Business Process Reengineering

Download as doc, pdf, or txt
Download as doc, pdf, or txt
You are on page 1of 19

Business process reengineering (BPR

Business process reengineering (BPR) is a management practice in which the related tasks
required to obtain a specific business outcome are radically redesigned to improve efficiency,
effectiveness and performance. By critically examining and redesigning business processes, BPR
can also improve other business aspects, such as cost, output, service, speed and quality. BPR
helps organizations to fundamentally rethink how they do their work. BPR aims to
analyze workflows within and between business functions to optimize the end-to-end business
process. It also seeks to eliminate tasks that don't improve performance or provide the customer
with value.

Steps to business process redesign


1. Map current business processes, gather data from software and stakeholders and
understand how the performance is
2. Analyze to find any errors that could affect the process.
3. Review any improvement opportunities.
4. Design a new process map that solves the problem the organization
5. Implement changes and educate stakeholders on these changes.

INSPIRE framework for BPR Projects By Bhudeb Chakravarti:

 Initiate the new BPR project and prepare the business case.
 Negotiate with senior management for approval to start.
 Select the processes to be reengineered.
 Plan the activities in the project.
 Investigate processes for problems.
 Redesign the selected processes to improve performance.
 Ensure success through monitoring.
Innovations in BPR Projects

Business process innovation is defined as the significant and transformative changes made to
existing processes within an organization to achieve better efficiency, effectiveness, and overall
business performance. The innovations will constantly improve work and find new ways to
overcome challenges to stay ahead of the competition

Business Process Optimization

Business process optimization is the practice of increasing organizational efficiency by improving


processes. It’s a part of the discipline of business process management (BPM). Optimized processes
lead to optimized business goals.

Some examples of optimization include:

 Eliminating redundancies
 Streamlining workflows
 Improving communication
 Forecasting changes
The Benefits of Business Process Optimization

 Identifying and eliminating bottlenecks

 Improving collaboration and connections

 Streamlining activities to improve process efficiency

 Reducing risk by avoiding errors .

 Helping organizations stay competitive

Continuous improvement in BPR

Continuous improvement is the ongoing process of analyzing performance, identifying


opportunities, and making incremental changes to processes, products, and personnel. By
analyzing and fine-tuning processes, your company can save time and deliver an overall better
product. The main goal of continuous improvement is to transform your company through small
incremental changes. This improves employee engagement, boosts productivity and efficiency,
and increases customer satisfaction. When you believe you always have room to grow, you can
discover new opportunities for growth and improve your business

 Process of continuous improvement

 Identify the areas which needs improvement

 Map the current state of affairs

 Priorities the important areas

 Redesigning the process

 New design and implementation

 Continuous improvement

 Routine audit and corrections

Benefits of Continuous improvement in BPR

 Speed and Accuracy


 Cost
 Transparency

 End products

 Relationships

 Productivity

 Staff satisfaction

 Supplier relationships

 Customer satisfaction

Examples

Benchmarking, Think tanks, Root cause analysis, Digital workflow and automation, Value added
services, Reduced waiting time, Optimal output, TQM, Waste management.

Various approaches for continuous improvement in BPR

 SIPOC Diagram

SIPOC stands for Suppliers, Inputs, Process, Outputs, and Customers.

This type of diagram breaks the process down into what goes in, what happens during the
process, what comes out, and who it concerns.

 BPMN Process Flowchart

Business Process Modeling and Notation (BPMN) is the global standard for modeling business
processes, a fundamental part of business process management. BPMN diagrams allow different
stakeholders to visualize business processes, making it easier to make workflows more effective

 Swimlane diagram

A swimlane diagram is a type of flowchart that delineates who does what in a process. Using the
metaphor of lanes in a pool, a swimlane diagram provides clarity and accountability by placing
process steps within the horizontal or vertical “swimlanes” of a particular employee, work group
or department.

 Five Whys Analysis


The 5 Whys Problem Solving technique is a simple process to follow to solve any problem by
repeatedly asking the question, this technique includes asking repeated why’s for the problem in
organisation and tries to obtain solution like why customers are not purchasing our products,
why customers feel other products are better, why we are not able to compete in market , why
our product design is not appealing and why our resources are not being utilized properly.

 Force Field Analysis

Force Field Analysis is a framework used to aid business decisions, often in the context of
strategic planning, implementation or change management. The framework assumes there are
forces in favor of the decision and forces against the decision.

