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BusinessProcessReengineeringinvolveschangesinstructuresandinprocesseswithinthebusiness
environment.Theentiretechnological,human,andorganizationaldimensionsmaybechangedinBPR.
InformationTechnologyplaysamajorroleinBusinessProcessReengineeringasitprovidesoffice
automation,itallowsthebusinesstobeconductedindifferentlocations,providesflexibilityin
manufacturing,permitsquickerdeliverytocustomersandsupportsrapidandpaperlesstransactions.In
generalitallowsanefficientandeffectivechangeinthemannerinwhichworkisperformed.
WhatistheBusinessProcessReengineering
Theglobalizationoftheeconomyandtheliberalizationofthetrademarketshaveformulatednew
conditionsinthemarketplacewhicharecharacterizedbyinstabilityandintensivecompetitioninthe
businessenvironment.Competitioniscontinuouslyincreasingwithrespecttoprice,qualityandselection,
serviceandpromptnessofdelivery.Removalofbarriers,internationalcooperation,technological
innovationscausecompetitiontointensify.Allthesechangesimposetheneedfororganizational
transformation,wheretheentireprocesses,organizationclimateandorganizationstructurearechanged.
HammerandChampyprovidethefollowingdefinitions:
Reengineeringisthefundamentalrethinkingandradicalredesignofbusinessprocessestoachieve
dramaticimprovementsincriticalcontemporarymeasuresofperformancesuchascost,quality,serviceand
speed.
Processisastructured,measuredsetofactivitiesdesignedtoproduceaspecifiedoutputforaparticular
customerormarket.Itimpliesastrongemphasisonhowworkisdonewithinanorganization."(Davenport
1993).
Eachprocessiscomposedofrelatedstepsoractivitiesthatusepeople,information,andotherresourcesto
createvalueforcustomersasitisillustratedinthefollowingexample.
Anexampleofabusinessprocess:Creditcardapprovalinabank.
Anapplicantsubmitsanapplication.Theapplicationisreviewedfirsttomakesurethattheformhasbeen
completedproperly.Ifnot,itisreturnedforcompletion.Thecompleteformgoesthroughaverificationof
information.Thisisdonebyorderingareportfromacreditcompanyandcallingreferences.Oncethe
informationisverified,anevaluationisdone.Then,adecision(yesorno)ismade.Ifthedecisionis
negative,anappropriaterejectionletteriscomposed.Ifthedecisionispositive,anaccountisopened,and
acardisissuedandmailedtothecustomer.Theprocess,whichmaytakeafewweeksduetoworkloadand
waitingtimefortheverifications,isusuallydonebyseveralindividuals.
PROCESSESARECHARACTERIZEDBY3ELEMENTS
Businessprocessesarecharacterizedbythreeelements:
theinputs,(datasuchcustomerinquiriesormaterials),the
processingofthedataormaterials(whichusuallygo 2.Processing CEO
throughseveralstagesandmaynecessarystopsthatturns
outtobetimeandmoneyconsuming),andtheoutcome SALES FINANCE PRODUCTION
(thedeliveryoftheexpectedresult).Theproblematicpart
oftheprocessisprocessing.Businessprocess
reengineeringmainlyintervenesintheprocessingpart,
whichisreengineeredinordertobecomelesstimeand CustomerInquiry DeliveryofResults
moneyconsuming.
1.Trigger 3.results
Figure1.Thecomponentsofabusinessprocess
Theterm"BusinessProcessReengineering"has,overthepastcoupleofyear,gained
Increasingcirculation.Asaresult,manyfindthemselvesfacedwiththeprospectof
havingtolearn,plan,implementandsuccessfullyconductarealBusinessProcess
Reengineeringendeavor,whateverthatmightentailwithintheirownbusiness
organization.HammerandChampy(1993)definebusinessprocessreengineering(BPR)
as:
"thefundamentalrethinkingandradicalredesignofthebusinessprocessestoachieve
dramaticimprovementsincritical,contemporarymeasuresofperformance,suchascost,
quality,serviceandspeed".
