2. Topics
What is Reengineering
Can you use it in your organization
What is involved
How it works
Examples
Exercise
Conclusion
3. Reengineering Defined
Reengineering is also known as
Business Redesign. Business
Process Redesign is "the analysis
and design of workflows and
processes within and between
organizations" (Davenport &
Short 1990).
4. Business Process Reengineering
Has been around for a long time.
Written on extensively in trade journals
and research articles.
Is it a fad?
Technology is vital to the Reengineering
process.
5. The success of Business Process
Reengineering
Around 70% of all BPR projects fail.
• Lack of management commitment and
leadership
• Unclear definition of the BPR project
• Unrealistic scope and expectations
• Resistance to change
• Lack of resources
6. Can you use this in your
organization
Ask these questions about the project.
• Is the process needed?
• Can and should it be redesigned?
• What purpose does it serve?
• Who is responsible for it?
• What competencies are needed for someone
to successfully complete it?
7. Organizations seeking to
reengineer
Make the customer the starting point
for change -- by identifying customer
wants and creating the infrastructure to
support these expectations
Design work processes in light of
organizational goals
Restructure to support front-line
performance.
8. Reengineering
Recommendations
BPR must be accompanied by strategic planning, which
must address leveraging IT as a competitive tool.
Place the customer at the center of the reengineering
effort -- concentrate on reengineering fragmented
processes that lead to delays or other negative impacts
on customer service.
BPR must be "owned" throughout the organization, not
driven by a group of outside consultants.
BPR must be sponsored by top executives, who are not
about to leave or retire.
BPR projects must have a timetable, ideally between
three to six months, so that the organization is not in a
state of "limbo".
9. Surviving Reengineering
BPR calls for radical change
Change brings out negative reactions in many people
How to cope:
Spend time with co-workers who have the most positive
attitudes.
Do one thing differently each week. Break the old habits.
Talk to outsiders who have gone through reengineering.
Read trade and business publications to put
reengineering in perspective
10. Goals of BPR
Increase service level
Reduce total process cycle time
Increase throughput
Reduce waiting time
Reduce activity cost
Reduce inventory costs
11. Tools for developing a BPR
Flow diagramming-based simulation tools
System dynamics-based simulation tools
Discrete event-based simulation tools
12. Implementing BPR
Analysis
• Is the redesign feasible?
• Which issues will pose the most complexity?
We will need to allocate resources to these
issues?
13. Implementing BPR
Software Functionality
• Tools are assistants for participants in the
implementation plan.
• Tools are needed to guide the implementation
through the different phases.
• Tools must provide the overall roadmap.
14. Implementing BPR
Management plans
• Standards for consistent descriptions of
processes, process strategy and plans.
• The framework of entities necessary for
effective process management.
• Linkages showing how each employee's job
contributes to the building and delivery of
value to the enterprise's customers.
15. Implementing BPR
Human resources
• Identify essential agents within the
organization.
• The behavioral aspects of the agents
– Motivation
– Culture
– Incentives
– Adaptability
16. Summary of Implementing BPR
Define
Model
Analysis
Software
Management
Human resources
17. Real World Example
Xerox
• Redesign of the organizational structure
• To facilitate the reorganization of the
Corporate Information Management Function
• Response to expiration of patents and
competition from Fuji and Canon.
18. Real World Example Continued
Main goal of Xerox was to increase market
share and their return on assets
Focused on four major areas
• Corporate strategies and programs
• Corporate technology strategies
• Corporate telecommunications strategies
• Executive and office information systems
19. Real World Example Continued
A new CIO was selected
• Objectives to hire and train the right people for
the new CIM
• Defined roles and responsibilities for the new
CIM group
20. Xerox Continued
Three level architecture was developed
• Data processing
• Distributed processing
• Workstations and OIS
21. Xerox Case Summary
Primary focus to redesign the
organizational structure
People and technology were both needed
to be successful
22. Ask these questions for a
reengineering exercise
What changes in the present system are
needed?
How quickly should the changes be made,
draft a time line.
In what order will the changes be
scheduled?
What approvals, buy-ins and partner
involvements are needed?
23. Exercise continued
What is the strategy for gaining these
approvals?
Who will be responsible for what, when,
where and how?
Identify each person
Draw a table for each implementation step.
24. Exercise Continued
Identify strategies for possible major
obstacles that might emerge.
Plan for monitoring and working out
problems.
What staff changes will be needed?
Establish schedules and objectives for
communication and training.
25. Exercise continued
Look at all new working arrangements and
new shifts.
Are any equipment or facility changes
needed?
26. Summary
The first question to ask is “What needs to
be done”
Over time BPR involves changes in
• People
• Processes
• Technology
27. Summary
Set objectives
• Do you want to increase service level
• Reduce total process time
• Increase your throughput
• Reduce waiting time
• Reduce your activity cost
• Reduce your inventory time
28. Summary
BPR is used for
• Combining duplicate activities
• Eliminate multiple reviews & approvals
• Reduce batch sizes
• Put processes in parallel
• Implement demand pull
• Outsource inefficient activities
• Eliminate movement of work
• Organize multifunctional teams
29. Conclusion
Remember over 70% of BPR projects fail
• Proper understanding of BPR is needed before
taken on a project.
• BPR is used for radical redesign and improved
work processes
