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Business Process Re-engineering (BPR)

Archana Mehta

Contents
Definition and Concepts Changes called by BPR IT: Organizational Changes IT as enabler for BPR BPR: Key Characteristics Implementing a BPR Strategy

Definition

Definition
BPR is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance, such as cost, quality, service, and speed.

Business Process
What is a Process? 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? A group of logically related tasks that use the firm's resources to provide customer-oriented results in support of the organization's objectives

BPR: Concepts
Fundamental Rethinking: Calls for questioning everything that is being followed, practiced, and found acceptable for centuries. Requires a vision, an innovation and an imagination.

BPR: Concepts
Radical Redesign:
This calls for trimming and chopping of designs so that the cost is reduced, service is improved and customer gets higher value at higher speed. It calls for change in the technology, tools and techniques. It calls for off-loading the activity outside the organization. It begins with objective of activity elimination, then improvisation and then finally outsourcing.

Concepts further defined

Reengineering starts with a high-level assessment of the organization's mission, strategic goals, and customer needs. Basic questions are asked, such as "Does our mission need to be redefined? Are our strategic goals aligned with our mission? Who are our customers?" An organization may find that it is operating on questionable assumptions, particularly in terms of the wants and needs of its customers. Only after the organization rethinks what it should be doing, does it go on to decide how best to do it.

Concepts further defined

Within the framework of this basic assessment of mission and goals, reengineering focuses on the organization's business processesthe steps and procedures that govern how resources are used to create products and services that meet the needs of particular customers or markets. As a structured ordering of work steps across time and place, a business process can be decomposed into specific activities, measured, modeled, and improved. It can also be completely redesigned or eliminated altogether.

Concepts further defined

Reengineering recognizes that an organization's buisness processes are usually fragmented into subprocesses and tasks that are carried out by several specialized functional areas within the organization. Often, no one is responsible for the overall performance of the entire process. Reengineering maintains that optimizing the performance of sub-processes can result in some benefits, but cannot yield dramatic improvements if the process itself is fundamentally inefficient and outmoded. For that reason, reengineering focuses on redesigning the process as a whole in order to achieve the greatest possible benefits to the organization and their customers. This drive for realizing dramatic improvements by fundamentally rethinking how the organization's work should be done distinguishes reengineering from process improvement efforts that focus on functional or incremental improvement.

Changes Called by BPR

Changes called by BPR


1. 2. 3. 4. 5. 6.

Traditional measures like cost, quality, productivity, and efficiency which are all task base should be measured for the process. Change is from cost to value, quality to satisfaction, efficiency to effectiveness, and productivity to performance.

Change in Mindset Change in Focus from physical aspect to time aspect Change in measuring customer satisfaction Change from direct cost to the cost of business execution Change in business strategy from protective to competitive Change in performance measures

IT and Organizational Changes

IT and organizational Changes


Information technology can promote various degrees of organizational change, ranging from incremental to far-reaching. Four kinds of structural organizational change that are enabled by information technology: (1) Automation, (2) Rationalization (The streamlining of standard operating procedures) (3) Reengineering (reorganizes work flows, combining steps to cut waste and eliminating repetitive, paperintensive tasks) (4) Paradigm shifts - rethinking the nature of the business and the nature of the organization .

IT and organizational Changes

IT: enabler for BPR

IT : enabler for BPR


Elimination of Repetition: The number of steps related to data search, its matching, collating, validating and confirming are carried out only once with help of IT in BPR. IT provides intelligent capabilities to incorporate business rules in the application system. IT is capable of handling progressive updating and documentation of transaction. Issues regarding secrecy, confidentiality and safety of data can be handled by IT. IT provides powerful communication facilities with no limitation of distance. No limitation for storage capacity and hardware-software capability

BPR: Key Characteristics

BPR: Key Characteristics


Systems Philosophy Global Perspective on Business Processes Radical Improvement Integrated Change People Centred Focus on End-Customers Process-Based

Systems Perspective
Feedback

Inputs

Transformation

Outputs

Environment

Process Based

Added Value

BPR Initiatives must add-value over and above the existing process

Customer-Led

BPR Initiatives must meet the needs of the customer

Radical Improvement

Sustainable

Process improvements need to become firmly rooted within the organization

Stepped Approach

Process improvements will not happen over night they need to be gradually introduced Also assists the acceptance by staff of the change

Integrated Change

Viable Solutions

Process improvements must be viable and practical

Balanced Improvements

Process improvements must be realistic

People-Centred
Business Understanding Empowerment & Participation Organizational Culture

Focus on End-Customers

Process improvements must relate to the needs of the organization and be relevant to the end-customers to which they are designed to serve

Implementing a BPR Strategy

Implementing a BPR Strategy


Select The Process & Appoint Process Team
Understand The Current Process Develop & Communicate Vision Of Improved Process Identify Action Plan Execute Plan

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