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1. INTRODUCTION:
BPR is known by many names, such as core process redesign, new industrial
engineering or working smarter. All of them imply the same concept which focuses on
integrating both business process redesign and deploying IT to support the reengineering
work. In this section we attempt to explore two questions:
Where does BPR come from and what is involved in BPR (i.e. its principles and
assumptions). Business process reengineering (BPR) has been receiving attention from
industries as well as the academic community, because it is likely to change management
practice and working processes in organizations in the future. However it is commonly
agreed that BPR is important but also problematic. In this chapter we explore the
principles and assumptions of BPR and identify the factors affecting its successes and
failures. Especially we highlight some major debates currently found in the literature of
BPR. These debates include the definitions used to describe business processes and BPR,
the scale of the changes involved in BPR, and the significance and role of information
technology (IT) in BPR, especially IT systems. As the main theme of this thesis is
applying EM to BPR, it is essential to understand some factors which cause BPR projects
failure due to the poor design of the supporting systems under the conventional paradigm.
(BPR) is a management approach aiming at improvements by means of
elevating efficiency and effectiveness of the processes that exist within and across
organizations. The key to BPR is for organizations to look at their business processes
from a "clean slate" perspective and determine how they can best construct these
processes to improve how they conduct business. Business process reengineering is also
known as BPR, Business Process Redesign, Business Transformation, or Business
Process Change Management.

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Research methodology:
This project was manage only with the help of secondary data the information has been
collected with the help of newspaper,journal,reference books and internet.

2. History of Business Process Reengineering:
In 1990, Michael Hammer, a former professor of computer science at the Massachusetts
Institute of Technology (MIT), published an article in the Harvard Business Review, in
which he claimed that the major challenge for managers is to obliterate non-value adding
work, rather than using technology for automating it (Hammer 1990). This statement
implicitly accused managers of having focused on the wrong issues, namely that
technology in general, and more specifically information technology, has been used
primarily for automating existing work rather than using it as an enabler for making non-
value adding work obsolete. Hammer's claim was simple: Most of the work being done
does not add any value for customers, and this work should be removed, not accelerated
through automation. Instead, companies should reconsider their processes in order to
maximize customer value, while minimizing the consumption of resources required for
delivering their product or service. A similar idea was advocated by Thomas H.
Davenport and J. Short (1990), at that time a member of the Ernst & Young research
center, in a paper published in the Sloan Management Review the same year as Hammer
published his paper. This idea, to un biasedly review a company business processes, was
rapidly adopted by a huge 5 dimensions may be changed in BPR. Information
Technology plays a major role in Business Process Reengineering as it provides office
automation, it allows the business to be conducted in different locations, provides
flexibility in manufacturing, permits quicker delivery to customers and supports rapid and
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paperless transactions. In general it allows an efficient and effective change in the manner
in which work is performed.
3. Objective:
1. To obtain quantum gains in the performance of the process in terms of time, cost,
output ,quality to customers.
2. to obtain dramatic improvement in operational effectiveness.
3. Whole system thinking


4. Definition of BPR:

Different definitions can be found. This section contains the definition provided in
notable publications in the field.
Hammer and Champy (1993) 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 this definition you can find four important key words:
Fundamental: "Why do we do what we do?" and "Why do we do it the way we
Do?" Reengineering ignores what is and concentrates on what should be.
radical: Disregarding all existing structures and procedures and inventing completely
new ways of accomplishing work.
dramatic: Used for quantum leaps in performance, not used for small jumps.
process: the most important key word, Collection of activities taking multiple
inputs to create an output that is of value to the customer.
Thomas H. Davenport (1993), another well-known BPR theorist, uses the
term process innovation, which he says " encompasses the envisioning of new work
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strategies, the actual process design activity, and the implementation of the change in all
its complex technological, human, and organizational dimensions."
These definitions suggest that we should concentrate on processes rather than functions
(or structures) as the focus of the (re-)design and management of business activity. The
definitions of the term process by different researchers are also slightly different. For
example, Hammer and Champy (1993)
define a process as: a collection of activities that takes one or more kinds of input and
creates an output that is of value to the customer.
For Davenport (1993) it is:
A process is a specific ordering of work activities across time and space, with a
beginning, an end, and clearly identified inputs and outputs: a structure for action. And
Warboys et al. (1999) define a process as:
A process is structured change, i.e. there is a pattern of events which an observer may
recognise across different actual examples (or occurrences) of the process, or which
may be made manifest, or implemented, in many different occurrences.
In BPR, the process to be reengineered is the so-called business process. Davenport
describes a business process as simply a structured, measured set of activities designed
to produce a specified output for a particular customer or market. Riemer (1998)
describes business processes in an object-oriented style: business processes are series of
steps that change states of business objects (that is, customers, orders and inventory),
thereby causing business events. However we should note that BPR is concerned
with customer-orientation. Thus the outputs of business processes should not only achieve
the companys objectives, but also need to satisfy customers requirements. From these
definitions we can conclude that business processes start and end with customers, and the
value of business processes is dependent upon customers.
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What is the Business Process Re-engineering?

