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Presentation On BUSINESS PROCESS RE-ENGINEERING

PRESENTATORS ARUN SHAKYAWAR (12) ASHISH GUPTA (13) BHAWANA JOSHI (14) BHAVANA SINGH (15)

Business process re-engineering is a business management strategy, originally pioneered in the early 1990s, focusing on the analysis and design of workflows and processes within an organization. BPR aimed to help organizations fundamentally rethink how they do their work in order to dramatically improve customer service, cut operational costs, and become world-class competitors.

What is BPR?

Reengineering is the fundamental rethinking and redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed. (Hammer & Champy, 1993)

What is a 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. (Davenport, 1993)

What is a Business Process?

A group of logically related tasks that use the firm's resources to provide customer-oriented results in support of the organization's objectives

What is Re-engineering
Reengineering is the fundamental rethinking and redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed. (Hammer & Champy, 1993)

Why Reengineer?
Customers
Demanding Sophistication Changing Needs

Competition
Local Global

Why Reengineer?
Change
Technology Customer Preferences

Origins
Scientific Management. FW Taylor (1856-1915). Frederick Herzberg - Job Enrichment Deming et al - Total Quality Management and Kaizen In Search of Excellence (Peters and Waterman) Value-Added Analysis (Porter).

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Characteristics of Business Process Reengineer

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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Key Characteristics
Systems Philosophy Global Perspective on Business Processes Integrated Change People Centred Focus on End-Customers Process-Based

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Systems Perspective
Feedback

Inputs

Transformation

Outputs

Environment

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Process Based
Added Value
BPR Initiatives must add-value over and above the existing process

Customer-Led
BPR Initiatives must meet the needs of the customer

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Integrated Change
Viable Solutions
Process improvements must be viable and practical

Balanced Improvements
Process improvements must be realistic

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People-Centred
Business Understanding Empowerment & Participation Organizational Culture

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Focus on End-Customers
Process improvements must relate to the needs of the organization and be relevant to the endcustomers to which they are designed to serve

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Tools for BPR

Simulation Flow diagrams Work analysis Application development Workflow software

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Implementing a BPR Strategy : Key Steps

Select The Process & Appoint Process Team

Understand The Current Process
Develop & Communicate Vision Of Improved Process

Identify Action Plan Execute Plan

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Information Technology & BPR

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Benefits From IT
Assists the Implementation of Business Processes
Enables Product & Service Innovations Improve Operational Efficiency Coordinate Vendors & Customers in the Process Chain

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Computer Aided BPR (CABPR)

Focus
Business Processes Process Redesign Process Implementation

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Role of IT
Shared databases, making information available at many places Expert systems, allowing generalists to perform specialist tasks Telecommunication networks, allowing organizations to be centralized and decentralized at the same time Decision-support tools, allowing decisionmaking to be a part of everybody's job

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Wireless data communication and portable computers, allowing field personnel to work office independent Interactive videodisk, to get in immediate contact with potential buyers Automatic identification and tracking, allowing things to tell where they are, instead of requiring to be found High performance computing,and school, allowing on-the-fly planning and revisioning

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Advantages of BPR
Performance improvement Increase in profits Increase in productivity Better business practices Enormous cost reduction Speed up business processes

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Advantages of BPR
Improvement in employee satisfaction Improvement in quality Improvement in customer service Profitability

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Disadvantages of BPR
BPR has bad reputation for major layoffs. It never change management thinking. Lack of management support for the initiative and thus poor acceptance in organization. Exaggerated expectations regarding the benefits of BPR

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Disadvantages of BPR
Underestimation of resistance to change within organization. Implementation of generic best practices that do not fit specific company needs. Over-trust in technology solutions.

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Summary
Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements BPR has emerged from key management traditions such as scientific management and systems thinking

Rules and symbols play an integral part of all BPR initiatives

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Summary
Dont assume anything - remember BPR is fundamental rethinking of business processes

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QUERIES ?

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THANK YOU