 Pareto Chart

A Pareto chart follows a brainstorming session with your project team. It’s designed to show the
impact of different inefficiencies, this chart helps to improve by addressing problems

 DMAIC

Define: Define the problem you want to solve

Measure: Measure the current performance

Analyze: Analyze the process and find potential improvements

Improve: Put the solutions into practice

Control: Track the performance of your improvements

 PDCA

Plan: Plan the change based on your analysis of the problem

Do: Implement the change into your current process

Check: Monitor the performance of the improvement

Act: Take action to scale the improvement mechanism or to create a new solution if it’s not
working.
 DRIVE

D: Define the scope of the problem using measurable criteria

R: Review the current process

I: Identify potential solutions

V: Verify that improvements will bring the desired benefits

E: Execute the implementation

Unit-III-Technology and digital transformation

Role of technology in BPR, Technology

Information Technology plays a crucial role in improving efficiency, decision-making, and

overall business performance because of automation. T can interface with BPR to improve

business processes in terms of communication, inventory management, data management,

management information systems, customer relationship management, computer-aided design,

computer-aided manufacturing (CAM), and computer-aided engineering. The application of

technology in BPR simplifies processes, automate tasks, analyze data, and implement targeted

tactics to boost productivity and save costs in marketing, management, and manufacturing. Few

of the important technologies used in BPR are


Automation and Advance technology usage in BPR

Automation is a process and advance technique of making a system operate automatically, The
BPR extensively uses the technology for adding efficiency in performance, It is applied in BPR
for many reasons few are as follows

 Assessment and Analysis of existing performance


 Collaborate and obtain seamless performances
 Identify the problematic areas
 Redesigning Processes if needed
 Process Optimization for maximizing profits and customer retention
 Training of employees
 Change Management for to avoid resistance to change
 Monitoring and Improvement of various BPR activities
 Performance tracking to ensure vision achievement
 Continuous Improvement as a benchmark
 Security and safety of customer information and business policies
Tools and Technologies for Business Process Reengineering
 Business Process modeling Microsoft Visio, Lucidchart,
 Workflow Automation Tools: Microsoft Power Automate,
 Enterprise Resource Planning (ERP) Systems: ERP systems integrate various business
functions, such as finance, human resources, and supply chain management, into a single
system.

 Cost Estimating software:

 Data Analytics tools: Data analytics tools enable project managers to extract valuable
insights

 Simulation Software: simulation software allows project managers to simulate different


scenarios and assess their impact on project costs

 Cloud computing: Cloud computing technology provides project managers with access
to vast computing resources and storage, enabling them to analyze large datasets and
run complex models efficiently.

 Augmented reality (AR) is a technology that enhances the real world with digital content,
such as images, videos, sounds, or 3D models.

Industry 4.0 – An era of data driven decision making,

Industry 4.0 can be defined as the integration of intelligent digital technologies into
manufacturing and industrial processes. It encompasses a set of technologies that include
industrial IoT networks, AI, Big Data, robotics, and automation. Industry which adopts and
implements all possible advanced technology applications on various functions is called as
industry 4.0.
Dynamic and real time analysis in BPR

Dynamic analysis is the process of evaluating software or systems by observing their behavior
and execution in real time. It involves running the software or system and monitoring its
interactions, inputs, outputs, and resource usage to understand its functionality, performance, and
potential vulnerabilities. In simple words analyzing the software while in use. The Dynamic
analysis, often known as dynamic program analysis, uses real-time data to evaluate a program or
technology. This analysis can be performed on either a virtual or physical CPU. Dynamic
analysis tools can monitor the code execution, simulate user inputs, or generate test cases, and
provide insights or suggestions on how to improve the code. Some examples of dynamic analysis
soft ware’s are JMeter, and Selenium. The Dynamic Analysis can be used for testing securities
on live web applications and APIs (Application programming Interface)
The dynamic analysis is beneficial in many ways few of the advantages are as follows

 Dynamic Malware Analysis Can Detect Previously Unknown Malware

 Assessing and Understanding Malware Behavior

 Malware Mitigation (Reducing risk of malware)

 Provide Rapid Incident Response

 Test Security Solution Effectiveness

 Enhancing Threat Intelligence

Role of Enterprise Resources Planning in Business Process Re-Engineering (ERP in


BPR)

The enterprise resources planning soft ware’s refers to the type of soft ware’s which organisation
uses for managing routine functions including accounting, procurement, project management,
risk management and supply chain management. Enterprise Resources Planning (ERP)
systems bind various functions of the business into a single database.

Applications of ERP in Business


Predictive analysis

Predictive analysis is the process of using data to forecast future outcomes. The process uses data
analysis, machine learning, artificial intelligence, and statistical models to find patterns that
might predict future behavior. Predictive analytics is good for forecasting, risk management,
customer behavior analytics, fraud detection, and operational optimization. Predictive analytics
can help organizations improve decision-making, optimize processes, and increase efficiency and
profitability.
Machine learning in process optimization and automation

Machine learning (ML) is a branch of artificial intelligence (AI) and computer science that
focuses on the using data and algorithms to enable AI to imitate the way that humans learn,
gradually improving its accuracy. Machine learning algorithms are capable of processing and
analyzing vast amounts of data much more quickly and accurately than a human could. This
ability to handle complex data and learn from it allows businesses to automate not just routine
tasks, but also make informed decisions based on real-time data analysis.

Process optimization

Process optimization is the systematic approach of analyzing and improving business processes
to achieve maximum efficiency, effectiveness, and quality. The goal of process optimization is to
continuously reduce waste, increase productivity, and ultimately improve an organization's
bottom line.

The use of machine learning enables quick and effective optimization without human interaction.
Machine learning for automation is important because it enables organizations to significantly
reduce the knowledge-based resources required to train and implement machine learning models.
It can be used effectively by organizations with less domain knowledge, fewer computer science
skills, and less mathematical expertise.

