4-1 business process reengineering and information technology

4-1

Business Process Reengineeringand Information Technology

4-2

Basic Concepts

• Business process

• Value added

• Business Process Reengineering (BPR)

• Demand chain

• Supply chain

4-3

Basic Concepts

• Supply chain management

• Extended supply chain

• Networked organization

• Organizational transformation

4-4

The Need for BPR

• Customers

• Competition

• Change

• Techniques lag behind technology

• Problem of the stovepipe

• Fragmented piecemeal systems

• Integration

4-5

The Principles of BPR and The Role of IT

• Characteristics of BPR

• Methodologies and frameworks for BPR

• Enabling role of IT

4-6

Characteristics of Business Process Reengineering

• Several jobs are combined into one

• Employees make decisions

• Steps in business process: natural order

• Process may have multiple versions

• Work is performed where it makes the most sense

4-7

Characteristics of Business Process Reengineering

• Controls, checks, other nonvalue-added work is minimized

• Reconciliation is minimized - minimize external contact points

• Hybrid centralized / decentralized operation is used

• A single point of contact is provided for the customer

4-8

Business Process Reengineering and

Restructuring the Organization

• Redesign of processes

• From mass production to mass customization

• Cycle time reduction

• Restructuring organizations

4-9

The Networked Organization

• Structure of networked organizations

• Empowerment– IT / empowerment relationship

• Teams

4-10

Virtual Corporations

A virtual corporation is an organization composed of several business partners sharing costs and resources for the purpose of producing a product or service.

4-11

Virtual CorporationsMajor Attributes

• Excellence

• Utilization

• Opportunism

• Lack of borders

• Trust

• Adaptability to change

• Technology

4-12

Total Quality Managementand Reengineering

• Rate of change

• TQM: continuous improvement

• Reengineering: dramatic improvement

4-13

TQM versus Reengineering

4-14

Implementing Reengineering

• Redesign

• Retool

• Reorchestrate

4-15

Tools for BPR

• Simulation

• Flow diagrams

• Work analysis

• Application development

• Workflow software

4-16

Reorchestrate: Organizational Change

• Leadership

• Corporate values

• Cultural change

• Incentives

• Accountability

• Zeal

4-17

Reorchestrate: Organizational Change

• Communication

• Ambiguity

• Obstacles to change

• Celebrate success

4-18

Implementation Issues

• Continuous evaluation

• Eliminating jobs

4-19

Continuous Evaluation

• Is reengineering truly transformational?

• Will reengineering improve customer relations?

• Has reengineering cut across the organization?

• Is information technology playing a integral role in the reengineering solution?

• Does it hurt?

4-20

When to Use BPR?

• Failure rate as high as 75-85%

• Improperly aligned BPR and IT

• Expensive

• Organizational resistance

4-21

Managerial Issues

• Ethical issues

• BPR implementation

• Incremental improvement programs

• BPR tools

• Role of IT

• Failures

• TQM and BPR

4-22

Copyright 1999 John Wiley & Sons, Incorporated. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without the express written permission of the copyright owner in unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Son, Inc. Adopters of the textbook are granted permission to make back-up copies for his/her own use only, to make copies for distribution to student of the course the textbook is used in, and to modify this material to best suit their instructional needs. Under no circumstances can copies be made for resale. The publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein.