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contemporary measures of performance • Among the potential enablers of BPR is information technology (IT). defined as the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical. Enterprises wanting to increase their market share or obtain profits must adapt to changes in the environment. and achieve spectacular improvement.INTRODUCTION • Today's environment is characterized by increasing levels of competition. Enterprises can make their tasks easier. redesign their organization. . • One of them is business process reengineering (BPR). change the way they work. IT makes it possible to obtain improvements in BPR.

policies procedures. and technology) • Techniques lag behind technology (Technologically capable. selective service. organizational structures. but not functionally operational) • Problem of the stovepipe (lack of communication between vertical functional areas) • Fragmented piecemeal systems (focus on vertical functions. quality. with the existence of redundancies of effort and actions • Integration across departmental and organizational boundaries (information and operations are needed) 4-3 . and delivery) • Change (continues to occur in people culture.The Need for BPR • Customers (know what they want and are willing to pay for it) • Competition (Continuous increase will result in changes to price.

making information available at many places • Expert systems. to get in immediate contact with potential buyers • Automatic identification and tracking. . allowing organizations to be centralized and decentralized at the same time • Decision-support tools. instead of requiring to be found • High performance computing. allowing decision-making to be a part of everybody's job • Wireless data communication and portable computers. allowing on-the-fly planning and envisioning. allowing field personnel to work office independent • Interactive videodisk. allowing generalists to perform specialist tasks • Telecommunication networks.• Shared databases. allowing things to tell where they are.

and engineering activities. . Employees may work from home or other locations. In one-way. help us in making decisions by using electronic mail. which send and receive audio and video data. 3) saving money because it reduces errors and the time it takes to accomplish tasks. remarkable advances in personal computers and communications allow employees to work outside the office while still being connected to the office. • Multimedia communication systems. • Using new IT allows companies to gain important advantages such as: 1) cost savings and improving the accuracy of exchanging information. file transference. manufacturing.Information Technologies • Today. 4) integrating and coordinating several functions at once. 2) avoiding human mistakes inherent when complex and repetitive tasks are used. and 5) improving the organizational efficiency and effectiveness by eliminating delay. or video conference. administrative intermediaries. and redundant processing steps and by providing better access to information. we find a great number of advances in the ITs being used in companies. Computer-aided design/manufacturing/engineering (CAD/CAM/CAE)techniques allow for coordinating product design.

. mainly changes in the nature of the work.The Role of IT in BPR • BPR is a methodology that promotes change and introduces new processes and new styles of working. IT and Processes Processes may be classified according to two dimensions: degree of mediation and degree of collaboration The ITs that make this modification easy might be: 1) Shared databases: Different functions are allowed to take part directly by using the information stored in databases. 2) Imaging technology: Several people may work at the same time on a digitalized Image of documents or graphics. 3) Electronic data exchange and electronic funds transference. Each function can approach. enter.& the integration of business function. or recover information from this database the moment it is needed. • IT promotes changes in organizations.

which includes purchasing. • • . price changes. receiving. They get on-time information and apply directly for promotions. By applying shared databases in the accounts payable process. it now takes only four hours. When Citibank transformed its credit analysis system by reducing paper processing it obtained an increase of 43 percent in time dedicated to collecting new customers. and accounts payable. their time dedicated to customers has increased by 27 percent and sales. Using portable computers. Ford reduced its employee work force by 75 percent. Hewlett-Packard changed the working style of its salesmen. Needless to say. they connected to the company's inventory database. by 10 percent. or discounts. By redesigning the process and by involving generalists who work with databases and telecommunication networks. IBM Credit used to take two weeks to finish a financing claim because there were five steps to the process.Actual Examples • • Ford Motor was chosen to demonstrate the advantages of BPR.

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communication. Data Warehousing • A data warehouse is a copy of transaction data specifically structured for querying and reporting. . A database is typically made up of many linked tables of rows and columns Data Mining: • Data mining is primarily used as a part of information system today. and marketing organizations. financial.BPR – The Current focus in IT • Apart from the usual ways of managing a process in any business information system. it is necessary to enhance the value of the process and also the methods used in improving the process. Data warehouse is an archive of information collected from wide multiple sources. by companies with strong consumer focus retail. at a single site. stored under a unified scheme. Concept of Database • Database is a data structure used to store organized information.

Be sure to set expectations and define deliverables clearly • • • . Implement technology needed to support the new business processes. In the survey conducted by Prosci Research and Publishing Company among CEOs of 205 companies across the globe. Participate as a member of the reengineering team.FUTURE ROLE OF IT IN BPR • With IT advancing at a rapid pace every day the future role of IT in reengineering becomes more critical. but do not take control of the project Define technology solutions to enable new business processes and take time to educate operational managers about new technology. The future role of IT has been identified into three main categories.

• In the design phase of implementation of reengineering the capabilities of IT can be used to simulate a model of the design and there by validate the new design. The disruptive power helps organizations to break all the rules and think inductively about the business that they are in to gain competitive advantage. • IT is an indispensable tool in implementation of reengineering in the way that IT supports redesigned business process and facilitates cross-functional workflow. . • The disruptive power of IT helps in the design phase of implementation of reengineering. • IT capabilities of the organization should not directly influence the IT solutions that are needed for the company. • If not used properly IT can become an inhibitor of reengineering if the organization’s IT Infrastructure capabilities are inadequate or inflexible. IT is not only an enabler for reengineering it has also become an essential and integral part of all reengineering efforts • IT provides project management skills that are important in the successful implementation of reengineering as a project.Conclusions • It is not possible to reengineer without IT support.