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Business Process

Improvement andReengineering

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Business Process

An overall aspect of the business

operation, such as communications,

which is performed within anorganization

An activity carried out as a series of

steps, which produces a specific resultor a related group of specific results

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Business Process

A set of logically related tasks

performed to achieve a defined

business outcome

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Tasks vs. Processes

TASKS

A unit of work a

business activity

performed by oneperson

Narrowly construed

and usually fall withina given functional

department or group

PROCESSES

A group of tasks that

together create a

result that is of valueto a customer

Broadly construed

and often transcendorganizational

boundaries

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Qualities of a Well-Defined Business Process

Has someone accountable for how

well it performs (process owner)

Has distinct boundaries (processscope)

Has documented procedures, work

tasks, and training requirements

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Qualities of a Well-Defined Business Process

Has customer related measurements

and targets

Has a known cycle time Has a formalized change procedure

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Business Process

Improvement

or

Reengineering

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Objectives of BPI and BPR

Eliminate errors in the business

process

Minimize delays in producing outputs Maximize the use of resources

Promote the understanding of the

process workflow among its

participants

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Objectives of BPI and BPR

Ensure that the processes are easily to

follow and are customer friendly

Allow adaptability to the changingcustomer needs

Reduce excess manpower

Provide the organization with a

competitive advantage

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What is Business Process Improvement?

A systematic technology developed to

help an organization make significant

advances in the way its business

processes operate

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What is Business Process Improvement?

Focuses on eliminating waste and

bureaucracy in the organization

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What is Business Process Improvement?

Provides a system that aids in

simplifying and streamlining

operations while satisfying internal

and external entities

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What is Business Process Improvement?

Targets moderate changes to the

organizations operations to take

advantage of new opportunities

offered by technology or to copy

what competitors are doing

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Phases of Business Process Improvement

Organizing for Improvement

Understanding the Process

Streamlining the Process

Measurement and Control

Continuous Improvement

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What is Business Process Reengineering?

Business Process Redesign

Redesigning the organization

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What is Business Process Reengineering?

The analysis and redesign of

workflow within and between

enterprises

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What is Business Process Reengineering?

Restructuring and transforming a

business process by a fundamental

rethinking and redesign to achieve

dramatic improvements in cost,

quality, service, and speed

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What is Business Process Reengineering?

Obliterating the current way of doing

business and making major changes

to take advantage of new ideas and

new technology

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D Y N A M ICS

RESO U RCES

Dimensions of Business Process Reengineering

PEOPLE TECHNOLOGY INFORMATION

Culture Configuration Coordination

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Dimensions of Business Process Reengineering

People

o Human resources that support the firms

activities

o Includes all decision-makers, managers,

operators, and support staff that impact in

any way the operations of the firm

o Filters ofinformation collection andsharing is subject to their cognitive styles,

languages, and personal biases

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Dimensions of Business Process Reengineering

Technology

oEnabling technology that the firm uses

to support its business

oSystems for manufacturing, information

management, control, measurement,

design, and engineeringoResources often at the heart of BPR

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Dimensions of Business Process Reengineering

Information

o Knowledge, expertise, databases,

intellectual property

o All the information it collects and distributes

throughout the business that enables it to

create, develop and distribute a product or

serviceo Can be either an internalpoliticalweapon

or an externally-focusedcompetitive asset

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Dimensions of Business Process Reengineering

Culture

oShared values and beliefs which

underlie and define corporate

behaviors and objectives

oOften founded in a corporatevision

oProvides the mentalfilters that

influence who gets what information,how the information is used and what

formal and informal channels are

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Dimensions of Business Process Reengineering

Configurationo If culture is the soft side, configuration is

the firms physical side

o Refers to the physical and organizationalstructures that exist internally and externallyto the firm

o Physical: factory location, marketing sitesand distribution channels

oOrganizational: corporate hierarchy,network of suppliers and business partners,customer relationships

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Dimensions of Business Process Reengineering

Coordination

oFundamental activities of process

management and the flow of materials

and information throughout the firm

o Intended to create synergies in the firm

by directing activities in a logical andefficient way, with a minimum of waste

or delay

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Phases of Business Process Reengineering

Mobilization

Business System Evaluation

Business System Design

Implementation Planning

Implementation

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BPI vs. BPR

BPI

Evolutionary

BPR

Revolutionary

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BPI vs. BPR

BPI

Introducing

Evolutionary

Changes

BPR

Radical

Redesign of

Processes

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BPI vs. BPR

BPI

Continuous

BPR

Immediate

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BPI vs. BPR

BPIProcess

Enhancements

BPRProcess

Overhaul

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BPI vs. BPR

BPIProcess

Integration

BPRProcess

Simplification

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BPI vs. BPR

BPIExtensive

Research

BPRExtensive

Development

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The Role of IT in BPI and BPR

Strategy Enabler

oProvides the means and paradigms to

facilitate support business processes

Enabling a business process is based

on building an integrated information

systems architecture

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The Role of IT in BPI and BPR

Hardware Elements

oMake-up for operational devices used

for data entry, transmission, networking,

or output, mobile terminals, fiber optical

networks, satellite, communication etc.

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The Role of IT in BPI and BPR

Software Elements

oConstitute an information systems

architecture of the firm as specific

building blocks

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The Role of IT in BPI and BPR

IT should be viewed as more

than an automating ormechanizing force: to

fundamentally reshape theway business is done.

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The Role of IT in BPI and BPR

IT capabilities should support

business processes, andbusiness processes should be

in terms of the capabilities IT

can provide.