Business process reengineering pdf


 

Business process reengineering (BPR) has been receiving attention from industries as BPR is known by many names, such as 'core process redesign', ' new. BUSINESS PROCESS REENGINEERING. INTRODUCTION. Rapid technological advancements and increased expectations of customers are the key. According to Michael Hammer, “Business Process Reengineering (BPR) is the fundamental rethinking and radical redesign of business processes to achieve.

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Business Process Reengineering Pdf

Information Technology and Business Process Re-engineering. Linking re-engineering to business strategy. Strategic Re-. are needed, in this paper a business process reengineering method is presented that uses Business Process Reengineering, Enterprise ontology, Aris, Demo. Business Process Reengineering transformation towards value creation. 6. Strategy Implementation strategies through programmes. 7. Structural Change.

Business process re-engineering BPR is a business management strategy , originally pioneered in the early s, focusing on the analysis and design of workflows and business processes within an organization. BPR aimed to help organizations fundamentally rethink how they do their work in order to improve customer service , cut operational costs , and become world-class competitors. BPR seeks to help companies radically restructure their organizations by focusing on the ground-up design of their business processes. Davenport , a business process is a set of logically related tasks performed to achieve a defined business outcome. Re-engineering emphasized a holistic focus on business objectives and how processes related to them, encouraging full-scale recreation of processes rather than iterative optimization of sub-processes. Business process reengineering is also known as business process redesign, business transformation , or business process change management. Business process reengineering BPR is the practice of rethinking and redesigning the way work is done to better support an organization's mission and reduce costs. Organizations reengineer two key areas of their businesses. First, they use modern technology to enhance data dissemination and decision-making processes. Then, they alter functional organizations to form functional teams.

As a result, process reengineering is a management concept that has been formed by trial and error or, in other words, practical experience. As more and more businesses reengineer their processes, knowledge of what caused the successes or failures is becoming apparent. Otherwise, BPR is only a short-term efficiency exercise. Significant changes to even one of those areas require resources, money, and leadership.

Changing them simultaneously is an extraordinary task. Since BPR can involve multiple areas within the organization, it is important to get support from all affected departments. Through the involvement of selected department members, the organization can gain valuable input before a process is implemented; a step which promotes both the cooperation and the vital acceptance of the reengineered process by all segments of the organization.

Getting enterprise wide commitment involves the following: top management sponsorship, bottom-up download-in from process users, dedicated BPR team, and budget allocation for the total solution with measures to demonstrate value.

Before any BPR project can be implemented successfully, there must be a commitment to the project by the management of the organization, and strong leadership must be provided. However, top management commitment is imperative for success. By informing all affected groups at every stage, and emphasizing the positive end results of the reengineering process, it is possible to minimize resistance to change and increase the odds for success.

The ultimate success of BPR depends on the strong, consistent, and continuous involvement of all departmental levels within the organization. This team will form the nucleus of the BPR effort, make key decisions and recommendations, and help communicate the details and benefits of the BPR program to the entire organization. The determinants of an effective BPR team may be summarized as follows: competency of the members of the team, their motivation, [24] their credibility within the organization and their creativity, [25] team empowerment, training of members in process mapping and brainstorming techniques, [26] effective team leadership, [27] proper organization of the team, [28] complementary skills among team members, adequate size, interchangeable accountability, clarity of work approach, and specificity of goals.

Team members who are selected from each work group within the organization will affect the outcome of the reengineered process according to their desired requirements. The BPR team should be mixed in depth and knowledge. For example, it may include members with the following characteristics: Members who do not know the process at all.

Business process reengineering

Members who know the process inside-out. Customers, if possible. One or two members of the best, brightest, passionate, and committed technology experts. Members from outside of the organization [19] Moreover, Covert recommends that in order to have an effective BPR team, it must be kept under ten players.

If the organization fails to keep the team at a manageable size, the entire process will be much more difficult to execute efficiently and effectively. The efforts of the team must be focused on identifying breakthrough opportunities and designing new work steps or processes that will create quantum gains and competitive advantage. Too often, BPR teams jump directly into the technology without first assessing the current processes of the organization and determining what exactly needs reengineering.

In this analysis phase, a series of sessions should be held with process owners and stakeholders, regarding the need and strategy for BPR. These sessions build a consensus as to the vision of the ideal business process. They help identify essential goals for BPR within each department and then collectively define objectives for how the project will affect each work group or department on individual basis and the business organization as a whole.

The idea of these sessions is to conceptualize the ideal business process for the organization and build a business process model.

