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Reenginering
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Agenda
BPR Definition
Generic Reengineering Methodology
Related Change Programs
BPR Techniques & Tools
BPR Decision Support Systems
Role of IT
BPR Project Problems
Examples & Cases
Conclusion
Definition of BPR - I
BPR Definitions
the analysis and design of workflows and processes within
and b/w organizations
a methodological process that uses information technology
to radically overhoul business process and thereby attain major
business goals
the reconfiguration of the business using IT as a central
lever
overhouling of business processes and organization
structures that limit the competitiveness, effectiveness, and
efficiency of the organization
the fundamental analysis and radical redesign of business
processes to achieve dramatic improvements
Definition of BPR - II
Different Terms
Business process improvement (Harrington, 1991a)
Core process redesign (Kaplan and Murdoch, 1991)
Process innovation (Davenport and Short, 1990)
Business process transformation (Burke and Peppard, 1993)
Breakpoint business process redesign (Johanssen et al., 1993)
Organisational reengineering (Lowenthal, 1994)
Business process management (Duffy, 1994)
Business scope redefinition (Venkatraman, 1994)
Organisational change ecology (Earl et al., 1995)
Structured analysis and improvement (Zairi, 1997)
Preparation planning
Process - Think Existing Strategic Processes
Analys
& Prioritization
Role of IT
an initiator, a facilitator, or an
enabler
Role of IT - Initiator
Agent of change
New requirements
e.g. Imaging technology, Internet
An important technology first creates a
problem then solves the problem
Hammer & Champy
Role of IT - Facilitator
Role of IT - Enabler
Most attention
Offers the ability/necessary assistance to
accomplish
Role of IT E-Commerce
Personalized service
Lower transaction & material costs
e.g. E-tickets
Save cost of print/mail
Reduce need for telephone reservation staff
Reduced commission payable to travel
agency
Role of IT - Coordination
Shared Databases
Information dissemination
Facilitate distribution
Networking
Assists collection/dissemination
Rapid implementation of decisions
Telecommunication
IT in Integration
Functional Area
Information Technologies
Marketing
Distribution
Accounting
CAD
Purchasing
Production
Maintenance
Benefits of IT
Cost reduction
Time elimination
Error minimization
Enabling Paralelism
Facilitating Integration
Enhancing decision Making
Minimizing Points of contact
Role of IT
Examples
Dominant motivations for E-Commerce are improving customer service and cost cutting to
be followed by building customer loyalty, boosting revenue and offering a new sales channel.
Estimated growth from the present $800 million in plane tickets sales to $8.9 billion in 2002.
Estimated growth from the present $216 million in online books sales to $2.2 billion in 2002.
75 extranet projects in Boeing (expected to save millions) for such use as receiving $100
million in spare part orders from airlines through one Web site; sending documents to
government.
50 percent of order time reduced in Adaptec Inc., from 16 weeks to 55 days; purchase
orders processing fell from six days to minutes; suppliers do not need to manually re-enter
faxed-orders; saved $1 million in costs and $9 million from work-in-process.
General Electric bought over $1 billion in goods and services via its Trading Process
Network; estimated to save $500 million over the next three years.
Projected to have 5-10 percent cost reduction overall in economy in 2002.
Dell used the Internet for messages to suppliers and reduced inventory on hand to eight
days (versus Compaq's 26 days).
Internet-based audio-video conferencing, integrating voice, data, and video over the
network: Ford shares documents in real time; estimated to have shortened average car
design time from 36 months to 24 months; L.L. Bean uses the network for customer service
calls as well as customer Web browsing at the same time using the same line.
Role of IT
IT Changed Business Processes
Conclusion
REFERENCES