The document discusses how business process reengineering (BPR) can be enabled by information technology (IT). It provides a generic model for BPR and describes how IT can automate, integrate, and disintermediate processes. An example is given of how the apparel manufacturer TAL Group transformed its supply chain through IT investments like enterprise resource planning. This integrated TAL, its customers like JC Penney, and suppliers into a synchronized value network, improving inventory management, sales, and margins.

1. IS5600 - 5 IT Based Organisational Transformation: BPR and Organisational Structures

3. A Generic Model for BPR 8 7 6 5 4 3 2 1 4. Identify IT Levers 5. Pilot/Trial New Process 1. Develop Vision & Objectives 8. Ongoing Continuous Improvement 2. Identify Process for Redesign 3. Understand & Measure Existing Process 6. Develop Support Solutions 7. Make New Process Operational

21. Inbound Logistics Operations Outbound Logistics Marketing & Sales Service Manufacturer's Value Chain (TAL) Retailer’s Value Chain (J.C. Penney) Purchase & receive raw materials (natural / synthetic fibre, yarn, etc.) Manufacture according to customer specs (cut fibre, sew, buttonhole, & iron) Package & ship to retailer’s warehouse Receive consumer feedback for product enhancement/ new product Marketing, merchandizing, and selling to end consumers Re-pack & distribute to retail outlets Perform inventory control, sales monitoring & forecast; place replenishment orders Purchase & receive garment from manufacturer at central warehouse A Sequential/Linear Value Chain for Apparel Manufacturing and Retailing Lee et al., 2004

22. Inbound Logistics Operations Outbound Logistics Marketing & Sales Service Manufacturer's Value Chain (TAL) Retailer’s Value Chain (J.C. Penney) Select & order raw materials according to sales patterns & new design requirements Design product according to sales pattern; manufacture according to design specs Distribute orders directly to customer’s retail outlets Focus on after - sales service to end consumers Focus on marketing & sales service to end consumers Streamlined product delivery & vendor-managed inventory at the store level Perform test marketing of new products at retail stores An Integrated and Synchronized Value Network for Apparel Manufacturing and Retailin g Monitor retail sales, replenish inventory, and design new products Hub (shared data and processes) Lee et al., 2004