Business System Requirement Analysis

Business System Requirement Analysis (BSRA)
(Business Process Redesign)
DAMA
2010
Presented by:
Arvind D. Shah, Managing Principal
Performance Development Corporation
Princeton, NJ 08540
(609)443 -1226
ads1@perfdev.com
www.perfdev.com
9/17/2010
Performance Development Corporation, 2002. All Rights Reserved.
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History of
of Accomplishments
Accomplishments
History
Performance Development Corporation (PDC) is recognized internationally for assisting
hundreds of clients in achieving business benefits from advanced technologies. PDC has made
significant contributions through a series of notable
omplishments including:
Model Driven Enterprise Information Integration (2005)
CRM article published in the Journal of International nstitute of CRM (UK ) (2003)
Business Process Redesign Handbook (1997)

Introduced comprehensive Change Management seminar and
ology(1994)
Integrated Business Reengineering, Total Quality Management, and Information

Engineering methodologies (1991)
Information Strategy Planning Handbook (1990)

The Management Handbook for Information and End User Computing (1988)
Relational Development Environment Guide (1987)
Started the industry-leading Data Base Newsletter (1979)
Developed Data Administration concept (1976)
Developed Service Analysis - a methodology for defining end user requirements (1975)
Published Comparative Analysis of Data Base Management Systems (1973)
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Mission
Mission
Enable our customers to clarify and/or achieve their business go als
through the gainful use of knowledge, technology and change methods and
techniques.
PDC helps its clients accelerate their move to new bus
s environments
through knowledge and technology enabled management.
e assist
clients as they seek to clarify and implement business rategy in
advanced technology environments. We help management ensure that
the business drives the process and that technology pr ides practical
value within a changing organizational culture.
Technology Enabler and Driver
New Business
Environment
P
D
C
A
sistance
Old Business
Environment
Empowered Management
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Partial Client
Client List
List
Partial
Manufacturing
Financial /Insurance
Abitibi-Price(Canada)
ALCOA
Ciba-Geigy
EBSCO
Eli Lilly and Company
FMC Corporation
General Motors
Hallmark Cards
IBM
Iron Ore Company(Canada)
Lockheed
Merck and Company
Nycomed(Norway)
Philip Morris
Toshiba(Japan)
United Biscuits (UK)
Weyerhaeuser
Abbey National Bank(UK)

American Express
Bank of America
Bank of Delaware
Blue Cross/Blue Shield
Dow Jones
Fireman's Fund Insurance
JCPenny Life
Johnson and Higgins
Kemper Insurance
Providian Insurance
Transamerica Insurance
UNUM Insurance
USF&G
Utilities
AT&T
Boston Edison
Carolina Power and Light
GTE
National Fuel Gas
Nebraska Public Power District
NYNEX
Oglethorpe Power
Southern California Gas
Southwestern Bell Telephone
United Telephone
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Federal, State, Local

Government
Atomic Energy (UK)
Belmont County, OH
Calgary(Canada) City
Canada Post (Canada)
Delaware Department of Finance
Montgomery County, MD
New Hampshire Dept. HHS
New Jersey Motor Vehicle Services
New Jersey OTIS
South Dakota Dept. of Transportation
Wisconsin Dept. of Transportation
US Agency International Development
US Central Intelligence Agency
US Department of Energy
US Naval Facilities Engineering
Petroleum
Exxon
Getty - Texaco
Indian Oil (India)
Mobil Oil
Norsk-Hydro (Norway)
Shell Oil
Sun Oil
Retail
Transportation
Leaseway
Mayflower
Education
Cornell University
Duke University
University of Michigan
National Education Association
Compucenter(Brazil)
Giant Foods
Sainsbury(UK)
Thorn-EMI(UK)
Venture Stores
Service
American Bible Society
CH2M Hill
Young & Rubicam (UK)
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Consulting Services
Services
Consulting
Our scope of consulting and education services is in a constant state of evolution due to the
introduction of new management techniques and advanced technologies and their proven viability in
the marketplace. PDC currently provides consulting, e
on and placement expertise in the
following areas:
Management
Business Process Reengineering
Customer Relations Management
Information Strategy Planning
Enterprise Architecture Planning
Visioning and Managing Change
Data Management/governance
Disaster Contingency Planning
Technology
IT Restructuring
Technology Architectures and Selection
Business Area Analysis
Process/Data Modeling
IRM for Emerging Technologies
Data Warehousing
Internet/Intranet/Extranet
Implementation
Turnkey Systems
Project Management
E-Commerce Development
Offshore Development
Quality Assurance
Professional Services
Executive Search
Permanent Recruiting
Contract Services
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EducationServices
Services
Education
Effective on-site education course offerings have always been a top priority at PDC. Thousands of
individuals have attended our seminars, normally offered in one, two and three day formats. These
may be condensed to short management presentations. Our current course titles include:
Business Reengineering (2 days)

