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Reengineering Infsy 540 Dr. R. Ocker. Reengineering n "Reengineering is the fundamental rethinking and radical redesign of business processes to achieve.

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Presentation on theme: "Reengineering Infsy 540 Dr. R. Ocker. Reengineering n "Reengineering is the fundamental rethinking and radical redesign of business processes to achieve."— Presentation transcript:

1 Reengineering Infsy 540 Dr. R. Ocker

2 Reengineering n "Reengineering is 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."

3 What is a business process?

4 Business process n Set of related tasks performed to achieve a defined work product

5 Business process redesign n Goal is to rethink and streamline business processes n aim is major gains in cost, quality, time- to-market, etc. n also called business process reengineering or business reengineering or just reengineering

6 Reengineering n essence of reengineering - discontinuous thinking - break away from outdated rules and assumptions that underlie operations n reengineering requires looking at fundamental processes of business from a cross-functional perspective

7 What does the phrase mean... n ”it’s time to stop paving the cow paths"

8 Outdated business processes n stop embedding outdated processes in computerized systems n companies tend to use technology to mechanize old ways of doing business n business processes came of age in different competitive environment before advent of computer

9 Outdated business processes n much work organized as sequence of separate tasks n use complex mechanisms to track its progress n stems from Industrial Revolution when needed specialization of labor and economies of scale

10 Outdated business processes n conventional process structures are fragmented and lack integration necessary to maintain quality and service n people tend to substitute the narrow goals of their department for larger goals of process as a whole

11 IT to the rescue n use IT to radically redesign business processes in order to achieve dramatic improvements in performance n examples: Ford and MBL (mutual benefit life ins.)

12 Principles of Reengineering n 1.organize around outcomes, not tasks n have one person perform all the steps in a process n design persons job around an objective or outcome instead of a single task n 2.have those who use the output of the process perform the process

13 Principles of Reengineering n 3.subsume information-processing work into real work that produces the information n compress linear processes

14 Principles of Reengineering n 4.treat geographically dispersed resources as though they were centralized n decentralizing a resource - gives better service to those that use it n centralizing - get economies of scale n don't have to make these tradeoffs anymore - use telecommunications to get benefits of scale while maintaining benefits of flexibility and service

15 Principles of Reengineering n 5.put the decision point where the work is performed, and build control into the process –hierarchical management structure built on the assumption that people who actually do the work cannot/will not monitor and control it and that they lack knowledge and scope to make decisions about it –new principle - people who do work should make decisions and that process itself can have built-in controls

16 Principles of Reengineering n 6.capture information once at the source

17 Risky business n what are risks associated with reengineering?

18 Change n reengineering necessitates huge organizational change n no-one likes change n so need executive leadership and vision n very stressful to implement a reengineering plan

19 Uncertain Results n reengineering cannot be planned meticulously and accomplished in small and cautious steps - it's an all or nothing proposition with an uncertain result

20 Organizational Resistance n Reengineering teams find that making progress in early organizing and creative analysis stages is easy and exciting. n Later work of development and implementation is much more difficult -- organizational resistance

21 Many failures n one big reason for failure is due to not making IS a real partner in reengineering

22 What is role of IT in reengineering? n IT is an essential enabler in reengineering - supports redesigned business processes and facilitates cross-functional work flow n IS org. - has large-scale project management skills

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