Busineess Process Reengineering

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Business Process Reengineering 1. Introduction of BPR 2. Definitions by Management Thinkers 3. Background of BPR. 4. Model of BPR and Its relation with CPI. 5. Questions to be asked when doing BPR. 6. Reason for unsuccessful BPR projects. 7. Myths associated with BPR 8. Future Direction of BPR

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A complete overview of Business Process Re engineering..

Transcript of Busineess Process Reengineering

Page 1: Busineess Process Reengineering

Business Process Reengineering

1. Introduction of BPR

2. Definitions by Management Thinkers

3. Background of BPR.

4. Model of BPR and Its relation with CPI.

5. Questions to be asked when doing BPR.

6. Reason for unsuccessful BPR projects.

7. Myths associated with BPR

8. Future Direction of BPR

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Introduction of BPR

BPR is redesign of business processes and

the associated systems and organizational

structures to achieve a dramatic

improvement in business performance.

It is not downsizing, restructuring, reorganization,

automation, new technology e.t.c. It is the

examination and change of five components of the

business: Strategy, Processes, Technology,

Organization and Culture.

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By Michael Hammer : Fundamental rethinking and radical redesign of business processes to bring about dramatic improvement in performance.

By Davenport : The analysis and design of workflows and processes within and between organizations.

By Teng at el :The critical analysis and redesign of existing business processes to achieve breakthrough improvements in performance measures.

Definitions of BPR

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BPR, as a term and as a practice, has a tarnished

history. Reengineering became very popular in

early 1990s, however, the methodology and

approach was not fully understood nor

appreciated. Many times improvements projects

labeled “BPR” were poorly planned and executed.

Employees and organizations cringed at the

thought of another “BPR” experience. The terms

itself being used less, or is being altered, so that

these types of initiatives are not associated with

the “BPR”of the past.

Background of BPR

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Contd….

Despite this abuse of the practice and tarnished

name, the practice of redesigning business

processes and the associated technology and

organizational structure is more popular today then

ever. Companies continue to re-examine and

fundamentally change the way they do business.

Competitive pressure & sluggish economy provide

the impetus for continued efforts to “deliver more

with less”. Reengineering remains an effective tool

for org striving to operate as effectively and

efficiently as possible.

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Model of BPR

Scope Project

Learn from others

Create to be processes

Plan Transition

Implement

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Model of CPI

Document As-is Processes

Establish Measures

Follow Processes

Measure Performance

Identify and implement improvement

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This method for improving business processesis effective to obtain gradual, incrementalimprovements. However, over the last 10 yearseveral factors have accelerated the need toimprove business processes. The mostobvious is technology. New technologies(internet) are rapidly bringing the competitiveBar and the need to improve businessprocesses dramatically. Another apparenttrend is the opening of the world markets andincreased free trade.

Theory of CPI

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1. What should be the process look like?

2. What do my customers want it to look like?

3. What do other employees want it to look like?

4. How the best in class companies do it?

5. What might we be able to do with new technology?

6. Who are going to most effected or least effected while doing BPR?

Question to be asked for doing BPR

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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 High performance computing, allowing on-the-fly planning and

revisioning

BPR & IT

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Why BPR Projects Failed?

1. Lack of Sustained Management Commitment and Leadership.

2. Unrealistic scope and expectations.

3. Ignoring the key stakeholders while implementing the BPR.

4. Poor Change Management Strategy.

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Reengineering novelty Clear state IS Leadership Reengineering vs. quality Top-down design Reengineering vs. Transformation Reengineering Performance

Myths Associated with BPR

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Future Directions of BPR

1. Knowledge Management Organization.

2. Employee Empowerment

3. Adoptions of new IT’s & shared vision.

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