Provides an intensive, management -oriented overview based on extensive experience and the dramatic
results achieved.
Business Process Redesign (3 days)
Shows how to redesign business processes to increase profits, productivity, competitiveness and customer service.
Information Strategy Planning (3 days)
Describes managing business success through defining organization information needs and priorities in a
structured manner.
Business Area Analysis (3 days)
Shows how to analyze business requirements using data modeling, process modeling, and information
engineering techniques.
Managing the Data Warehouse Commitment (2 days)
Illustrates business driven approaches to utilizing information assets.
Change Management (3 days)
Shows how to integrate change in people, systems and s
tures.
Information Resource Management (2 days)

Illustrates how to use Data Sharing and Data Availability to accomplish the business improvement objectives.
Data Modeling (2 days)
Explains different levels of Data Modeling that play an important role during the Planning (ISP),
Analysis (BAA) and Design (BSD) phases.
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Arvind D. Shah
Managing Principal
Mr. Shah is a Managing Principal of Performance Development Corporation and is known internationally as a speaker
and authority. Mr. Shah has over thirty years of broad experience, assisting and leading efforts in Strategic Planning,
Change Management, Business Reengineering, Information Engineering, Information Strategy Planning, Data
Administration, Data Warehousing, and Project Management for major corporations worldwide. His consulting has
involved virtually all facets of business and governme
broad range of applications. Mr. Shah's principal interests
have been focused on the end user and managerial aspects of Information Technology. He developed PDCs approach
to blending Business Reengineering, Total Quality Management (TQM) and Information Engineering. He has also
developed management principles to integrate the front end Internet and client/server environments with the back end
mainframe computing.
Prior to joining PDC, Mr. Shah was with Dow Chemical, General Electric, Exxon and Corning Glass. He was
responsible for project management and design, develop
d implementation of IT applications in the areas of
customer service, finance and accounting, sales order ocessing and invoicing, inventory management, facilities
planning, management information, profit planning, sales forecasting, and material management systems. He has
extensive experience with decision support systems and data warehousing. His experience includes:
Business Reengineering
Developed a Business Process Redesign Methodology that blended Business Reengineering, TQM, and Information
Engineering. Applied Business Reengineering techniques to significantly reduce the Procurement Cycle for parts and
equipment in a Mining organization.
Decreased the Order Processing and Billing cycle from seven days to one half day through Business Reengineering for a
large Textile company. Guided a major Insurance company in the area of Claims Processing, reducing manpower by
60% while increasing customer service and responsiveness with an overall payback completed in less than two years.
Headed a project to develop a business reengineering strategy development project for a technology service company.
The deliverables included a plan that blended Business Reengineering and Information Engineering.
Assisted a major pharmaceutical firm in reengineering their sales force consisting of 2000 sales persons. The team
consisted of the client as well as consultant staff.
Information Engineering
Mr. Shah has directed or assisted over 100 projects involving Information Strategy Plans (ISP s), Business Area Analysis
(BAA), Data Warehouse, Information Resource Management and other aspects of planning, design and implementation
of information systems for major Fortune 1000 size commercial organizations and government agencies.
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Reengineering of the Information Technology Services (IS) Function

Guided the restructuring of the IS Function for a strategic business unit of a Fortune 1000 sizes global
telecommunications firm. The objective was to prepare for planned business reengineering projects.
Assisted a division of a major Pharmaceutical company the reorganization of its IS function. The objective was to
build systems using Information Engineering and Client Server Technologies. Directed a project which involved
restructuring the IS function of a Public Utility company. The objective was to transform the IS organization into a
mature organization capable of capitalizing on new technologies while being responsive to business needs. The
impetus was to incorporate Planning, Business Reengineering and TQM in all their projects.
Clients Served
AT&T
National Fuel Gas
Capital Holdings/National Liberty
Navy Federal Credit Union
Southwestern Bell
CH2M Hill, Inc.
State of Delaware
United Biscuits (UK)
GTE
Thorn EMI (UK)
FMC
Iron Ore (Canada)
National Computer Center (Brazil)
Nebraska Public Power District

Eli Lilly
National Fuel Gas
Rodale Press
Unionmutual Insurance Co.
Getty/Texaco Oil
Naval Facilities Engineering Command
Venture Stores
AP Technoglass
State of New Jersey
University of Michigan
Toshiba (Japan)
Nycomed (Norway)
Education
BS, Electrical Engineering, University of Bombay

MS, Electrical Engineering, Ohio State University
MBA, Information Systems, College of William and Mary
P ublications
Co-authored the following books:

The Management Handbook for Information Center and End User Computing, published in 1988 by QED Information
Sciences
The Information Strategy Planning Handbook, published in 1990 by Performance Development Corporation
The Business Process Redesign Methodology Handbook published in 1999 by Performance Development Corporation
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BusinessSystems
SystemsRequirement
RequirementAnalysis
Analysis
Business
(Systematicallyintegrating
integratingprocess,
process,data
dataand
andbusiness
businessrules)
rules)
(Systematically
As the bridge from Planning to Design, Business System Requirement Analysis (BSRA)
builds upon the results of Enterprise Architecture or Information Strategy Planning to
document business system requirements. To be successful, you need a comprehensive
methodology which is flexible as well as replicable in addition to modeling tools and
techniques. A BSRA project is usually initiated from two sources. It could come from
systems planning or be initiated to address a specific business need. In either case it is
important that current processes and data sources are analyzed and business rules are
extracted and documented. Equally important is to improve process in order to solve the
current system problems and take advantage of the new system features.
No project can succeed if business analysts did not participate in the business system
analysis. The data gathering, validation and approval e key steps for delivering a system
that meets business needs. The project must have mile
at which point senior
management is involved in decision making.
This presentation includes the discussion of the methodology that evolved over 30 years
of PDCs consulting experience. The methodology integrates the aspects of enterprise
architecture, information engineering and business process as well as quality
management.
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1. The BSRA Methodology
2. How to plan and scope the project for on-time
delivery of quality results
3. How to gather and document Requirements
4. How to integrate Process and Data
5. How to redesign processes
BSRA
6. How to blend Quality Management

