D.

DEEPA LAKSHMI
 What is BPR?

The ANALYSIS and REDESIGN of

WORKFLOW and PROCESSES
WITHIN and BETWEEN the
ORGANIZATIONS
 Definition of BPR
• Fundamental rethinking and Radical
redesign of Business Processes to
achieve Dramatic improvements in critical
measures of performance such as
• Cost,
• Quality,
• Service and
• Speed
 BPR???
• Thomas Davenport (1993), another well-
known BPR theorist, uses the term
process innovation, which he says
“encompasses the envisioning of new
work strategies, the actual process design
activity, and the implementation of the
change in all its complex technological,
human, and organizational dimensions”
What is a Business Process (BP)?

• BP is a collection of activities that takes

one or more kinds of input and creates an
output that is of value to customers.

• Ex- Release of a Grant,Registration of a

Company
Some of the BPR Objectives

• Improve Efficiency
• Increase Effectiveness
• Achieve Cost Saving in the longer run
• Provide more Meaningful work for
employees
• Increase Flexibility and Adaptability to
change
• Enable new business Growth
 BUSINESS PROCESS
REENGINEERING

• BPR derives its existence from different

disciplines, and four major areas can be
identified as being subjected to change in
BPR
– organization
– technology
– strategy
– people
 Automation & BPR
• Automation is using technological tools to
perform OLD processes, in a NEW way.
– Like putting OLD Wine in a NEW bottle.

• BPR is about Innovation

– Making NEW Wine and putting it in a NEW
bottle
 Goals of BPR
1. Customer Friendliness
– Meeting customer requirements closely
– Providing convenience

2. Effectiveness
– Outcome-based approach
– Gaining loyalty of customers
– Image and branding

3. Efficiency
– Cost
– Time
– Effort
 WHY REENGINEERING?

• Customers
– Demanding
– Sophistication
– Changing Needs

• Competition
– Local
– Global
 WHY REENGINEERING?

• Change
– Technology
– Customer Preferences
Business Process Reengineering Methodology …

Current Future
Products/Services Products/Services

Information S D Information
T I
Current R R Future
Business A E Business
Processes Technology C Technology Processes
T
E T
I
G
O
Skills I Skills
N
C S

Current Future
Environments (AS-IS) Environments (TO-BE)

Transition/Implementation (Change Management)

AIMCORP-Automated Information Management Corporation

 Steps in BPR
1. Understanding the Current Processes
– ‘AS IS’ study – mapping current processes
– Analysis of Root Causes for Inefficiencies
– Identifications of Problems, Issues
2. Inventing a NEW Process (‘TO BE’ Process)
– Survey of Best Practices
– Consultation of Stakeholders
3. Constructing the NEW Process
– Bringing in new Laws and Rules
– Adopting Disruptive Technologies
4. Selling the NEW way of functioning
– Change Management
– Communication Strategy
FORD Procurement System: before
Before reengineering: pay when invoice received.

FORD Purchase
purchasing order Vendor

FORD
receiving
Goods

Purchase Receiving Invoice

order copy document

FORD
accounts
payable Payment
500 employees
FORD Procurement System: after
After reengineering :Pay when goods received
FORD
Purchasin Vendor
g

FORD
receiving

Goods

FORD
account
payable
Payment

125 employees
 Common Problems with BPR
• Process under review too big or too small
• Reliance on existing process too strong
• The Costs of the change seem large
• Allocation of resources
• Poor timing and planning
• Keeping the team and organization on
target
 Conclusion
• BPR is a multi-discipline approach for
strategic change
• Methodology provides missing “how to” that
must follow the “why”
• BPR must be managed as a project
• BPR must be owned by the organization,
not driven by consultants
• BPR requires constant communication and
feedback
Thank you