BUSINESS PROCESS

REENGINEERING

By: Garip Önder Özen

 DEFINITION

 Hammer and Champy (1993) define BPR

as "... 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."
 DEFINITION
 Thomas Davenport (1993), another well-
known BPR theorist, uses the term
process innovation, which he says
”encompasses the envisioning of new
work strategies, the actual process design
activity, and the implementation of the
change in all its complex technological,
human, and organizational dimensions”.
 DEFINITION
 Finally, Johansson et al. (1993) provide a description of
BPR relative to other process-oriented views, such as
Total Quality Management (TQM) and Just-in-time (JIT),
and state: "Business Process Reengineering, although a
close relative, seeks radical rather than merely
continuous improvement. It escalates the efforts of JIT
and TQM to make process orientation a strategic tool
and a core competence of the organization. BPR
concentrates on core business processes, and uses the
specific techniques within the JIT and TQM ”toolboxes”
as enablers, while broadening the process vision."
 DEFINITION
 BPR derives its existence from different
disciplines, and four major areas can be
identified as being subjected to change in
BPR
 organization
 technology
 strategy
 people
 WHY REENGINEERING?
 Customers
 Demanding
 Sophistication
 Changing Needs

 Competition
 Local
 Global
 WHY REENGINEERING?

 Change
 Technology
 Customer Preferences
 WHY REENGINEERING?
 Complacency

 Resistance

 New Developments

 Fear of Failure
 WHAT DOES IT SEEK?
 BPR seeks

 Cost
 Quality
 Service
 Speed, improvements
 The role of information technology

 Information technology (IT) plays an

important role in the reengineering
concept
 It is considered as a major enabler for new
forms of working and collaborating within
an organization and across organizational
borders.
 The role of information technology
 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 decision-making to be a part of
everybody's job
 Wirelss 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, allowing on-the-fly planning and
revisioning
 Key Steps

Select The Process & Appoint Process Team

Understand The Current Process

Develop & Communicate Vision Of Improved Process

Identify Action Plan

Execute Plan
 Select the Process & Appoint
Team
 Two Important Tasks

 Select the process to be reengineered

 Appoint a process team

 Select the Process
 Review business strategy and customer
requirements

 Select core processes

 Understand customer needs

 No assumption
 Select the Process
 Select correct path for change

 Ask - questionnaires, meetings, focus

 Appoint the Process Team

 Identify process owners

 Develop executive improvement team

 Provide training to executive team

 Core Skills Required
 Capacity to view the organization as a whole

 Ability to focus on end-customers

 Ability to challenge fundamental assumptions

 Courage to deliver into unknown areas

 Core Skills Required
 Ability
to assume individual and collective
responsibility
Understand the Current Process
 Develop a process overview
 Clearly define the process
 Mission
 Scope
 Boundaries

 Set business and customer measurements

 Understand customers expectations from the
process
Understand the Current Process
Identify Improvement Opportunities
Quality
Rework

Document the Process

Cost
Time
Value Data
 Develop & Communicate Vision of
Improved Process
 Communicate with all employees so that they
are aware of the vision of the future

 Alwaysprovide information on the progress of

the BPR initiative - good and bad.

 Demonstrateassurance that the BPR initiative is

both necessary and properly managed
 Develop & Communicate Vision of
Improved Process

 Promote individual development by indicating options

that are available

 Indicate actions required and those responsible

 Identify Action Plan
 Develop an improvement plan

 Appoint process owners

 Simplify the process to reduce process

time
 Identify Action Plan
 Remove no-value-added activities

 Standardize process and automate where

possible

 Up-grade equipment

 Plan/schedule the changes

 Execute Plan
 Qualify/certify
the process
 Perform periodic qualification reviews
 Define and eliminate process problems
 Evaluate the change impact on the
business and on customers
 Benchmark the process
 Provide advanced team training
 Benefits From IT
 Assists
the Implementation of Business
Processes
 Enables Product & Service Innovations
 Improve Operational Efficiency
 Coordinate Vendors & Customers in the
Process Chain
 Common Problems

 Process simplification is common - true BPR is

not
 Desire to change not strong
 Commitment to existing processes too strong
 Common Problems with BPR
 Process under review too big or too small
 Reliance on existing process too strong
 The Costs of the change seem large
 Allocation of resources
 Poor timing and planning
 Keeping the team and organization on
target
 THANK YOU...