Business Process Reengineering

and Information Technology

Dr. Kingshuk Srivastava

|March 2016| 2015 UPES

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

March
March2016
2016 2015 UPES
Basic Concepts
Supply chain management
Extended supply chain
Networked organization
Organizational transformation

March
March2016
2016 2015 UPES
The Need for BPR
Customers
Competition
Change
Techniques lag behind technology
Problem of the stovepipe
Fragmented piecemeal systems
Integration

March
March2016
2016 2015 UPES
The Principles of BPR
and The Role of IT

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

4-5

March
March2016
2016 2015 UPES
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

March
March2016
2016 2015 UPES
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

March
March2016
2016 2015 UPES
 A BPR Framework Technology
Organization
Enabling technologies
Job skills IS architectures
Structures Methods and tools
IS organizations
Reward
Values

Process
Core business processes
Value-added
Customer-focus
March
March2016
2016
Innovation 2015 UPES
Business Process Reengineering Life Cycle
Define corporate
visions and business Visioning
goals
Identify business Enterprise-wide engineering
processes to be Identifying
reengineered
Analyze and
measure an Analyzing
existing process Process-specific
Identify enabling IT & engineering
generate alternative Redesigning
process redesigns
Evaluate and
select a process Evaluating
redesign
Implement the
reengineered Implementing
process
Continuous
improvement of Improving
the process

Manage change
March
March2016
2016 and stakeholder interests 2015 UPES
Business Process Reengineering and
Restructuring the Organization

Redesign of processes
From mass production to mass customization
Cycle time reduction
Restructuring organizations

4-10

March
March2016
2016 2015 UPES
The Networked Organization

Structure of networked organizations

Empowerment

IT / empowerment relationship
Teams

4-11

March
March2016
2016 2015 UPES
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.

4-12

March
March2016
2016 2015 UPES
Virtual Corporations
Major Attributes
Excellence
Utilization
Opportunism
Lack of borders
Trust
Adaptability to change
Technology

4-13

March
March2016
2016 2015 UPES
Total Quality Management
and Reengineering

Rate of change
TQM: continuous improvement
Reengineering: dramatic improvement

4-14

March
March2016
2016 2015 UPES
TQM versus Reengineering

4-15

March 2016
Jul 2012 2015 UPES
Implementing Reengineering
Redesign
Retool
Reorchestrate

4-16

March
March2016
2016 2015 UPES
Tools for BPR
Simulation
Flow diagrams
Work analysis
Application development
Workflow software

4-17

March
March2016
2016 2015 UPES
Reorchestrate:
Organizational Change

Leadership
Corporate values
Cultural change
Incentives
Accountability
Zeal

4-18

March
March2016
2016 2015 UPES
Reorchestrate:
Organizational Change
Communication
Ambiguity
Obstacles to change
Celebrate success

4-19

March
March2016
2016 2015 UPES
Implementation Issues
Continuous evaluation
Eliminating jobs

4-20

March
March2016
2016 2015 UPES
 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?

4-21

March
March2016
2016 2015 UPES
When to Use BPR?
Failure rate as high as 75-85%
Improperly aligned BPR and IT
Expensive
Organizational resistance

4-22

March
March2016
2016 2015 UPES
Managerial Issues
Ethical issues
BPR implementation
Incremental improvement programs
BPR tools
Role of IT
Failures
TQM and BPR

4-23

March
March2016
2016 2015 UPES
THANK YOU

March 2016 2015 UPES