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BPR Assignment 1

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    UNIVERSITY OF PETROLEUM&ENERGY STUDIES

    DEHRADUN

    INNOVATION IS A MUST FOR BPR IN TRANSPORT SECTOR

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    INTRODUCTION TO BPR

    Business Process Re-engineering (BPR) is the fundamental re-thinking and radical re-

    design that is made to an organization's existing resources. It involves redesigning the way in

    which a work is done so as to support the organization's mission in a better way and to

    reduce costs. Reengineering processes is initiated by assessment of the organization's

    mission, strategic goals, and customer needs. Re-engineering recognizes that an

    organization's business processes are usually fragmented into sub-processes and tasks that are

    carried out by several specialized functional areas within the organization and optimizing the

    performance of subprocesses can result in minor benefits but cannot yield dramatic

    improvements if the process itself is inefficient. Hence Re-engineering focuses on re-

    designing the process as a whole in order to achieve the greatest possible benefits to the

    organization and their customers. This drive for realizing dramatic improvements by

    fundamentally re-thinking how the organization's work should be done distinguishes re-

    engineering from process improvement efforts that focus on functional or incremental

    improvements.

    Evolution of BPR

    Michael Hammer, a former professor at the Massachusetts Institute of

    Technology (MIT), published an article in the Harvard Business Review in 1990 on BPR. In

    that article he claimed that the major challenge for managers was to obliterate non-value

    adding work, rather than using technology for automating the work. This statement indicated

    that focus was made on the usage of technology for automation of existing processes rather

    than using it as an enabler for eradicating the existing non-value adding work. The article

    pointed out that most of the works that are being done do not add any value for customers,

    and those works should be removed and should not accelerated through automation.

    Companies should reconsider their processes in order to maximize customer value, while

    minimizing the consumption of resources required for delivering their product or service.

    This idea was rapidly adopted by a huge number of firms, which were striving for

    renewed competitiveness, which they had lost due to the market entrance of foreign

    competitors, their inability to satisfy customer needs, and their insufficient cost structure.

    During the following years, a fast growing number of publications, books as well as journal

    articles, were dedicated to BPR, and many consulting firms embarked on this trend and

    developed BPR methods. However, the critics were fast to claim that BPR was a way to

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    dehumanize the work place, increase managerial control, and to justify downsizing. Despite

    the critics, reengineering was adopted at an accelerating pace and by 1993, as many as 65%

    of the Fortune 500 companies claimed to either have initiated reengineering efforts, or to

    have plans to do so. This trend was fueled by the fast adoption of BPR by the consulting

    industry.

    BPR PROCESS

    BPR relies on a different school of thought when compared to that of continuous

    process improvement. Reengineering assumes the current process is irrelevant , doesn't work,

    or is broken. Such a clean slate perspective enables the designers of business processes to

    disassociate themselves from the existing process and focus on a new process.

    Such an approach is pictured in the figure given below. The process consists of

    i. Defining the scope and objectives of reengineering project.

    ii. Going through a learning process (with customers, employees, competitors and non-

    competitors, new technology).

    iii. Creating a vision for the future and design new business processes.

    iv. Creating a plan of action based on the gap between the current processes, technologies

    and structures, and where the proposed change is to be done.

    v. Implementing of the proposed solution.

    Over time many derivatives of radical, breakthrough improvement and continuous

    improvement have emerged that attempt to address the difficulties of implementing major

    change in corporations. It is difficult to find a single approach exactly matched to a particular

    company's needs, and the challenge is to know what method to use when, and how to pull it

    off successfully such that bottom-line business results are achieved.

