The document discusses reengineering the organization. It defines reengineering as fundamentally rethinking and radically redesigning business processes to achieve dramatic improvements in performance. The key aspects of reengineering covered include preparing the organization for global competitiveness, defining the process, features like fundamental rethinking and radical redesign, and the role of information technology as an initiator, facilitator, or enabler of reengineering. The expected outcomes include redefining the business domain and processes as well as implementing new information systems.

1. Reenginering
the Organization

2. Agenda
 Purpose of Reengineering
 What is Reengineering
 Many faces of Reengineering
 Definition of Reengineering
 Features of reengineering
 Process of Reengineering
 Role of IT
 Outcome of the Reengineering
 Conclusion
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3. Purpose of the Reengineering
 Reengineering is tool to prepare the
organization run effectively in the globally
competitive environment
 To maintain competitiveness , and value
addition in our services and product for
customer .
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4. What is Reengineering
Hammer and Champy state, “A business process” is a collection of activities that
takes one or more kinds of input and creates an output that is of value to the
customer
 Business Process Reengineering represents a radical rethinking of company
procedures and organizational structure aimed at obtaining substantial improvements
in terms of costs, quality, service, drawing on the analysis of the value of the activities
of the company.
 Reengineering is significant changes tobasic business processes that yield 50-100%
rates of improvement
 “a methodological process that uses information technology to radically
overhoul business process and thereby attain major business goals”
 “the reconfiguration of the business using IT as a central lever”
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5. Many Faces of Reengineering
 Business process reengineering (BPR)
 Business process improvement
 Core process redes
 Process innovation
 Business process transformation
 Breakpoint business process redesign
 Organisational reengineering
 Business process management
 Business scope redefinition
 Organisational change ecology
 Structured analysis and improvement
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6. Definition
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
-Michael Hammer and James Champy
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7. Features of Reengineering
 Fundamental rethinking refers What the
organization is doing and Why ?
Appropriate question may not be
How can we do it better?
but
Do we really need to do this at all?
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8.  Radical Redisign refers not a modification but a
reinvention
 Radical change means asking ‘’What if we could
disregard our existing organization and
procedures and start with blank piece of paper?’’
 What would the organization look like?
 What business processes would we use to
achieve the desired result ?
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9.  Competitive environment demands that the
change will take place , because in many cases
it does result fewer people being needed due to
implement new technology
 Misconception arises of Downsizing or
Rightsizing, people can be displaced and hurt in
the process , it leads to effect the team spirit .
 Achieving major goals or dramatic performance
improvements
 Business process as opposed to departments or
functional areas
 IT as a critical enabler Is typically initiated from
the top down
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10.  focus on processes
 questions the logic of existing designs
 New design of work should not be based on the
classical hierarchical arrangement or division of
work but on end to end processes and creation
of new values for the customer eg. Total
customer satisfaction , meeting competition
 is usually a one-shot attempt at achieving
improvements
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11. Reengineering Process
 Preparation – What the customer actually want
from organization
 Developing Strategy – Develop Strategic
Processes, Analysis & Prioritization
 Design an Organizational System- Create a
Core team of People
 Implementation – realization of technical and
social plans
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12. Role of IT
an initiator, a facilitator, or an
enabler

13. Role of IT - Initiator
 Agent of change
 New requirements
 e.g. Internet
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14. Role of IT - Facilitator
 Make work/workload easier
 e.g. Flow of Information
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15. Role of IT - Enabler
 Most attention
 Offers the ability/necessary assistance to
accomplish
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16. Role of IT – E-Commerce
 Personalized service
 Lower transaction & material costs
 e.g. E-tickets
 Save cost of print/mailf
 Reduced commission payable to travel
agency
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17. Role of IT - Coordination
 Shared Databases
 Information dissemination
 Facilitate distribution
 Networking
 Assistscollection/dissemination
 Rapid implementation of decisions
 Telecommunication
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18. IT in Integration
Functional Area Information Technologies
Marketing Multimedia, Internet, database
Distribution Online Inventory and shipment controls,
Internet, Database, Barcodig, satellite
positioning
Accounting Computerized Data collection, shared
Database, Spread Sheets
Design & Engineering CAD
Purchasing Internet, Database, ERP
Production CAM, Database, Scheduling, barcoding,
ERP, EDI
Maintenance Expert Systems, Scheduling
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19. Benefits of IT
 Cost reduction
 Time elimination
 Error minimization
 Facilitating Integration
 Enhancing decision Making
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20. Positive Preconditions for BPR
 Senior Management Commitment
 The organization has to believe in the change;
 The whole organization must be involved in the change;
 Realistic Expectations
 Theoretical and practical training is required to create
new professionalism
 Sound Management Practices
 People Participating
 Sufficient Budget
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21. Negative Preconditions for BPR
 Unsound Financial Condition
 Too Many Projects Under Way
 Fear and Lack of Optimism
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22. Outcome of the Reengineering
 Business domain Redefinition
 Redefinition role and responsibility
 Information system Implementation
 Processes innovation
 Elimination of obsolete processes
 Training for achievement motivation
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23. BPR Project Problems
70% of the
BPR projects
fail
Biggest obstacles that reengineering faces are
(i) Lack of sustained management commitment and
leadership
(ii) Unrealistic scope and expectations
(iii) Resistance to Change.
Other problems:
 the danger of another inefficient system
 discontinues in the leadership
 lack of communication
 selecting wrong IT vendors
 lack of awareness of the lead times associated with IT
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24. Conclusion
 BPR must be seen as a strategic, cross-functional
activity that needs to be integrated with other
aspects of management
 The key requirement is that managers understand
in detail the current business processes before
starting on a BPR project.
 The application of IT can provide major
improvements in the performance of business
systems, and while considered a major part of
the reengineering activity, must be integrated with
the needs of customer in mind.
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25. THANKS & QUESTIONS
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