This document discusses business process reengineering (BPR). It defines BPR as the fundamental rethinking and radical redesign of business processes enabled by information technology to achieve dramatic improvements. The goals of BPR are to delight customers, improve effectiveness and efficiency. BPR requires identifying processes for redesign, top management commitment, and change management. It provides examples where BPR reduced costs and cycle times.

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Business Process Re-Engineering

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INTRODUCTION

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INTRODUCTION
• Customers :
• Local, Global, Glocal, Informed / Misinformed
• Sophistication, Demanding; Mass market; Changing Needs
• Competition :
• Flatworld, Shrinking markets, Innovative business models
• More and different kinds; Technology initiating competitive changes
• Change :
• Root cause ?
• Reduced product cycles; Reduced time to market; More
environment scanning; Technology; Customer Preferences
“Adapting to changing reality is the only way to survive”

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INTRODUCTION

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INTRODUCTION
“I should estimate that in my experience
most troubles and most possibilities for
improvement add up to the proportions
something like this:
94% belongs to the system (responsibility
of management), 6% special”.
Pg 315; Out of the Crisis
Majority of failures to meet customer expectations
are related to deficiencies in systems and
processes… rather than the employee..
Dr. W. Edwards Deming

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BPR
• Business Process Reengineering (BPR)
• “BPR is the FUNDAMENTAL rethinking and RADICAL
redesign of business PROCESSES enabled by information
technology to achieve DRAMATIC improvements in business
performance.”
- Hammer & Champy 1993
• Fundamental :
• Question all rules & assumptions that exist
• Radical :
• Disregard existing structures & procedures and completely invent
new ways of meeting customer expectations
• Dramatic :
• Required changes for an organisation to survive

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PROCESS

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BUSINESS PROCESS
• Process
• Process : A collection of related activities that takes one or
more inputs and manipulates it to create an output, that is
of value
• Business process : A group of logically related tasks that use
the organization’s resources to provide customer focused
results in support of the organization’s objectives

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BPR vs BPI
• Automation
• Quality initiatives such as LEAN/Six sigma, Total quality
management (TQM), Performance benchmarking,
Statistical process control etc.,
• Business Process Improvement (BPI)
• Incremental & Continuous
• BPR -
• Radical Improvement – INNOVATION.
• Customer focused Fundamental, Radical process changes to
bring about Dramatic outcomes

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BPR vs BPI
• Differences between BPR & Continuous Improvement
Factors BPR Continuous Improvement
Goal Dramatic improvement Small cumulative enhancement
Organizational impact High Low
Organization Philosophy Scrap and rebuild Maintain and Improve
Degree of change Radical Incremental, continuous
Characteristics of change Abrupt change Gradual, constant change
Senior mgmt. involvement Intensive throughout Upfront – Initiate, Monitor
Use of IT Very High Incidental (non-intensive)
Implementation Directive, top down Empowered, bottom up
Relative risk High Low
Enablers IT, organizational design Total Quality Management

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CASE FOR BPR
• Case for BPR :
• Increasing competition
• Constant need to satisfy and delight customers
• Fragmented, piecemeal systems
• Integration issues
• Increasing momentum of change
• Technology gap towards fulfilling customer expectations
• Need to deliver superior stakeholder expectations
• Huge gap between ambition, expectations and reality

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BPR GOALS
• Goals of BPR :
• Customer delight
• Meeting expected customer requirements
• Providing accessibility to convenience & post sale satisfaction
• Effectiveness
• Results focused approach & implementation
• All activities optimized towards customer delight and acceptance
• Efficiency
• Time
• Effort
• Cost

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BPR EXAMPLES
• Examples of BPR :
• Ford reduced its account payable headcount by 75%
• Bell Atlantic cut the cycle time for installing carrier services
for customer from 15 days to 3 days
• Mutual Benefit Life improved underwriting efficiency by 40%
• Xerox redesigned its order fulfillment process and improved
service levels by 75 – 97 % and cycle times by 70% with
inventory savings od USD 500 Mio
• Bank of India, Mahindra & Mahindra, Punjab Electricity
Board, ICICI Bank, Land records in India etc.,

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BPR PRINCIPLES
• Principles of BPR :
1. Refocus company values on customer needs
2. Organize around outcomes, not tasks
3. Identify all processes in an organization and prioritize order
of redesign urgency
4. Integrate information processing into work that produces
information
5. Treat dispersed geographic resources as centralized
6. Link parallel activities in the workflow
7. Put the decision point where work is performed and build
controls into the process
8. Capture information once and at the source

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BPR PROCESS
• Process of BPR :

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CHALLENGES IN A BPR EXERCISE
• Identifying customer needs
• Reassessing Strategic goals of the organization
• Defining opportunities for re-engineering
• Performance problems in the current process
• Implementing the BPR initiative
• Managing the BPR initiative and Controlling risks
• Maximising benefits
• Managing organizational changes

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SUCCESS FACTORS
• Clear vision for transformation
• Top management commitment and active
participation
• Identification of core processes for BPR
• Ambitious and performing BPR team
• Knowledge of reengineering techniques
• Change management
• Engaging external consultants

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CRITICAL FAILURE FACTORS
• Fixing a process instead of changing it
• Lack of focus on business critical process
• Lack of holistic approach
• Willingness to settle for minor results
• Limiting BPR scope due to existing culture
• Dominance of existing corporate culture
• Poor leadership
• Dragging the BPR exercise too long

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CASE STUDY
• 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 arrival to Fuji’s camera!
• Result: the new process, “Concurrent Engineering”
• Reduce turnaround time to 38 weeks

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CASE STUDY
• 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
• Result :
• Manufacturing can begin tooling design just 10 weeks into product
design instead of 28 weeks in the past

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TAKEAWAY

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About Vyomus Consulting
• Vyomus Consulting is a science based professional services firm
which delivers desirable outcomes to life sciences businesses –
in the most efficient and effective way
• We create business value by assisting organizations
commercialize products, achieve compliance, reduce time to
market and grow business by providing outcomes based
services
• For more information please visit
• A few services for his domain (Services & Customised Training):
• PROCESS IDENTIFICATION, MAPPING & IMPROVEMENT
• BUSINESS PROCESS MANAGEMENT
• STANDARD OPERATING PROCEDURES - Creation & Management

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