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    THE OBJECTIVES OF BPR

    Minimizing the threat from the rival firms

    A ttaining sustainable competitive advantage

    A chieving cost saving in the longer run Increasing flexibility and adaptability to change

    Improving Efficiency and effectiveness

    PROJECT PHA SES R EQUIRED FOR SUCCESSFUL BPR:

    Phase 1: Beginning Organizational Change

    A ssessing the current state of the organization Explaining the need for change Illustrating the desired state Creating a communications campaign for change

    Phase 2: Build the Reengineering Organization

    Establishing a BPR organizational structure Establishing the roles for performing BPR

    Choosing the personnel who will reengineer

    Phase 3: Identifying BPR Opportunities

    Identifying the core/high-level processes

    Recognizing potential change enablers

    Gathering performance metrics within industry

    Gathering performance metrics outside industry

    Selecting processes that should be reengineered

    Prioritizing selected processes

    Evaluating pre-existing business strategies

    Consulting with customers for their desires

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    Determining customer's actual needs

    Formulating new process performance objectives

    Establishing key process characteristics

    Identifying potential barriers to implementation

    Phase 4: Understanding the Existing Process

    Understanding why the current steps are performed

    Modelling the current process

    Understanding how technology is currently used

    Understanding how information is currently used

    Understanding the current organizational structure

    Comparing current process with the new objectives

    Phase 5: Reengineer the Process

    Ensuring the diversity of the reengineering team

    Questioning of current operating assumptions

    Brainstorming through change levers

    Brainstorm through BPR principles

    Evaluating the impact of new technologies

    Considering the perspectives of stakeholders

    Using customer value as the focal point

    Phase 6: Blueprint the New Business System

    Defining the new flow of work

    Modelling the new process steps

    Modelling the new information requirements

    Documenting the new organizational structure

    Describing the new technology specifications

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    Recording the new personnel management systems

    Describing the new values and culture required

    Phase 7: Perform the Transformation

    Developing a migration strategy

    Creating a migration action plan

    Developing metrics for measuring performance during implementation

    Involving the impacted staff

    Implementing in an iterative fashion

    Establishing the new organizational structures A ssessing current skills and capabilities of workforce

    Mapping new tasks and skill requirements to staff

    Re-allocating workforce

    Developing a training curriculum

    Educating staff about the new process

    Educating the staff about new technology used

    Educating management on facilitation skills

    Deciding how new technologies will be introduced

    Transitioning to the new technologies

    Incorporating process improvement mechanisms

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    INNOVATION

    The term innovation is derived from the Latin word innovates, which is the noun

    form of innovare "to renew or change,". A lthough the term is broadly used, innovation

    generally refers to the creation of better or more effective products, processes, technologies,

    or ideas that are accepted by markets, governments, and society. Innovation differs

    from invention or renovation since innovation generally signifies a substantial positive

    change when compared to incremental changes. It is closely related to BPR since the concept

    of both remains similar in many aspects.

    INNOVATION IN TRANSPORT SECTOR

    In the present situation, requirements of faster transit times and quality of service

    from both travellers and industries have become driving forces of innovation in the transport

    sector and there are many challenges faced to achieve this. The transport sector is knowninnovations in the past that have been radical. They have led to a very significant increase in

    the average speed of our journeys. This intensive focus on speed is a mistaken perspective.

    Each mode of transport has its maximum, or rather its optimum, speed which cannot be

    overstretched under normal business conditions. A irliners cannot get too close to the sound

    barrier, high speed trains are unlikely to exceed 350 kmph, and highway and motorway

    speeds are not set to increase. Gains in speed today do not therefore occur within a particular

    mode of transport in existence but by substituting a fast mode for a slower one this can be

    achieved by innovations like magnetic levitation trains, supersonic aircraft and touristspacecraft. The main innovations in transport should be less concerned with improving the

    speed of carriage than the quality and regularity of the service.

    EVOLUTION OF TRANSPORT INNOVATION

    A s far as freight is concerned, one of the major innovations in the past 40 years has

    been the containerisation. It is a relatively commonplace product whose use first expanded

    during the Vietnam war, when the A merican army had to transport supplies to its troops and

    those of its allies. While this metallic box seemed somewhat inauspicious, it was central to awhole set of innovations which exemplify both present-day and future innovations in freight

    transport.

