IT & BPR

Provides platform to: Manage the BPR project Provide a link between various bpr drivers discussed earlier Optimise processes such as transportation, product mix decisions Provide a platform to record various parameters of all forces

 Allow cost benefit analysis of various process sequence Study complete supply chain economics and delivery

time requirements Arrive at best possible business process within the constraints of the forces that affect the business performance Judge the impact of the reengineered processes to make the bpr as an ongoing activity

It and bpr are inseperable

Reengineering process should take place before

introducing technology and application of IT is crucial to those redesigned process It infra contributes to successful implementation of BPR Three core elements of processes, IT and transformation, where it is the key enabler rather than necessary

 IT helps in reducing bpr implementation time, and

contributing to increased responsiveness and flexibility The merger of two concepts, BPR and IT, has resulted in new technology term known as business engineering, it combines the innovations of information technology with BPR and focus on better business processes The main thrust of using information technology in BPR lie in farreaching process oriented solutions

 Impact of it systems are:

Compression of time Overcoming restrictions of geography i.e distance Restructuring of relationships BPR+IT= BUSINESS ENGINEERING Business values provided by IT in three distinct areas as: Efficiency: increase productivity Effectiveness: better mgmt Innovation: improved product and services

Role of IT in BPR
The merger of 2 concepts i.e. BPR+IT=reengg
Combines the innovation of IT with BPR and focus on

better business process It gives best procedure based process oriented solutions Hammer considers it as radical change. He says that it is discontinuous thinking, reorganising, and breaking away from the outdated rules and fundamental assumptions underlying operations

 Davenport says IT should be viewed as more than

automating and mechanising force: to fundamentally reshape the way busi is done Busi process represent s new approach to coordination across the firm. IT is the most powerful tool for reducing the cost of coordination Role of that can be played in bpr Transactional Geographical Automatically Analytical informational

Sequential Knowledge mgmt Tracking Disintermediation Tengetal says IT can be differentiated along two dimension i.e. degree of mediation and collaboration DOM=extent of sequential flow of input and output among participating functions DOC= extent of infn xchange and mutual adjustment among functions when participating in the same process

Capabilities of IT in bpr
It provides office automation
It allows the business to be conducted in difft locations Provides flexibility in mftg

Permits quicker delivery to customers

Supports rapid and paperless transactions It allows an efficient and effective change in the

manner in which work is performed

 IT is bringing in new capabilities to business,it raises

strategically options and need to improve business process dramatically It allows mgr to collect,store,analyse and communicate and distribute information better

Role of IT

Transactional Geographical Speed Automatic Analytical Accuracy Handling large data Informational Sequential Knowledge mgmt Tracking Bridge between 2 parties

ERP and IT
Erp stands for enterprise resource planning
It links isolated information centers across the orgn in

to an integrated enterprise wide functional and activity bases Modern erp systems deliver end to end capabilities to support the entire performance mgmt of an orgn Bpr brings out deficiencies of the existing step setup BPR and ERP will give way to implement systems and the long pending improvements in the existing systems

 Erp utilises erp software applns to advance the

performance of orgns resource planning, mgmt control and operational control It integrates activities across functional depts, from product planning, mgmt control, order tracking etc It integrates all data and processes of an orgn in to a unified system. It will use multiple components of computer software and hardware to achieve the integration. The key ingredient is unified database to store data for the various system modules

Features of erp
Delivers single data base that contains all data for the software modules that includes: Manufacturing: engineering, scheduling, workflow mgmt, quality control, cost mgmt etc.. Ss chain mgmt= inventory, order entry, purchasing, ss chain planning, inspection of goods Financials: general ledger, cash mgmt, accounts payable and receivables

 Projects: costing, billing, time and expense, activity

mgmt HR- payroll, training, time and attendance , benefits Customer relationship mgmt: sales and mktg, commission service, customer contact and call center support Data warehouse: various self service interface for customers, ssliers and employees

Evolution of erp
Material reqmt planning
Material resource planning Enterprise resource planning:

Electronic data processing MIS Decision support system Knowledge based system

The ERP cycle

Erp readiness assessment
Preparing the orgn for ERP ERP feasibility study

Business transformation
Process modelling Detailed implementation plan and execution Preparing to go live during migration Going live Making erp effective

Benefits of erp
Better customer satisfaction
Improved vendor performance Reduced quality cost

Improved resource utility

Improved mkt share Better employee satisfaction Improved profitability

 Reduction in inventory levels Short term benefits- streamlining of operational areas

such as production, purchase, finance, sales etc Mid term benefits- reduced working capital, reduced cycle time order fulfillment, improved coordination, better financial forecast Long term benefits-adopting best business processes, provide a competitive edge

Advantage of erp
Design engineering (how to best make the product)
Order tracking from acceptance through fulfillment The revenue cycle from invoice thru cash receipt

Managing interdependencies of complex bill of

materials

 Tracking the 3 way match between purchase orders,

inventory receipts and costing Accounting of all these tasks

Risks in erp
Technical risks

Result of IT Business risk Result of methodologies, and process related to erp implementation Cohesion of process thru the ss chain Orgn risks Result of envt- orgnal structure

General challenges
Change mgmt
Orgnal intervention Shifting from functional view to process view

Faith in software package

Special challenges
Existence of large information systems depts
Erp as a threat to the project based software business Dependency on IS professional

ERP places more value on domain knowledge of

functions rather than IT skills and thus require a mindset change

 Lack of commn infrastructure

It infra not in order

disadvantage
It require huge investments and the out put is not

guaranteed Theft of erp Workers has to undertake training this disturbs the regular routine of an orgn Ppl can misuse the system larger risk of secrecy Longer implementation of time

 Commn gap
Inability to support continuous improvements and

change mgmt Inability to take advantage of shared experiences Inadequate training and documentation High turnover among IT consultants

Broad data required for bpr

Mkt: product range, quality, crm, technology,

workforce reqmt etc Product: quality, cost, finance mgmt, mkt trends, feedback, profits etc Finance- resources, product and process cost, admin cost, training cost, quality Technology- product range,technology cost,fm, mkt trends etc

 Process: time,cost, safe practises Work

force: product range,quality practises, technology handling capability etc.. Orgn culture: working conditions,, reporting structure, workers managers relation,morale reqmts Ecology- product hazards. Process hazards, water contamination, air contamination etc projects- quality projects, product dvlpt project, new project analysis, service , project evaluation etc