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usiness Proces

Reengineering

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Business Process Re-
engineering
is
is the
the analysis
analysis and
and design
design of
of workflows
workflows and
and processes
processes within
within an
an
organization.
organization.
According
According to
to Davenport
Davenport (1990)
(1990) a
a business
business process
process is
is a
a set
set of
of logically
logically
related
related tasks
tasks performed
performed to
to achieve
achieve a
a defined
defined business
business outcome.
outcome.
also
also known
known as
as business
business process
process redesign,
redesign, business
business transformation,
transformation,
or
or business
business process
process change
change management.
management.
BPR Cycle
Identify Processes
Review, Update, Analyze As-Is
Design To-Be
Test and Implement To-Be
BPR Model
it is defined as the fundamental
reconsideration and radical redesign
of organizational processes, in order
to achieve drastic improvement of
current performance in cost, service
and speed.
Davenport(1992) prescribes a five-step
approach to the Business Process
Reengineering model:

Develop the business vision and process objectives


Identify the business processes to be redesigned
Understand and measure the existing processes
Identify IT levers
Design and build a prototype of the new process
When should BPR be used?

is the competition outperforming the


company by factors?
are there many conflicts in the organization?
is there an extremely high frequency of
meeting?
excessive use of non-structured communication?
(memos, emails, etc.)
is a more continuous approach of incremental
improvements not possible?
History of BPR
In 1990, Michael Hammer, a former
professor of computer science at
the Massachusetts Institute of
Technology (MIT), published an article in
the Harvard Business Review, in which he
claimed that the major challenge for
managers is to obliterate non-value
adding work, rather than using technology
for automating it.
BUSINESS PROCESS REENGINEERING
Hammer's claim was simple: Most of the
work being done does not add any value
for customers, and this work should be
removed, not accelerated through
automation. Instead, companies should
reconsider their processes in order to
maximize customer value, while minimizing
the consumption of resources required for
delivering their product or service
A similar idea was advocated by Thomas H.
Davenport and J. Short in 1990, at that time a
member of the Ernst & Young research center, in a
paper published in the Sloan Management Review.

Even well established management thinkers, such


as Peter Drucker and Tom Peters, were accepting
and advocating BPR as a new tool for (re-)achieving
success in a dynamic world. During the following
years, a fast growing number of publications, books
as well as journal articles, were dedicated to BPR,
and many consulting firms embarked on this trend
and developed BPR methods.
Development of BPR
With the publication of critiques in 1995 and 1996
by some of the early BPR proponents, coupled
with abuses and misuses of the concept by others,
the reengineering fervor in the U.S. began to
wane. Since then, considering business processes
as a starting point for business analysis and
redesign has become a widely accepted approach
and is a standard part of the change methodology
portfolio, but is typically performed in a less radical
way as originally proposed.
More recently, the concept of Business Process
Management (BPM) has gained major attention in
the corporate world and can be considered as a
successor to the BPR wave of the 1990s, as it is
evenly driven by a striving for process efficiency
supported by information technology. Equivalently to
the critique brought forward against BPR, BPM is
now accused of focusing on technology and
disregarding the people aspects of change.
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 decision-making to be
a part of everybody's job
Wireless data communication and portable computers,
allowing field personnel to work office independent
Role of IT
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
BPR
Methodologies
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a. Envision new process
b. Initiate change
c. Process diagnosis
-Transforming IT Organization
d. Process Redesign
-Project Scope
-IT Support
-Modular Approach
-Incremental Approach
-Combining Approaches
e. Reconstruction
f. Process Monitoring

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ENVISION NEW PROCESSES
Ensure management support
Identifying reengineering
opportunities
Identify enabling technologies
Align with organizational strategies

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INITIATE CHANGE
Set-up the reengineering team
Outline performance goals

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PROCESS DIAGNOSIS
A maturity for assessing IT organization
Includes 5 stages.

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Transforming IT Organization
Each growth stage represents a transformation
of the IT Organization

Changes in People Skills and Competencies


Processes Ways of working
Steering The goals and results to be realized
Attitude The values and beliefs and the way in which IT
behaves towards the business and IT users.
Interactions Degree of interactions between IT and the
business and the stakeholders.

~ Growth is done step by step. Not every IT


organization needs to be at the highest level.

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PROCESS REDESIGN
1) Develop alternative process scenarios
2) Develop new process design
3) Design human resource architecture
4) Select IT platform
5) Develop overall blueprint and gather
feedback

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Project Redesign Project Scope
Projects attempting large-scale change have a
much lower probability of success than those
attempting less ambitious change.

Delivery of smaller components will therefore be:


1) easier to manage
2) easier to implement
3) easier to accommodate internal and external
changes political and financial environment,
requirements, technological change,

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Project Redesign IT Support
Two dimensions to IT-enabled business change
projects:
1) Range of business functions that they seek
to support
2) Level of support that they offer to those
business functions

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Modular Approach
1) IT support in modules supporting limited set
of business requirements
2) Delivers an independent part of a overall
program whose application offer value to the
organization, even if the other parts are not
complete.

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Incremental Approach
1) Delivers increasing levels of support in a
series of smaller projects
2) Is valuable where requirements are likely to
change due to environmental factors legislative
/policy change or improvements on IT

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RECONSTRUCTION
A checklist before cut-over to new capabilities
includes asking:
1) Is the organization ready?
2) Is the staff ready?
3) Are businesses and/or citizens ready?
4) Is contract management in place?
5) Is service management in place?
6) Is benefits management in place?
7) Is performance management in place?
8) Are changes ahead been thought through?

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PROCESS MONITORING
A checklist of key issues after transitioning to
e-Government services includes asking:
1) Was the business case justification realistic?
2) Have changes throughout the project
compromise our original intentions?
3) Have we done a post-implementation review?
4) Do we have enough qualified personnel to
manage operations including fulfilment contract
with third parties?
5) Are we actively seeking to improve performance?
6) Are we measuring performance?
7) Are we setting maturity targets?
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