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Business Process Reengineering and Information Technology

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Presentation on theme: "Business Process Reengineering and Information Technology"— Presentation transcript:

1 Business Process Reengineering and Information Technology

2 Basic Concepts Business process Value added
Business Process Reengineering (BPR) Demand chain Supply chain

3 Basic Concepts Supply chain management Extended supply chain
Networked organization Organizational transformation

4 The Need for BPR Customers Competition Change
Techniques lag behind technology Problem of the stovepipe Fragmented piecemeal systems Integration

5 The Principles of BPR and The Role of IT
Characteristics of BPR Methodologies and frameworks for BPR Enabling role of IT

6 Characteristics of Business Process Reengineering
Several jobs are combined into one Employees make decisions Steps in business process: natural order Process may have multiple versions Work is performed where it makes the most sense

7 Characteristics of Business Process Reengineering
Controls, checks, other nonvalue-added work is minimized Reconciliation is minimized - minimize external contact points Hybrid centralized / decentralized operation is used A single point of contact is provided for the customer

8 Business Process Reengineering and Restructuring the Organization
Redesign of processes From mass production to mass customization Cycle time reduction Restructuring organizations

9 The Networked Organization
Structure of networked organizations Empowerment IT / empowerment relationship Teams

10 Virtual Corporations A virtual corporation is an organization composed of several business partners sharing costs and resources for the purpose of producing a product or service.

11 Virtual Corporations Major Attributes
Excellence Utilization Opportunism Lack of borders Trust Adaptability to change Technology

12 Total Quality Management and Reengineering
Rate of change TQM: continuous improvement Reengineering: dramatic improvement

13 TQM versus Reengineering

14 Implementing Reengineering
Redesign Retool Reorchestrate

15 Tools for BPR Simulation Flow diagrams Work analysis
Application development Workflow software

16 Reorchestrate: Organizational Change
Leadership Corporate values Cultural change Incentives Accountability Zeal

17 Reorchestrate: Organizational Change
Communication Ambiguity Obstacles to change Celebrate success

18 Implementation Issues
Continuous evaluation Eliminating jobs

19 Continuous Evaluation
Is reengineering truly transformational? Will reengineering improve customer relations? Has reengineering cut across the organization? Is information technology playing a integral role in the reengineering solution? Does it hurt?

20 When to Use BPR? Failure rate as high as 75-85%
Improperly aligned BPR and IT Expensive Organizational resistance

21 Managerial Issues Ethical issues BPR implementation
Incremental improvement programs BPR tools Role of IT Failures TQM and BPR

22 Copyright  1999 John Wiley & Sons, Incorporated. All rights reserved
Copyright  1999 John Wiley & Sons, Incorporated. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without the express written permission of the copyright owner in unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Son, Inc. Adopters of the textbook are granted permission to make back-up copies for his/her own use only, to make copies for distribution to student of the course the textbook is used in, and to modify this material to best suit their instructional needs. Under no circumstances can copies be made for resale. The publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein.

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