The globalization of the economy and the liberalization of the trade markets have
formulated new conditions in the market place which are characterized by instability and
intensive competition in the business environment. Competition is continuously
increasing with respect to price, quality and selection, service and promptness of delivery.
Removal of barriers, international cooperation, technological innovations cause
competition to intensify. All these changes impose the need for organizational
transformation, where the entire processes, organization climate and organization
structure are changed. Hammer and Champy provide the following definitions:
Reengineering is 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.
Process is a structured, measured set of activities designed to produce a specified
output for a particular customer or market. It implies a strong emphasis on how work is
done within an organization. " (Davenport 1993). Each process is composed of related
steps or activities that use people, information, and other resources to create value for
customers as it is illustrated in the following example.
Example:
An example of a business process: Credit card approval in a bank.
An applicant submits an application. The application is reviewed first to make sure that
the form has been completed properly. If not, it is returned for completion. The complete
form goes through a verification of information. This is done by ordering a report from a
credit company and calling references. Once the information is verified, an evaluation is
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done. Then, a decision (yes or no) is made. If the decision is negative, an appropriate
rejection letter is composed. If the decision is positive, an account is opened, and a card is
issued and mailed to the customer. The process, which may take a few weeks due to
workload and waiting time for the verifications, is usually done by several individuals.
Business processes are characterized by three elements: the inputs, (data such customer
inquiries or materials), the processing of the data or materials (which usually go through
several stages and may necessary stops that turns out to be time and money consuming),
and the outcome (the delivery of the expected result). The problematic part of the process
is processing. Business process reengineering mainly intervenes in the processing part,
which is reengineered in order to become less time and money consuming.


Features of a re-engineered process :
The following are common features of re-engineered processes:
several jobs are combined into one
workers make real decisions
work is performed where it makes most sense
checks and controls are reduced
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reconciliation processes are reduced
a case manager provides a point of contact.
5. BPR Principles:
Organize around outcomes, not tasks.
Have those who use the output of the process perform the process.
Subsume information-processing work into the real work that produces the information.
Treat geographically dispersed resources as though they were centralized.
Link parallel activities instead of integrating their results.
Put decision points where the work is performed and build controls into the process.
Capture information once and at the source.
6. Advantages and disadvantages of BPR
Advantages of BPR
1. BPR revolves around customer needs and helps to give an appropriate focus to the
business.
2. BPR provides cost advantages that assist the organizations competitive position.
3. BPR encourages a long-term strategic view of operational processes by asking radical
4.questions about how things are done and how processes could be improved.
5. BPR helps overcome the short-sighted approaches that sometimes emerge from
excessive concentration on functional boundaries. By focusing on entire processes the
exercise can streamline activities throughout the organization.
6. BPR can help to reduce organizational complexity by eliminating unnecessary
activities.


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Criticisms of BPR :
1. BPR was sometimes seen (incorrectly) as a means of making small improvements in
existing practices. In reality, it should be a more radical approach that questions whether
existing practices make any sense in their present form.
2. BPR was often perceived (incorrectly) as a single, once-for-all cost-cutting exercise. In
reality, it is not primarily concerned with cost cutting (though cost reductions often
result), and should be regarded as on-going rather than once-for-all. This misconception
often creates hostility in the minds of staff who see the exercise as a threat to their
security.
3. BPR requires a far-reaching and long-term commitment by management and staff.
Securing this is not an easy task, and many organisations have rejected the whole idea as
not worth the effort.
4. In many cases business processes were not redesigned but merely automated.
5. In some cases the efficiency of one department was improved at the expense of the
overall process. To make BPR work requires a focus on integrated processes (as
discussed above) that often involves obliterating existing processes and creating new
ones.
6. Some companies became so focused on improving internal processes that they failed to
keep up with competitors' activities in the market.
7. Most companies are now more likely to talk about 'business process redesign' instead.





