BUSINESS PROCESS RE-ENGINEERING

By- Group10: Anurag Subedar(55) Karishma Sudarshan(56) Sujitha V(57) Rahul Shukla(58) Prateek Wadhwa(59) Nagendra(60)

Definition
Business

process reengineering (BPR) is a management approach aiming at improvements by means of elevating efficiency and effectiveness of the processes that exist within and across organizations. The fundamental rethinking and radically redesign of business processes to achieve dramatic improvement in critical, contemporary measures of performance such as cost, quality, service and speed.

BPR
The implementation of deliberate and fundamental change in business processes to achieve breakthrough improvements in performance. The key to BPR is for organizations to look at their business processes from a "clean slate" perspective and determine how they can best construct these processes to improve how they conduct business.

Objectives of BPR
To dramatically reduce cost Reduce time To dramatically improve customer services or to improve employee quality of life To reinvent the basic rules of the business e.g. the airline industry taco bell from Mexican food to fast food to feeding people anywhere, anyhow. Customer satisfaction Organizational learning

BPR
BPR is commonly facilitated by IT e.g. Organizational efficiency Effectiveness Transformation

Efficiency Applications in the efficiency category allow users to work faster and often at measurable lower cost. Mere automation of manual tasks, resulting in efficiency gains (least deep)

BPR

Effectiveness Applications in the effectiveness category allow users to work better and often to produce higher quality work. Requires changes not only in technology, but in skills, job roles, and work flow (deeper). Transformation Applications in the transformation category change the basic ways that people and departments work and may even change the very nature of the business enterprise itself. A major change in the organization, including structure, culture, and compensation schemes (deepest).

BPR
How can Companies Identify their Business Processes. Examples Manufacturing: As the procurement-to-shipment process
Business functions

Product development as the concept-to-prototype process Sales as the prospect-to-order process Order fulfillment as the order-to-payment process Service as the inquiry-to-resolution process

Business processes

BPR
How can Companies Identify their Business Processes. Dysfunction: Which process are in the deepest trouble Important: Which process have the greatest impact on customer

Flexibility: which process are the most susceptible to redesign.

Embarking on Re-engineering
Persuade people to embrace or at least not to fight -the prospect of major change by developing the clearest message on: 1: A case for action- Here is where we are as a company and this is why we cant stay here show your balance sheet show competitors balance sheet 2: A vision statement - This is what we as a company need to become

Simple Rules
Start with a clean sheet of paper. With my current experience what can I do today

If I were to re-create this company today, given what I know and current technology, what would it look like. How will I be focusing, organizing and managing the company?

Simple Rules
Transition from a vertical functional departments to one that is horizontal, CUSTOMER focused and process-oriented? Listen to customer Enhance those things that bring value to the customer or eliminate those that dont Be ambitious, focus your commitment to radical change on the process

Process Improvement Vs Re-engineering

Improvement

Innovation/Reengineering

Magnitude

Increment 30-50%

Radical 10x-100x

Improvement Sought

Starting base

Existing Process Relatively low

Blank skeet High

Top management commitment

Role of IT
Risk

Low
Low

High
High

Critique against BPR

Strict

focus on efficiency and technology and the disregard of people in the organization that is subjected to a reengineering initiative. Very often, the label BPR was used for major workforce reductions lack of management support for the initiative and thus poor acceptance in the organization. exaggerated expectations regarding the potential benefits from a BPR initiative and consequently failure to achieve the expected results.

Critique against BPR

Underestimation

of the resistance to change within the organization. Implementation of generic so-called bestpractice processes that do not fit specific company needs. Over trust in technology solutions. Performing BPR as a one-off project with limited strategy alignment and long-term perspective. Poor project management.