Business Process Reengineering

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Business Process & Process Re - Engineering@ Oct 2009 Prof. Mithilesh Agrawal The greatest danger for most of us is notThat our aim is too high and we miss it, but that it is too low and we reach it.Our Agenda@ Oct 2009 Prof. Mithilesh AgrawalOne of the Biggest mistakes you can make in life is toaccept the known and resist the unknown. You should, infact, do exactly the opposite.

Challenge the known and embrace the unknown Introduction to Business Process What is BPR? Overview of BPR Why BPR? Need of BPR Changes resulting by BPR Process / System Architecture Changes resulting from BPR ConclusionBusiness Process@ Oct 2009 Prof. Mithilesh AgrawalBP generally termed as the Sequence of Activities held in the organization A measured & structured group of activities It is a sequence of rationally linked activities, performed to meet definite organizational objectives. Processes have customers & processes are not limited by organizational boundaries (across or between organizational subunits).

Business Process@ Oct 2009 Prof. Mithilesh Agrawal For Ex: Developing a new product Ordering goods from a supplier Creating a marketing plan Insurance claim processing

BP example can be considered as the transactions held between two companies, or between companies & customerBusiness Process@ Oct 2009 Prof. Mithilesh Agrawal Three aspects by which processes may be defined. Objects: Processes manipulate objects. Entities: Processes occur between organizational entities. (i.e. Inter organizational, inter functional, inter - personal Activities: Managerial or Operational

BP can be defined by the Objects, Entities & Activities in an OrganizationHammer and Champy (1993) define BPR as 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 SpeedWhat is BPR?@ Oct 2009 Prof. Mithilesh AgrawalBPR is the rethinking & redesign of BP to improve performanceBusiness Process Reengineering is

The analysis and redesign ofworkflow and processes within and between the Organizations to improve the performanceWhat is BPR?@ Oct 2009 Prof. Mithilesh AgrawalBPR is the rethinking & redesign of BP to improve performanceReengineering can be done atIndividual Process LevelOrganization LevelPerformance improvements are achievedOperational ProcessesMaximizing Value added ContentMinimizing Production Costs.Overview of BPR@ Oct 2009 Prof. Mithilesh AgrawalBPR is the rethinking & redesign of BP to improve performanceReengineering involves:Rewriting organizations job descriptionsMaking multi functional skills & teamwork priority.Reviewing reward system.Designing & testing new ISInstalling new measures of performance.Overview of BPR@ Oct 2009 Prof. Mithilesh AgrawalBPR is the rethinking & redesign of BP to improve performanceProblem StatementWhy BPR? @ Oct 2009 Prof. Mithilesh AgrawalBPR is the rethinking & redesign of BP to improve performanceThe Problem is that we are governing in the 21st century with Processes and Organizations designed in the 19th Centuryto work well in the 20th Century! We need entirely different PROCESSES & ORGANIZATIONS for Governance in the 21st Century All processes are simple & efficient when originally designedUser-friendlyDeploying contemporary tools & techniquesProcesses become complex & inefficient with passage of timewith addition of sub-processes to handle exceptionswith changes in environment andwith increase in customer expectations with increase in volumesProblem restated@ Oct 2009 Prof. Mithilesh AgrawalBPR is the rethinking & redesign of BP to improve performanceCustomersDemandingSophisticationChanging needsCompetitionLocal & GlobalChangeTechnologyCustomer PreferencesWhy BPR?@ Oct 2009 Prof. Mithilesh AgrawalBPR is the rethinking & redesign of BP to improve performanceExtensive information exchanged, data redundancy and re keying.Huge inventory, buffers & other assets.Too many controls and checksRework, Iteration and Duplication of work.Complexity, Exceptions and Special cases.Need of BPR@ Oct 2009 Prof. Mithilesh AgrawalBPR is the rethinking & redesign of BP to improve performanceCustomer FriendlinessMeeting customer requirement closelyProviding convenienceEffectivenessOutcome based approachGaining loyalty of customersImage & brandingEfficiencyTime, Cost & QualityGoals of BPR@ Oct 2009 Prof. Mithilesh AgrawalBPR is the rethinking & redesign of BP to improve performanceProcess / System Architecture@ Oct 2009 Prof. Mithilesh Agrawal

Envision new processesSecure management supportIdentify reengineering opportunitiesIdentify enabling technologiesAlign with corporate strategyInitiating ChangeSet up reengineering teamsOutline performance goalsProcess DiagnosisDescribe existing processesMethodology@ Oct 2009 Prof. Mithilesh AgrawalBPR is the rethinking & redesign of BP to improve performanceProcess redesignDevelop alternative process scenarioDevelop new process designDesign HR architectureSelect IT platformDevelop overall blueprint & gather feedbackReconstructionDevelop / install IT SolutionsEstablish process changesMethodology@ Oct 2009 Prof. Mithilesh AgrawalBPR is the rethinking & redesign of BP to improve performanceProcess monitoringPerformance measurement, including time, quality, cost, IT performance.Link to continuous improvement.Loop back to diagnosisMethodology@ Oct 2009 Prof. Mithilesh AgrawalBPR is the rethinking & redesign of BP to improve performanceWork unit changeFrom functional department to process teamJob changeFrom simple task to multi dimensional workPeople role changeFrom controlled to empoweredJob preparation changeFrom training to educationChanges resulting from BPR@ Oct 2009 Prof. Mithilesh AgrawalBPR is the rethinking & redesign of BP to improve performanceMeasures of performance & compensation changeFrom activity to resultsCriteria for career advancement changeFrom performance to abilityValues changeFrom protective to productiveOrganizational structure changeFrom hierarchical to flatChanges resulting from BPR@ Oct 2009 Prof. Mithilesh AgrawalBPR is the rethinking & redesign of BP to improve performanceBPR is about radical redesign of business processesBPR brings Efficiency, Effectiveness & Customer friendlinessBPR needs adoption of structured methodology.Top management commitments and change management are critical to success.Conclusion@ Oct 2009 Prof. Mithilesh AgrawalBPR is the rethinking & redesign of BP to improve performance