BUSINESS PROCESS

REENGINEERING

SERKAN BAYRAKTAROLU
11.12.2013
 What is a Process
O 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.
What is a Business Process?
O A group of logically related tasks that use
the firm's resources to provide customer-
oriented results in support of the
organization's objectives
 What is Business Process
Reengineering or Redesign?
O .means tossing aside existing process and
starting over.

O the fundamental rethinking and radical

redesign of business processes to achieve
dramatic improvements in critical
contemporary measures of performance
such as costs, quality and speed.
(Hammer and Champy, 1993)
O BPR reached its heyday in the early 1990's
when Michael Hammer and James Champy
published their best-selling book,
"Reengineering the Corporation".
O Hammer and Champy felt that the design of
workflow in most large corporations was
based on assumptions about technology,
people, and organizational goals that were
no longer valid.
 BPR
O Business process re-engineering is also
known as business process redesign,
business transformation, or business
process change management.
O we should concentrate on processes rather
than functions (or structures) as the focus of
the (re-)design and management of
business activity.
BPR Evolution
 Dimensions of Business
Reengineering
O Reengineering takes time, larger project takes
even more time.
O Reengineering requires process, organization
and technology changes. Reengineering also
requires infrastructure changes and cultural
transformation).
O - Once the radical changes takes place, they
must continuously improve the process,
practices in the business operation to prevent
future deterioration and ensure preventive
maintenance.
Selecting the right timing for
BPR
O When in power position:
To strengthen its competitive advantage
To widen the gap from its competitors
O When facing problems
To map a strategy and future action plan
To consolidate its position
To avoid deterioration of problems
O In the brick of bankruptcy:
To survive
To revolutionize its strategy and mode of operation
BPR cycle
 Principles of BPR
O They suggested seven principles of
reengineering to streamline the work
process and thereby achieve significant
levels of improvement in quality, time
management, and cost:
 1. Organize around outcomes, not tasks.
2. Identify all the processes in an organization
and prioritize them in order of redesign urgency.
3. Integrate information processing work into the
real work that produces the information.
4. Treat geographically dispersed resources as
though they were centralized.
5. Link parallel activities in the workflow instead
of just integrating their results.
6. Put the decision point where the work is
performed, and build control into the process.
7. Capture information once and at the source.
 The Key Concepts
O BPR seeks to break from current processes
and to devise new ways of organising tasks,
organising people and making use of IT
systems so that the resulting processes will
better support the goals of the organisation.
O This activity is done by identifying the critical
business processes, analysing these
processes and redesigning them for efficient
improvement and benefit.
Vidgen et al. (1994) define the
central tenets of BPR as:
radical change and assumption challenge;
process and goal orientation;
organisational re-structuring;
the exploitation of enabling technologies,
particularly information technology.
Begin Organizational Change
O Assess the current state of organization
O Explain the need for change
O Illustrate the desired state
O Create a communication campaign for
change
O eliminating repetitive, paper-intensive,
bureaucratic tasks
O reducing costs significantly
O improving product/service quality.
 BPR is Not?
O BPR may sometimes be mistaken for the
following five tools:

1. Automation is an automatic, as opposed to

human, operation or control of a process,
equipment or a system; or the techniques and
equipment used to achieve this. Automation is
most often applied to computer (or at least
electronic) control of a manufacturing process.
.
 BPR is Not?
O 2. Downsizing is the reduction of
expenditures in order to become financial
stable. Those expenditures could include
but are not limited to: the total number of
employees at a company, retirements, or
spin-off companies
 BPR is Not?
O 3. Outsourcing involves paying another
company to provide the services a company
might otherwise have employed its own staff
to perform. Outsourcing is readily seen in
the software development sector.
 BPR is Not?
O 4. Continuous improvement emphasizes
small and measurable refinements to an
organization's current processes and
systems. Continuous improvements origins
were derived from total quality management
(TQM) and Six Sigma.
of BPR
Common Problems with BPR
O Process Simplification is Common - True
BPR is Not
O Desire to Change Not Strong Enough
O Start Point the Existing Process Not a Blank
Slate
O Commitment to Existing Processes Too
Strong
O REMEMBER - If it isnt broke
Common Problems with BPR
O Process under review too big or too small
O Reliance on existing process too strong
O The Costs of the Change Seem Too Large
O BPR Isolated Activity not Aligned to the
Business Objectives
O Allocation of Resources
O Poor Timing and Planning
O Keeping the Team and Organization on
Target
How to Avoid BPR Failure
O To avoid failure of the BPR process it is
recommended that:

BPR must be accompanied by strategic

planning, which addresses leveraging
Information technology as a competitive tool.

Place the customer at the centre of the

reengineering effort, concentrate on
reengineering fragmented processes that lead to
delays or other negative impacts on customer
service.
How to Avoid BPR Failure
The Information technology group should be an
integral part of the reengineering team from the
start.
BPR must be sponsored by top executives, who
are not about to leave or retire.
BPR projects must have a timetable, ideally
between three to six months, so that the
organization is not in a state of "limbo".
BPR must not ignore corporate culture and must
emphasize constant communication and
feedback.
 Summary
O Reengineering is a fundamental rethinking
and redesign of business processes to
achieve dramatic improvements

O BPR has emerged from key management

traditions such as scientific management
and systems thinking

O Rules and symbols play an integral part of

all BPR initiatives
 Summary
O Dont assume anything - remember BPR is
fundamental rethinking of business
processes