Plan for Reenginering

n What is Reengineering
n The many faces of Reengineering
n Reengineering Process
n Case
n The Role of IS in Reengineering
n Reengineering is Organizational change

What is Reengineering
n Reengineering is significant changes to
basic business processes that yield 50-100%
rates of improvement
n Business process is the group of activities
required to produce something for a
customer
n Scale the business process properly

1
The many faces of Reengineering
n Hammer & Champy
Champy,
Davenport,
Davenport, Symmetrix
Symmetrix
n BPR
n Streamlining
Streamlining Streamline Reinvent

n Reinvent
n Changes implemented
implemented Magnitude of change
with R/3 often in the
middle of the scale
scale

The many faces of Reengineering

n The greater the scale,
scale,
the greater the
complexity
complexity
n Pilot projects to full
full Small Large
scale

Scale of effort

2
The many faces of Reengineering
n Small
Small effort/
effort/change Scale/magnitude
Scale/magnitude matrix
n Large effort/small
effort/small change Human Develop new
n Small
Small effort/
effort/large change resource business
management model
n Large effort/
effort/change system
n Choosing appropriate Automate Lead
project process & level of
of cash generation
change management
management applications management
system

The Reengineering process

n Choose a process
n Understand it to the extent needed
n Redesign it
n Implement the change

3
The case of Hill’s Pet Nutrition
Problem
n Need new IS for future growth
n Requirements of the business shifted
n Multiple systems-inefficient
systems-inefficient
Solution
n Developed a mission statement
statement
n Identified key enablers
n Rigorous in reporting back to the
the business
business areas
areas affected
affected
Design phase
n Divergent thinking
thinking
n Convergent thinking
thinking

The role of IT in Reengineering

n Typically identified as an enabler of the
changes needed
n R/3 has changed this
this.. R/3
u Serves as the technology enabler

u Is a driver

n The structure of R/3 will force you into

some degree of reenginering

4
The role of IT in Reengineering
The change of IS from support function to key
driver carries with it significant implications
n Decide when to reengineer
n IS and user roles change - dramatically
n The IS implementation process changes - d
n Implementation skill becomes a new, new,
distinct competency

The role of IT in Reengineering

When to reengineer
Human resource Develop new
Develop new
Management
Management business
System model
Streamline Reinvent
Streamline
before/during Before
before/during
Streamline Reinvent
Streamline
during Before/
Before/during

Automate cash Lead generation

applications
applications management system
management

5
The role of IT in Reengineering
IS and user role changes
n Business people IS
n IS people business
business
IS implementation process
n Before: separate
n Now: integrated
Implementation skill becomes a new, distinct competency
n Select project, people
n Ability to
to manage
manage change
change

Reengineering is organizational
change
n Realize that reenginering is a mechanism
for organizational change