BUSINESS PROCESS BUSINESS PROCESS REENGINEERING & REENGINEERING &

ERPERP

ProcessProcess

A specific ordering of work activities across A specific ordering of work activities across time and space, with a beginning, an end, time and space, with a beginning, an end, and clearly identified inputs and outputs: and clearly identified inputs and outputs:

a structure for action.a structure for action.

Business process Business process ReengineeringReengineering

It is the fundamental rethinking and It is the fundamental rethinking and radical re-design of business radical re-design of business

processes to achieve dramatic processes to achieve dramatic improvements in critical, improvements in critical,

contemporary measures of contemporary measures of performance, such as cost, quality performance, such as cost, quality

service and speed.service and speed.

BPR continued…BPR continued…

It is the analysis and design of workflows It is the analysis and design of workflows within an organization.within an organization.

It is not just change but dramatic change It is not just change but dramatic change and dramatic improvement.and dramatic improvement.

It Is the basis for many recent It Is the basis for many recent development in organizations.development in organizations.

Different phases of BPRDifferent phases of BPR

1.1. Begin Organizational Change.Begin Organizational Change.

2.2. Building the reengineering organization.Building the reengineering organization.

3.3. Identifying BPR opportunities.Identifying BPR opportunities.

4.4. Understanding the existing process.Understanding the existing process.

5.5. Reengineer the process.Reengineer the process.

6.6. Blueprint the new business system.Blueprint the new business system.

7.7. Perform the transformation.Perform the transformation.

Begin Organizational Begin Organizational ChangeChange

1.1. Assess the current state of organizationAssess the current state of organization

2.2. Explain the need for changeExplain the need for change

3.3. Illustrate the desired stateIllustrate the desired state

4.4. Create a communication campaign for Create a communication campaign for changechange

Build the reengineering Build the reengineering organizationorganization

1.1. Establish a BPR organizational structure.Establish a BPR organizational structure.

2.2. Establish the roles for performing BPR.Establish the roles for performing BPR.

3.3. Choose the personnel who will Choose the personnel who will reengineer.reengineer.

Identify BPR opportunitiesIdentify BPR opportunities

1.1. Identify the high level process.Identify the high level process.

2.2. Gather performance metrics within and Gather performance metrics within and outside industry.outside industry.

3.3. Prioritize selected process.Prioritize selected process.

4.4. Consult with customers for their desires.Consult with customers for their desires.

Understand the existing processUnderstand the existing process

1.1. Model the current process.Model the current process.

2.2. Understand how technology is currently Understand how technology is currently used.used.

3.3. Understand how information is currently Understand how information is currently used.used.

Reengineer the processReengineer the process

1.1. Question current operating assumptions.Question current operating assumptions.

2.2. Evaluate the impact of new technologies.Evaluate the impact of new technologies.

3.3. Consider the perspective of Consider the perspective of stakeholders.stakeholders.

Blueprint the new business systemBlueprint the new business system

1.1. Define the new flow of work.Define the new flow of work.

2.2. Model the new process steps.Model the new process steps.

3.3. Model the new information requirements.Model the new information requirements.

4.4. Describe the new technology Describe the new technology specifications.specifications.

Perform the transformationPerform the transformation

1.1. Develop a migration strategy.Develop a migration strategy.

2.2. Reallocate workforce.Reallocate workforce.

3.3. Educate staff about the new process.Educate staff about the new process.

4.4. Implement in an iterative fashion.Implement in an iterative fashion.

Difficulties in Difficulties in implementing BPRimplementing BPR

• Employee resistance to change.Employee resistance to change.

• Inadequate attention to employee Inadequate attention to employee concerns.concerns.

• Failure in leadership commitment.Failure in leadership commitment.

• Mismatch of strategies used and Mismatch of strategies used and goals.goals.

Ways to implement Ways to implement reengineering… reengineering…

• Clean slate Reengineering:-Clean slate Reengineering:-

Everything is designed from scratch.Everything is designed from scratch.

• Technology enabled reengineering:-Technology enabled reengineering:-

Constrained by selected system.Constrained by selected system.

It is cheaper but require a lot of It is cheaper but require a lot of training.training.

Enterprise Resource Planning Enterprise Resource Planning (ERP)(ERP)

It integrates internal and external It integrates internal and external management information across an entire management information across an entire

organization, embracing organization, embracing finance/accounting, manufacturing, sales finance/accounting, manufacturing, sales

and services etc.and services etc.

ERP continued…ERP continued…

Affects all organization- irrespective of Affects all organization- irrespective of their size and nature.their size and nature.

Forces the competition to change their Forces the competition to change their strategies and process.strategies and process.

Change the nature of jobs in all functional Change the nature of jobs in all functional areas.areas.

Implementation is very costly.Implementation is very costly.

ERP continuedERP continued

Packaged software designed for a client- Packaged software designed for a client- server environment.server environment.

Use an enterprise wide database that Use an enterprise wide database that typically stores each piece of data.typically stores each piece of data.

Allow access to data in real time.Allow access to data in real time.

Process a large variety of organization's Process a large variety of organization's data. data.

Comparison…Comparison…ERP v/s BPRERP v/s BPR

BPR focuses on transformation aspect of BPR focuses on transformation aspect of the business process whereas ERP the business process whereas ERP focuses on the automation aspect of the focuses on the automation aspect of the business process.business process.

Both have different approaches in Both have different approaches in achieving the same goal.achieving the same goal.

BPR is the fundamental step taken prior to BPR is the fundamental step taken prior to ERP implementation.ERP implementation.

What to changeWhat to changeBusiness Process or SoftwareBusiness Process or SoftwareProbability of success is higher when there Probability of success is higher when there is minimal change in business process is minimal change in business process and erp software.and erp software.

Change in process is likely to have risk Change in process is likely to have risk such as lack of organizational adaptability, such as lack of organizational adaptability, incorrect choice of the appropriate incorrect choice of the appropriate practices to implement , resistance to practices to implement , resistance to change etc.change etc.

Continued…Continued…

Most changes can be made in software Most changes can be made in software but the organization has no ability to but the organization has no ability to implement such large IT project , which implement such large IT project , which leads to failed implementation.leads to failed implementation.

Large change in both process and Large change in both process and software can affect probability of success.software can affect probability of success.