    A n innovation generally occurs in clusters, taking on board other components in the transport

    chain, and borrowing from aspects of science and technology outside the transport sector. A s

    regards the container, therefore, other innovations like the development of increasingly huge

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    container ships, the modernisation of ports, gantry ship loaders and container cranes came to

    enhance further its potential for market penetration. The evolution of container is a good

    illustration of how the improvements to be expected are not essentially concerned with speed.

    The future belongs to innovations that will result in seamless transport. Innovation will

    therefore occur in the least visible part of transport, namely its information systems. There area lot of examples where innovations have played a major role in re engineering of the system.

    SUPERBUS An innovative transport system :

    Superbus is an innovation from the Dutch with a top speed of 155 MPH. It is believed

    that this could be an efficient way to reduce congestion at a lower cost than building new

    trains or other public transit systems. It is made of carbon fiber with an electric motor; the

    Superbus is the same width and length as a normal bus, but sits much lower to the ground. It

    seats 23 passengers in a luxury setting, with multimedia controls in each comfortable seat.

    Fig.1 Super Bus

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    INNOVATIONS BY AGARWAL PACKERS AND MOVERS

    A garwal Packers & Movers a have gifted the logistic industry with many new

    innovations. They have developed new packing and transportation techniques like double

    home carriers, dry cargo container, perfect boxes, coat cartoons and car carriers.

    Double door home carrier

    Double door home carriers offer more security. This particular kind of carrier has

    double door that offer more security to the goods. This very useful in transporting precious

    possessions, clients can put their own lock and then A garwal Packers & Movers put a

    separate lock on the exterior door. This is also very handy if the client wants to share the cost

    with a second party as two doors create separate compartments.

    Fig. 2 Double Door Home Carriers

    Dry cargo container :

    Dry cargo container is another gift from A grawal Packers & Movers to the logistic

    industry. They are specially designed iron container in different sizes. Goods fit snugly, they

    are not jostled and this makes the goods completely safe from any kind of damage during

    transportation. Rubber sheets are placed under the unit and they act as shock absorbers.

    Tamper proof seals and locks act as the final nail in the coffin in keeping the goods

    completely dry and wet proof.

    Packing Boxes:

    A garwal Packers & Movers after doing innovation with the outer body of the trailers

    and trucks shifted their attention towards packing boxes. The first innovation that they made

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    INNOVATIVE SOLUTION TO CONTROL LOGISTICS COSTS AT MAHINDRA

    Mahindra did a remarkable innovation to reduce logistics cost by bringing about a

    logistics solution to transport tractors. The company tried to increase the number of tractors

    transported per truck. Considering that all trucks were as it is being loaded fully to utilize the pay load capacity of the trucks, the company came out with an out of box thinking. A s a

    result they came up with a new process of loading the tractors in two layers instead of one.

    The picture below shows the practice before and after implementation of the innovation. Due

    to this change the transportation cost per tractor were reduced from 25% to 40% on the routes

    where implemented, depending upon the distance and volume on that route. To achieve this

    two layer loading the tyres were removed and other protruding parts of the tractors which

    were then fitted at the destination stockyards.In addition to the transportation cost saving, the

    company saved a considerable amount of Octroi for tractors dispatched from Mumbai plant.

    The company saved 4% Octroi on the parts which were not fitted before dispatch and

    therefore not brought into the plant.