Those items that seem unnecessary or unrealistic may be eliminated or modified later on in the diagnosing stage of the BPR project. It is important to acknowledge and evaluate all ideas in order to make all participants feel that they are a part of this important and crucial process. Results of these meetings will help formulate the basic plan for the project. This plan includes the following: identifying specific problem areas, solidifying particular goals, and defining business objectives.

In this analysis phase, a series of sessions should be held with process owners and stakeholders, regarding the need and strategy for BPR.

These sessions build a consensus as to the vision of the ideal business process. They help identify essential goals for BPR within each department and then collectively define objectives for how the project will affect each work group or department on individual basis and the business organization as a whole. The idea of these sessions is to conceptualize the ideal business process for the organization and build a business process model. Those items that seem unnecessary or unrealistic may be eliminated or modified later on in the diagnosing stage of the BPR project.

It is important to acknowledge and evaluate all ideas in order to make all participants feel that they are a part of this important and crucial process.

Results of these meetings will help formulate the basic plan for the project. This plan includes the following: identifying specific problem areas, solidifying particular goals, and defining business objectives. The business needs analysis contributes tremendously to the re-engineering effort by helping the BPR team to prioritize and determine where it should focus its improvements efforts.

This linkage should show the thread from the top to the bottom of the organization, so each person can easily connect the overall business direction with the re-engineering effort. This alignment must be demonstrated from the perspective of financial performance, customer service, associate value, and the vision for the organization.

There is always a possibility that an organization may make significant investments in an area that is not a core competency for the company and later outsource this capability. Such reengineering initiatives are wasteful and steal resources from other strategic projects. These are vital factors that contribute to building an effective IT infrastructure for business processes. An effective IT infrastructure composition process follows a top-down approach, beginning with business strategy and IS strategy and passing through designs of data, systems, and computer architecture.

IT strategic alignment is approached through the process of integration between business and IT strategies, as well as between IT and organizational infrastructures.

Business Process Reengineering

Walmart, for example, would not have been able to reengineer the processes used to procure and distribute mass-market retail goods without IT. Ford was able to decrease its headcount in the procurement department by 75 percent by using IT in conjunction with BPR, in another well-known example. This, in turn, is determined by the types of activities embedded in a business process, and their sequencing and reliance on other organizational processes. As a result, there are many factors that prevent the effective implementation of BPR and hence restrict innovation and continuous improvement.

Change management , which involves all human and social related changes and cultural adjustment techniques needed by management to facilitate the insertion of newly designed processes and structures into working practice and to deal effectively with resistance, is considered by many researchers to be a crucial component of any BPR effort. One of the most overlooked obstacles to successful BPR project implementation is resistance from those whom implementers believe will benefit the most.

Most projects underestimate the cultural effect of major process and structural change and as a result, do not achieve the full potential of their change effort. Many people fail to understand that change is not an event, but rather a management technique. Change management is the discipline of managing change as a process, with due consideration that employees are people, not programmable machines.

An important step towards any successful reengineering effort is to convey an understanding of the necessity for change. Organizational culture is a determining factor in successful BPR implementation. Culture in an organization is a self-reinforcing set of beliefs, attitudes, and behavior.

Culture is one of the most resistant elements of organizational behavior and is extremely difficult to change. BPR must consider current culture in order to change these beliefs, attitudes, and behaviors effectively.

Business process reengineering - Wikipedia

Messages conveyed from management in an organization continually enforce current culture. Change is implicitly driven by motivation which is fueled by the recognition of the need for change. Phase 6: Finally execute the plan to establish the business process. Business Process Reengineering aims to achieve increased productivity and enhanced quality.

It necessitates rethinking business processes to deliver more value to the consumers, and bring in a new system that obliterates organizational layers and eliminates unproductive activities.

BPR focuses on redesigning functional organizations and using technology in data dissemination and decision making. Hammer and Champy have come up with seven reengineering fundamentals that not only help to streamline work processes, but also help to achieve significant levels of improvement in time management, productivity and profitability.

Level 1: Process reengineering is organized around focused outcomes and not specific tasks. Level 2: Discern all the processes in an enterprise and based upon redesign urgency, prioritize them Level 3: Real work generates information, and in return benefits from the information input thus establishing a cyclic method of information generation and consumption.

Level 4: Put a method in place to bring together geographically dispersed resources as a centralized unit Level 5: Workflow that run in parallel have their activities linked, which is more than just merely integrating the results.

Level 6: In the entire process where work is performed, decision points are placed and different controls are reinforced. Level 7: Information generated at the source is captured at a time. Conclusion: When BPR became synonymous with downsizing, it reflected in dearth of consistent quality management and committed leadership, depending heavily on unrealistic expectations and project scope, and ultimately resistance to change from the bottom up.

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