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Business Process Innovation Strategies

The document outlines the steps to reengineering a business process which includes: 1. Developing a process map to identify processes, boundaries, and assess health. 2. Identifying change enablers like technology and organizational factors. 3. Developing a business vision and process objectives by assessing strategy, customer objectives, and benchmarks. 4. Understanding the existing process, problems, and IT/organizational fit before designing a new process and implementing a new process-based organization.

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7manu
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20 views16 pages

Business Process Innovation Strategies

The document outlines the steps to reengineering a business process which includes: 1. Developing a process map to identify processes, boundaries, and assess health. 2. Identifying change enablers like technology and organizational factors. 3. Developing a business vision and process objectives by assessing strategy, customer objectives, and benchmarks. 4. Understanding the existing process, problems, and IT/organizational fit before designing a new process and implementing a new process-based organization.

Uploaded by

7manu
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

Business Process Innovation

& Management
Reengineering a Business Process

1. Develop a process map


– Identify business processes
– Determine process boundaries 
– Assess strategic relevance of each
process
– Qualify the culture and politics of each
process
Reengineering a Business Process

– Determine health of each process


1. Extensive information exchange, data
redundancy, and rekeying
2. Inventory buffers
3. High ratio of checking and control to value-
adding
4. Rework and iteration
5. Complexity, exceptions, and special cases.
Reengineering a Business Process

– Develop a case for action


• Why should we reengineer?
• Concise, comprehensive, and compelling
• A dramatic persuasive argument, supported by
evidence
• Loss of competitive advantage, erosion of its
profit margins, outright failure
Reengineering a Business Process

2. Identify change enablers


• assess information technology enablers
of BPR
• assess organizational and human
resource enablers of BPR
Reengineering a Business Process

3. Develop a business vision and process


objectives
• Assess existing business strategy for process
directions
• Consult with process customers to determine
performance objectives
• Benchmark process performance targets and
examine examples of innovation
• Formulate process performance objectives
• Develop specific process attributes
Business Vision
• Destination of the BPR effort
• Kind of organization the company needs to
become
• Both a qualitative and quantitative statement
• Acts as a flag around which to rally the troops
when morale starts to sag
• Provides a continuing focus
• Provides a yardstick for measuring the
progress of reengineering
Business Vision
• Has 3 elements:
– focuses on operations
– includes measurable objectives and
metrics
– is powerful, it changes the basis for
competition in the industry
Reengineering a Business Process

4. Understand existing processes


• assess the current process flow
• measure the process in relation to the
new process objectives and attributes
• identify problems with or shortcomings of
the process
• assess current IT and organization
• identify short-term improvement in the
process
Reengineering a Business Process

5. Design the new processes and


organization
• brainstorm design alternatives
• assess feasibility, risks, and benefits of
design alternatives and select the
preferred process design
• prototype the new process design
• develop the migration strategy
Redesign Tactics
• Combine several jobs in one
• Let workers make decisions
• Perform steps in the process in the
natural order
• Have multiple versions of the process
• Perform the work where it makes the
most sense
Redesign Tactics
• Reduce checks and controls
• Minimize reconciliation
• Provide a single point of contact
Redesign Tactics
• Restructure it
– Lose wait
– Orchestrate
– Mass customize
– Synchronize
Redesign Tactics
• Inform-ate it
– Digitize and propagate
– Sensitize
Redesign Tactics
• Mind it
– Analyze and synthesize
– Connect, collect, and create
– Personalize
Reengineering a Business Process

6. Implement the new process-based


organization
• Create new organizational structure
• Create detailed system design
• Develop new performance-measurement systems
and skills
• Construct new system
• Deploy
• Monitor key behaviors of process operational
performance and key financial indicators

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