AnexampleofBPRapplication.
Atypicalproblemwithprocessesinverticalorganizationalstructureisthatcustomers
mustspeakwithvariousstaffmembersfordifferentinquiries.Forexample,ifabank
customer
entersinto
the
bank
LOANS
ACCOUNTS
ATMCARDS
determine
dtoapply
foraloan,
applyfor
an
ATM
card
and
Figure2.Threeinquiriesthreewaitingqueues
open
a
savings
LOANSAPPLICATION
account,mostprobablymustvisitthree PROCESS
differentdesksinordertobeserviced,as
illustratedinfigure2.WhenBPRisapplied
toanorganization NEWACCOUNTSPROCESS
Theimplementationof"OneStopShopping"
asamajorcustomerserviceinnovation,
ATMPROCESS
requirestheclosecoordinationwithateam
ofstaffassignedtoaprocesspoweredbyIT FUNCTIONALTEAMS
forexchanginginformationanddocuments
R
inordertoservicethecustomer'srequest.For
instanceacustomerapplyingforaloan Figure3.OneStopServiceforallthree
"triggers"ateamofstaffassignedtoservice inquiries
aloanapplication.The
thecustomercommunicateswithonlyoneperson,called"casemanager",forallthree
inquiries,showninfigure3.
managercompletesanapplicationforaloaninelectronicform,whichinturnissubmitted
throughthenetworktothenextteammember,thecreditcontroldirector,whoexamines
thecreditstatusofthecustomer.Ifthecreditstatusisnotsatisfactorytherejectionofthe
loanisapprovedbythecreditmanagerandarejectionformisfilledanditisreturnedto
thecasemanager.Thecasemanagerexplainstothecustomerthereasonthathis
applicationwasrejected.
Ontheotherhand,ifthecreditstatusofthecustomerissatisfactory,theapplicationis
submittedelectronicallytothenextteammember,whocalculatesinterestratesand
paymenttables.Theapplicationisthensubmittedtothecreditmanagerforapproval
usingadigitalsignature.Theapprovaloftheapplicationalongwiththepaymenttableis
deliveredtothecustomerbythecasemanager.
Mostimportantly,whiletheloanapplicationteamwasprocessingtheloanapplication,
thecasemanager"triggered"theaccountteamtoopenasavingsaccountandtheATM
teamtosupplythecustomerwithanATMcard.Thecustomerleavesthebankhavinga
responseforhisloanapplication,anewsavingsaccountandanATMcard,Andallthese
withouthavingtomovearoundthedesksforsignaturesanddocuments.Allthe
customer'srequestsweresatisfiedatthesametimeinparallelmotion.
Thedifferencebetweentheverticalorganization(figure2)andthecrossfunctional
organization(figure3)liesinthewaybusinessesareorganizedinternally.Thevertical
organizationisorganizedbasedonfunctionalunits(e.g.thesales,theaccounting
department).Incrossfunctionalorganizationalunitsthemainorganizationalunitisthe
process.Since"doingbusiness"ismainlyrunningprocesses,itwouldbeverylogicalto
organizecompaniesbasedonprocesses.Forinstance,theorderingprocesscrosses
differentdepartments.Thesalesdepartmentforordertaking,theaccountingdepartment
forcreditcontrolandinvoicing,thelogisticsdepartmentforinventorycontroland
distribution,andtheproductiondepartmentforproducingtheorder.
Aneverydaybusinesscustomerconversation...
Assumingacustomercallsthecompanytoaskwhyhisorderhasnotyetarrivedtoits
premises.
"Letmetransferyoutotheaccountingdepartmenttocheckiftheorderwasinvoiced"
respondsthetelephoneoperator.
Thecustomermustexplainhisproblemtotheaccountingdepartmentagain."Wehad
invoicedyourorder,butIdon'tnowifalreadyshippedtoyou.Youneedtocallthe
logisticsdepartment,unfortunatelyIcouldnottransferyousincetheyarelocatedin
anothercity".
