Business Process Reengineering

and Information Technology

4-1

Basic Concepts

Business process
Value added
Business Process Reengineering (BPR)
Demand chain
Supply chain

4-2

Basic Concepts

Supply chain management

Extended supply chain
Networked organization
Organizational transformation

4-3

The Need for BPR

Customers
Competition
Change
Techniques lag behind technology
Problem of the stovepipe
Fragmented piecemeal systems
Integration
4-4

The Principles of BPR

and The Role of IT
Characteristics of BPR
Methodologies and frameworks for BPR
Enabling role of IT

4-5

Characteristics of Business
Process Reengineering

Several jobs are combined into one

Employees make decisions
Steps in business process: natural order
Process may have multiple versions
Work is performed where it makes the most
sense
4-6

Characteristics of Business
Process Reengineering
Controls, checks, other nonvalue-added work
is minimized
Reconciliation is minimized - minimize
external contact points
Hybrid centralized / decentralized operation is
used
A single point of contact is provided for the
customer
4-7

Business Process Reengineering

and
Restructuring the Organization
Redesign of processes
From mass production to mass
customization
Cycle time reduction
Restructuring organizations
4-8

The Networked Organization

Structure of networked organizations
Empowerment
IT / empowerment relationship

Teams

4-9

Virtual Corporations
A virtual corporation is an organization
composed of several business partners
sharing costs and resources for the purpose
of producing a product or service.

4-10

Virtual Corporations
Major Attributes

Excellence
Utilization
Opportunism
Lack of borders
Trust
Adaptability to change
Technology
4-11

Total Quality Management

and Reengineering
Rate of change
TQM: continuous improvement
Reengineering: dramatic improvement

4-12

TQM versus Reengineering

4-13

Implementing Reengineering
Redesign
Retool
Reorchestrate

4-14

Tools for BPR

Simulation
Flow diagrams
Work analysis
Application development
Workflow software

4-15

Reorchestrate:
Organizational Change

Leadership
Corporate values
Cultural change
Incentives
Accountability
Zeal
4-16

Reorchestrate:
Organizational Change

Communication
Ambiguity
Obstacles to change
Celebrate success

4-17

Implementation Issues
Continuous evaluation
Eliminating jobs

4-18

Continuous Evaluation

Is reengineering truly transformational?

Will reengineering improve customer relations?
Has reengineering cut across the organization?
Is information technology playing a integral role
in the reengineering solution?
Does it hurt?

4-19

When to Use BPR?

Failure rate as high as 75-85%

Improperly aligned BPR and IT
Expensive
Organizational resistance

4-20

Managerial Issues

Ethical issues
BPR implementation
Incremental improvement programs
BPR tools
Role of IT
Failures
TQM and BPR
4-21

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4-22