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    THE MALAYSIA AIRLINES

    Malaysias national carrier, with a history stretching back over sixty years, has won

    more than 100 awards in the past decade. Through a radical programme of business

    transformation, Malaysia A irlines went from record losses in 2005 to record profits in 2007,

    and was recently awarded the 2008 Phoenix A ward by A ir Transport World magazine

    having already won the Centre of A sia Pacific A viations A irline Turnaround of the Year

    award in 2006. A s one of A sias largest carriers, Malaysia A irlines carried more than 14

    million passengers to over 100 destinations across six continents in 2007. Malaysia A irlines

    was losing record amounts of money by the end of 2005, and with only a few months

    liquidity on hand it launched a comprehensive and ambitious Business Turnaround Plan,

    with the focus on financial survival in 2006, profit generation in 2007, and profitable growth

    in 2008 and beyond. A s part of the plan, the airline issued a competitive tender for a new

    Passenger Services System (PSS) which would enable Malaysia A irlines to offer passengers a

    more convenient, efficient and hassle free travelling experience in a cost effective manner.

    In May 2006, after having evaluated all options, Malaysia A irlines announced SIT A had won

    as its preferred partner in providing the PSS solution. The airlines was looking for more than

    just a vendor providing a new technical solution. The airline wanted a good technical solution

    like SIT A Horizon along with business knowledge and expertise to make the best use of that

    system. SIT A satisfied these conditions and hence was chosen.

    The Needs of the Malaysia Airlines

    Malaysia A irlines, having a clear idea about what it wanted to achieve with the PSS

    programme, divided the workload into five streams:

    1. Reservations

    2. E commerce

    3. E-Ticketing and DCS

    4. Revenue Integrity

    5. Fares Management

    Reservations:

    A new, more efficient and functionally rich system, to meet present industry

    standards and requirements.

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    E-Commerce:

    A llowing Malaysia A irlines to reduce distribution costs by providing a convenient,

    easy to use Internet Booking Engine.

    E-Ticketing and DCS:

    This involved moving from traditional paper to e-tickets by May 2008, in line with

    IA TA s requirements. This included an upgraded Departure Control System so that Malaysia

    A irlines could offer new self-service options to passengers, including kiosk and web check-

    in.

    Revenue Integrity :

    This was to authenticate every booking ensuring it produces an actual passenger upon

    departure, avoiding the revenue leakage which occurred in the past.

    Fares Management:

    This was to enable Malaysia A irlines to distribute fares more efficiently around the

    world, and to improve pricing decisions. A critical success factor was the ability to integrate

    all five work streams with other existing systems in place throughout Malaysia A irlines.

    Solutions Provided by SITA:

    In a first for the region, and with a contract worth more than US$ 80 million over a

    ten-year period, SIT A has been undertaking a comprehensive overhaul of Malaysia A irlinesexisting passenger applications and services, covering the five work streams reservations, e-

    commerce, ticketing and departure control, revenue integrity and fares management. To date,

    SIT A has met the needs of Malaysia A irlines by implementing several Horizon solution

    components including:

    Implementing SIT A Ticketing and DCS around existing passenger applications, saving

    Malaysia A irlines millions of dollars;

    Re-engineering Malaysia A irlines fares strategy, including fares workflow, competitive

    monitoring, and effective distribution, which has been critical to the outstanding success

    achieved with.

    Implementing revenue integrity and revenue protection, enabling Malaysia A irlines to

    prevent the waste of over 120,000 segments in a single quarter at the beginning of 2008

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    equating to improved inventory management with significant cost savings and revenue

    upside.

    Introducing passenger self-service initiatives, including online booking and both kiosk

    and web check-in, to improve customer service and reduce costs. With SIT A s help,

    Malaysia A irlines cut over to Bar-Coded Boarding Passes in November 2007 and

    Common Use Self-Service in December 2007 at Kuala Lumpur International A irport.

    The success of online booking has been one of the most spectacular in all of A sia and

    has resulted in substantial savings in GDS distribution costs, successfully moved

    Malaysia A irlines to 100% SIT A e-ticketing within the I A TA deadline. With SIT A s

    help, Malaysia A irlines was able to complete the transition to e-ticketing in just 11

    months, compared to the conventional three-year process.