Thecustomercallsthelogisticsdepartmentandexplainsthesituationagain.Thelogistics
managerresponds"thatalthoughtheordershouldhavebeendistributedtoyou,Ihaven't
yetreceivedtheorderfromthemintheproductiondepartment"."Pleaseholdona
minute,Iwilltrytotalktothemtofindoutwhathappened".Theinventorymanagertried
tohelpoutthesituation,sincehefeltthatthecustomerwasgettingaggravatedfromthe
othersideofthephone.Afterawhilehesaid"SirIamsorry,itisthefinishdepartment's
fault.Somebodyhadforgottenyourorderinthefinishstorage.Iwillhaveitsendoutto
youassoonaspossible."Afterthisodysseythecustomerwasseriouslyconsidering
whetherhewouldplaceanotherorder.
Throughouttheconversationthereisanemphasisondepartmentfunctions.Each
employeeissatisfiedwiththefactthat"IhavedonemyjobbutIdonotknowwhatthe
othersdid".(seeboldcharactersintheconversation".Nobodywouldliketotaketotal
responsibility.Whilethissituationseemsawkward,itisthemostusualcaseinmost
organizations.Mostofthetimesitisuptothegoodwillofsomeemployees,likethe
logisticsmanager,forthecustomertoreceivesometypeofservice.
UsingBPRthecompanywillbeorganizedbasedonprocesses.Thecompanywill
organizeanorderprocessingteam,brakingthedepartmentalbarriers.Theteamwouldbe
composedofacasemanagertorespondtothecustomersrequests,andemployeesfrom
theaccountingdepartment,thelogisticsdepartmentandtheproductiondepartment.The
processmustbedesignedtotraceanorderstepbyastepelectronicallyandprovidean
answerbacktothecustomerquickly.THECUSTOMERMUSTSPEAKWITHONE
PERSON,thecasemanager.Allinternalcontrolsaretheresponsibilityoftheorder
processingteam.
BPRfocusesonteambuildingoperationsaroundprocessesandbuildingacompany
mentalitytopersonnel.Theobjectiveofthetechniqueistobuildcustomeroriented
effectiveorganizations.Thecustomerdoesnotcareiftheaccountingdepartmentworks
adequately,hewantstoseehisorderprocessedasitshouldbe.
Ifthemanagementofthecompanyoverheardthisconversation,theywouldbe
desperatelyseekforasolutiontotheproblem.Mostfrequentlytheywouldchangearound
theorganizationalchartandwouldreplacepeopleinthecompanyhierarchyorwould
modifytherolesandresponsibilitiesofsomeemployees.Businessescontinuouslyare
overcomingsomemajororminorchangesinthewaytheyoperatewithouthavingthe
desiredoutcome.Theireffortiscrashedonthedepartmentalbarriersandtheemployee
mentalitytoprotecttheirpersonalorfunctionalinterests.
HowcanBPRbeappliedtoanorganization?
WhenBritishTelecomhadannouncedtheirBusinessPlan,allcompetitorswereeagerto
findoutwhowouldbethenewCEOoftheorganization.Tothesurpriseofallthenew
CEOitwasthecustomer.Thecompanyhaddecidedtotransformalltheoperationsof
theorganizationthewaycustomerswantedthemtooperate.Themostimportantactionin
applyingBPRisthecompany'sstrategicgoaltoprovidecustomerorientedservices.BPR
isatechniqueusedtoimplementthistypeoforganizationalstructure.
Havingthemanagementcommitmentforchange,anotherveryimportantfactorfor
implementingBPR,istheenablingroleofInformationTechnology.Thewaythat
businessesareorganizedarounddepartmentsisverylogicalsince,forinstance,there
werephysicalbarriersinthecommunicationoftheaccountingdepartmentwith
productiondepartment.(Thewarehousecouldbeinanotherlocationintheanotherpartof
thecity).Soitwasn'tpossibleforacrossfunctionalteamtocommunicateefficiently.In
the90swhentelecommunicationtechnologieswerebecomingabundantandlowcosting
BPRwasbecomingaworldwideapplicablemanagingtechniqueforbusinessupgrade,
enabledbythetechnology.Employeescaneasilyoperateasateamusing
intranets/extarnets,workflowandgroupwareapplications,eliminatingdistances.Wecan
worktogethereventhoughwearelocatedindifferentplaces.