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7. Business Process:
"If you have ever waited in line at the grocery store, you can appreciate the need for
process improvement. In this case, the "process" is called the check-out process, and the
purpose of the process is to pay for and bag your groceries. The process begins with you
stepping into line, and ends with you receiving your receipt and leaving the store. You are
the customer (you have the money and you have come to buy food), and the store is the
supplier. The process steps are the activities that you and the store personnel do to
complete the transaction. In this simple example, we have described a business process.
Imagine other business processes: ordering clothes from mail order companies, requesting
new telephone service from your telephone company, developing new products,
administering the social security process, building a new home, etc. Business processes
are simply a set of activities that transform a set of inputs into a set of outputs (goods or
services) for another person or process using people and tools. We all do them, and at one
time or another play the role of customer or supplier.
You may see business processes pictured as a set of triangles as shown
below. The purpose of this model is to define the supplier and process inputs, your
process, and the customer and associated outputs. Also shown is the feedback loop from
customers.


Figure : Business Process Model



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Business Process Improvement:
"Improving business processes is paramount for businesses to stay competitive in today's
marketplace. Over the last 10 to 15 years companies have been forced to improve their
business processes because we, as customers, are demanding better and better products
and services. And if we do not receive what we want from one supplier, we have many
others to choose from (hence the competitive issue for businesses). Many companies
began business process improvement with a continuous improvement model. This
model attempts to understand and measure the current process, and make performance
improvements accordingly.
The figure below illustrates the basic steps. You begin by documenting what you do
today, establish some way to measure the process based on what the customers want, do
the process, measure the results, and then identify improvement opportunities based on
the data you collected. You then implement process improvements, and measure the
performance of the new process. This loop repeats over and over again, and is called
continuous process improvement. You might also hear it called business process
improvement, functional process improvement, etc.


"This method for improving business processes is effective to obtain gradual,
incremental improvement. However, over the last 10 years several factors have
accelerated the need to improve business processes. The most obvious is technology. New
technologies (like the Internet) are rapidly bringing new capabilities to businesses,
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thereby raising the competitive bar and the need to improve business processes
dramatically.
Another apparent trend is the opening of world markets and increased free trade.
Such changes bring more companies into the marketplace, and competing becomes harder
and harder. In today's marketplace, major changes are required to just stay even. It has
become a matter of survival for most companies. As a result, companies have sought out
methods for faster business process improvement. Moreover, companies want
breakthrough performance changes, not just incremental changes, and they want it now.
Because the rate of change has increased for everyone, few businesses can afford a slow
change process. One approach for rapid change and dramatic improvement that has
emerged is Business Process Reengineering (BPR)."

Three kinds of companies are listed which undertake reengineering:
1.Companies which are already in deep trouble:If the company cost's are higher than
competitors, if the customer service is really bad and the customers are already against it,
if the product failure is much higher as the competition's.
2.Companies which are not in trouble yet.
If the finacial situation is still good but problems might appear in the future such as new
competitors, changing customer requirements and an altered econommic environment.
3.Companies which are in a peal condition.
The company is in a healthy condition and not even in the future problems might appear.
But the management of such companies are ambitious and Organization & Markets
aggressive. This companies want to improve their own level in order to stay in lead over
their competitors.
The following roles are mostly involved by implementing reengineering at a company:
Leader: a senior executive who authorizes and motivates the overall
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reengineering effort
Process owner: a manager with responsibility for a specific process and the
reengineering effort focused on it
Reengineering team: a group of individuals dedicated to the reengineering of
a particular process, who diagnose the existing process and oversee its
redesign and implementation
Steering committee: a policy-making body of a senior manager who develop
the organization's overall reengineering strategy and monitor its progress
Reengineering czar: an individual responsible for developing reengineering
techniques and tools within the company and for achieving synergy across the
company's separate reengineering projects
The relationship between the roles is like this:
"The leader appoints the process owner, who convenes a reengineering team to
reengineer the process, with the assistance from the czar and under the auspices of
the steering committee."
Rethinking the Business Process:
In contrast to BPR the traditional industrial model rests on the basics premise that
workers have only few skills and little time to improve their own practical skills.
Therefore the jobs which are done by this workers have to be very simple. Some theories
also say that the work can only be done efficient as long as the task can be easily
understood by the workers. For that reason the process itself has to be very complex thus
all the simple tasks can combined together. BPR is just doing the opposite. In this method
the process has to be kept simple thus the contemporary demands of quality, service,
flexibility, and low cost processes can be reached.

