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M. Stoica, N. Chawat, N. Shin 1
An Investigation of the
Methodologies ofBusiness Process Reengineering
Mihail Stoica
Nimit Chawat
Namchul Shin
Pace University
New York, NY
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Questions
What is reengineering?
What to reengineer?
How to reengineer?
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What is reengineering?
Radical change, fast
A fundamental rethinking and
transformation of an integrated set of
business processes
Aims for dramatic business results
Unlike quick hits and incremental
improvement, reengineering is a form oforganizational change
Characterized by dramatic process
transformation
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The term process in the
context of reengineering
A process is a series of related
activities that:takes an input
adds value to it
produces an output for a customer
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What toreengineer?
BPR changes processes, not
functions, departments,geographies or tasks.
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How many BPR projects are
failing?
70 %(Murphy 1994, Malhotra 1998)
50 %(Caron et al. 1994)
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Why BPR projects are failing?
Lack of senior management sponsorship
Failure to make an ongoing commitment to the
tough management decisions needed to effect
these changes to the work environment
Lack of motivation
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Methodologies:
issues
SELECTION; Many companies are developing their own BPRmethodologies
TIME; The need to test the project empirically so that it can bevalidated and modified as appropriate. In the case of BPR,this poses a problem since a typical reengineering project can
last 1-2 years BPR efforts cannot be uniformly applied across different
cultures but need to be tailored to the specific contingenciesof the situation
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5 methodologiesAn Investigation of the Methodologies of Business Process Reengineering
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Consolidated Methodology:
A consolidatedmethodology hasbeen developedfrom the fivemethodologies
previouslypresented and amodel wasdeveloped toprovide astructuredapproach and to
facilitateunderstanding(Muthu, Whitmanand Cheraghi1999).
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Gateway BPR Methodology
A typical methodology developed by Gateway, a BPR consultingfirm, helps illustrate the three levels of abstraction ofMethodologies, Techniques and Tools (MTTs) for BPR. The
Gateway methodology consists of six stages:
1. Preparation2. Identification
3. Vision4. Solution: technical design5. Solution: social design6. Transformation.
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BPR Methodology (Evans 1993)
Evans proposes four general stages as follows:
Stage 1: To BeThis stage is concerned with defining the vision of where the
organisation wants to be and what it requires of its business
processes as a consequence.
Stage 2:As IsConcerned with defining the current business processes.
Stage 3: The PlanThis stage involves making a plan to accomplish the move from the'as is' stage to the 'to be' stage.
Stage 4: The Crossing
This stage is concerned with implementing the plan.
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BPR Methodology
An Investigation of the Methodologies of Business Process Reengineering
A Methodology for BusinessProcess Reengineering
(Fitzgerald and Murphy 1996)
Select process to be reengineered
Establish process team
Understand current process
Dev elop a v ision of improved process
entif y actions needed to move to new process
Negotiate/execute plan to accomplish actions
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Chase BPR MethodologyThe four phases in most reengineering projects:
ENERGIZE
Case for Action
CommunicationPlan
Project Plan
Project Team
10%
Mobilize for
Action
FOCUS
Process
Assessment
Entry Points
Quick Hits
30%
Assess Current
Process
INVENT
Future State
Process Design
Implications Organization
Technology
Proof of Concept
40%
Envision the
Future
LAUNCH
Project Definitions
Business Case
Blueprint
20%
Plan the
Journey
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Future Trends
Area of supply chain management and
logistics.
Although currently fading, however BPRmay increase in importance again, in some
form or known by some other name; the
BPR phenomenon would be of enduringimportance.
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Conclusions
BPR is providing some vital ingredients:
intense customer focus
superior process design
a strong and motivated leadership
BPR advocates strenuous hard work and instigates the people involved to not only to
change what they do but targets at altering their basic way of thinking itself
Follow a methodology or create a new methodology
Success of BPR may depend on the people
50 % to 70 % of reengineering efforts fail
A BPR effort is considered a failure just because it doesnt provide the
dramatic results it promised to deliver
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Conclusions:
Highlights the importance of organizational strategy and its links to business
processes throughout the redesign exercise.
Provides a set of modeling techniques that supports the modeling of businessprocesses
Takes an individualistic (employee level) and a holistic (business process
level) view
Takes a holistic and systematic approach to BPR.
An Investigation of the Methodologies of Business Process Reengineering
companies need a methodology that takes a
holistic view of the organization
Agent Relationship Morphism Analysis (Valiris and Glykas 1999)combines:
accounting BPR principles (e.g., efficiency, effectiveness, and cost),
organizational-theoretic concepts (e.g., roles and accountabilities), and
some powerful systematic business modeling techniques applied from ISdevelopment.
f h h d l f
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An Investigation of the Methodologies of Business Process Reengineering
ARMA