Business Proces Reengineering (BPR)

Fundamental rethinking and radical redesign of business processes to bring about dramatic

improvements in performance-Hammer

History

• Began as thinking in the 1990s.• Started as a revolution with phrases such as:

– ...taking and ax and machine gun to your existing organization...– ...shoot the dissenters...– ...reengineering will require a lobotomy...– ...what you do with the existing structure is nuke it!– ...break legs...– ...the way you deal with resistance is a bloody ax...– ...we will run over you with the train...

• Has a tarnished history because of badly managed projects.

Continuous Process Improvement

CPI BPR

Motivation

• poor financial performance

• external competition

• erosion of market share

• emerging market opportunities.

BPR is not

• downsizing

• restructuring

• reorganization

• automation

• new technology

• etc.

But…..

Focus areas

• Involvement of Top management

• Heavy use of "Change Management"

Change management

Quy Nguyen Huy

• Formal structures– Changed through commanding

• Work processes– Changed through engineering

• Beliefs– Changed through teaching

• Social relationships– Changed through socializing

BPR today

Example: Implementing an ERP system

The seven basic principles

• Organize around outcomes, not tasks– Away with the assembly-lines

• Have those who use the output of the process perform the process.– Away with specialists

• Subsume information-processing work into the real work that produces the information.– Have department that gets information also

process it.

• Treat geographically dispersed resources as though they were centralized– Have a server.

• Link parallel activities instead of integrating their result– E.g. testing in software development.

• Put the decision point where the work is performed, and build control into the process.– E.g. sales the does accounting.

• Capture information once and at the source.– Have a server.

BPR and MUST

ObjectivesMUST BPR

The goal is improvement with focus on existing system

The goal is improvement, by completely rearranging the business structure

Improvements by ”small”, but relevant, changes

Improvements by radical changes

Objectives (cont)

MUST BPR

CSCW – Improvement with technology/IT as a primary tool

Technology/IT should not be used a stop-gap solution. The problems lies in the processes

Objectives and visions… when?

MUST BPR

Goals and visions are made clear after observations and surveys are made

Goals and visions are decided in the beginning, used as final objectives

FocusMUST BPR

Examine work processes with improvements in mind

Break down work processes and reengineer

Consider existing routines

Break down existing routines

Find hidden workmethods

Break down workmethods

Tools / Methods

MUST BPR

Work with the users, not against

Change Management

Evaluate advantages, disadvantages and costs

Only the advantages are in focus

Tools/Methods (cont.)

MUST BPR

Observe / interview / get inspiration

Best Practice / Learn from others

Flexibility Rigid structure

Users as experts Consultants as experts