7. How to develop a transition plan
8. How to get management and users involved
9. How to apply this approach to Data Management

Processes
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System Development Life Cycle (SDLC)
Scope
Detail
Information Strategy Planning

Business Sys. Req. Analysts
Business System Design
Technical System Design
Implementation
B-551
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BSRA Methodology Overview

1. Plan the Project
Plan
2. Get Management
Input
4. Develop Top-Down
Process Model
5. Analyze Current
Processes
6. Define Data Needs
Analyze
7. Resolve P roblems
Redesign
8. Redesign Processes
9. Finalize Data Model
10. Document Business

Rules
11. Prototype Processes

12. Incorporate Quality
Management
Plan Transition
13. Perform
Cost/Benefit/Risk Analysis
14. Develop Transition
Plan
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BSRA Deliverables
Process Documentation
Process Charts current & proposed
Process Profiles current & proposed
Information Sources current & propose
Highlight Changes
Data Model
DM Charts
Entity/Attribute Profiles
Data Definition changes
Data Conversion Required
Business Rules
Current & Proposed
Highlight changes
Technology Assumptions
Process/System Implementation Plan
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1. Plan the Project
Plan
2. Get Management
Input
4. Develop Top-Down
Process Model
5. Analyze Current
Processes
Analyze
Redesign

Rules

Management
Plan Transition
13. Perform
Plan
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Task 1. Plan the Redesign Project

Subtasks
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
Define/refine project scope

Select project team
Secure Facilities
Develop project schedule
Allocate resources
Define deliverables
Prepare documentation system
Obtain management approval
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Importance of Scoping
u Puts fence around project
u Sets Stakeholder expectations
u Data Self-sufficiency
u Size selected will be appropriate
u Timeframe is defined
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Business Areas / Systems Dependency Chart

20%
20%
Guest
Information
13%
Human
Resource
13% 25%
13%
17%
25%
17%
Reservation
34%
13%
Menu
Information
25%
13%
25%
Promotion
20%
40%
10%
10%
10%
Facilities
Management
20%
10%
17%
33%
13%
Ordering
13%
25%
14%
40%
20%
20%
Billing
20%
Purchasing
14%
42% 14%
10%
17%
Trend
Analysis
17%
34%
33%
Cash
Monitoring
17%
17%
NOTE: Percentages refer to the percentage of information classes created by another system.
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Business Process Redesign Project

Executive
Sponsor
Management
Steering
Committee
Project
Manager
BPR &
Quality Mgmt.
Experts
Technology
Experts
Project Team
A
Data
Analyst
Project Team
B
Note: The project must report to the highest possible level management; otherwise the results are diluted.
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Who Gets What Kind of

Education and Training?
Management and Client
One-two hour overviews
Brief education at milestone meetings
Project Team
Team-building training in the beginning
Three day workshop training
Periodic reinforcement training at beginning of each major task
Client Representatives
Four hour overview
Brief training when needed
Documentor(s)
One day documentation training and methodology review
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Interview Estimating
2 hours for preparation
2 hours for interview
2 hours for debriefing/documentation
6 hours
q For every interview hour, provide two hours for

preparation and review.
q Immediate documentation after interview is
recommended.
q In cases where travel is involved, concentrated period
of interviewing must be followed by appropriate time
for documentation and cleanup.
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Focus Group Session Estimating

+ Usually 1/2 or 1 day session.
+ 6 - 12 participants.
+ Limited to single topic.
+ 1/2 day session will require 1/2 day preparation and
documentation.
+ Focus group technique approximately 30% faster than
interviewing.
+ Focus group sessions allow all interested partners to build
consensus on models and issues, so less time is requir for
cleanup and integration.
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BSRA Project Plan

Task
1. P lan the Redesign P roject
2. Define P roject Expectations
3. Benchmark P rocesses
4. Develop Top-Down Conceptual P rocess M odel
5. Analyze Current P rocesses
6. Define Information Needs
7. Redesign the P rocess
8. P rototype the P rocess
9. Incorporate Quality M anagement
10. Analyze Technological Requirements
11. Determine Organizational Impact
12. Address Human Resources Issues
13. Perform Cost/Benefit/Risk Ana lysis
14. Develop Transition P lan
Milestones
-Senior Management Project Review
- Middle Management Approval
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Week
10
22
12
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16
18
Documentation System
& Process
& Data
& Business Rules
& Systems/technology
& Problems/solutions
& Data gathering
& Communication requirements
Remember a fool is still a fool with a tool

