </li></ul><ul><li>What’s driving this? </li></ul><ul><ul><li>E-commerce </li></ul></ul>By: Zulfiqar Ahmed Farhan
  6. 6. Managing Change <ul><li>The ability to manage change is critical to the success of systems development. </li></ul><ul><ul><li>The new or modified systems created during systems development will inevitably cause change. </li></ul></ul><ul><ul><li>Managing change requires the ability to recognize existing or potential problems. </li></ul></ul>By: Zulfiqar Ahmed Farhan
  7. 7. All this leads to the need for change <ul><li>Business Process Reengineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed. </li></ul>By: Zulfiqar Ahmed Farhan
  8. 8. B USINESS P ROCESSES By: Zulfiqar Ahmed Farhan Business Process Redesign <ul><li>Six principles for redesigning business processes: </li></ul><ul><li>Organize business processes around outcomes, not tasks </li></ul><ul><li>Assign those who use the output to perform the process </li></ul><ul><li>Integrate information processing into the work that produces the information </li></ul>
  9. 9. B USINESS P ROCESSES By: Zulfiqar Ahmed Farhan Business Process Redesign <ul><li>Six principles for redesigning business processes: </li></ul><ul><li>Create a virtual enterprise by treating geographically distributed resources as though they were centralized </li></ul><ul><li>Link parallel activities instead of integrating their results </li></ul><ul><li>Have the people who do the work make all the decisions, and let controls built into the system monitor the process </li></ul>
  10. 10. Four Key Words for Reengineering <ul><li>Fundamental </li></ul><ul><li>Radical </li></ul><ul><li>Dramatic </li></ul><ul><li>Process </li></ul>By: Zulfiqar Ahmed Farhan
  11. 11. Fundamental <ul><li>Why do we do what we do? </li></ul><ul><li>Why do we do it the way we do? </li></ul>By: Zulfiqar Ahmed Farhan
  12. 12. Radical <ul><li>Getting to the root of things: not making superficial changes or fiddling with what is already in place </li></ul><ul><li>Disregarding all existing structures and procedures and inventing completely new ways of accomplishing work </li></ul>By: Zulfiqar Ahmed Farhan
  13. 13. Dramatic <ul><li>Dramatic improvement demands blowing up the old and replacing it with something new </li></ul>By: Zulfiqar Ahmed Farhan
  14. 14. Process <ul><li>Collection of activities that takes one or more kinds of input and creates an output that is of value to the customer </li></ul>By: Zulfiqar Ahmed Farhan
  15. 15. BPR Versus Continuous Improvement By: Zulfiqar Ahmed Farhan Process Reengineering Radical Transformation People & Technology Focus High Investment Rebuild Champion Driven Continuous Improvement Incremental Change People Focus Low Investment Improve Existing Work Unit Driven
  16. 16. BPR Versus Process Simplification By: Zulfiqar Ahmed Farhan Process Reengineering Radical Transformation Vision-Led Change Attitudes & Behaviours Director-Led Limited Number of Initiatives Process Simplification Incremental Change Process-Led Assume Attitudes & Behaviours Management-Led Various Simultaneous Projects (Source Coulson-Thomas, 1992)
  17. 17. Common Benefits of BPR <ul><li>• Enterprise integration </li></ul><ul><li>– Departments are consolidated </li></ul><ul><li>– Several jobs are combined into one job </li></ul>By: Zulfiqar Ahmed Farhan
  18. 18. Common Benefits of BPR <ul><li>Worker empowerment </li></ul><ul><li>– There is both horizontal and vertical reorganization </li></ul><ul><li>– Handoffs are eliminated </li></ul><ul><li>– There are fewer rules and less coordination is required </li></ul>By: Zulfiqar Ahmed Farhan
  19. 19. Common Benefits of BPR <ul><li>• The steps are performed in a more natural order </li></ul><ul><li>– Many tasks can be done simultaneously </li></ul><ul><li>– In reengineered process, work is sequenced in terms of what needs to follow what </li></ul><ul><li>Processes have multiple versions </li></ul><ul><li>– Not just one process but many are employed depending on the size of the job </li></ul><ul><li>– Which version works best in a given situation (for simpler process short version) </li></ul><ul><li>• Work is performed where it makes the most sense </li></ul><ul><li>– Wal-Mart moves the replenishment function to its suppliers </li></ul>By: Zulfiqar Ahmed Farhan
  20. 20. Common Benefits of BPR <ul><li>• Reconciliation is minimized </li></ul><ul><li> – Inconsistent data </li></ul><ul><li>Checks and controls are reduced </li></ul><ul><li>• A case manager provides a single point of contact </li></ul><ul><li>• Hybrid centralized/decentralized operations are prevalent </li></ul><ul><li>– IT enables decisions to operate autonomously </li></ul>By: Zulfiqar Ahmed Farhan
  21. 21. Information Technology & BPR By: Zulfiqar Ahmed Farhan
  22. 22. Benefits From IT <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><ul><ul><li>Improve monitoring </li></ul></ul><ul><ul><li>Centralization </li></ul></ul><ul><ul><li>Uniformity </li></ul></ul>By: Zulfiqar Ahmed Farhan
