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Business Process Reengineering

and Information Technology

Dr. Kingshuk Srivastava

|March 2016| 2015 UPES


Basic Concepts
Business process
Value added
Business Process Reengineering (BPR)
Demand chain
Supply chain

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Basic Concepts
Supply chain management
Extended supply chain
Networked organization
Organizational transformation

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The Need for BPR
Customers
Competition
Change
Techniques lag behind technology
Problem of the stovepipe
Fragmented piecemeal systems
Integration

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The Principles of BPR
and The Role of IT

Characteristics of BPR
Methodologies and frameworks for BPR
Enabling role of IT

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Characteristics of Business Process Reengineering
Several jobs are combined into one
Employees make decisions
Steps in business process: natural order
Process may have multiple versions
Work is performed where it makes the most sense

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Characteristics of Business Process Reengineering
Controls, checks, other nonvalue-added work is minimized
Reconciliation is minimized - minimize external contact points
Hybrid centralized / decentralized operation is used
A single point of contact is provided for the customer

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A BPR Framework Technology
Organization
Enabling technologies
Job skills IS architectures
Structures Methods and tools
IS organizations
Reward
Values

Process
Core business processes
Value-added
Customer-focus
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Business Process Reengineering Life Cycle
Define corporate
visions and business Visioning
goals
Identify business Enterprise-wide engineering
processes to be Identifying
reengineered
Analyze and
measure an Analyzing
existing process Process-specific
Identify enabling IT & engineering
generate alternative Redesigning
process redesigns
Evaluate and
select a process Evaluating
redesign
Implement the
reengineered Implementing
process
Continuous
improvement of Improving
the process

Manage change
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Business Process Reengineering and
Restructuring the Organization

Redesign of processes
From mass production to mass customization
Cycle time reduction
Restructuring organizations

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The Networked Organization

Structure of networked organizations


Empowerment

IT / empowerment relationship
Teams

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Virtual Corporations
A virtual corporation is an organization composed of several business
partners sharing costs and resources for the purpose of producing a
product or service.

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Virtual Corporations
Major Attributes
Excellence
Utilization
Opportunism
Lack of borders
Trust
Adaptability to change
Technology

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Total Quality Management
and Reengineering

Rate of change
TQM: continuous improvement
Reengineering: dramatic improvement

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TQM versus Reengineering

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Implementing Reengineering
Redesign
Retool
Reorchestrate

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Tools for BPR
Simulation
Flow diagrams
Work analysis
Application development
Workflow software

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Reorchestrate:
Organizational Change

Leadership
Corporate values
Cultural change
Incentives
Accountability
Zeal

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Reorchestrate:
Organizational Change
Communication
Ambiguity
Obstacles to change
Celebrate success

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Implementation Issues
Continuous evaluation
Eliminating jobs

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Continuous Evaluation

Is reengineering truly transformational?


Will reengineering improve customer relations?
Has reengineering cut across the organization?
Is information technology playing a integral role in the reengineering
solution?
Does it hurt?

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When to Use BPR?
Failure rate as high as 75-85%
Improperly aligned BPR and IT
Expensive
Organizational resistance

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Managerial Issues
Ethical issues
BPR implementation
Incremental improvement programs
BPR tools
Role of IT
Failures
TQM and BPR

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THANK YOU

March 2016 2015 UPES