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Combination of Jobs
"The most basic common feature of reengineered processes is the absence of an assembly
line; many formerly distinct jobs or tasks are integrated and compressed into one." [8]
[Hammer, Champy, 2001]This combination of jobs is applied in many several companies.
For example, an electronic company where a worker is doing the whole order fulfillment
process starting from the selling to the installation of the companies equipment.
In former times this process has been done by several workers. This has caused
a lot of problems because many handoffs, errors and misunderstandings were inevitable.
"In reengineering this process, the company compressed responsibility for the various
steps and assigned it to one person. This person now performs the whole process and also
serves as the single point of contact for the customer." [Hammer, Champy, 2001]
Hammer and Champy call such an employee a "Case Worker".
Of course all steps of a process cannot be always combined into one job and
thereby into one person. Sometimes, various steps of a process has to be done at different
locations. For that reason the expression "Case Team" has been introduced which means
that "a group of people who have among them all the skills that are needed to handle an
installation order.
The benefit by using "Case Workers" and / or "Case Teams" can be
enormous. The handoffs which cause errors, delays and rework can be eliminated by such
a process. "Typically, a case worker-based process operates ten times faster than the
assembly line version that it replaces." [Hammer, Champy, 2001] "Integrated Processes
have also reduced process administration overheads. Because employees involved in the
process assume responsibility for making sure that customers' requirements are met on
time and with no defects..." [Hammer, Champy, 2001] Additional benefits of an
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integrated process are improved control and the encouragement of finding innovations
and creative ways for saving time and costs.
Responsibility for the Workers:
"Companies that undertake reengineering not only compress processes horizontally, by
having case workers or case teams perform multiple, sequential tasks, but vertically as
well. Vertical compression means that at the points in a process where workers used to
have to go up the managerial hierachy for an answer, they now make their own decisions.
Instead of being separated from real work, decision making becomes part of the work.
Workers themselves now do that work portion of a job that was formerly performed by
managers." [Hammer, Champy, 2001] A very widespread assumption is that the workers
dont have the time, the skills and the necessary knowledge to monitor and control their
work. But this assumption and its consequences need to be discarded.
"The benefits of compressing work vertically as well as horizontally include fewer delays,
lower overhead costs, better customer response and greater empowerment for the
worker." [Hammer, Champy, 2001]
Reengineering the Human Resource
Hammer and Champy recognize the importance of the human resource when they state
"companies are not asset portfolios, but people working together to invent, sell and
provide service." However, they fail to demonstrate how to reengineer the human
resource in conjunction with reengineering processes. Of the four cases presented in
Reengineering the Corporation, only the case of Capital Holding addresses this area.
Capital Holding performed a "cultural audit" which revealed that the unwritten code of
conduct encouraged information hoarding and barely acknowledged the customer. In
order to combat these tendencies, senior management provided a constant flow of
information throughout the company regarding reengineering expectations and successes,
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and revised the performance appraisal system to emphasize the new values of team work
and cooperation.
Although Hammer and Champy provide a long list of why reengineering fails, nowhere
do they include the prerequisite that no reengineering effort will succeed without first
reeducating and retraining the people who will ultimately work with the new process.
According to Meg Wheatley, "If you're going to move information and responsibility
down to the local level, then the key question is how can you be sure that people will
behave appropriately? You need to make sure that everyone is playing by the same rule
book."
CSC Index identifies principle obstacles to BPR include the fear among employees that
their jobs are endangered and that years of experience will account for nothing. To
overcome these apprehensions, managers must constantly communicate their plans and
expectations.
Although companies which are seeking to reengineer may work on revamping the
performance appraisal system to support new values, this can be problematic. When
bonuses are linked to profits or even the performance of a team, this may lead to a
situation where the individual is judged on factors beyond his or her control.
Purpose:
The purpose of Business Process Re-engineering (BPR) is to help prepare the users for
the new or modified automated system that is being developed. The focus is on
understanding current processes and assisting users to modify or use new processes that
incorporate the use of the automated system functionality. Training and measuring
process effectiveness are important parts of the BPR/BPI effort. The goals of BPR are
To simplify the existing processes
To streamline the existing processes
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To ensure that the correct processes are being automated by the new system (i.e., some
processes don't really need to be automated)
To ensure that the automation is addressing the process needs (i.e., don't automate just
for the sake of automating)
This does not necessarily meant the elimination of all manual processes. Some new
processes may be a combination of manual and automated activities. In some cases, an
organizational change or re-design may be part of the effort or it may be a simultaneous
effort.




Research and methodology

Model based on PRLC approach

Although the labels and steps differ slightly, the early methodologies that were rooted in
IT-centric BPR solutions share many of the same basic principles and elements. The
following outline is one such model, based on the PRLC (Process Reengineering Life
Cycle) approach developed by Guha

Simplified schematic outline of using a business
process approach, exemplified for pharmaceutical R&D
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1. Structural organization with functional units.
2. Introduction of New Product Development as cross-functional process.
3. Re-structuring and streamlining activities, removal of non-value adding tasks
Benefiting from lessons learned from the early adopters, some BPR practitioners
advocated a change in emphasis to a customer-centric, as opposed to an IT-centric,
methodology. One such methodology, that also incorporated a Risk and Impact
Assessment to account for the impact that BPR can have on jobs and operations, was
described by Lon Roberts (1994).Roberts also stressed the use of change management
tools to proactively address resistance to changea factor linked to the demise of many
reengineering initiatives that looked good on the drawing board.
Some items to use on a process analysis checklist are: Reduce handoffs, Centralize data,
Reduce delays, Free resources faster, Combine similar activities. Also within the
management consulting industry, a significant number of methodological approaches
have been developed.
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, which is depicted in
.






