@ Oct 2009 Prof.

Mithilesh Agrawal

Business Process & Process Re Engineering

The greatest danger for
most of us is not
That our aim is too high and
we miss it, but that it is too
low and we reach it.

@ Oct 2009 Prof.

Mithilesh Agrawal

Our Agenda
One of the
Biggest
mistakes you
can make in
life is to
accept the
known and
resist the
unknown.
You should,
in
fact, do
exactly the
opposite.
Challenge
the known
and embrace
the

Introduction to Business Process

What is BPR?
Overview of BPR
Why BPR?
Need of BPR
Changes resulting by BPR
Process / System Architecture
Changes resulting from BPR
Conclusion

@ Oct 2009 Prof.

Mithilesh Agrawal

Business Process
BP
generally
termed as
the
Sequence of
Activities
held in the
organization

A measured & structured group of activities

It is a sequence of rationally linked
activities, performed to meet definite
organizational objectives.
Processes have customers & processes are
not limited by organizational boundaries
(across or between organizational subunits).

@ Oct 2009 Prof.

Mithilesh Agrawal

Business Process
BP example
can be
considered
as the
transactions
held between
two
companies,
or between
companies &
customer

For Ex:
Developing a new product
Ordering goods from a supplier
Creating a marketing plan
Insurance claim processing

@ Oct 2009 Prof.

Mithilesh Agrawal

Business Process
BP can be
defined by
the Objects,
Entities &
Activities in
an
Organization

Three aspects by which processes may be

defined.
Objects: Processes manipulate objects.

Entities:

Processes

organizational

entities.

occur
(i.e.

between
Inter

organizational, inter functional, inter personal

Activities: Managerial or Operational

@ Oct 2009 Prof.

Mithilesh Agrawal

What is BPR?
BPR is the
rethinking &
redesign of
BP to
improve
performance

Hammer and Champy (1993) define

BPR as The fundamental rethinking
and

radical

processes

to

redesign
achieve

improvements
contemporary

of

business
dramatic

in
measures

critical
of

performance, such as Cost, Quality,

Service, and Speed

@ Oct 2009 Prof.

Mithilesh Agrawal

What is BPR?
BPR is the
rethinking &
redesign of
BP to
improve
performance

Business Process Reengineering is

The analysis and redesign of
workflow and processes
within and between the Organizations to
improve the performance

@ Oct 2009 Prof.

Mithilesh Agrawal

Overview of BPR
BPR is the
rethinking &
redesign of
BP to
improve
performance

Reengineering can be done at

Individual Process Level
Organization Level

Performance

improvements

achieved
Operational Processes
Maximizing Value added Content
Minimizing Production Costs.

are

@ Oct 2009 Prof.

Mithilesh Agrawal

Overview of BPR
BPR is the
rethinking &
redesign of
BP to
improve
performance

Reengineering involves:
Rewriting organizations job descriptions
Making multi functional skills &
teamwork priority.
Reviewing reward system.
Designing & testing new IS
Installing new measures of performance.

@ Oct 2009 Prof.

Mithilesh Agrawal

Why BPR?
BPR is the
rethinking &
redesign of
BP to
improve
performance

Problem Statement
The Problem is that
we are governing in the 21st century
with Processes and Organizations
designed in the 19th Century
to work well in the 20th Century!
We need entirely different
PROCESSES & ORGANIZATIONS
for Governance in the 21st Century

@ Oct 2009 Prof.

Mithilesh Agrawal

Problem restated
BPR is the
rethinking &
redesign of
BP to
improve
performance

All processes are simple & efficient

when originally designed
User-friendly
Deploying contemporary
techniques

tools

Processes become complex

inefficient with passage of time

&

&

with addition of sub-processes to handle

exceptions
with changes in environment and
with increase in customer expectations
with increase in volumes

@ Oct 2009 Prof.

Mithilesh Agrawal

Why BPR?
BPR is the
rethinking &
redesign of
BP to
improve
performance

Customers
Demanding
Sophistication
Changing needs

Competition
Local & Global

Change
Technology
Customer Preferences

@ Oct 2009 Prof.

Mithilesh Agrawal

Need of BPR
BPR is the
rethinking &
redesign of
BP to
improve
performance

Extensive information exchanged, data

redundancy and re keying.
Huge inventory, buffers & other assets.
Too many controls and checks
Rework, Iteration and Duplication of
work.
Complexity,
cases.

Exceptions

and

Special

@ Oct 2009 Prof.

Mithilesh Agrawal

Goals of BPR
BPR is the
rethinking &
redesign of
BP to
improve
performance

Customer Friendliness
Meeting customer requirement closely
Providing convenience

Effectiveness
Outcome based approach
Gaining loyalty of customers
Image & branding

Efficiency
Time, Cost & Quality

@ Oct 2009 Prof.

Mithilesh Agrawal

Process / System Architect

ure
BPR

@ Oct 2009 Prof.

Mithilesh Agrawal

Methodology
BPR is the
rethinking &
redesign of
BP to
improve
performance

Envision new processes

Secure management support
Identify reengineering opportunities
Identify enabling technologies
Align with corporate strategy

Initiating Change
Set up reengineering teams
Outline performance goals

Process Diagnosis
Describe existing processes

@ Oct 2009 Prof.

Mithilesh Agrawal

Methodology
BPR is the
rethinking &
redesign of
BP to
improve
performance

Process redesign
Develop alternative process scenario
Develop new process design
Design HR architecture
Select IT platform
Develop overall blueprint & gather feedback

Reconstruction
Develop / install IT Solutions
Establish process changes

@ Oct 2009 Prof.

Mithilesh Agrawal

Methodology
BPR is the
rethinking &
redesign of
BP to
improve
performance

Process monitoring
Performance measurement, including
time, quality, cost, IT performance.
Link to continuous improvement.
Loop back to diagnosis

@ Oct 2009 Prof.

Mithilesh Agrawal

Changes resulting from BPR

BPR is the
rethinking &
redesign of
BP to
improve
performance

Work unit change

From

functional

department

to

process team
Job change
From

simple

task

to

multi

dimensional work
People role change
From controlled to empowered
Job preparation change
From training to education

@ Oct 2009 Prof.

Mithilesh Agrawal

Changes resulting from BPR

BPR is the
rethinking &
redesign of
BP to
improve
performance

Measures

of

performance

&

compensation change
From activity to results
Criteria for career advancement change
From performance to ability
Values change
From protective to productive
Organizational structure change
From hierarchical to flat

@ Oct 2009 Prof.

Mithilesh Agrawal

Conclusion
BPR is the
rethinking &
redesign of
BP to
improve
performance

BPR is about radical redesign of business

processes
BPR brings Efficiency, Effectiveness &
Customer friendliness
BPR

needs

adoption

of

structured

methodology.
Top

management

commitments

change management are critical

to success.

and