Business Process Reengineering and Information Technology

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Basic Concepts
Business process Value added Business Process Reengineering (BPR) Demand chain Supply chain

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Basic Concepts
Supply chain management Extended supply chain Networked organization Organizational transformation

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The Need for BPR

Customers Competition Change Techniques lag behind technology Problem of the stovepipe Fragmented piecemeal systems Integration
4-4

The Principles of BPR and The Role of IT

Characteristics of BPR Methodologies and frameworks for BPR Enabling role of IT

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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
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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
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Business Process Reengineering and Restructuring the Organization

Redesign of processes From mass production to mass customization Cycle time reduction Restructuring organizations

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The Networked Organization

Structure of networked organizations Empowerment
IT / empowerment relationship

Teams

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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.

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Virtual Corporations
Major Attributes
Excellence Utilization Opportunism Lack of borders Trust Adaptability to change Technology
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Total Quality Management and Reengineering

Rate of change TQM: continuous improvement Reengineering: dramatic improvement

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TQM versus Reengineering

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Implementing Reengineering
Redesign Retool Reorchestrate

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Tools for BPR

Simulation Flow diagrams Work analysis Application development Workflow software

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Reorchestrate: Organizational Change

Leadership Corporate values Cultural change Incentives Accountability Zeal
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Reorchestrate: Organizational Change

Communication Ambiguity Obstacles to change Celebrate success

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Implementation Issues
Continuous evaluation Eliminating jobs

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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?

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When to Use BPR?

Failure rate as high as 75-85% Improperly aligned BPR and IT Expensive Organizational resistance

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Managerial Issues
Ethical issues BPR implementation Incremental improvement programs BPR tools Role of IT Failures TQM and BPR
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