Business Process Reengineering

Presented By: Mohammed Ashraf Mahreen Rafiq Bawa Uzair Azhar 3428 3584 3468

Business Process Reengineering
An objective approach to simplifying your business processes, lowering costs and improving customer satisfaction! ”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”.

Steps in the Process
• • • • • Evaluation Period Phase 1: Project Mobilization Phase 2: Business Diagnosis – “As-Is” Model Phase 3: Process Direction Phase 4: Recommended Solution

Objectives of a BPR Effort
Consider general process redesigning principles Improve business processes Opportunity identification Feasibility analysis Set goals for redesigned process components Processes Activities Deliverables

Principles of BPR
Organizational Structure Remove barriers Support business processes Customer Interfaces Work from the customer perspective Automation Automate to advantage General Principles Simplicity Empowerment Process Design Think horizontally

Business Process Reengineering (BPR) Model

BPR phases

• Focus phase – as is - to be phase • Design phase – Design,develop and demonstrate • Benefit phase – Benefit, internalize and transform

Focus Phase

• Identify critical process(s) • Form core process reengineering group • Define the as is process • Carry out ‘ball park’ quantification of the benefit to the enterprise with process redesign • define the to be process

Design Phase • Design the reengineered process – identify all the change ownership – identify all the information flows – identify all non value added activities and examine how to eliminate them • Assess the current IT level • Demonstrate the working of reengineered process using prototypes

Benefit Phase • Simplify the work of each employee • Reduced cost • Reduced cycle time • Greater accuracy • Increased inventory turns • Reduce non value added activity in the organization • Increased customer satisfaction

1. Task elimination. Delete tasks that do not add value from a client’s viewpoint. 2. Task automation. Introduce technology if automated tasks can be executed faster, with less cost and with higher quality. Routing best practices: Routing best practices try to improve upon the routing structure of the business process. The most effective of these in an e-commerce (EC) context are: 3. Knockout. Execute those checks first that have the best ratio of knockout probability to the expected effort to check the condition. 4. Control relocation. Relocate control steps in the process to others, such as the client or the supplier, to reduce disruptions in the process.

5. Parallelism. Introduce concurrency in a business process to reduce lead times. Allocation best practices: Allocation best practices involve a particular allocation of resources to activities. One in particular is especially promising in EC: 6. Case manager. Make one person responsible for the handling of a specific case. Resource best practices: Resource best practices focus on the types and availability of resources. 7. Empower. Give workers most of the decision making authority and reduce middle management.

8. Outsourcing. To reduce costs, relocate work to a third party that is more efficient in Doing the same work. 9. Contact reduction. Combine information exchanges to reduce waiting time and errors. 10. Buffering. Subscribe to updates instead of complete information exchange. 11. Trusted party. Replace a decision task by the decision of an external party. 12. Case types. Determine whether tasks are related to the same type of case . 13. Case based work. To speed up the handling of cases, get rid of constraints that Introduce batch handling .

Role of IT in Process Reengineering
•Expert systems, allowing generalists to perform specialist tasks •Telecommunication networks, allowing organizations to be centralized and decentralized at the same time •Decision-support tools, allowing decision-making to be a part of everybody's job and portable computers, •Wireless data communication allowing field personnel to work office independent •Interactive videodisk, to get in immediate contact with potential buyers •Automatic identification and tracking, allowing things to tell
where they are, instead of requiring to be found

Most Potent Rules in the Context of Eservices
• Speed: the period used to deliver the e-service. • Availability: the percentage of time the e-service is available. • Transparency: the insight a customer has into how his or her e-service is fulfilled. • Quality: the quality of the e-service itself, as a result of the business process. • Cost: the cost of the business process, reflected in the price of the e-service. • Time-to-market: the period of time necessary to introduce new e-services in the market. In regard to these characteristics, 13 best practices seem especially promising for EC.

Reengineering Recommendations
•· BPR must be accompanied by strategic planning, which addresses leveraging IT as a competitive tool. •· Place the customer at the center of the reengineering effort -- concentrate on reengineering fragmented processes that lead to delays or other negative impacts on customer service. •· BPR must be "owned" throughout the organization, not driven by a group of outside consultants. •· Case teams must be comprised of both managers as well as those will actually do the work.

Reengineering Recommendations
•· The IT group should be an integral part of the reengineering team from the start. •· Top executives, who are not about to leave or retire, must sponsor BPR. •· BPR projects must have a timetable, ideally between three to six months, so that the organization is not in a state of "limbo". •BPR must not ignore corporate culture and must emphasize constant communication and feedback.