Empoweringpeople
ProvidingInformation.
ProvidingTools.
ProvidingTraining.
EliminatingUnproductiveUsesofTime.
EliminatingUneccesaryPaper.
EliminatingUnnecessaryVariationsintheProceduresandSystems.
MinimizingtheBurdenofRecordKeeping,
TheBPRcharacteristicsoutcomesincludethefollowing:
Severaljobsarecombinedintoone.
Decisionmakingbecomespartofthejobofemployees(employeeempowerment).
Stepsintheprocessesareperformedinnaturalorder,andseveraljobsgetdone
simultaneously.
Processeshavemultipleversions.Thisenablestheeconomiesofscalethatresultfrom
massproduction,yetallowscustomizationofproductsandservices.
Workisperformedwhereitmakesthemostsense.
Controlsandchecksandothernonvalueaddedworkareminimized.
Reconciliationisminimizedbycuttingbackthenumberofexternalcontactpointsandby
creatingbusinessalliances.
Asinglepointofcontactisprovidedtocustomers.
Ahybridcentralized/decentralizedoperationisused.
BPRisachievingdramaticperformanceimprovementsthroughradicalchangein
organizationalprocesses,rearchitectingofbusinessandmanagementprocesses.It
involvestheredrawingoforganizationalboundaries,thereconsiderationofjobs,tasks,
andskills.Thisoccurswiththecreationandtheuseofmodels.Whetherthosebephysical
models,mathematical,computerorstructuralmodels,engineersbuildandanalyzemodels
topredicttheperformanceofdesignsortounderstandthebehaviorofdevices.More
specifically,BPRisdefinedastheuseofscientificmethods,modelsandtoolstobring
abouttheradicalrestructuringofanenterprisethatresultinsignificantimprovementsin
performance.
Redesign,retoolingandreorchestratingformthekeycomponentsofBPRthatare
essentialforanorganizationtofocusontheoutcomethatitneedstoachieve.The
outcomepursuedshouldbeanambitiousoutcome(asforinstance,area24hourdelivery
toanycustomeranywhereintheworld,approvalofmortgageloanswithin60minutesof
application,orabilitytohaveonlineaccesstoapatient'smedicalrecordsnomatter
wheretheyareinanymajorcityintheworld).Thesetypesofvisionarygoalsrequire
rethinkingthewaymostorganizationsdobusiness,carefulredesign.Theywill
additionallyneedverysophisticatedsupportinginformationsystemsandatransformation
fromatraditionalorganizationalstructuretoanetworktypeorganization.
Inresuming,thewholeprocessofBPRinordertoachievetheabovementionedexpected
resultsisbasedonkeystepsprincipleswhichincluderedesign,retool,andreorchestrate.
Eachstepprincipleembodiestheactionsandresourcesaspresentedinthetablebelow.
BUSINESSPROCESSRE-ENGINEERINGBPR
8
REDESIGN
RETOOL
REORCHESTRATE
Simplify
Networks
synchronize
Standardize
intranets
processes
Empowering
extranets
IT
Employeeship
WorkFlow
humanresources
Groupware
Measurements
The3Rsofreengineering
Creatingthenewenterpriseinvolvesconsiderablechangeinvirtuallyeverythingtodo
withpeople'sworkinglives.Ratherthanfixingtheold,wesetouttocreatethenew.
Thereisafundamentaltransformationoccurringinbusinessintermsofitsstructure,
processes,people,andtechnology.Thetablefollowingpresentsthechangesinthatoccur
inthebusinessunderBPR.
