Post on 14-Apr-2018
7/30/2019 117840564 Business Process Reengineering
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By Gunjan Narulkar
7/30/2019 117840564 Business Process Reengineering
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Michael Hammer and James Champy define
reengineering as ”the fundamental rethinking
and radical redesign of business processes to
achieve dramatic improvements in critical
contemporary measures of performance, suchas cost, quality, service, and speed”.
Most of the work being done does not add any value for
customers, and this work should be removed, notaccelerated through automation. Instead, companies
should reconsider their processes in order to maximize
customer value, while minimizing the consumption of
resources required for delivering their product or service.
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Business strategy is the primary driver. BPR is different from other approaches (such
as TQM). Its aim is fundamental and radical change
rather than iterative improvement. IT is major contributing factor and should be
used as an enabler of new organizationalforms instead of just increasingorganizational efficiency.
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PLAN
ANALYZE
DESIGN
DEPLOY
MONITOR
•
•
Forcast of systemrequirements for
next 20 years.• Assessment of
urgency•
Budget• Resources
•
•The existingsystem was
analyzed for itscharacteristics.• Assessment
alternatives wasdone
• Best possiblealternative chosen
•
•
The best possibletechnology was
choosen.•Vender was
chosen to deploy it.• Other
requirements wereplanned for.
•
• A pilot was done on
1 million customers.• Stage-wise planned
deployment modelused.
• Customers werekept in loop
• A competency /customer
support center wascreated to facilitate
the transfer and engagecustomers.
• Quality guidelines were
created for venders aswell as support staff.•Weekly reports weremonitored by higher
management.
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Customer Buy-
In & Education• Use of Marketing
channels
• Setting upexclusive cells
Organization
widecommitment
• Representationfrom alldepartments
• Dedicated BPR
team and Budget• Strong Leadership
BPR Team
Composition• Members from
SBU affected
• New members
• Old members
• Customer
representative• Technologists
Continuous
Improvements• Performance
measurementshould be builtinside the system
• Pilots should bedone beforedeployment
• Risk managementshould be built in
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BPR assumes that the limiting factors are theinefficiencies in the process – might not be
true! BPR totally disregard status quo and starts
from scratch BPR has been commonly accused of focusing
only on technology and efficiency andmissing out on “human” factor
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BPR is a great tool if used in proper context and in a
proper way
Human focus of the organization should be taken
care at all the stages of the changes
No single pill for all sorrows! Innovation in otherareas is as important
Hammer admitted that:"I wasn't smart enough about that. I was reflecting my
engineering background and was insufficient
appreciative of the human dimension. I've learned
that's critical."
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Thank You