Data Science

Data Science is a field that deals with extracting meaningful information and insights by
applying various algorithms preprocessing and scientific methods on structured and
unstructured data. This field is related to Artificial Intelligence and is currently one of the most
demanded skills. Data science comprises mathematics, computations, statistics, programming,
etc to gain meaningful insights from the large amount of data provided in various formats.

Data Analytics
Data Analytics is used to get conclusions by processing the raw data. It is helpful in various
businesses as it helps the company to make decisions based on the conclusions from the data.
Basically, data analytics helps to convert a Large number of figures in the form of data into
Plain English i.e., conclusions which are further helpful in making in-depth decisions

Feature Data Science Data Analytics

Python is the most commonly used The Knowledge of Python


Coding language for data science along with and R Language is
Language the use of other languages such as C++, essential for Data
Java, Perl, etc. Analytics.

Basic Programming skills


Programming In-depth knowledge of programming is
is necessary for data
Skills required for data science.
analytics.

Data Analytics does not


Use of Machine Data Science makes use of machine
use machine learning to get
Learning learning algorithms to get insights.
the insight of data.

Data Science makes use of Data mining Hadoop Based analysis is


Other Skills activities for getting meaningful used for getting
insights. conclusions from raw data.

The Scope of data analysis


Scope The scope of data science is large.
is micro i.e., small.

Data science deals with explorations Data Analysis makes use


Goals
and new innovations. of existing resources.

Data Science mostly deals with Data Analytics deals with


Data Type
unstructured data. structured data.
Role of automation tools –Power BI, Tableau, UI Path and Blue prism,

Automation is the use of technology to perform tasks with reduced human assistance. Any
industry that encounters repetitive tasks can use automation, but automation is more prevalent in
the industries of manufacturing, robotics, and automotives, as well as in IT systems. Various soft
wares are used for automation in BPR, some them are as follows

 Power BI
 Tableau

 UI Path

 Blue prism

Power BI

Power BI software is from Microsoft organisation it is an interactive data visualization software


product developed with a primary focus on business intelligence It is part of the Microsoft Power
Platform. Power BI is a collection of software services, apps, and connectors that work together
to turn various sources of data into static and interactive data visualizations

he following are among the different Power BI components that let users create and share
business insights in ways that fit their roles:

 Power Query. This data mash up and transformation tool integrates data from multiple
sources.
 Power Pivot. This is a memory tabular data modeling tool.
 Power View. This tool lets users create and interact with their own data visualizations.
 Power Map. Power Map is a visualization tool for 3D geospatial data that bolsters
predictive analytics.
 Power BI Q&A. This natural language query engine can take user inputs and produce
data visualization outputs.
 Power BI Embedded. This tool lets users take customer-facing reports, insights, visuals
and other items from Power BI and embed them into other apps or websites.
Advantages of Power BI

 Accessibility. Both nontechnical and technical audiences can easily use Power BI. Its
range of pricing options makes it available to businesses with smaller budgets as well as
larger enterprises.

 Integrations. Power BI's ability to integrate with software such as Excel and other
Microsoft applications means it can work with data from various sources.

 Customer support. Microsoft offers customer support for those in need


of troubleshooting and assistance.

 Customization. The ability to create custom visuals adds value for businesses looking to
capture and visualize important relationships or patterns found in complex data sets.

 Collaboration. Power BI is built to facilitate collaboration, for example, among different


teams within an organization.
 Scalability. Power BI can support large-scale data sets, making it suitable for enterprises

Tableau

Tableau is an excellent data visualization and business intelligence software tool used for
reporting and analyzing vast volumes of data. Actually It is an American company that started in
2003 and it was acquired by sales force company in June 2019,. It helps users create different
charts, graphs, maps, dashboards, and stories for visualizing and analyzing data, to help in
making business decisions. Tableau has a lot of unique, exciting features that make it one of the
most popular tools in business intelligence

Tableau Features and advantages of using Tableau


Ui Path

Ui-Path Inc. is a global software company that makes robotic process automation (RPA)
software. It was founded in by Daniel Dines and Marius. Its headquarters are in New York City.
The company's software monitors user activity to automate repetitive front and back office tasks,
including those performed using other business software such as customer relationship
management or enterprise resource planning (ERP) software. For an accelerated business
change, it provides solutions for businesses to automate routine office activities. It uses a variety
of methods to transform tedious tasks into automated processes

Features and advantages of Ui-Path software solutions


Blue Prism

Blue Prism is the trading name of the Blue Prism Group a British multinational software
corporation that pioneered and makes enterprise robotic process automation (RPA) software that
provides a digital workforce designed to automate complex, end-to-end operational activities. In
March 2022, Blue Prism was acquired by SS&C Technologies. Blue Prism provides users with a
day-to-day operational environment that is used to control, monitor, and schedule the Digital
Workers across the enterprise, all of which is included within our standard license
Advantages and features of Blue-prism software

Challenges in implementing and adopting new technologies

You might also like