ChangesintheWorldofWork
FromConventional ToBPR
ofemployees
FunctionaldepartmentsSimpletasks
(divisionoflabor) CompensationforskillandtimespentPay
raisesbasedonpromotionsandseniority
Controlledpeople(bymanagement)Training
AdvancementbasedonabilityProtective Lowpayplushighperformancerelated
organizationalcultureManagerssupervise bonuses
andcontrolHierarchicalorganizational
structureExecutivesasscorekeepers Advancementbasedonperformance
SeparationofdutiesandfunctionsLinear Productiveorganizationalstructure
andsequentialprocessesMassproduction ManagerscoachandadviseHorizontal
(flat)structureExecutivesasleadersCross
ProcessTeamsEmpoweredemployees functionalteams
MultidimensionalworkEducationof
employeesCompensationforresults ParallelprocessMasscustomization
SOURCE:BasedonHammerandChampy,1993.
Inresuming,thewholeprocessofBPRinordertoachievetheabovementionedexpected
resultisbasedonkeystepprincipleswhichincluderedesigning,retoolingand
reorchestrating.Eachprincipleembodiestheactionsandresourcesaspresentedinthe
tablebelow.
ObjectivesofBPR
WhenapplyingtheBPRmanagementtechniquetoabusinessorganizationthe
implementationteameffortisfocusedonthefollowingobjectives:
Customerfocus.Customerserviceorientedprocessesaimingtoeliminatecustomer
complaints.
Speed.Dramaticcompressionofthetimeittakestocompleteataskforkeybusinessprocesses.
Forinstance,ifprocessbeforeBPRhadanaveragecycletime5hours,afterBPRtheaverage
cycletimeshouldbecutdowntohalfanhour.
Compression.Cuttingmajortasksofcostandcapital,throughoutthevaluechain.Organizing
theprocessesacompanydevelopstransparencythroughouttheoperationallevelreducingcost.
Forinstancethedecisiontobuyalargeamountofrawmaterialat50%discountisconnectedto
elevencrosscheckingsintheorganizationalstructurefromcashflow,inventory,toproduction
planningandmarketing.Thesecheckingsbecomeeasilyimplementedwithinthecross
functionalteams,optimizingthedecisionmakingandcuttingoperationalcost.
Flexibility.Adaptiveprocessesandstructurestochangingconditionsandcompetition.Being
closertothecustomerthecompanycandeveloptheawarenessmechanismstorapidlyspotthe
weakpointsandadapttonewrequirementsofthemarket.
Quality.Obsessionwiththesuperiorserviceandvaluetothecustomers.Thelevelofqualityis
alwaysthesamecontrolledandmonitoredbytheprocesses,anddoesnotdependmainlyonthe
person,whoservicingthecustomer.
Innovation.Leadershipthroughimaginativechangeprovidingtoorganizationcompetitive
advantage.
Productivity.Improvedrasticallyeffectivenessandefficiency.
InordertoachievetheabovementionedadjectivesthefollowingBPRprojectmethodologyis
proposed.
MethodologyofaBPRprojectimplementation/alternativetechniques
BPRisworldwideapplicabletechniqueofbusinessrestructuringfocusingonbusiness
processes,providingvastimprovementsinashortperiodoftime.Thetechniqueimplements
organizationalchangebasedontheclosecoordinationofamethodologyforrapidchange,
employeeempowermentandtrainingandsupportbyinformationtechnology.Inorderto
implementBPRtoanenterprisethefollowingskeyactionsneedtotakeplace:
Selectionofthestrategic(addedvalue)processesforredesign.
Simplifynewprocessesminimizestepsoptimizeefficiency.(modeling).
Organizeateamofemployeesforeachprocessandassignaroleforprocesscoordinator.
Organizetheworkflowdocumenttransferandcontrol.
Assignresponsibilitiesandrolesforeachprocess.