Business Processes
Jobs and
Structures
Values and Beliefs
Management and
Measurement Systems
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According to them IT plays a crucial role in BPR, especially when it is used to challenge
the assumptions inherent in the work processes that have existed since long before the
advent of modern computer and communication technology. Inductive thinking is needed
in order to recognize the power inherent in modern IT and to visualize its application.
This means that instead of first defining a problem and then seeking and evaluating
different solutions to it, it is more efficient to first recognize a powerful solution and then
seek the problems it might solve. Since, reengineering is about innovation and not
automation, one of its most difficult parts is recognizing the new capabilities of
technologies.
Hammer and Champy consider poor management and unclear objectives as the main
problems to BPR success, but initially they failed to give adequate consideration to the
human factor. Only recently they acknowledge peoples resistance as a major obstacle to
a successful BPR undertaking.
Hammer and Champy suggested a methodology for BPR, which was refined by
Champers Consultant Company.
The six phases of the methodology are next presented:

1. Introduction into Business Reengineering
The first step in reengineering is to prepare and communicate the case for action and
the vision statement. The case for action is a description of the organizations
business problem and current situation; it presents justification for the need for change.
The vision statement describes how the organization is going to operate and outlines
the kind of results it must achieve. This qualitative and quantitative statement can be used
during a BPR effort, as a reminder of reengineering objectives, as a metric for measuring
the progress of the project, and as a prod to keep reengineering action going.
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The articulation and the communication of the case for action and the vision statement is
the leaders (CEO) responsibility, who should inform firstly the senior management team
and secondly the rest of the organization.
2. 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. Process maps give a picture of the
work flows through the company. They show high-level processes, which can be
decomposed into sub-processes on separate sub-process maps. Process maps are also used
as a means of communication to help people discuss reengineering. The output of this
phase is a number of process maps reflecting how these high-level processes interact
within the company and in relation to the outside world.
3. Selection of Business Processes
It is unrealistic to reengineer all the high level processes of an organization at the same
time. Therefore, it has to be decided which are the processes to be redesigned. This is a
very important part of a BPR effort. 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 organizations objectives and so
on.
According to an organizations strategic objectives more criteria could be defined for
selecting processes for redesign, such as whether a process contributes to the
organizations strategic direction, has an impact on customers satisfaction e.t.c.
4. 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. Detailed
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analysis and documentation of current processes is not within the scope of this phase. The
objective is the provision of a high level view of the process under consideration, in order
the team members to have the intuition and insight required to create a totally new and
superior design.
5. Redesign of the Selected Business Processes
This is 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. Redesigning a process is not algorithmic or routine and therefore Hammer and
Champy suggest three kinds of techniques that can help reengineering teams to generate
new ideas As redesign proceeds teams can consider these techniques again to stimulate
additional thought.
6. Implementation of Redesigned Business Processes
The last phase covers the implementation phase of the BPR project. Hammer/Champy do
not talk about implementation as much about project planning. They believe that the
success of the implementation depends on whether the five preliminary phases have been
properly performed.
How can BPR be applied to an organization?