    SINGAPORE LAND TRANSPORT AUTHORITY Public transportation requirements in Singapore are immense, with nearly 3 million

    people travelling by bus and 1.6 million people travelling by train every day. Coupled with an

    expected population increase of 50 percent over the next 10 years, Singapores Land

    Transport A uthority (LT A ) realized the need to develop a new fare processing system that

    would allow any card issuer to issue cards for any part of Singapores public transport

    system. The LT A wanted to understand the demands placed on the entire transport network in

    order to configure the most convenient routes, schedules and fares so that public transport

    would be seen as more attractive for passengers. Since the implementation of the new

    Symphony for e-Payment (SeP) system has been implemented, the Singapore LT A has seen

    an 80 percent reduction in revenue leakage from lost transactions that were previously due

    to systems issues, a 2 percent reduction in the overall lifecycle cost of the fare processing

    system, and, most impressively, a doubling of performance capacity to the current level of 20

    million fares per day. The new system also allows the Singapore LT A to review the overall

    commuter base of Singapore and create profiles on routes that are commonly taken, main

    connection bases, and analyze how patterns change over time. With this insight into the

    demand on the transportation network, the LT A is able to further enhance the performance

    and, in turn, the attractiveness of public transport for residents of Singapore.

    Improving the End-to-End Transportation Experience

    A second challenge flowing from the existing transportation system was that its users

    and customers often were presented with a limited range of choices for moving their goods or

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    themselves from point to point. For instance, flight delays due to poor capacity planning or

    weather delays routinely strand passengers in airports, leaving them angry and dissatisfied

    with the airlines. A s a result, system operators can lose customer loyalty and suffer from

    weakened brands. A smarter transportation system could help transportation system operators

    and service providers differentiate their customer service offerings from their competitors. Itwould give them a wider range of options to present to their customers and help them to

    improve their customers end-to-end transportation experience. In addition to more choice for

    their customers, smarter systems would also improve the customer experience by reducing

    delays in the system because demand is accurately predicted. The customer experience would

    also be improved as customer needs and preferences are anticipated and incorporated into

    individual customer travel or transport plans. This could extend into the journey itself, so that

    individual needs could be addressed throughout the course of the journey. A lso, the smarter

    systems ability to connect adjacent service providers allows them to collaborate to make a

    movement between providers seamless during a complex journey. With better experiences,

    they gain more loyal customers who become advocates for the brand, which can increase

    their revenue and market share on the top line, as well as improving bottom-line results,

    reducing cost by optimizing capacity across adjacent providers.

    BAGGAGE HANDLING SYSTEM AT AMSTERDAMS SCHIPHOL AIRPORT

    A msterdams Schiphol airport serves the third-largest international air travel market

    in the world and is one of Europes largest airports with more than 40 million passengers per

    year and with approximately 40 percent of these passengers transferring between flights.

    Schiphol airport has been planning for expected future growth in passenger numbers, and to

    achieve this, a new baggage hall is being built with a state-of-the-art baggage management

    system. A s any small delay or failure in the system would cause significant passenger

    discomfort, the priority of the baggage system is that it is robust and fail-safe. The system

    itself uses RFID and robot handling, and enables the airport to control and track each bag

    using state-of- the-art high availability techniques, analytics and software. This helps to

    monitor baggage handling performance, quickly resolve issues, and identify areas for further

    improvement. The benefits that Schiphol airport will see with their new baggage management

    system will not only be monetary (in terms of lost baggage costs), but also with customer

    satisfaction. Improving speed, efficiency and reliability of baggage handling will reduce

    passenger transfer times and the time passengers need to wait in waiting halls and baggage

    reclaim areas.