AutomateprocessesusingIT(Intranets,Extranets,WorkflowManagement)
Traintheprocessteamtoefficientlymanageandoperatethenewprocess
Introducetheredesignedprocessintothebusinessorganizationalstructure
Managementapproach,BPRdoesproposedramaticchanges.Themajordifferences
betweenprocessinnovationthroughBPRandincrementalimprovementthroughTQM
arementionedonthetablethatfollows.
ExpectedResults/Benefits
Theexpectedresultsforacompanythatimplementsbusinessprocessreengineeringare
thefollowing:
Reallocationofjobsandprocessessoastobecombinedintofewer,tobeexecutedin
naturalorder,simultaneouslyandbytheleastpossiblenumberofemployees.
Reorganizationofthecompany'sstructure(downsizing)andemployeeempowerment.
Jobsandprocessesbecomeflexiblesoastobeexecutedaccordingtotheneedsofeach
case,company'sandcustomer'sneed's(hybridcentralized/decentralizedoperations)
Characteristicsoffirmsandserviceproviders
Severalsurveysandbenchmarkingfindingsrevealtheessentialroleofconsultantsinthe
BPRprocess.Consultants'helpandguidancemaybeextremelybeneficialinallstagesof
theBPRprocedure.Thisisduetothefactthatconsultantshavethefollowingattributes:
Theyareobjectiveandimmunetointernalpolitics.
Theyhavefollowedtheprocessbefore.
Theybringinformationandbestpracticesfromothercompanies.
Theyaregoodcommunicationpathsbetweenfrontlineworkersandcustomers,andthe
leadersofthecompanyororganization.
Consultants,besidestheirbeneficialqualities,canalsounintentionallycreatebarriersby:
havingthesolutionbeingviewedas"theirs"andnot"yours",andtakingtoostrongalead
roleanddisengagingtheorganization.
TheconsultantsmayplaydifferentrolesintheBPRprocedure,andthisisamatterforthe
companytodecidealwaystakingintoaccounttheorganizationsneedsandthespecific
BPRapproachchosen.Theroleofconsultantmaybe:
astrongfacilitatorandexperiencedpractitionerwhobringsamethodologywiththem.
ateammember;canbeanobjectiveandunbiasedcontributortothesolution;
asubjectmatterexpertwithknowledgeofperformancelevelsandbestpracticesof
similarorganizationsandprocesses;abletoperformspecifictasksfortheteam.
2 APPLICATION
Wherethetechniquehasbeingapplied
ManypublicandprivatesectororganizationsandSMEsWordwidehadundergonemajor
reengineeringefforts.Thetechniquewasappliedfirsttomultinationalcooperations,such
asIBM,AT&T,SONY,GENERALELECTRIC,WALLMART,HEWLLET
PACKARD,DEC,KRAFTFOODShavingasaresultmajordownsizingintheir
organizationalstructures.
Later,thebankingsectorbegantoreengineerwithagreatdegreeofsuccesssuchas
CITIBANK,NORTHWESTERNBANK,BANKOFAMERICAandothers.Major
utilitycompaniesusedreengineeringasatechniquetoimproveservicelikeOTE,ELTA.
BPRisalsobeingusedtochangetheorganizationalstructureofpublicservices.Firstthe
governmentcabinetofEgyptreengineereditsprocessesalongwithmanyMunicipalsin
Europe.ThepublichealthsectorisundergoingamajorreengineeringinEuropeusing
theCORBAmethodology.
Asthetechniquewasbecomingwellknowntothebusinesssectorsmallerenterprises
wereusingthetechniquefororganizationalupgrade.TodaymostSMEsareinvestigating
thereengineeringtechniqueandalotofthemareapplyingreengineering,sincethe
techniqueisapplicableandaffordabletoalmostallSMEs.Thisisprovedbythe
increasingdemandforBPRconsultantsinGreeceandworldwide.
