Business process reengineering (BPR)
What is BPR
Process - business process is a set of logically related tasks performed to achieve a defined business outcome. The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed.
Need for BPR
Customers - know what they want and are willing to pay for it) Competition - Continuous increase will result in changes to price, quality, selective service, and delivery. Change - continues to occur in people & culture, organizational structures, policies & procedures, and technology. Techniques lag behind technology - Technologically capable, but not functionally operational. Problem of the stovepipe - lack of communication between vertical functional areas. Fragmented piecemeal systems - focus on vertical functions, with the existence of redundancies of effort and actions. Integration across departmental and organizational boundaries - information and operations are needed.
Common Steps when Performing BPR
Phase 1: Begin Organizational Change Phase 2: Build the Reengineering Organization Phase 3: Identify BPR Opportunities Phase 4: Understand the Existing Process Phase 5: Reengineer the Process Phase 6: Blueprint the New Business System Phase 7: Perform the Transformation
Tools for implementing BPR
Simulation - Simulate organizational activities and scenarios Flow diagrams - Modeling of the flows of things through the organization Work analysis - Analysis of the existing process and proposed solutions Application development - Create application to support/institutionalize the change Workflow software - System controls into the hands of end-user help automate business processes and provide a quality interface between business systems
Role of information technology
Shared databases, making information available at many places Expert systems, allowing generalists to perform specialist tasks Telecommunication networks, allowing organizations to be centralized and decentralized at the same time Decision-support tools, allowing decision-making to be a part of everybody's job Wireless data communication and portable computers, allowing field personnel to work office independent Interactive videodisk, to get in immediate contact with potential buyers Automatic identification and tracking, allowing things to tell where they are, instead of requiring to be found
Disadvantages
To be done by students