Business Process Re-Engineering

Business process re-engineering
Business process re-engineering is a business management strategy, originally pioneered in the early 1990s, focusing on the analysis and design of workflows and processes within an organization.
BPR aimed to help organizations fundamentally rethink how they do their work in order to dramatically impro e customer ser ice, cut operational costs, and become world!class competitors.
BPR seeks to help companies radically restructure their organizations by focusing on the ground!up design of their business processes.
"ccording to #a enport ! a business process is a set of logically related tasks performed to achie e a defined business outcome. Re! engineering emphasized a holistic focus on business ob$ecti es and how processes related to them, encouraging full!scale recreation of processes rather than iterati e optimization of sub processes.
Business process re!engineering is also known as business process redesign, business transformation, or business process change management.

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#e elop %ision and &b$ecti es (nderstand )*isting Processes ,dentify Process for Redesign ,dentify .hange /e ers ,mplement the 1ew Process 3ake 1ew Process &perational ) aluate the 1ew Process &ngoing .ontinuous ,mpro ement
Reengineering is the fundamental rethinking and radical redesign of business processes to achie e dramatic impro ements in critical contemporary measures of performance such as cost, 6uality, ser ice and speed.
Process is a structured, measured set of acti ities designed to produce a specified output for a particular customer or market. ,t implies a strong emphasis on how work is done within an organization
7 the fundamental rethinking and radical redesign of the business processes to achie e dramatic impro ements in critical, contemporary measures of performance, such as cost, 6uality, ser ice and speed8.
)*amples of BPR
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&ne 9indow :er icing in Banks Railway Reser ation :ystem &pening of .entral Processing .ells
Applying BPR in an Orgaisation

1. ;he most important action in applying BPR is the company<s strategic goal to pro ide customer oriented ser ices. BPR is a techni6ue used to implement this type of organizational structure. '. "nother ery important factor for implementing BPR, is the enabling role of Information Technology. ;he way that businesses are organized around departments is ery logical. ;he ob$ecti e remains 9e can work together e en though we are located in different places.
mpowering people. )mpowerement means gi ing people the ability to do their work= the right information, the right tools, the right training, the right en ironment, and the authority they need. ,nformation systems help empower people by pro iding information, tools and training.
Pro!iding Information. Pro iding information to help people perform their work is a primary purpose of most information systems although they pro ide information in many different ways. :ome systems pro ide information that is essential in informing a business process, such as the prices used to create a customer<s bill at a restaurant. &ther systems pro ide information that is potentially useful but can be used in a discretionary manner, such as medical history information that different doctors might use in different ways.
Pro!iding Tools. ,n addition to pro iding the right information, empowering people means gi ing them the right tools. .onsider the way planning analysts produce consolidated corporate plans based on plans of indi idual di isions and departments. ,f the plans are submitted on paper, it is a ma$or task to add up the numbers to determine the pro$ected corporate bottom line. 9hen the plan is changed during a negotiation process, the planning analyst has to recalculate the pro$ected results. 9ith the right tools, the numerical parts of the plans arri e in a consistent, electronic format permitting consolidation by a computer. ;his lea es the analyst free to do the more producti e work of analysing the 6uality of the plan.
Pro!iding Training. :ince information systems are designed to pro ide the information needed to support desired work practices, they are often used for training and learning.
liminating "nproducti!e "ses of Time. ,nformation systems can reduce the amount of time people waste doing unproducti e work. " study of how professionals and managers at 10 leading (.:. corporations spent their time concluded that many professionals spent less than half of their work time on acti ities directly related to their functions.
liminating "nnecessary Paper. &ne common way to impro e data processing is to eliminate unnecessary paper. "lthough paper is familiar and con enient for many purposes, it has ma$or disad antages. ,t is bulky, difficult to mo e from place to place, and e*tremely difficult to use for analysing large amounts of data. :toring data in computerized form takes much less physical space and destroys fewer forests,
liminating "nnecessary #ariations in the Procedures and $ystems. ,n many companies, separate departments use different systems and procedures to perform essentially similar repetiti e processes, such as paying employees, purchasing supplies, and keeping track of in entories. "lthough these procedures may seem ade6uate from a totally local iewpoint, doing the same work in different ways is often inefficient in a global sense. 9hene er the systems must change with new technology, new regulations, or new business issues, each separate system must be analysed separately, often by someone starting from scratch.
%inimi&ing the Burden of Record 'eeping( #ata >andling, and ?eneral &ffice 9ork. :ince processing data is included in most $obs, impro ing the way people process data is an ob ious place to look for information system applications. @ocus on basic data processing tasks= Reducing the burden of record keeping means being more efficient and effecti e with the si* components of data processing. ;hose components are capturing, transmitting, storing, retrie ing, manipulating, and displaying data.
BPR assumes that the current processes in a business are inapplicable and suggest completely new processes to be implemented by starting o er. :uch a perspecti e enables the designers of business processes to disassociate themsel es from today<s process, and focus on a new process.
BPR characteristics - outcomes

:e eral $obs are combined into one. #ecision!making becomes part of the $ob of employees Aemployee empowermentB. :teps in the processes are performed in natural order, and se eral $obs get done simultaneously. Processes ha e multiple ersions. ;his enables the economies of scale that result from mass production, yet allows customization of products and ser ices.