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Project Initiation
Management Role
o Initiate commitment
o Continue education
o Combine with overview session
o Ask for frequent participation
o Solicit departmental support while seeking approval
o Announcement of project from Chief Executive
Officer
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1. Plan the Project
Plan
2. Get Management
Input
4. Develop Top-Down
Process Model
5. Analyze Current
Processes
Analyze
Redesign

Rules

Management
Plan Transition
13. Perform
Plan
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Process Definition
A collection of prescribed activities, which, when
performed, add value to product or service
Produces distinct deliverable whose quality can be
measured
Has a beginning and end
Usually repetitive
At high level is cross functional
At low level is within a function
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Business Process Model

(High level processes are logical functions)
Manage Restaurant
Perform
Strategic
Planning
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Manage
Guest
Relations
Manage
Cuisine
Preparation
Manage
Food
Operations
Manage
Human
Resources
Measure
Operations
Manage
Facilities
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Process Decomposition Diagram

(Lowest level process) Example
Take a
Hot Tub
Remove
Heat
Tub
Check
Water
Turn on
Heater
Turn off
Heater
Take off
Shoes &
Socks
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Prepare
Clothes
Collect
Toys
Remove
Hat
Call for
Champagne
Take
off Tie
Prepare
Enjoy
Tub
for Tub
Find Ball
for Dog
Play with
Toys
Drink
to Leave
Call fo r
Towel
Champagne
Call fo r
More
Champagne
Throw Ball
for Dog
Leave
Tub
Drink
Champagne
Call fo r
Throw Dog
More
in Tub
Champagne
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Dry
Self
Process Profile Content

Objective
Description
-------------------------------------[
[
[
[
[
[
[
[
[
[
[
[
Stakeholder
Deliverable/Output
Trigger
Input
Quality Criteria
Value Added
Information Needed
Organizations (participating)
Frequency
Volume
Availability (response time)
Related Process
-Prerequisite
-Post -requisite
[ Tasks
[ Problems
[ Current system support
Some of these will be developed during project

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Process Profile Example

Process: Guest Services
Objective:
Satisfy diners request as appropriate to current demand
Description:
All activities involving resolving time and place for diner, seating,
presenting cuisine, meal, and bill
---------------------------------------------------------------------------------------------------------------------(Gather the following information only if easily available)
Stakeholders:
Diner, Maitre D, waiter, chef
Deliverables/
Output:
Seated diners, minimal vacant table time, bill
Trigger:
Diner calls for reservation
Input:
Request for diner
Quality
Customer satisfaction, vacant table time, accepted order
Value Added:
Increase patron loyalty, increase repeat business
Information
Needed:
Patron information, seating availability, menu
Participating
Organizations:
Guest services, food operations
-------
Frequency:
Cost:
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1. Plan the
Redesign Project
3. Benchmark Processes
2. Define Project
Expectations
4. Develop Top-Down
Conceptual Process Model
5. Analyze Current
Processes
6. Define Information
Needs
7. Redesign the Process
8. Prototype the Process
9. Incorporate Process
Quality Management
10. Analyze Technology

Requirements
11. Determine
Organizational Impact
12. Address Human
Resource Issues
13. Perform
Plan
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Current Process Model

View of current business processes
v
v
v
v
v
v
v
v
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Who performs?
Where is done?
What is done?
Why it is done?
Timing of processes
Tools used
Documents used or produced
Problems and their significance
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Current Process Model Data Gathering

Sources
Process managers
Process performers - doers
Current process documentation (e.g. job performance aids)
Techniques
Interviews
Focus Groups
Structured Analysis
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Document Current Processes

Data Gathering Steps
Summarize major activities performed by interviewee:

Capture the process flow involved
List all the activities and repeat to confirm your

understanding
Review each activity in detail:

Concentrate on the data sources used
Ask for copies of each source
Mark on the source documents the data used
Discuss any data source not yet accounted for:

For reports, concentrate on usages
Watch for information exchanges by telephone/email
Ask about problems; Invite suggestions for improvements

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Data Gathering Suggestions
Use top-down conceptual model and profile from Task 4 as

guideline and verification of completeness.
Dont take anything for granted; there is no such thing as

question.
Keep the interview on track. Ask an appropriate question when

you think the interviewee is going off the subject.
Dont fill out forms in front of users.
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Workflow Diagram
(good for management presentation)
Acquire Ingredients
Pay Invoice
Purchasing
Order
Ingredients
Vendor
Send invoice
Release Order
La Nouvelle
Grabbague
Ship
Ingredients
Accounting
Department
Vendor Warehouse
Store Ingredients
Storeroom
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Forward Receiving
Document
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Process Chart
Hierarchical View
Acquire
material
O/P
Receive
materials materials
Pay
Process Flow View
Vendor
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Order
materials
Receive
materials
Pay for
materials
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Process Map
Acquire Ingredients
Stakeholder
Employee
Buyer
Initiates
Requisition
Generates
PO
Vendor
Receives
PO
Buyer
approves sub.
Calls for
substitution
Ship
product
Warehouse
Receives
product
Time
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Current Materials Acquisition Process Chart
Purchase Order
Ordering
Vendor
Purchasing
Process
Requisition
Requisition
Issue
Purchase
Order
Purchase
Order
Purchase
Order
Payment
Pay
Vendor
Approved
Invoice
Ship Order
Receiving.
Shipping
Document
Receive
Shipment
Invoice
Receipt
Reconcile
for Payment
Accounting
Organization
Manual output
Automated output
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Example
Process Profile
Name:
Pay Vendor
Objective:
To fulfill contractual obligations to the vendor per the contract for goods and
materials received.
Description:
Printing and transmitting a check after receipt of app

