7/29/2019 BPR_notes_grp9.docx

1/3

1. Understanding current situation

E.g.: Xerox benchmarking Case, the company benchmarks as its own target to

achieve it, only when it knows its present situation and thus knows where it wants to

reach. In such situations its very tasking to convince people that we are in a mess!

2. Identification of the problem (to reengineer)

This shows that there is a need to change

3. Top management involvement

As there are major changes to be taken the top management is very well to be

involved in the process of reengineering. The act becomes top to bottom and the changes thus take place in the similar

direction

The reengineering is thus not just change in accounts but to realise money

4. Recognise the situation

E.g.: IBM throughout 90s had problems, they needed to change

They had the branding issue similar to as the state of Bihar

Regardless of the departments created the problems still remained

The change of the Chief executive later brought the change to the organisationthrough reengineering

5. The reengineering starts with the identification of the problem and recognising where the

change has to occur for the same following has to be done

Observe how the company was doing earlier and how is it performing now , the

change or the shift has to be noted in account to deal with reengineering of the whole

system and processes

Note the effects of the inputs on the outputs visible through customers, employees,

etc. In a jest of all the stakeholders

6. The root cause has to be known to know the problem

E.g.: koutons always had the problem of high inventory, the problem was identified in

the inventory section , but the root cause was in the production department, as the

production went on the inventory kept on increasing, it never stopped thus increasing

the inventory

7. There are two types of approaches for reengineering

Big bang approach

Evolutionary approach

7/29/2019 BPR_notes_grp9.docx

2/3

8. Big bang approach

It is a very radical approach for reengineering

It is done when there is a global issue pertaining in the company

E.g.: IBM-the entire organisation was transformed through the reengineering process

It is traditionally based on office transformation

They were mainly skilled to design mainframe computers The pcs market was very fragmented then

Later RIC based machines were introduced; this was done to serve the market of

medium sized company.

1993 to 96 and 97 the central server was transformed to client server which had

split applications.

Thus IBM had to transform itself

Then IBM was into printing, and could not recognise customers needs and track

them which was the major market need

One monolithic solution doesnt work for a problem; various different solutions for

different regions are required but should be under a common guideline. Thus tailoringthe solution, keeping the basic design same

Thus modular solutions under common framework and design to fit different

channels; is the way to achieve success from reengineering process

9. Steps in the big bang process

1. contain

the costs

2. deliver

customer

service

3.

consistency

4. comparethe results

in diff.

dept.

5. find

milestones

(setup

targets &

methods)

7/29/2019 BPR_notes_grp9.docx

3/3

10. Delaying customers orders can initiate market share loss

E.g. Xerox took 6 to 7 weeks to respond to customer orders; of which the

Japanese computers took advantage and the customers already received their

orders through them instead of Xerox

11. Thus the company needs to follow the global guidelines and tasks to be intact with the

current processes and systems by proper co ordination.

12. The success lies in the empowerment of the employees

It is an enabler for solving complex processes and also decision making becomes

much easier

The biggest problem lies at the Last-Mile and we cannot ignore the customer,

thus the responsibility and authority in the hands of the employee can stop such

last mile issues

Changing parameters is essential but keeping the basic principles same

Thus bureaucracy and empowerment need to be balanced

E.g. prices in Singapore Australia and USA is dealt in $ at the same rate there

should be mark ups , which is to be decided by the employees themselves, thus

standardizing the prices; making it easier to deal

13. Part of processes which work better through benchmarking (internal & external)

Thus seven step PDCA should be followed to achieve the same

14. Core and sub processes-

to satisfy customers

customer needs change in products (cheaper though faster)

15. central leadership is the tendency in the big bang approach

leader has a powerful vision and drive to work but this wont work when

culture is completely different e.g. Mahindra (auto division)

diverse kinds of portfolios (product base) e.g. GE (20 major operating

divisions)