You are on page 1of 15

Business Process Reengineering

1. Introduction of BPR
2. Definitions by Management Thinkers
3. Background of BPR.
4. Model of BPR and Its relation with CPI.
5. Questions to be asked when doing BPR.
6. Reason for unsuccessful BPR projects.
7. Myths associated with BPR
8. Future Direction of BPR
Introduction of BPR
BPR is redesign of business processes and
the associated systems and organizational
structures to achieve a dramatic
improvement in business performance.

It is not downsizing, restructuring, reorganization,


automation, new technology e.t.c. It is the
examination and change of five components of the
business: Strategy, Processes, Technology,
Organization and Culture.
Definitions of BPR
By Michael Hammer : Fundamental rethinking and
radical redesign of business processes to bring
about dramatic improvement in performance.

By Davenport : The analysis and design of workflows


and processes within and between organizations.

By Teng at el :The critical analysis and redesign of


existing business processes to achieve
breakthrough improvements in performance
measures.
Background of BPR
BPR, as a term and as a practice, has a tarnished
history. Reengineering became very popular in
early 1990s, however, the methodology and
approach was not fully understood nor
appreciated. Many times improvements projects
labeled “BPR” were poorly planned and executed.
Employees and organizations cringed at the
thought of another “BPR” experience. The terms
itself being used less, or is being altered, so that
these types of initiatives are not associated with
the “BPR”of the past.
Contd….
Despite this abuse of the practice and tarnished
name, the practice of redesigning business
processes and the associated technology and
organizational structure is more popular today then
ever. Companies continue to re-examine and
fundamentally change the way they do business.
Competitive pressure & sluggish economy provide
the impetus for continued efforts to “deliver more
with less”. Reengineering remains an effective tool
for org striving to operate as effectively and
efficiently as possible.
Model of BPR
Scope Project

Learn from others

Create to be processes

Plan Transition

Implement
Model of CPI
Document As-is Processes

Establish Measures

Follow Processes

Measure Performance

Identify and implement


improvement
Theory of CPI
This method for improving business processes
is effective to obtain gradual, incremental
improvements. However, over the last 10 year
several factors have accelerated the need to
improve business processes. The most
obvious is technology. New technologies
(internet) are rapidly bringing the competitive
Bar and the need to improve business
processes dramatically. Another apparent
trend is the opening of the world markets and
increased free trade.
Question to be asked for doing BPR
1. What should be the process look like?
2. What do my customers want it to look like?
3. What do other employees want it to look like?
4. How the best in class companies do it?
5. What might we be able to do with new
technology?
6. Who are going to most effected or least
effected while doing BPR?
BPR & IT
 Shared databases, making information available at many places
 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
 Wireless data communication and portable computers, 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
 High performance computing, allowing on-the-fly planning and
revisioning
Why BPR Projects Failed?
1. Lack of Sustained Management Commitment
and Leadership.
2. Unrealistic scope and expectations.
3. Ignoring the key stakeholders while
implementing the BPR.
4. Poor Change Management Strategy.
Myths Associated with BPR

 Reengineering novelty
 Clear state
 IS Leadership

 Reengineering vs. quality

 Top-down design

 Reengineering vs. Transformation

 Reengineering Performance
Future Directions of BPR

1. Knowledge Management Organization.


2. Employee Empowerment
3. Adoptions of new IT’s & shared vision.