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    INNOVATION AT COSCO

    A n illustration of the ability of a more intelligent system to improve operational efficiency

    while reducing environmental impact can be seen with the China Ocean Shipping Company

    (COSCO). COSCO is one of Chinas largest shipping conglomerates, owning or operating

    fleets of more than 800 modern merchant vessels with a total capacity of more than 500

    million dead weight tons, a shipping volume of more than 400 million tons, and operating in

    more than 1,500 ports in 160 countries and territories globally. With this global coverage,

    huge network of distribution channels and continued boom in shipping demand, COSCO

    found the need to optimize the development of its distribution centre resources to strengthen

    its global competitiveness. Fundamental to its optimization initiative was the goal of not

    affecting service levels while also preparing for future business growth in the areas of higher

    value logistics services, such as warehousing, supply chain management and port services.

    COSCO strengthened its business growth through acquiring other logistics service providers,

    however, as a consequence, the company inherited redundant facilities and shipping routes,

    which caused inefficiencies in areas such as inventory management. In order to provide a

    truly interconnected and global service, a smarter transportation system was required.

    COSCO implemented a supply chain optimization solution based on algorithms to provide

    data-driven management recommendations for the five major logistic areas of product

    development, sourcing, production, warehousing, and distribution. By taking this approach,

    COSCO aimed to streamline the number and placement of facilities in its distribution

    network, enabling more efficient and sustainable logistics processes. Through the application

    of the solution, and as a result of analysis and action on the recommendations from the

    solution supplier, COSCO was able to implement a range of operational efficiency and

    environmental impact reduction initiatives. This transformation of COSCOs global supply

    chain not only benefited the companys bottom line but also allowed COSCO to put into

    motion environmentally sustainable practices. A s a member of the United Nations Global

    Compact, this application of a smarter transportation solution supports the membership

    obligations and helps the company adhere to its own Corporate Social Responsibilityachievements.

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    WIRELESS CONDITION-BASED MONITORING IN THE RAIL INDUSTRYIn development by IBM for the rail industry is a system of wireless sensors attached

    to the rolling stock called MOTES, which can communicate with each other and with a

    control centre using a mesh network. The sensors monitor the condition and location of the

    equipment. This system has been successfully trialed in the rail industry to provide a smarter

    way to track and monitor rolling stock. The current method to track rolling stock is through

    the use of passive RFID tags that are attached to the rolling stock. When the rolling stock

    passes a wayside reader, it is identified and noted. One key limitation of the current system is

    that if a rail car does not move past a reader, it is not tracked. A lso, high infrastructure costsdue to the thousands of miles of track where a wayside reader is required, as well as

    replacement costs for equipment due to the harsh operating environment, are seen. The

    MOTE sensors are likewise attached to the rolling stock but differ from RFID technology in

    that they can collect and transmit information using a variety of communication networks,

    thereby removing the need for thousands of wayside readers. In addition to location, MOTES

    can also record and transmit other important information, such as the condition or

    temperature of key components. Rail operators are able to readily identify the location and

    condition of rolling stock, enabling better asset utilization and predictive maintenance.A nother interesting development in the rail industry is the trialing of IBMs first-of-a-kind

    project to provide a safer working environment in train yards. In FO A K projects, IBM

    researchers join with clients to test new technologies on real business problems. Train yards

    are very complex industrialized and dangerous workplaces, with many tracks and many trains

    going back and forth. Workers have frequently suffered loss of limb or even life if they

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    happen to be in the wrong place at the wrong time. Using digital video surveillance, sensors,

    and RFID technology, IBM is developing a system to monitor train yards and track the

    location of workers to identify potential safety breaches. Video technology can also be used

    to supplement or replace the physical inspection of locomotives, rail cars, and fixed

    equipment. It is also possible to leverage technology to test rail tracks themselves to sensewear and tear. A dvanced analytic systems aggregate data from multiple sources to identify

    and mitigate risks and to alert operators.

    REQUIREMENTS FOR IMPLEMENTING THE INNOVATIONS

    Though Innovation is a must to implement BPR in the transport sector, there are

    certain aspects that are to be taken care of to make the Re engineering successful. The aspects

    to be considered are

    1) Establishing clear direction and procedures for the innovation process

    The success of a BPR rests with the way in which the directions are given to the

    members. A clearly defined set of directions can help the members understand what actually

    is to be done and they can easily work towards the goal.