on the date computed based on the payment terms.
Stakeholder:
Vendor, Accounts Payable
Output:
Payment Check
Trigger:
Scheduled payment date
Input:
Approved Vendor Invoice, Vendor Contract, Receipt, Purchase O rde r
Metrics:
None
Value Added:
Fulfillment of Vendor Contract
Data Needed:
Vendor, Vendor Contract, Vendor Invoice, Payment (Date, Amount, Bank)
Frequency:
Weekly
Response Time:
2 hours
Volume:
500 payments
Problems:
Payment errors in discount calculations
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ved Vendor Invoice
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pdc
Process Analysis
Vendor
Custom er
Stakeholders
Pl anni ng
Personnel
Accounti ng
M ai ntenance
Staff
Wai ters
Orderi ng
Process
M aitre d'
Wi ne Stew ard
Chef
Operatio ns
La No uvelle Grabbague
PO
PE
=
=
Process Ow ner
Perform ance
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BO
BO
BO
PO
PO
PO
PO
SU
PE
PE
PE
PE
SU
BO
BO
BO
PO
SU
SU
BO
BO
SU
BO
BO
SU
PO
PO
PO
PO
BO
PO
PO
PO
PO
PO
PO
PO
BO
SU
=
=
BO
BO
BO
BO
BO
PE
SU
SU
PE
PE
PE
PE
PE
B oth Policy and P erform ance

Support
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An al yze Trends
Revi ew Lo cal M arket
Ado pt Ch anges
Process Reservation
Enter Order
Present Cuisi ne
Present Bill
Recei ve Order
Schedule Order
Prepare Courses
An al yze Usage
Forecast Requirements
Pl an M enu
Acqui re Ing redi ents
M ai ntai n Ingredient Inventory
Pl an Staff
Acqui re Staff
Trai n Staff
Schedule Staff
Eval uate Staff P erfo rm ance
Inspect F acilities
Pl an M ai ntenance
Perform M ai ntenance
Procure F acilities and Eq ui pm ent
Acqui re & M ai ntai n Info S ystems
Recei ve Monies
P ay M o nies
Update General Ledger
Perform Cash M anagement
M o nitor Fi nanci al Perform ance
How to Use Process/Organization Matrix

Customize to suit your needs
The following cell values might make more sense in your business
P=
Who is accountable for this process

Whose head will be on the block if this process fails
S=
Who supports or participates in the process
A=
Who reviews or approves
CD = Who is the direct customer for this process

CI =
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Who is the indirect customer for this process

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Identification of Problems
Solicit problems/issues process
Identify the stakeholders impacted by the problem
Associate with processes
Associate with goals
Quantify the impact of problem
Identify the nature of problem
Data-oriented
System limitation
Human-oriented
Store in repository
Assign team responsibility
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pdc
Problem Worksheet
P repared By:
Description
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P roject:
Organizational
Entity
Data
Not
There
Not
Not
Accurate Feasi ble
Human
System Limitation
Not
There
Not
Co rrect
Not
Feasi ble
44
Unio n
Trai ni ng
Policy
pdc
Inventory of Current Systems

Existing business systems, automated and manual
Organizational responsibilities
Current files/databases
Systems under development
Technology platforms
Measures of satisfaction/effectiveness
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BPR Methodology Overview

1. Plan the Redesign
Project
3. Benchmark Processes
2. Define Project
Expectations
4. Develop Top -Down
Conceptual Process Model
5. Analyze Current
Processes
9. Incorporate Process Quality

Management
10. Analyze Technology

Requirements
11. Determine Organizational

Impact
12. Address Human Resource

Issues
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13. Perform Cost/ Benefit/

Risk Analysis
14. Develop Transition Plan
46
pdc
Reengineer the Process

Inputs
Mission and Goals
Problem Analysis
Process Analysis
Data
Needs
Out-of -the -Box
Thinking
Data Needs
Redesigned Process Ideas

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pdc
Do you want to
just redesign
or
reengineer the process?
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Business System Requirement Analysis

How does a typical system project start?
Enterprise Architecture planning
Business Need (M&A or Major change)
Outdated system or technology
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pdc
Current Situation (example)

Manual Process for Accounts Payable
Purchasing
Warehouse
Receipt
Document
P.O.
A/P
Invoice
Check
Vendor
A/P reconciles three documents

and prepares checks
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pdc
Case 1 Process Automation

