Business process reengineering involves fundamentally rethinking and radically redesigning business processes to achieve dramatic improvements in areas like cost, quality, service, and speed. It aims to make processes more efficient, effective, and flexible. BPR requires analyzing existing processes, creating a new vision, redesigning processes, and implementing changes. It should have strong management support and commitment, show quick results, and involve employees in the change process to minimize risk and ensure success.

1. Business Process Reengineering
Raymond Yap
Principal Consultant
Hutex Management
Consulting
http://www.hutex.com

2. Business Process Reengineering
“The FUNDAMENTAL rethinking and RADICAL
redesign of business PROCESSES to bring
about DRAMATIC improvements in critical,
contemporary measures of performance, such
as cost, quality, service and speed.”
-Hammer, Champy (1993)

3. CUSTOMER
PRODUCT/SERVICE
Process: Where and Who?
NEED

4. What is NOT Business Process
Reengineering
 TQM
 ISO9000
 Automation
 Downsizing
 Restructuring
 Change Management

5. Why BRP?
 Do or Die
 Minimize threat from rival firms
 Attain sustainable competitive advantage
 Leverage on unprecedented opportunity to
take giant leap forward

6. Some of the BPR Objectives
 Improve Efficiency e.g reduce time to market,
provide quicker response to customers
 Increase Effectiveness e.g deliver higher
quality
 Achieve Cost Saving in the longer run
 Provide more Meaningful work for employees
 Increase Flexibility and Adaptability to
change
 Enable new business Growth

7. Scope of BPR
 Intra-functional
– Small scope within department, least impact
 Inter-functional
– Horizontal view across departments, more impact
 Inter-organizational
– Broad view including entire supply & delivery chain,
most impact

8. 4 Generic Steps in BPR
 Create a Vision
 Identify and understand Existing Processes
 Redesign the processes
 Implement the redesigned processes

9. Readiness Analysis
 Is there a compelling business need for strategic
change?
 Is the organization prepared to challenge it status quo?
Would it have the courage to create a new vision?
 What’s the degree and quality of sponsorship and
commitment of senior management? Are they
prepared to be deeply involved? Do they have the
energy to follow through the entire change process?

10. Readiness Analysis
 Is the organization prepared to commit resources
(time, energy, money) to undertake BPR project?
 What is the overall organization’s attitude towards
change?
 Is the organization prepared to overcome resistance to
change?

11. BPR Team Composition
 Top management (e.g. CEO) as SPONSOR
 Senior & middle management in EXECUTIVE
TEAM
 Selected senior & junior mgmt/staff to form
PROCESS TEAMS
 Enthusiastic and energetic individual as BPR
COORDINATOR

12. Case Example: Kodak
 In 1987
– Kodak’s arch-rival, Fuji came up with a new 35mm
single-use camera
– Kodak has no competitive offering
 Kodak’s Traditional Product Development
Process
– Slow: would take 70 weeks to produce a rival to
Fuji’s camera!
 Result:the new process, “Concurrent
Engineering”
– Reduce turnaround time to 38 weeks

13. Case Example: Kodak
 Key Redesign Strategy
– Apply innovative use of CAD/CAM + integrated
product design database
 Allow engineer to design at computer workstations
 Database collect each engineer’s work and combines into
overall design
 Each morning, problems are resolved immediately
 Manufacturing can begin tooling design just 10 weeks into
product design instead of 28 weeks in the past

14. Minimize Risk and Ensure Success
 Top Management Support and Commitment
 Show some result quickly
 Set Stretch Targets for redesign
 Apply a holistic and disciplined approach to
manage change
 Involve people in the change process
 Communicate sufficiently to dispel uncertainty
and fear

15. Conclusion
 BPR is a multi-discipline approach for strategic
change
 Methodology provides missing “how to” that
must follow the “why”
 BPR must be managed as a project
 BPR must be owned by the organization, not
driven by consultants
 BPR requires constant communication and
feedback