Manoj Kumar Singh Research Scholar; Department of Management Studies Indian Institute of Technology, Delhi
Key Words
Fundamental Why do we do what we do? Ignore what is and concentrate on what should be. Radical Business reinvention vs. business improvement Dramatic Reengineering should be brought in when a need exits for heavy blasting.
Companies in deep trouble. Companies that see trouble coming. Companies that are in peak condition.
4
Key Words
Process: A specific ordering of work activities across time and space, with a beginning, an end, and clearly identified inputs and outputs: a structure for action. -- Thomas Davenport Business Process a collection of activities that takes one or more kinds of inputs and creates an output that is of value to a customer.
Supplier
Marketing & Sales Purchase Production Distribution Accounting
"We cannot improve or measure the performance of a hierarchical structure. But, we can increase output quality and customer satisfaction, as well as reduce the cost and cycle time of a process to improve it."
Characteristics of BPR: A specific sequencing of work activities across time and place A beginning and an end
Process ownership
Measurable and meaningful performance
BPR is Not?
BPR may sometimes be mistaken for the following five tools: 1. Automation is an automatic, as opposed to human, operation or control of a process, equipment or a system; or the techniques and equipment used to achieve this. Automation is most often applied to computer (or at least electronic) control of a manufacturing process. 2. Downsizing is the reduction of expenditures in order to become financial stable. Those expenditures could include but are not limited to: the total number of employees at a company, retirements, or spin-off companies.
BPR is Not?
3. Outsourcing involves paying another company to provide the services a company might otherwise have employed its own staff to perform. Outsourcing is readily seen in the software development sector. 4. Continuous improvement emphasizes small and measurable refinements to an organization's current processes and systems. Continuous improvements origins were derived from total quality management (TQM) and Six Sigma.
BPR Principles
Organize around outcomes, not tasks. Have those who use the output of the process perform the process. Subsume information-processing work into the real work that produces the information. Treat geographically dispersed resources as though they were centralized. Link parallel activities instead of integrating their results. Put decision points where the work is performed and build controls into the process. Capture information once and at the source.
Key Characteristics
Systems Philosophy Global Perspective on Business Processes Radical Improvement Integrated Change People Centred Focus on End-Customers Process-Based
Visioning Identifying
Enterprise-wide engineering
Analyzing Redesigning
Evaluating
Identify enabling IT & generate alternative process redesigns Evaluate and select a process redesign
Process-specific engineering
Implementing
Improving
Methodology #1 1. 2. 3. 4. Activity# Develop vision & strategy Create desired culture Integrate & Improve enterprise 5. Develop technology solutions Methodology #2 1. Determine Customer Requirements &Goals for the Process 2. Map and Measure the Existing Process 3. Analyze and Modify Existing Process 4. Design a Reengineered Process 5. Implement the Reengineered Process
Methodology#3
1. 2. 3. 4. 5. 6. 7. Motivating Reengineering Justifying Reengineering Planning Reengineering Setting up for Reengineering As Is Description & Analysis: To-Be Design and Validation Implementation
Methodology #
1. 2. 3. 4. 5. 6. 7.
Set Direction Baseline and Benchmark Create the Vision Launch Problem Solving Projects Design Improvements Implement Change Embed Continuous Improvement
Phase 4: Redesigning
Identify enabling IT & generate alternative process redesigns
How can business processes be transformed using IT?
Business Reengineering
Business-pulled
Source: Thomas H. Davenport and James E. Short, The New Industrial Engineering: Information technology and Business Process Redesign, Sloan Management Review, Summer 1990, pp. 11-26.
IT Enabling Effects
Dimensions & Type
Organization Entity Interorganizational
Examples
Order from a supplier
IT Enabling Effects
Lower transaction costs Eliminate intermediaries
Interfunctional
Interpersonal
Manufacture a product
Reduce time and costs Increase output quality Improve analysis Increase participation
Adapted from: Davenport, T. H. and Short, J. E., "The New Industrial Engineering: Information Technology and Business Process Redesign," Sloan Management Review, Summer 1990, p. 17.
Reengineering
Radical Clean slate Top-down Broad, cross-functional High Information technology Cultural and structural
Continuous Improvement
Incremental Existing process Bottom-up Narrow, within functions Moderate Statistical control Cultural
Reengineering Is ...
Extremist's View
Obliterate what you have now and start from scratch. Transform every aspect of your organization.
Enablers of BPR
A.Information Technology 1. Changes the nature of work 2. Integrates the Business Functions
IT Capabilities
a.
Storage
Retrieval Sharing Transfer Transfer Forwarding
b. c. d. e. f.
B. Organisational
1. Structure Self managing team work Cross functional teams Simple task team
2. People Empowerment and participation in decision making Culture and cultural change 3. Technology
4. Organizational Activities and Tasks
Thank you