Company A Imaging Technology
Purchasing
Warehouse
Receipt
Document
P.O.
A/P
Invoice
They are using Imaging Technology but

manual reconciliation
A/P now:
Reconciles three documents

Prepares checks
Check
Productivity increased 25%
Vendor
A/P reconciles three documents

and prepares checks
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pdc
Case 2 process redesign

Company B shares data and automates matching
Purchasing
Receiving
Receipt
Data
P.O.
Receiving and A/P both only

add additional data by
sharing common P.O. data
D/B
Check
Invoice
Vendor
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A/P reconciles well-organized

and matched data instead of
documents
52
pdc
Case 3 Process Reengineered

Company C Reengineers the Process
Only complete shipments
accepted Only
Receiving
Purchasing
Purchasing can change a PO

Validates
Receipt
P.O.
D/B
Receiving validates the shipment

receipt online
A/P trusts receiving so no
reconciliation necessary
Check
No vendor invoice
Vendor
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pdc

Policy and Procedures
Organization
Processes
Business
Process
Redesign
Technology
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Customer/Vendor/
Customer/Vendor/
Alliances
Alliances
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pdc

1) Question the validity or need for the process in the
broader picture can you totally eliminate it?
2) Can this process be outsourced?
3) If outsourced, how will they organize the process?
4) Can we do internally what the outsourcer could do?
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pdc
Refine Process Using Redesign Principles

Question the validity of the process
Ensure that all the problems are addressed
Can you do the whole process in one step?
Capitalize on data sharing
Eliminate non -value-added processes.
Re-sequence or use parallel processes to improve performa e.
Eliminate handoffs (Combine processes.)
Replace a specialists function so that non -specialists can handle it
with automated decision making business rules. The specialist only
handles exceptions.
Replace all pre-approvals after -the fact reporting
Replace after-the-fact reconciliation with front-end edits, validation,
and quality checks.
Explore new technologies
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pdc
Capitalize on Data Sharing
Steps
Eliminate redundant data entry and storage
Maximize data sharing with internal and external
stakeholders
Refine process design based on data sharing
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pdc
Data Sharing Matrix (Process vs Entity)

Entity
Process
Staff
Furnishings & Equipment
Facility
Table
Reservation
Guest
R
R
R
R
C
C
C
R
R
C
R
Analyze Trends
Review Local Market
Adopt Changes
Process Reservation
Enter Order
Present Cuisine
Present Bill
Receive Order
Schedule Order
Prepare Courses
Analyze Usage
Forecast Requirements
Plan Menu
Acquire Ingredients
Maintain Ingredient Inventory
Plan Staff
Acquire Staff
Train Staff
Schedule Staff
Evaluate Staff Performance
Inspect Facilities
Plan Maintenance
Perform Maintenance
Procure New Facilities/Equipment
Acquire and Maintain Info Systems
Receive Monies
Pay Monies
Update General Ledger
Perform Cash Management
Monitor Financial Performance
B-920
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General Ledger
Invoice
Vendor
Other Establishment
Menu Line Item
Ingredients
Course
Order
Bill
R
R
R
R
R
R
C
R
R
C
R
R
C
U
U
U
C
R
R
U
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
C
R
U
C
R
U
R
C
C = Create
U = Update
R = Retrieve
D = Delete
R
C
R
R
R
R
R
R
R
R
U
R
R
R
R
58
R
R
R
C
pdc
C
U
R
Ensure Problem Resolution

Steps
Review problem analysis summary from Task 5
Add any problems which may be created by the new

design
Resolve the problems and refine the processes
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pdc
Ensure Problem Resolution

Example
Extended Problem Resolution Table
9/17/2010
Problem Name
Cause
Prevention
Recommendation
Matching Errors
Accounting
practices
Automate
sharable records
Eliminate paper items
Delivery errors
Partial
shipment
No partial
shipments
Use data base
Payment errors
Matching
Eliminate paper
Use data base
High cost
Labor
intensity
Automate process Simplify steps
Receiving errors
Lack of
training
Training & audit
Automate validation
60
pdc
Redesigned Process (Example)

