BUSINESS PROCESS REENGINEERING

BPR Business Process Redesign or, Business Transformation Or, Business Process Change Management

BY : AMRUTA SANKHE

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.

What is a Business Process?

A business process is a collection of activities which together produce something of value of a customer.

What is a Reengineering?
The organization uses IT to do new processes to achieve quantum improvements and maximize the value adding content of a process.

Hammer and Champy (1993) define BPR as:BPR :=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."

Cycle:

BPR transform the current process (AS-IS) to an improved process (TO-BE)

Case Study Fords Accounts Payable Process

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

The role of information technology

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 IN THE REENGINEERING CONCEPT

1. Shared databases, making information available at many places 2. Expert systems, allowing generalists to perform specialist tasks 3. Telecommunication networks, allowing organizations to be centralized and decentralized at the same time 4. Decision-support tools, allowing decisionmaking to be a part of everybody's job.

Key Steps :
1) Select the process and appoint process team. 2) Understand the current process. 3) Develop and communicate vision of improved process. 4) Identify action plan. 5) 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 & Appoint Team

Identify process owners Develop executive improvement team Provide training to executive team

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

Develop & Communicate Vision of Improved Process

Communicate with all employees so that they are aware of the vision of the future Always provide information on the progress of the BPR initiative - good and bad. Demonstrate assurance that the BPR initiative is both necessary and properly managed.

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

Conclusion

Business Process Reengineering has the positive impact. It can dramatically lower the operation cost, reduce the cycle time, increase the customer satisfaction and raise the service quality.

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

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