BPR

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BPR

 Business process reengineering (BPR) is


 the analysis and redesign of workflows within
and between enterprises
 in order to optimize end-to-end processes and
automate non-value-added tasks
BASIC CONCEPT
 Business process reengineering (BPR) involves the examination and
redesign of business processes and workflows in your organization.
 A business process is a set of related work activities that are
performed by employees to achieve business goals.
 Business process reengineering is the process of changing the way
we do our work so we do it better to accomplish the goals of our
business.
 Business process re-engineering is the analysis and design of
workflows and processes within an organization.
 It refers to how IT is being used to restructure work by transforming
business processes.
 Rethinking & radical redesign of business processes to achieve
dramatic improvement.
 Business process re-engineering is also known as business process
redesign, business transformation, or business process change
management.
NEED OF BPR
 Change from a management focus to a customer focus - the boss is not
the boss, the customer is the boss.
 Empower your workers that are involved in each process to have
decision-making and ownership in the process.
 Change your emphasis from managing activities to focusing on results.
 Get away from 'score keeping' and focus on leading and teaching so
employees can measure their own results.
 Change the company's orientation from a functional orientation to a
process or cross-functional orientation. This allows for an increase in
organizational knowledge among its members and a greater degree of
flexibility in accomplishing tasks.
 Move from serial operations to concurrent operations. In other words,
multitask instead of just doing one thing at a time.
 Get rid of overly complex and convoluted processes in favor of simple,
streamlined processes.
 Stop trying to build an empire and protect the status quo. Instead,
invent new systems and processes that look towards the future.
EXAMPLES

 Old rule: Managers makes all decisions


 IT: Decision support systems
 New rule: decision making is part of everyone’s job

 Old Rule: Only experts perform complex tasks


 IT: Expert systems
 New Rule: A generalist can do work of a specialist

 Old Rule: Info appears at one place at one time


 IT: Centralized shared databases via the Internet & Intranet
 New Rule: Info appears simultaneously at many places

 Old Rule: Field personnel go to office to retrieve , store & transmit info
 IT: Portable computers/ Internet, VPN, Intranet
 New Rule: Field Personnel can send info where ever they are
APPLICATIONS

IT Initiative Process Business Benefit


Changed

Sales Laptop Sales Sales Call Increased Sales


Person call system

Marketing Web sites Product Greater customer


Team Product distribution Satisfaction
Database

Business Product Marketing Improved


Unit Management channel competitive position
System communicatio
ns
BPR METHODOLOGIES
 Business Process Redesign Methodology Following a well
defined methodology for redesign enhances the chances of
achieving better results and produces tangible outcomes.

 The main stages in BPR methodology are:


1. Map existing processes
2. Define aspired end-state
3. Gap analysis
4. Design implementation plan

 It is essential to note that the sequence of phases in the


methodology guarantees better change results. As each
stage includes several sequenced activities and is ought to
produce defined deliverables and outputs.
The Hammer / Champy methodology

 Hammer and Champy 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”.
 In fact a BPR effort changes practically
everything in the organisation: people, jobs,
managers and values, because these aspects
are linked together.
 Hammer and Champy call these aspects the
four points of the business system diamond,
THE HAMMER / CHAMPY
METHODOLOGY

Business Processes

Jobs and Structures Values and


Beliefs

Management and
Measurement Systems
SIX PHASES OF THE HAMMER
CHAMPY METHODOLOGY
 Introduction into Business Reengineering
The “vision statement” describes how the organisation is
going to operate and outlines the kind of results it must
achieve.
 Identification of Business Processes
During this phase, the most important business processes are
identified and are described from a global perspective using
a set of process maps.
 Selection of Business Processes
Candidate for reengineering are the most problematic
processes those with great impact to customers or processes
with more chances to be successfully reengineered, processes
that contribute to organisation’s objectives and so on.
CONTD…
 Understanding of Selected Business Processes
Before proceeding to redesign, the reengineering team
needs to gain a better understanding of the existing
selected processes, concerning what they do, how well or
how poorly they perform, and the critical issues that
govern their performance
 Redesign of the Selected Business Processes
Thisis the most creative phase of the methodology,
because new rules and new ways of work should be
invented. Imagination and inductive thinking should
characterise this phase
 Implementation of Redesigned Business Processes
The success of the implementation depends on whether
the five preliminary phases have been properly performed.
DAVENPORT’S AND SHORT’S
METHODOLOGY
 Recognized the existence of a recursive
relationship between IT capabilities and BPR.
 That IT should be considered in terms of how
it supports new or redesigned business
processes, and
 Recursively business processes and process
improvement should be considered in terms
of the capabilities IT can provide.
STEPS
 1. Develop Business Vision and Process Objectives
 During this step the objectives and the business vision of an organisation are
defined. A business vision implies specific objectives for process redesign,
such as: Cost Reduction, Time reduction, Output Quality, the Quality of
Worklife and the Quality of Learning.
 The objectives are prioritised and stretch targets are set
 2. Identify Processes to Be Redesigned
 The most important processes are identified and prioritised according to their
redesign potential.
 3. Understand and Measure Existing Processes
 The functionality of selected process is understood here and their
performance is measured against the specific reengineering objectives.
 4. Identify IT levers
 IT is a powerful tool not only for supporting processes but also for creating
new process design options; therefore, it has its own step in process redesign.
 The authors suggest eight ways to think about IT capabilities and their
organisational impacts, which are summarised in following table
 5. Design and Build a Prototype of the Process
 The final step in a redesign effort is the design of the new process. The
actual design of the new process should be viewed as a prototype and
successive iterations should be expected.
Capability Organisational Impact/Benefit
Transactional IT can transform unstructured processes into routinized
transactions
Geographical IT can transfer information with rapidity and ease across large
distances, making processes independent of geography

