BUSINESS PROCESS
REENGINEERING
What is BPR?
Reengineering is the fundamental
rethinking and redesign of business
processes to achieve dramatic
improvements in critical,
contemporary measures of
performance, such as cost, quality,
service and speed.
(Hammer & Champy,
1993)
What is a Process?
A specific ordering of work activities
across time and space, with a
beginning, an end, and clearly
identified inputs and outputs: a
structure for action.
(Davenport,
1993)
What is a Business Process?
A group of logically related tasks that
use the firm's resources to provide
customer-oriented results in support
of the organization's objectives
Why Reengineer?
Customers
Demanding
Sophistication
Changing Needs
Competition
Local
Global
Why Reengineer?
CONT…..
Change
Technology
Customer Preferences
Performance
BPR seeks improvements of
Cost
Quality
Service
Speed
Key Characteristics
Systems Philosophy
Global Perspective on Business
Processes
Radical Improvement
Integrated Change
People Centred
Focus on End-Customers
Process-Based
Select the Process & Appoint
Process Team
Two Crucial Tasks
Select The Process to be Reengineered
Appoint the Process Team to Lead the
Reengineering Initiative
Select the Process
Review Business Strategy and Customer Requirements
Select Core Processes
Understand Customer Needs
Don’t Assume Anything
Select Correct Path for Change
Remember Assumptions can Hide Failures
Competition and Choice to Go Elsewhere
Ask - Questionnaires, Meetings, Focus Groups
Appoint the Process Team
Appoint BPR Champion
Identify Process Owners
Establish Executive Improvement
Team
Provide Training to Executive Team
BENEFITS
Assists the Implementation of
Business Processes
Enables Product & Service
Innovations
Improve Operational Efficiency
Coordinate Vendors & Customers
in the Process Chain
Common Problems
Process Simplification is Common -
True BPR is Not
Desire to Change Not Strong Enough
Start Point the Existing Process Not a
Blank Slate
Commitment to Existing Processes
Too Strong
REMEMBER - “If it ain’t broke …”
Quick Fix Approach
SUMMARY
Reengineering is a fundamental
rethinking and redesign of business
processes to achieve dramatic
improvements