4.5.3 Redesigned Process M ap - PEOSH 1
Agency
Employer/
Employee
Com pliance
Officer/ Examiner
Central
Office
Management
CRM
Paym ent
Processing
Upper
Management
Review
Referrals
Com plaints/
Inquires
Schedule
Inspections
SH430
Support
High Priority
Cases
SH410
Referrals
DHSS Case
Extension
Requests
Prepare for
Inspections
SH440
DHSS
Conduct
Inspection
SH450
Plan Inspections
(Routine & Other)
SH420
Prepare
Reports
SH460
Follow-Up
Prepare
Inspection
Penalty OTC
SH480
SH490
Violations
Gain Approval
Review &
Approve
Cases
SH470
No
Violations
Work
Intake/
Complaints
SH400
Identify
Critical Areas
Review &
Approve
Penalty
SH500
Violations
DHSS Case
Close Case
Identify
Targeted Areas
Penalty
OTC
OTC
Violations
Abated
Approve General
Duty Citation
Approve
Penalty
Fatalities &
3 or more injuries
Comm ission
Superior Court/
OAL
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pdc
Redesigned Process
Process Profile (example)
SH50 Process Payment
OBJECTIVE: Provide support for the deposit transmittal of funds from the General Funds to the
correct Business Account.
DESCRIPTION
Receive all Checks or Internet Payments with Payment Stub containing identifying information for:
* Permits, Licenses, Certificates, Registration
* Inspection Fees from Insurance Companies
* Penalties
* Public Record Information
Create a transmittal to accounting and deposit payment within 24 hours of
receipt into a General Fund
Upon notification create a transmittal to move payment om the General Fund into the correct
Business Account.
Create an invoice for Boiler Inspection Fees owed to NJDOL from Insurance Companies
PERFORMER: Payment Processing
STAKEHOLDERS/CUSTOMERS: Payment Processing, Accounting, Insurance Companies
TRIGGER: Payment Receipt
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pdc
Redesigned Process
Process Profile (example) contd.
INPUT:
Checks, Internet Payment
Payment Stub
Insurance Company Inspections
INPUTS from:
Employer, Employee
Employer, Employee
Insurance Company
OUTPUT:
Deposit Transaction
Invoice for Inspection Fees
OUTPUT to:
Accounting
Insurance Company
DATA USED:
EMPLOYER
EMPLOYEE
VIOLATION
INSPECTION
PAYMENT
DOL ACCOUNT
INSURANCE COMPANY INVOICE
VOLUME/FREQUENCY:
# of Checks received Asbestos 200 -350 a month
Boiler 2,000 a month
Mines 30 a month
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pdc
Championing a BPR Initiative

Process Profile (example) contd.
BUSINESS SYSTEMS MODULES:
Payment Processing
Document M anagement
Case Tracking/Workflow M anagement
POTENTIAL TECHNOLOGY:
Web
Document M anagement
RELATED PROCESSES:
To: SH40 Issue Permits, Licenses, and Certificates
QUALITY METRICS:
% Checks deposited within 24 hours
BASELINE PROCESS REFERENCE:
12.4.1.5 M anage Collection of Fees
SIGNIFICANT CH ANGES: (Will guide business rules)
The most significant change in this area is the centralization of Payment Processing and the
implementation of Payment Stubs for all Fees and Penalties
Tighter controls will ensure Checks are processed within 24 hours
All payments will be made via Certified Check or Credit Card Payment on the internet. An interface to
the Accounting System will provide better control over transactions processed
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pdc

1. Plan the Project
Plan
2. Get Management
Input
4. Develop Top-Down
Process Model
5. Analyze Current
Processes
Analyze
Redesign

Rules

Management
Plan Transition
13. Perform
Plan
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pdc
Prototype the Process

Sub-Tasks
8.1 Develop prototypes
8.2 Incorporate technology
8.3 Assess feasibility of redesign process
8.4 Determine skills required
8.5 Review with sponsor
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Prototyping
What to Expect
Proof of concept
Prototyping
Feedback for redesign refinement

Insight into downstream activities
Feasibility of process
Skills that may be required
Potential organizational effects
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pdc
When to Prototype
Drastic change
Complex
New
processes technology
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Political situation
68
pdc

1. Plan the Project
Plan
2. Get Management
Input
4. Develop Top-Down
Process Model
5. Analyze Current
Processes
Analyze
Redesign

Rules

Management
Plan Transition
13. Perform
Plan
9/17/2010
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pdc
Total Quality Management
TQM
Mission: Continuously improve the

ability to achieve the quality
objectives for products,
services, and resources
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pdc
Incorporate Quality Management

Tasks:
Define deliverables for a core process
Identify customers of each major process

(internal/external/ultimate)
Define customers expectations and perception of quality
Develop metrics for quality of each deliverable
Develop metrics for internal quality objective.
Incorporate metrics as part of process
Incorporate additional entity/attributes
Develop continuous improvement mechanism
Refine process definitions/profiles
9/17/2010
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pdc
Develop Metrics
Example
Process Metrics Template

Process
Customer
Receive
Shipment
Receiving,
Purchasing
Accounting
Metrics
Process Owner
Number of Vendor
shipments rejected:
-for quality
Vendor
-incomplete shipment
-wrong shipment
Pay
Vendor
Vendor
Number of validation errors

made by receiving
Receiving
Productivity of payments
- payments per staff member
Accounting
- cycle time
Number of late or incorrect
payments
9/17/2010
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pdc
Refine Data Entities and Processes

Example
Data Entity Refinement Template

Data Entity
Requisition
Purchase Order
Receipt
Payment
9/17/2010
Attribute
Stakeholder Satisfaction (M1)
Timeliness Indicatior(M2); Error Code (M3)
Shipment Rejection (M4); Receipt Validation (M5)
Payment Error Code (M6)
73
pdc
Process Quality Management

Demings Solution
Plan
Do
Check
Act
9/17/2010
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pdc
Quality Feedback Process

Quality
Standards
Modify
Implement
Output
Monitor and
report quality
9/17/2010
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pdc
Continuous Improvement Mechanism

Apply existing continuous improvement mechanism
If Continuous Improvement mechanism does not exist in your
organization, use this project to implement it
If a new effort is required, provide education and tra ning
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pdc