When British Telecom had announced their Business Plan, all competitors were eager to find out
who would be the new CEO of the organization. To the surprise of all the new CEO it was the
customer. The company had decided to transform all the operations of the organization the way
customers wanted them to operate. The most important action in applying BPR is the company's
strategic goal to provide customer oriented services. BPR is a technique used to implement this
type of organizational structure. Having the management commitment for change, another very
important factor for implementing BPR, is the enabling role of Information Technology. The
way that businesses are organized around departments is very logical since, for instance, there
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were physical barriers in the communication of the accounting department with production
department. (The warehouse could be in another location in the another part of the city). So it
wasn't possible for a cross-functional team to communicate efficiently. In the 90s when
telecommunication technologies were becoming abundant and low costing BPR was becoming a
world-wide applicable managing technique for business upgrade, enabled by the technology.
Employees can easily operate as a team using intranets/extarnets, workflow and groupware
applications, eliminating distances. We can work together even though we are located in
different places.
Empowering people: Empowerment means giving people the ability to do their work the right
information, the right tools, the right training, the right environment, and the authority they need.
Information systems help empower people by providing information, tools and training.
Providing Information. Providing information to help people perform their work is a primary
purpose of most information systems although they provide information in many different ways.
Some systems provide information that is essential in informing a business process, such as the
prices used to create a customers bill at a restaurant. Other systems provide information that is
potentially useful but can be used in a discretionary manner, such as medical history information
that different doctors might use in different ways.
Providing Tools: In addition to providing the right information, empowering people
means giving them the right tools. Consider the way planning analysts produce
consolidated corporate plans based on plans of individual divisions and departmants. If
the plans are submitted on paper, it is a major task to add up the numbers to determine the
projected corporate bottom line. When the plan is changed during a negotiation process,
the planning analyst has to recalculate the projected results. With the right tools, the
numerical parts of the plans arrive in a consistent, electronic format prmitting
consolidation by a computer. This leaves the analyst free to do the more productive work
of analysing the quality of the plan.
Providing Training: Since information systems are designed to provide the information
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needed to support desired work practices, they are often used for training and learning. As
shown by an expert system and a decision simulator, they sometimes provide new and
unique training methods.
IBM developed an expert system for fixing computer disk drives. The expert system was
an organized collection of the best knowledge about fixing these disk drives, and it
fostered rapid and efficient training. Before the system was developed, technicians
typically took between 1 and 16 months to become certified, but with the expert system,
training time dropped 3 to 5 months.
Eliminating Unproductive Uses of Time: Information systems can reduce the amount of
time people waste doing unproductive work. A study of how professionals and managers
at 15 leading U.S. corporations spent their time concluded that many professionals spent
less than half of their work time on activities directly related to their functions. Although
the primary function of salespeople is selling, the time breakdown for salespeople
averaged 36 percent spent on prospecting and selling, 39 percent spent on prospectin an
selling, 3 percent on servicing accouts, 19 percent on doing aministrtative chores, and 6
percent on training. Better use of information systems could save much of their
unproductive time performing chores such as collecting product or pricing information,
determining order status for a customer, resolving invoice discrepancies, and reporting of
time and expenses.
Eliminating Uneccesary Paper: One common way to improve data processing is to eliminate
unnecessary paper. Although paper is familiar and convenient for many purposes, it has major
disadvantages. It is bulky, difficult to move from place to place, and extremely difficult to use for
analysing large amounts of data. Storing data in computerized form takes much less physical
space and destroys fewer forests, but that is only the beginning. It makes data easier to analyze,
easier to copy or transmit, and easier to display in a flexible format. Compare paper telephone
bills with computerized bills for a large company. The paper bills identify calls but are virtually
impossible to analyze for patterns of inefficient or excessive usage.
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Eliminating Unnecessary Variations in the Procedures and Systems: In many
companies, separate departments use different systems and procedures to perform essentially
similar repetitive processes, such as paying employees, purchasing supplies, and keeping track of
inventories. Although these procedures may seem adequate from a totally local viewpoint, doing
the same work in different ways is often inefficient in a global sense. Whenever the systems must
change with new technology, new regulations, or new business issues, each separate system must
be analysed separately, often by someone starting from scratch.
Minimizing the Burden of Record Keeping: Data Handling, and General Office Work.
Since processing data is included in most jobs, improving the way people process data is an
obvious place to look for information system applications. Focus on basic data processing tasks:
Reducing the burden of record keeping means being more efficient and effective with the six
components of data processing. Those components are capturing, transmitting, storing, retrieving,
manipulating, and displaying data.
The BPR characteristics - outcomes include the following:
Several jobs are combined into one.
Decision-making becomes part of the job of employees (employee empowerment).
Steps in the processes are performed in natural order, and several jobs get done
simultaneously.
Processes have multiple versions. This enables the economies of scale that result
from mass production, yet allows customization of products and services.
Work is performed where it makes the most sense.
Controls and checks and other non-value-added work are minimized.
Reconciliation is minimized by cutting back the number of external contact points
and by creating business alliances.
A single point of contact is provided to customers.
A hybrid centralized/decentralized operation is used.