  23. 23. Computer Aided BPR (CABPR) <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>By: Zulfiqar Ahmed Farhan
  24. 24. BPR Challenges By: Zulfiqar Ahmed Farhan
  25. 25. Common Problems <ul><li>Process Simplification is Common - True BPR is Not </li></ul><ul><li>Desire to Change Not Strong Enough </li></ul><ul><li>Start Point the Existing Process Not a Blank Slate </li></ul><ul><li>Commitment to Existing Processes Too Strong </li></ul>By: Zulfiqar Ahmed Farhan
  26. 26. Common Problems with BPR <ul><li>Process under review too big or too small </li></ul><ul><li>Reliance on existing process too strong </li></ul><ul><li>The Costs of the Change Seem Too Large </li></ul><ul><li>BPR Isolated Activity not Aligned to the Business Objectives </li></ul><ul><li>Allocation of Resources </li></ul><ul><li>Poor Timing and Planning </li></ul><ul><li>Keeping the Team and Organization on Target </li></ul>By: Zulfiqar Ahmed Farhan
  27. 27. By: Zulfiqar Ahmed Farhan Phases of BPR
  28. 28. Phases of BPR <ul><li>Phase 1 </li></ul><ul><li>Trigger : </li></ul><ul><li>– Performance problem </li></ul><ul><li>– Competitive e-Business move </li></ul><ul><li>– Supply chain partner pressure </li></ul><ul><li>Deliberation / Discussion </li></ul><ul><li>Proposal </li></ul><ul><li>Management go-ahead </li></ul>By: Zulfiqar Ahmed Farhan
  29. 29. Phases of BPR <ul><li>Phase 2 </li></ul><ul><li>Project leader </li></ul><ul><li>Core team </li></ul><ul><li>Preliminary assessment of IT-infrastructure around processes </li></ul><ul><li>BPR Plan & Budget </li></ul>By: Zulfiqar Ahmed Farhan
  30. 30. Phases of BPR <ul><li>Phase 3 </li></ul><ul><li>Process is redesigned </li></ul><ul><li>Performance comparison </li></ul><ul><li>– Benchmarking </li></ul><ul><li>Prepare for implementation </li></ul>By: Zulfiqar Ahmed Farhan
  31. 31. Phases of BPR <ul><li>Phase 4 </li></ul><ul><li>Implementation and organization transformation phase </li></ul><ul><li>Introducing and instituting new process </li></ul><ul><li>– Org. design changes </li></ul><ul><li>– Training </li></ul><ul><li>– Political & human problems </li></ul>By: Zulfiqar Ahmed Farhan
  32. 32. Phases of BPR <ul><li>Phase 5 </li></ul><ul><li>Continuous monitoring </li></ul><ul><li>Modified as needed. </li></ul>By: Zulfiqar Ahmed Farhan
  33. 33. BPR is Not? <ul><li>Automation </li></ul><ul><li>Downsizing </li></ul><ul><li>Outsourcing </li></ul><ul><li>Business Improvement </li></ul><ul><li>Restructuring </li></ul><ul><li>TQM </li></ul>By: Zulfiqar Ahmed Farhan
  34. 34. Summary <ul><li>Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements </li></ul><ul><li>BPR has emerged from key management traditions such as scientific management and systems thinking </li></ul><ul><li>Rules and symbols play an integral part of all BPR initiatives </li></ul>By: Zulfiqar Ahmed Farhan
  35. 35. Summary <ul><li>Don’t assume anything - remember BPR is fundamental rethinking of business processes </li></ul>By: Zulfiqar Ahmed Farhan
  36. 36. Systems Perspective By: Zulfiqar Ahmed Farhan Transformation Inputs Outputs Feedback Environment
  37. 37. BPR Symbols By: Zulfiqar Ahmed Farhan
  38. 38. Business Process Flowchart Symbols By: Zulfiqar Ahmed Farhan An Activity A Document A Decision Data (input as outputs)
  39. 39. Business Process Flowchart Symbols By: Zulfiqar Ahmed Farhan A Predefined Process The Start of a Process The End of a Process Representing a Relation Start End
  40. 40. Business Process Flowchart Symbols By: Zulfiqar Ahmed Farhan Continuation of the process at the same page at an equal symbol with the same number. Used when a relation arrow crosses another relation arrow Off-Page Connector - Process will continue on the next page Integration Relation - A relation to another module is identified and described
  41. 41. Data Flowchart Symbols By: Zulfiqar Ahmed Farhan An Activity A Document A Decision Flat Data File (input as outputs)
  42. 42. Data Flowchart Symbols By: Zulfiqar Ahmed Farhan Manual Data Item A Database File Representing a Relation Continuation Off-Page Connector
  43. 43. BPR & ERP <ul><li>Just automating the existing business practices will not help ERP to achieve the anticipated results </li></ul><ul><li>Business Process Re-engineering [BPR] brings out the deficiencies of the existing setup </li></ul><ul><li>Business Process Re-engineering [BPR] brings out the deficiencies of the existing setup </li></ul><ul><li>BPR may be time consuming but the scope can be restricted & controlled by the Management </li></ul>By: Zulfiqar Ahmed Farhan
  44. 44. Impact on ERP <ul><li>If poor BPR is conducted, or if vendor system adopted without consideration of organizational requirements </li></ul><ul><li>– Will discard processes in which organization has developed competitive advantage </li></ul><ul><li>– Even when BPR beneficial, there will be a transition period where employee performance degrades while learning new system </li></ul>By: Zulfiqar Ahmed Farhan