2. The Development of BPR Pertemuan 6 Matakuliah: M0734-Business Process Reenginering Tahun: 2010

3. The Development of BPR 3

4. Improvement Phase Improvement Phase :  Why ?  How ?  Case Study  Outputs  Risks 4

5. Why ? 5 The purpose of the improvement phase is to make the process(es) within, the scope of the project as efficient and effective as possible, to meet stakeholders’ current and future expectations. This phase also provides a unique opportunity to quantify further, in a more rigorous manner, the benefits outlined in the original business case. “Getting the processes ‘right’ before automation should definitely be a goal”

6. How ? 6

7. Step 1 : Communications To keep the relevant stakeholders informed about the scope of the improvement phase, the options being considered, and their status 7 If stakeholders’ suggestion cannot be accommodated, it is important to inform them of the reasons why To assist the stakeholders in gaining greater understanding of the objectives of, and choices made by, the business on behalf of the project

8. Step 2 : Initial Improvement Workshops Timeframes Process Goals Strategic Planning Constraints Success Automation Success Checklist Outcomes Addresses Items like: Encourage the flow of ideas Organize ideas and evaluate based on agreed criteria This is where the project shifted from analysis (in Elaboration Phase) to Creative (new ideas, innovative) “ask the business participant to think of a new, more efficient process that will meet the timeframe and other constraints ” 8

9. Step 2 : Initial Improvement Workshops Questions to ask What is good in the current process(es)? What are the bottleneck/issues to be overcome in the current process(es)? Which best practices can be included? What are the most significant improvements that can be made to the process(es)? What are the performance indicators/SLAs (quality and quantity)? What are other relevant metrics associated with the process(es)? How are the process(es) monitored and who by, and which variables can be used to adjust the process(es)? What rules and regulations must this process comply with (internal and external)? What significant interfaces does this process have with other process (es)? Scoping What is the scope and extent of the process(es) to be redesigned? What is out of scope? 9 To which overall business objective do these process contribute? (WHAT?) Which strategy should be used as a basis for the processes? (HOW?) What are the main driver(s) of process change? (WHY change?) What organizational units are involved, and what criteria do they impose on the process? What positions and people are involved in the process, and do we need to take this into consideration in the innovate workshop? Business Processes Organization Information Systems What information systems are involved, and what restrictions and opportunities does this provide? Documents What outputs and/or documents must be generated, and must they comply with any particular requirements (e.g. legal)?

10. Step 3 : Future Metrics Projection 10 Review current process and timing (or other metrics) Compare with the new process and determine expected process timings Extrapolate expected future transactions Determine total processing times (expected process timings X expected future transactions) Determine total processing times (expected process timings X expected future transactions) Review departmental budgets to calculate costs (payroll, IT costs, etc.)

11. Step 4 : Simulation To determine the feasibility and efficiency of the proposed redesigned process options 11 Use the current metrics and expected metrics along with assumptions to perform the simulation Can be assisted by a good BPM solution that provides simulation capabilities

12. Step 5 : People Capability Matrix and Capacity Planning 12

13. Step 6 : Proposed Improvement Workshops Based on narrowed down improvement options after evaluated using agreed criteria 13 The following are tabled during the workshops : Documented improvement options Simulation outcomes Activity-based Costing scenario Address critical business requirements first (e.g. making processes more efficient and effective), then move on to the compliance, audit and operational risk requirements Obtain agreement and sign off of the new improvement options

14. Step 7 : Feasibility Validation and Gap Analysis Feasibility Validation 14 Will the new process be able to be supported from an IT perspective? Will the business be able to function efficient and effectively as a result of the new process? Build a prototype (PoC) and conduct walkthroughs with the business Gap Analysis To provide a comparison between the new and the old processes for the business, IT department and developers of the training material, a brief overview of the current process A brief overview of the new redesigned process Key changes between the two Process issues Relevant metrics Business and process impact comments New (business) opportunities Required changes (for example, IT changes)

15. Step 8 : Business Case and Approvals 15

16. Improvement Case Study 16

17. Outputs  Redesigning process models  Documentation supporting the redesigned processes  High-level business requirements of the new process  Simulation models and activity- based costing details  Capacity planning information  A process gap analysis report  The project plan in detail for the Development phases  Detailed cost-benefit  An updated business case  A detailed report and approval from the organization 17

18. Risks Mitigation Strategy Don’t know where to startStart by following the BPM implementation Framework Organization is too ambitiousProvide practical goals and scenarios, do not try to solve every problems Organization does not have clear vision for improvement Organization Foundation phase provides clear direction for this phase Scope is too small/too bigRefer back to scope defined in BPM Foundation Phase Stakeholders expectations are not considered Make sure the Proposed Improvement Workshops and Feasibility Validation (PoCs, Walkthroughs) are conducted properly BPM tools vendor is leading the improvement phase The business needs to lead the process improvement activities, perhaps being inspired by BPM tool solutions 18