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Benefits of BPR:
1. Can save a company which is running at a loss
2. By changing the present process through BPR a losing business can make profits
3. Can find new business dimensions
4. BPR will open up new dimension into the existing business
5. Continues improvements will enhance the business performance
6. Continues improvements will enhance the business performance
7. Over all change could enhance the performance of the business
8. Improves quality
9. Improves the quality of service delivery and customer satisfaction
10 .Speedier
Drawbacks of BPR
1. Could be a costly process
2. Need to invest huge sum of money to introduce such a system
3. Time consuming process
4. It takes lot of time to design such a system and some time take years to plan properly
5. Extensive planning required
6. Need experts to implement and monitor
7. Lack of experts
8. It is bit difficult to find real experts on BPR, since; you are going to invest a huge sum
of money you need to have such experts to run the show.
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BPR success & failure factors
Over the past years, BPR projects and efforts have revealed some interesting findings for
both academics and practitioners. Some BPR researchers have focused on key factors in
the BPR process that enabled a successful outcome. Many lessons were learned and many
elements were identified as essential to the success of a BPR activity. Some important
BPR success factors, which will be discussed in further details later, include, but are not
limited to the following:
1. Organization wide commitment.
2. BPR team composition.
3. Business needs analysis.
4. Adequate IT infrastructure.
5. Effective change management.
6. Ongoing continuous improvement
1. Organization wide commitment:
There is no doubt that major changes to business processes have a direct impact on
processes, technology, job roles, and workplace culture. Significant changes to even one
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of those areas require resources, money, and leadership. Changing them simultaneously is
an extraordinary task. Like any large and complex undertaking, implementing
reengineering requires the talents and energies of a broad spectrum of experts. Since BPR
can involve multiple areas within the organization, it is extremely important to get
support from all affected departments. Through the involvement of selected department
members, the organization can gain valuable input before a process is implemented; a
step which promotes both the cooperation and the vital acceptance of the reengineered
process by all segments of the organization.
Leadership has to be effective, strong, visible, and creative in thinking and
understanding in order to provide a clear vision to the future.Convincing every affected
group within the organization of the need for BPR is a key step in successfully
implementing a process. By informing all affected groups at every stage, and emphasizing
the positive end results of the reengineering process, it is possible to minimize resistance
to change and increase the odds for success. The ultimate success of BPR depends on the
strong, consistent, and continuous involvement of all departmental levels within the
organization. It also depends on the people who do it and how well they can be motivated
to be creative and to apply their detailed knowledge to the redesign of business processe.
BPR team composition:
Once organization wide commitment has been secured from all departments involved in
the reengineering effort and at different levels, the critical step of selecting a BPR team
must be taken. This team will form the nucleus of the BPR effort, make key decisions and
recommendations, and help communicate the details and benefits of the BPR program to
the entire organization. The determinants of an effective BPR team may be summarized
as follows:
competency of the members of the team, their motivation
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.
techniques
leadership.

accountability, clarity of work approach, and
specificity of goals
Business needs analysis:
Another important factor in the success of any BPR effort is performing a
thorough business needs analysis. Too often, BPR teams jump directly into the
technology without first assessing the current processes of the organization and
determining what exactly needs reengineering. In this analysis phase, a series of
sessions should be held with process owners and stakeholders, regarding the
need and strategy for BPR. These sessions build a consensus as to the vision of
the ideal business process. They help identify essential goals for BPR within
each department and then collectively define objectives for how the project will
impact each work group or department on individual basis and the business
organization as a whole.
This plan includes the following:
1) identifying specific problem areas,
2) solidifying particular goals, and
3) defining business objectives.