9ork is performed where it makes the most sense. .ontrols and checks and other non! alue!added work are minimized. Reconciliation is minimized by cutting back the number of e*ternal contact points and by creating business alliances. " single point of contact is pro ided to customers. " hybrid centralizedCdecentralized operation is used.
BPR is achie ing dramatic performance impro ements through radical change in organizational processes, rearchitecting of business and management processes. ,t in ol es the redrawing of organizational boundaries, the reconsideration of $obs, tasks, and skills. ;his occurs with the creation and the use of models, whether those be physical models, mathematical, computer or structural models,
;he whole process of BPR in order to achie e the abo e mentioned e*pected results is based on key steps!principles which include redesign, retool, and reorchestrate. ;he + Rs of Re!engineering
The ) Rs of Re-engineering
R * $I+, :implify :tandardize )mpowering )mployee ship ?roupware 3easurements R TOO 1etworks ,ntranets )*tranets 9orkflow R OR./ $TRAT :ynchronize Processes ,; >uman Resources
0undamental Transformation
;he table following presents the changes in that occur in the business under BPR.
Ob1ecti!es of BPR
9hen applying the BPR management techni6ue to a business organization the implementation team effort is focused on the following ob$ecti es= .ustomer focus. .ustomer ser ice oriented processes aiming to eliminate customer complaints. $peed. #ramatic compression of the time it takes to complete a task for key business processes. @or instance, if process before BPR had an a erage cycle time 0 hours, after BPR the a erage cycle time should be cut down to half an hour. .ompression. .utting ma$or tasks of cost and capital, throughout the alue chain. &rganizing the processes a company de elops transparency throughout the operational le el reducing cost. @or instance the decision to buy a large amount of raw material at 00D discount is connected to ele en cross checkings in the organizational structure from cash flow, in entory, to production planning and marketing. ;hese checkings become easily implemented within the cross!functional teams, optimizing the decision making and cutting operational cost.
Ob1ecti!es of BPR
0le2ibility. "dapti e processes and structures to changing conditions and competition. Being closer to the customer the company can de elop the awareness mechanisms to rapidly spot the weak points and adapt to new re6uirements of the market. 3uality. &bsession with the superior ser ice and alue to the customers. ;he le el of 6uality is always the same controlled and monitored by the processes, and does not depend mainly on the person, who ser icing the customer. Inno!ation. /eadership through imaginati e change pro iding to organization competiti e ad antage. Producti!ity. ,mpro e drastically effecti eness and efficiency.
%ethodology of a BPR pro1ect implementation

,n order to implement BPR to an enterprise the followings key actions need to take place=

:election of the strategic Aadded! alueB processes for redesign. :implify new processes ! minimize steps ! optimize efficiency !AmodelingB. &rganize a team of employees for each process and assign a role for process coordinator. &rganize the workflow ! document transfer and control. "ssign responsibilities and roles for each process. "utomate processes using ,;A,ntranets, )*tranets, 9orkflow 3anagementB ;rain the process team to efficiently manage and operate the new process ,ntroduce the redesigned process into the business organizational structure
#ision
#ision means the complete articulation of the future state Athe alues, the processes, structure, technology, $ob roles and en ironmentB
#ision
@or creating an effecti e mentioned below.
ision, basic steps are
the right combination of indi iduals come together to form an optimistic and energized team clear ob$ecti es e*ist and the scope for the pro$ect is well defined and understood the team can stand in the future and look back, rather than stand in the present and look forward the ision is rooted in a set of guiding principles.
$tages of BPR
"ll methodologies could be di ided in general Emodel< stages=
The n!ision stage= the company re iews the e*isting strategy and business processes and based on that re iew business processes for impro ement are targeted and ,; opportunities are identified. The Initiation stage= pro$ect teams are assigned, performance goals, pro$ect planning and employee notification are set. The *iagnosis stage4 documentation of processes and sub!processes takes place in terms of process attributes Aacti ities, resources, communication, roles, ,; and costsB.
$tages of BPR
The Redesign stage= new process design is de eloped by de ising process design alternati es and through brainstorming and creati ity techni6ues. The Reconstruction stage= management techni6ue changes occur to ensure smooth migration to the new process responsibilities and human resource roles. The !aluation stage= the new process is monitored to determine if goals are met and e*amine total 6uality programs.

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Business process re-engineering