    2) Improved communications

    It should be made sure that everyone with an interest in the potential innovation gets a

    chance to provide input. The organizations should be connected with the researchers andinnovators and the managers would mandate customer participation in project progress and

    meetings so that ideas can be brought in from all directions to make the improvement

    effective.

    3) Executive sponsorship and management support

    It is very important to have management support to implement BPR since it is the top

    management which ultimately has to approve or sanctions grants, funds, etc. Innovation

    begins with executive-level commitment and development of a work environment that

    embraces innovation. Innovation needs strong executive support & successful pilots/demos.

    Thus leadership has to make innovation a priority and then hold people accountable .

    4) Empowerment of people and finding champions for each innovative idea/project

    Innovation champions are needed in the innovation policy and procedures area.

    Otherwise, innovations will fall flat or will not reach full potential. Research staff have to be

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    empowered to accomplish innovation. It is necessary to have champions at high-levels in

    order to create a culture for innovation in an organization as well as product-level champions

    to overcome resistance to change. People should be given some freedom to try new things.

    5) Creating incentives for innovators

    Creating incentive programmes will be of great use to bring out innovative ideas from

    the employees.

    6) Demonstrating the benefits of innovation

    The benefits of the concept must be proven to satisfy the real user needs. Innovation

    advocates and end-users must have clear understanding of the problem and value added by

    innovation. The importance of an innovation must be clarified up front to all stakeholders

    Case studies should be used to show how other state agencies have implemented an

    innovation and show how it has improved their business.

    7) Managing risk and change

    Risk is associated with any radical change that is proposed to be brought in since it

    involves redesigning the entire process. Hence there should be a balance that has to be

    maintained between the risk and the change that is to be carried out.

    CONCLUSION

    Though innovation is a must for BPR in transport sector, researchers are adventurous,

    knowledge seekers but the engineers have to build safe, reliable systems that take time and

    effort to design, build, and test. Planners need to plan in an evolutionary manner that takes

    into consideration market demand and socio-economic and political factors. Smart

    confluence of both approaches will ensure that exciting innovations get created and

    implemented. Resistance to change and lack of political will are some of the most serious

    barriers to innovation. The highest-rated enabler of innovation is product matched user

    need. It was also evident that innovation, whether disruptive or sustaining, requires

    champions of innovation at all levels of the organization to be successful. It is evident thatmanaging risk and change is critical for the success of innovation. In the public sector, most

    failures are highly publicized and criticized. A single innovation failure can outstand, outtalk

    and overshadow dozens of successful ones. Therefore, creating the ability to take calculated,

    reasonable risks is required at all public agencies in the transportation sector.

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    REFERENCES

    Frost., Sullivan. A smarter transportation system for the 21st century. Retrieved fromhttp://www.slideshare.net/IBMGovernment/transportation-technology-innovations , Retrievedon September 6, 2011 from http://www.slideshare.net.

    Orcutt., L., H. Barriers and Enablers of Innovation: A Pilot Survey of TransportationProfessionals. Retrieved from http://www.dot.ca.gov/newtech/researchreports/trb_reports/

    survey-paper-11.pdf , Retrieved on September 8, 2011 from http://www.dot.ca.gov.

    Moorjani., S. Supply Chain Process Re-engineering at Mahindra & Mahindra (FarmEquipment Sector). Retrieved from http://www.bp-council.org/wp-content/uploads/Papers_2007/presented/Paper_SCM_Reengineering_at_Mahindra.pdf , Retrieved on September 8,2011 from http://www.bp-council.org.

    Ranger., L. In search of innovative policies in the transport sector. Retrieved fromhttp://www.internationaltransportforum.org/pub/pdf/10FP08.pdf , Retrieved on September 8,2011 from http://www.internationaltransportforum.org .