1. Plan the Project
Plan
2. Get Management
Input
4. Develop Top-Down
Process Model
5. Analyze Current
Processes
Analyze
Redesign

Rules

Management
Plan Transition
13. Perform
Plan
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pdc
Analyze Technology Requirements

Assessment of hardware, software:
New decision/business rules

New internal and external users
New process locations
New organizational structures, procedures
What is required?
Is existing technology sufficient?
Is new technology necessary and mature?
Any technology required for QM?
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pdc
Organizational Readiness for

New Technology
Existing technological infrastructure

Sophistication of current users
Rate at which new technology can be absorbed
Ability to conform to new standards
Potential training effort
Potential support effort
New roles
Continuous updating of knowledge
Continuous upgrading of skills
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pdc
Organizational Change Documentation

Policies
Procedures
Responsibilities for redesigned processes
Owner
Performer
Support
Quality assurance
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pdc
Organizational Changes Needed

Example
Resource requirements
Relocation of 20 Full Time Equivalents from Accounting.
Organizational structure changes

None immediately; but may position Accounting for futu
combining of roles.
Organizational responsibility changes (business rules)

- Receiving accepting shipments authorizes vendor payment, and
Accounting no longer does manual reconciliation and focuses more
on education and quality assurance for Receiving valid ion.
- Receiving employees are empowered to accept or reject shipments
and authorize payment.
- Vendor must comply to new no invoice and shipment policy.
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pdc
Developing a Transition Plan

Process redesign is not complete without a detailed
road map that shows how to get to the new environment
Project Implementation Schedule (next steps)

Tasks
Timing
Resources
Organization Transition Plan

New structures
New reporting relationships

Training
Technical Transition
H/W, S/W acquisition or development
9/17/2010
Data Conversion
82
pdc
Potential Problems
Management acceptance and support

Stakeholder buy-in
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83
pdc
How to get Buy-in

Executive Management
Define mission, goals, objectives, opportunities and their burning
issues
1 hour Presentation
Review Redesigned processes related to their expectations
Middle Management
Participate in Top down Process Model

Validate current environment documentation
Review Redesigned processes related to their expectations
Assign priorities in the Transition Plan
User Level
50% of the Team comes from the user side
Data Analyst is continually involved
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pdc
Process Management Function

Establish a charter
Develop business reengineering and continuous
improvement methodology
Build process management expertise
Develop and implement Process Ownership program
Standardize process documentation
Initiate culture change initiatives
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pdc
How would you apply this to

your Data Management processes?
Who are the stakeholders?
What are the processes required to support their needs?
What data you would need support these processes?
What screens and reports users will need?
Who will build the system to support these needs?
What quality metrics you need?
How can you make your tools easy to use?
Who is the Process Owner for these processes?
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pdc
Lessons Learned
For Business System Project
1. Project team should be comprised of:
The team must have 50% business analysts
Core team members must be full-time for the duration
of the project
Average Number 4 (minimum 2, maximum 6)
2. Scope the project so that:
It takes no more than six months
Ideal three months
Average four months
3. You may select:
One or multiple related processes which has single
executive or committee in charge
4.
5.
6.
7.
9/17/2010
Prototype and validate feasibility of new concept

Do not ignore implementation risks
The output must include an implementable act
lan
Use an experienced arbitrator and adviser if this is your first time
87
pdc
Process Reengineering - Success Factors

Strong executive sponsor
Appropriate scope
Self-sufficient data requirements
No more than four months for the study
No a priori constraints
Authority to question any business policy, procedure, or
standard
Expand horizon to include external agents

Revolutionary thinking out-of-the-box, but
evolutionary implementation
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pdc

(Business Process Redesign)
Thank You
Presented by:
Arvind D. Shah, Managing Principal
Performance Development Corporation
Princeton, NJ 08540
(609)443-1226
ads1@perfdev.com
www.perfdev.com
9/17/2010
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pdc

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Business System Requirement Analysis (BSRA)

(Business Process Redesign)

Performance Development Corporation, 2002. All Rights Reserved.

Business Process Redesign Handbook (1997)

Integrated Business Reengineering, Total Quality Management, and Information

Information Strategy Planning Handbook (1990)

Performance Development Corporation, 2002. All Rights Reserved.

Technology Enabler and Driver

Performance Development Corporation, 2002. All Rights Reserved.

Abbey National Bank(UK)

Federal, State, Local

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Customer Relations Management

Information Strategy Planning

Enterprise Architecture Planning

Visioning and Managing Change

Disaster Contingency Planning

Technology Architectures and Selection

Business Area Analysis

IRM for Emerging Technologies

Performance Development Corporation, 2002. All Rights Reserved.

Business Reengineering (2 days)

Information Resource Management (2 days)

Performance Development Corporation, 2002. All Rights Reserved.

Performance Development Corporation, 2002. All Rights Reserved.

Reengineering of the Information Technology Services (IS) Function

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BS, Electrical Engineering, University of Bombay

Co-authored the following books:

Performance Development Corporation, 2002. All Rights Reserved.

Performance Development Corporation, 2002. All Rights Reserved.