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Adequate IT infrastructure:
Researchers consider adequate IT infrastructure reassessment and composition
as a vital factor in successful BPR implementation. Hammer (1990) prescribes
the use of IT to challenge the assumptions inherent in the work process that
have existed since long before the advent of modern computer and
communications technology. Factors related to IT infrastructure have been
increasingly considered by many researchers and practitioners as a vital
component of successful BPR efforts.
Effective alignment of IT infrastructure and BPR strategy,
building an effective IT infrastructure,
adequate IT infrastructure investment decision,
adequate measurement of IT infrastructure effectiveness,
proper information systems (IS) integration,
effective reengineering of legacy IS,
increasing IT function competency, and
effective use of software tools are the most important factors that contribute to the
success of BPR projects.
Effective change management:
BPR involves changes in people behavior and culture, processes, and technology. As a
result, there are many factors that prevent the effective implementation of BPR and hence
restrict innovation and continuous improvement. Change management, which involves all
human and social related changes and cultural adjustment techniques needed by
management to facilitate the insertion of newly designed processes and structures into
working practice and to deal effectively with resistance,is considered by many researchers
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to be a crucial component of any BPR effort. One of the most overlooked obstacles to
successful BPR project implementation is resistance from those whom implementers
believe will benefit the most. Most projects underestimate the cultural impact of major
process and structural change and as a result, do not achieve the full potential of their
change effort. Many people fail to understand that change is not an event, but rather a
management technique.
Ongoing Continuous Improvement:
strategy that enables an organization to make the move from traditional functional
orientation to one that aligns with strategic business processes.
incremental and innovative improvements in its processes, products, and services.The
incremental change is governed by the knowledge gained from each previous change
cycle.
performance measurements in order to support continuous improvements. It will need to
efficiently capture appropriate data and allow access to appropriate individuals.
deployed to the end users. If it does not perform satisfactorily, more time should be taken
to modify the process until it does.
ity practitioners is the use of feedback loops at every
step of the process and an environment that encourages constant evaluation of results and
individual efforts to improve.
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International Case : Reengineering the Business Process at Procter & Gamble Procter &
Gamble (P&G), a multinational corporation known for products such as diapers,
shampoo, soap, and toothpaste, was committed to improving value to the customer. Its
products were sold through various channels, such as grocery retailers, wholesalers, mass
merchandisers, and club stores. The flow of goods in the retail grocery channel was from
the factory's warehouse to the distributors' warehouses before going to the grocery stores
where customers selected the merchandise from the shelves. The improvement-driven
company was not satisfied with its performance and developed a variety of programs
to improve its service and the efficiency of its operation. One such program was
electronic data interchange, which provided daily information from the retail stores to
P&G. The installation of the system resulted in better service, reduced inventory levels,
and labor-cost savings. Another approach, the continuous replenishment program,
provided additional benefits for P&G as well as for its retailer customers. Eventually, the
entire ordering system was redesigned, with the result of dramatic performance
improvements. The reengineering efforts also required restructuring of the organization.
P&G had been known for its brand management for more than 50 years. But in the late
1980s and early 1990s, the brand management approach pioneered by the company in the
1930s required rethinking and restructuring. In a drive to improve efficiency and
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coordination, several brands were combined with authority and responsibility given to
category managers Such a manager would determine overall pricing and product policies.
Moreover, the category managers had the authority to withdraw weak brands, thus
avoiding conflict between similar brands. They were also held responsible for the profit
of the product category they were managing. The switch to category management
required not only new skills but also a new attitude. authority and responsibility given to
category managers
Questions:
1) The reengineering efforts of P&G focused on the business process system. Do you
think other processes, such as the human system, or other managerial policies need to be
considered in a process redesign?
2) What do you think was the reaction of the brand managers, who may have worked
under the old system for many years, when the category management structure was
installed?
3) As a consultant, would you have recommended a top-down or a bottom-up approach,
or both, to process redesign and organizational change?
4) What are the advantages and disadvantages of each approach.
Answers:
1) The reengineering efforts of P&G focused on the business process system. Do you
think other processes, such as the human system, or other managerial policies need to be
considered in a process redesign?
CATEGORY MANAGEMENT SYSTEM NEEDS TO BE SET UP
-policies
-procedured
-practices
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2) What do you think was the reaction of the brand managers, who may have worked
under the old system for many years, when the category management structure was
installed?
A. -Negative reaction from the brand manager are expected.
Brand management is a staff function,while the category management is a line
management function.
SUCH CHANGES NEEDS.
-change management drive
-orientation programme.
3) As a consultant, would you have recommended a top-down or a bottom-up approach,
or both, to process redesign and organizational change?
A. Top down approach is the right approach,As it reflects
-the management mission
-management objectives
The management strategies.
4) What are the advantages and disadvantages of each approach.
A. Top down advantages:
-it clearly shows the management intentions and drive.
Disadvantages:
-low participation from the bottom line staff
Bottom up advantages:
-it clearly shows emotional participation of the staff.
Disadvantages:
-lack the leadership

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Summary:
Reengineering is a fundamental rethinking and redesign of business processes to
achieve dramatic improvements
BPR has emerged from key management traditions such as scientific management
and systems thinking
Rules and symbols play an integral part of all BPR initiatives
Dont assume anything - remember BPR is fundamental rethinking of business
processes















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Conclusion:
The reengineering profoundly changes all aspects of business and people. Part of the
organisation is easy to change by reinventing a way to work. However, the other part,
people, is
to improve its service and the efficiency of its operation. One such program was
electronic data interchange, which provided daily information from the retail stores to
P&G. The installation of the system resulted in better service, reduced inventory levels,
and labor-cost savings. Another approach, the continuous replenishment program,
provided additional benefits for P&G as well as for its retailer customers. Eventually, the
entire ordering system was redesigned, with the result of dramatic performance
improvements. The reengineering efforts also required restructuring of the organization.
P&G had been known for its brand management for more than 50 years. But in the late
1980s and early 1990s, the brand management approach pioneered by the company in the
1930s required rethinking and restructuring. In a drive to improve efficiency
and coordination, several brands were combined with authority and responsibility given
to category managers. Such a manager would determine overall pricing and product
policies. Moreover, the category managers had the authority to withdraw weak brands,
thus avoiding conflict between similar brands. They were also held responsible for the
profit of the product category they were managing. The switch to category management
required not only new skills but also a new attitude.





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Biblography:
www.google.com
http://en.allexperts.com/q/Management-Consulting-2802/2013/3/international-case-
reengineering-business.htm
www2.warwick.ac.uk/fac/sci/dcs/research/em/publications/.../chap-3.pdf




















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