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Business Process Re Engineering

Business process reengineering (BPR) seeks to fundamentally rethink and radically redesign business processes to achieve dramatic improvements in critical performance measures like cost, quality, and speed. It aims for radical rather than continuous improvement and uses techniques from total quality management and just-in-time to make processes more strategic. BPR impacts organization, technology, strategy, and people. Key steps involve selecting processes and teams, understanding current processes, developing and communicating a vision for improved processes, identifying action plans, and executing those plans. Information technology plays an important enabling role in BPR.

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Professor Ayman Aly Omar
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203 views

Business Process Re Engineering

Business process reengineering (BPR) seeks to fundamentally rethink and radically redesign business processes to achieve dramatic improvements in critical performance measures like cost, quality, and speed. It aims for radical rather than continuous improvement and uses techniques from total quality management and just-in-time to make processes more strategic. BPR impacts organization, technology, strategy, and people. Key steps involve selecting processes and teams, understanding current processes, developing and communicating a vision for improved processes, identifying action plans, and executing those plans. Information technology plays an important enabling role in BPR.

Uploaded by

Professor Ayman Aly Omar
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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BUSINESS PROCESS

REENGINEERING

by
Dr. Ayman Omar
DEFINITION

 Hammer and Champy (1993) define BPR


as "... 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."
DEFINITION
 Thomas Davenport (1993), another well-
known BPR theorist, uses the term
process innovation, which he says
”encompasses the envisioning of new
work strategies, the actual process design
activity, and the implementation of the
change in all its complex technological,
human, and organizational dimensions”.
DEFINITION
 Finally, Johansson et al. (1993) provide a description of
BPR relative to other process-oriented views, such as
Total Quality Management (TQM) and Just-in-time (JIT),
and state: "Business Process Reengineering, although a
close relative, seeks radical rather than merely
continuous improvement. It escalates the efforts of JIT
and TQM to make process orientation a strategic tool
and a core competence of the organization. BPR
concentrates on core business processes, and uses the
specific techniques within the JIT and TQM ”toolboxes”
as enablers, while broadening the process vision."
DEFINITION
 BPR derives its existence from different
disciplines, and four major areas can be
identified as being subjected to change in
BPR
 organization
 technology
 strategy
 people
WHY REENGINEERING?
 Customers
 Demanding
 Sophistication
 Changing Needs

 Competition
 Local
 Global
WHY REENGINEERING?

 Change
 Technology
 Customer Preferences
WHY REENGINEERING?
 Complacency

 Resistance

 New Developments

 Fear of Failure
WHAT DOES IT SEEK?
 BPR seeks

 Cost
 Quality
 Service
 Speed, improvements
The role of information technology

 Information technology (IT) plays an


important role in the reengineering
concept
 It is considered as a major enabler for new
forms of working and collaborating within
an organization and across organizational
borders.
The role of information technology
 Shared databases, making information available at many places
 Expert systems, allowing generalists to perform specialist tasks
 Telecommunication networks, allowing organizations to be
centralized and decentralized at the same time
 Decision-support tools, allowing decision-making to be a part of
everybody's job
 Wirelss data communication and portable computers, allowing field
personnel to work office independent
 Interactive videodisk, to get in immediate contact with potential
buyers
 Automatic identification and tracking, allowing things to tell where
they are, instead of requiring to be found
 High performance computing, allowing on-the-fly planning and
revisioning
Key Steps

Select The Process & Appoint Process Team

Understand The Current Process

Develop & Communicate Vision Of Improved Process

Identify Action Plan

Execute Plan
Select the Process & Appoint
Team
 Two Important Tasks

 Select the process to be reengineered

 Appoint a process team


Select the Process
 Review business strategy and customer
requirements

 Select core processes

 Understand customer needs

 No assumption
Select the Process
 Select correct path for change

 Ask - questionnaires, meetings, focus


Appoint the Process Team

 Identify process owners

 Develop executive improvement team

 Provide training to executive team


Core Skills Required
 Capacity to view the organization as a whole

 Ability to focus on end-customers

 Ability to challenge fundamental assumptions

 Courage to deliver into unknown areas


Core Skills Required
 Ability to assume individual and collective
responsibility
Understand the Current Process
 Develop a process ooverview
 Clearly define the process
 Mission
 Scope
 Boundaries

 Set business and customer measurements


 Understand customers expectations from
the process
Understand the Current Process
 Identify Improvement Opportunities
 Quality
 Rework

 Document the Process


 Cost
 Time
 Value Data
Develop & Communicate Vision of
Improved Process
 Communicate with all employees so that they
are aware of the vision of the future

 Always provide information on the progress of


the BPR initiative - good and bad.

 Demonstrate assurance that the BPR initiative is


both necessary and properly managed
Develop & Communicate Vision of
Improved Process

 Promote individual development by


indicating options that are available

 Indicate actions required and those


responsible
Identify Action Plan
 Develop an improvement plan

 Appoint process owners

 Simplify the process to reduce process


time
Identify Action Plan
 Remove no-value-added activities

 Standardize process and automate where


possible

 Up-grade equipment

 Plan/schedule the changes


Execute Plan
 Qualify/certify the process
 Perform periodic qualification reviews
 Define and eliminate process problems
 Evaluate the change impact on the
business and on customers
 Benchmark the process
 Provide advanced team training
Benefits From IT
 Assists the Implementation of Business
Processes
 Enables Product & Service Innovations
 Improve Operational Efficiency
 Coordinate Vendors & Customers in the
Process Chain
Common Problems

 Process simplification is common - true


BPR is not
 Desire to change not strong
 Commitment to existing processes too
strong
Common Problems with BPR
 Process under review too big or too small
 Reliance on existing process too strong
 The Costs of the change seem large
 Allocation of resources
 Poor timing and planning
 Keeping the team and organization on
target
 THANK YOU...

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