Mostofthetimesreengineeringisappliedasa"must"wheninnovativeITtoolsare
introducedtoSMEs.ToolssuchasSAP,BAANandvariousERPsystemsthatpromote
thehorizontalorganizationalstructurearethevehiclesforreengineeringthe
organizationalstructureinordertoadapttothehorizontaloperationalsubsystemsofthe
tools.Forthefirsttimewecansay"thatITdoesnotonlysupportmanagement,IT
changestheorganizationalstructure".Today120businessesfromsmalltomediumsizein
GreeceandthousandsinEuropehaveinstalledsuchtypesofITsystemsreengineering
alsotheirorganizationalstructure.
Typesoffirms/organizationsthatBPRcanbeapplied
BRPcouldbyimplementedtoallfirms(manufacturingfirms,retailers,services,etc.)and
publicorganizationsthatsatisfythefollowingcriteria:
MinimumNumberofemployees:20(atleast4inmanagementpositions).
Strongmanagementcommitmenttonewwaysofworkingandinnovation.
WellformedITinfrastructure(requirementsarepresentedinparagraph2.4).
BusinessProcessReengineeringcouldbeappliedtocompaniesthatconfrontproblems
suchasthefollowing:
Highoperationalcosts
Lowqualityofferedtocustomers
Highlevelof''bottleneck"processesatpickseasons
Poorperformanceofmiddlelevelmanagers
Inappropriatedistributionofresourcesandjobsinordertoachievemaximum
performance,etc.
DurationandimplementationcostofBPR
Duration
TheBPRtechnique,ingeneral,isnotatimeconsumingprocess.Thedurationofeach
BPRprojectvariesfrom6to10months.Thisvariationrelatestothekindofbusiness
andtheextendtowhichBPRisgoingtobeimplemented.Moreover,itdependsonthe
techniquesandmethodologythateachconsultingcompany(thatusuallyparticipatesin
theprocedure)isusing.Forinstance,BPRHELLAS,usingtheREengineering
MethodologyOrientedtowardsRapidAdaptation(REMORA)proposesthefollowing
timeschedule:
MONTHS
BPRPROJECTSTAGES
1
2
3
4
5
Preparation&coordinationforBPR
Businessmodeling&measurements
Managementofchange&controls
Technicaldesignofthesolution
Personneladjustment&training
Realization&transferofchanges
ImplementationCost
TheimplementationofaBPRprojectconsistsoftwostages:
Theprocessmanagementandredesignstudyandconsultingstage.
TheimplementationoftheredesignedprocessusingITtoolsincludingemployeetraining
andintroductionofthenewprocessestothecompanyorganizationalstructure.
ThecostofaBPRforprojectsappliedtoSMEsforselectiveprocessesvariesdepending
onthecomplexityofthebusinessenvironmentandthenumberofprocessesfor
reengineeringIngeneral,thefollowingcostisapplicableforeachstage.
Stage
Description
CostinEuro
1
Theprocessmanagementandredesignstudyandconsulting.
From4000to7000
2
TheimplementationoftheredesignedprocessusingITtools
includingemployeetrainingandintroductionofthenew
From5000to9000
processestothecompanyorganizationalstructure
Total
From9000to16000
Conditionsforimplementation(infrastructuresrequiredetc.)
Infrastructurerequirements:
Anoperatingtransactionalandaccountingcomputerizedsysteminclosingthecommercial
partofthetransactions.
Anetworkthatconnectsallkeypersonnel.
WorkstationswithWindowsNTorWindows1995systemorlatestversion.
Anexchangeserver(MSoutlook,orMSbackofficeorLotusNotes)
EuropeanOrganizationsSupportingtheImplementationofBPR
TheimportanceandtheneedforBusinessProcessReengineeringinthesmalland
mediumenterprisesandtobiggercompaniesaswell,isgreat.TheEuropeanCommission
hasacknowledgedthissituationandpromotesBPRandsupportstheeffortsofSMEsto
proceedtoreengineering.UndertheESPRITandthelatestISTprogrammes,thereisa
numberofprojectssuchastheCOBRA(URLwww.imsgrp,com),andROCHADE(URL
www.gsm.ch/rochade).