BPR
BPR
BPR
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
Business Processes
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
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
Reversing
the existing
business
Envisioni
ng
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