Automational IT can replace or reduce human labor in a process


Analytical IT can bring complex analytical methods to bear on a process

Informational IT can bring vast amounts or detailed information into a process


Sequential IT can enable changes in the sequence of tasks in a process, often
allowing multiple tasks to be worked on simultaneously

Knowledge IT allows the capture and dissemination of knowledge and


management expertise to improve the process

Tracking IT allows the detailed tracking of task status, inputs, and outputs
Disintermediation IT can be used to connect two parties within a process that would
otherwise communicate through an intermediary (internal or
external)
PROCESS ANALYSIS AND DESIGN
METHOD
 Process analysis and design methodology
(PADM) was introduced by the Informatics
Process Group (IPG) at Manchester University
 A framework of tools and techniques, which
can be used in a BPR effort according to
particular circumstances.
THE PADM FRAMEWORK
Business
Strategy

Selected
process

Process Baseline Process Target


Definition Process Evaluation Process
Capture Design
PROCESS DEFINITION
 A clear definition of the objectives, the boundaries and
interfaces of the selected processes is accomplished.
 Process’ main inputs and outputs, organisation’s
departments involved in process’ execution, customers
supported by this process and the suppliers that provide
input to it are also defined.
 Process categorisation also takes place here.
 It aims at identifying common characteristics between
different processes leading to reuse opportunities.
 Process definition is the basis for process evaluation.
BASELINE PROCESS CAPTURE
AND REPRESENTATION
 A model of the current process is developed here, mainly for
facilitating understanding, isolating issues and identifying
change opportunities.
 PADM recommends the use of several different modelling
techniques including:
 Person – centred process charts.
 What activities does the person perform?
 What objects do these activities involve?
 How do activities map to roles?
 How can the objects be classified?
 Object flow diagrams that are used to track the passage of
objects through a process. Objects here are defined as
“anything that a generic user manipulates, uses or handles in
the course of work”
 Activity diagrams that are built up from observed activities.
PROCESS EVALUATION
 The baseline process is analysed and assessed.
Deficiencies both in the technical and the social
subsystem of the organisation are identified.
 The assessment may be based on a number of
process properties such as:
 Accuracy
 Fidelity
 Precision
 Scalability
TARGET PROCESS DESIGN

 The Target Process Design phase takes


also into consideration both technical and
social systems.
 Technical improvement aims at reducing
complexity, minimising non-value adding
activities and eliminating or improving the
control of variances.
OBJECT-ORIENTED BPR
 Reengineering work is performed within the
framework for business development, and
consists mainly of two steps:
 reverse-engineering the existing
organisation, where an abstract model of the
business and the process under study are
constructed
 and forward-engineering the new company,
where the new process is designed.
JACOBSON METHODOLOGY TO
BPR Business Development

Reversing
the existing
business

Envisioni
ng

Engineering Installing the


the new new
business business

Reengineeri The
ng Directive reengineered
Corporation
REVERSE ENGINEERING
 During reverse engineering, models of existing
processes are constructed and evaluated using
measurable data. More specifically, two
consistent organisational views are described:
 the outside view which describes the company
and its environment in terms of use cases and
actors involved and
 the inside view which describes describes the
internal functional and hierarchical structure
as well as the processes and the resources
used.
FORWARD ENGINEERING
 The goal of forward engineering is to produce a model for the
new organisation. This is achieved by a number of activities
which are usually performed in parallel and produce:
 An outside view of the new organisation, which describes new
or redesigned processes, focusing on their interfaces to the
environment. The outside view of the process is developed with
the use of the use-case model.
 Inside views of the new organisation which are object-oriented
models that have their own purpose. Each process may be
modeled according to the work tasks it includes and the way
they are related, or the products or sub-products it affects.
 Areal model which contains the ideal models adapted to the
restrictions found in the business and captures the necessary
object interactions for the realization of the use cases.
 IT support required for the processes in the new business.
ADVANTAGES OF BPR
 Increase Effectiveness.
 Helps to improve efficiency.
 Reduces cost.
 Meaningful job for employees.
 Improvement in organizational approach.
 Growth of business
BPR APPLICATIONS
 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
 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

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