bpr notes

7/21/2019 bpr notes

http://slidepdf.com/reader/full/bpr-notes-56e09bea9d8b7 1/100

MBA 731: Business Systems Analysis and Design

Minder Chen, Ph.D.

School of Management

George Mason University(O) 7!"##!"$7%% (&) 7!"##!"$%#'"Mail mchengm*.ed*

+e Site htt-g*nston.doit.gm*.ed*ecommerceM/S7!$

O r g a n i 0

a t i o n

1 e c h n o l o g

y

Process

© Minder Chen, $##7"23

7/21/2019 bpr notes


" 2 "© Minder Chen, $##!"27

Outline

• 4*siness Process 5eengineering /ntrod*ction and '6am-les – 4*siness 5eengineering Definition and Princi-les – 4*siness 5eengineering '6am-les – 4*siness 5eengineering &rameor8

• Managing 4*siness Process 5eengineering 9ife Cycle – 4*siness 5eengineering Pro:ect 9ife Cycle – 4*siness 5eengineering 1eams and /nfrastr*ct*res

• /1 'nales for 4*siness Process 5eengineering – /1 'nalers – ;e 1hin8ing for 1a8ing <dvantages of /1 'nalers

• 4*siness Process 5eengineering 1ools Process Modeling ith /D'& – /D'& ;otation and Diagramming 1echni=*e – /D'& Model <nalysis – /D'& 1ools Demonstration of Design/D'&

• /m-lementation of 4*siness Process 5eengineering – 1otal >*ality Management vs. 4*siness 5eengineering – C*lt*re Changes in a 5eengineering +or8-lace – Critical S*ccessf*l &actors of /m-lementing 4*siness 5eengineering

7/21/2019 bpr notes


" ! "© Minder Chen, $##!"27

Books on BPR • ?ammer, Michael and Cham-y, @ames, Reengineering the

Corporation: A Maniesto or Business Re!olution" ;e Aor8?ar-erCollins P*lishers, /nc., 2$

• Daven-ort, 1homas ?., Pro#ess $nno!ation: Reengineering %orkthrough $normation &e#hnology , ?arvard 4*siness School Press,$##2.

• ?ammer, Michael, B5eengineering +or8 Dont <*tomate, Oliterate,'ar!ard Business Re!ie(" @*ly"<*g*st, $##.

• Daven-ort, 1homas ?. and Short, @ames '., B1he ;e /nd*strial'ngineering /nformation 1echnology and 4*siness Process5edesign, Sloan Management Re!ie(" S*mmer $##, --. $$"27.

• $BM System )ournal , a s-ecial iss*e on Business &ransormationthrough $normation &e#hnology , Eol !2, ;o. $, $##!. Order ;*merG!2$"$$", ($"%"32F"F%7)

• ?all, G., 5osenthal, @., and +ade, @., B?o to Ma8e 5eengineering5eally +or8, ?arvard 4*siness 5evie, ;ovemer"Decemer $##!,--. $$#"$!$. 5e-rint ;o. #!F3.

7/21/2019 bpr notes


" 3 "© Minder Chen, $##!"27

BPR $ntrodu#tion" *+amples" , Prin#iples

• /ntrod*ction to 4P5 – Prolems

– 4P5 Definition – Process Definition, Dimensions, and '6am-les

– 4P5 Stat*s 5e-orts

• '6am-les of 4P5 – &ord

– M*t*al 4enefit 9ife /ns*rance

– Ca-ital ?olding Co.

– 1aco 4ell

– Others

• 4P5 Princi-les and &rameor8s – Princi-les

– < 4P5 &rameor8

– <--roaches

7/21/2019 bpr notes


" "© Minder Chen, $##!"27

$ndustrial Re!olution-s Model o Organi.ation and Produ#tion

• Com-le6 or8 is ro8en don into sim-le andre-etitive tas8s that are -erformed in se=*ence y

s-ecialists. – S-eciali0ation of laor /ndivid*al :os ecome sim-le

– Se=*ential -rocesses Coordinating -eo-le ecomesmore com-le6 (1he role of the hierarchy)

– ;arro and re-etitive :os De"s8illing the or8 forces

• Managers :o is to control the =*antity, cost, and=*ality of the or8 -erformed. –

Control as a dominant style – &inancial"oriented scoreoard

• 'm-loyees are organi0ed y *siness f*nction. – ?ierarchical str*ct*re

7/21/2019 bpr notes


" F "© Minder Chen, $##!"27

Pro/lems

• &*nctional de-artments ecome arriers tochange.

• 1oo m*ch time and money are s-ent inineffective coordination and comm*nication.

• 1oo little time for doing or8 that really enefits

c*stomers.• Overheads are soaring.

• 4*siness -rocesses are evolved over a -eriodof time and are not designed to handlechanging *siness environments or to ta8eadvantages of emerging technologies.

7/21/2019 bpr notes

http://slidepdf.com/reader/full/bpr-notes-56e09bea9d8b7 7/100" 7 "© Minder Chen, $##!"27

Pro#ess *!olution

• H+e are str*ct*red today y historical

accident. <s e added -rod*cts, eadded f*nctional stove-i-es.H

• HProcesses in organi0ations have nevereen designed in the first -lace.H

7/21/2019 bpr notes

http://slidepdf.com/reader/full/bpr-notes-56e09bea9d8b7 8/100" % "© Minder Chen, $##!"27

Deinition o Reengineering

1he f*ndamental rethin8ing

and radical redesign of

core *siness -rocesses to

achieve dramatic im-rovements in

critical -erformance meas*res s*ch

as =*ality, cost, and cycle time.

So*rce <da-ted from ?ammer and Cham-y, 5eengineering the Cor-oration, $##!

7/21/2019 bpr notes

http://slidepdf.com/reader/full/bpr-notes-56e09bea9d8b7 9/100" # "© Minder Chen, $##!"27

%hat Business Reengineering $s 0ot

•<*tomating Paving the co -aths.(<*tomate -oor -rocesses.)

• Donsi0ing Doing less ith less. C*tcosts or red*ce -ayrolls. (Creating ne-rod*cts and services, as ell as -ositivethin8ing are critical to the s*ccess of4P5.)

7/21/2019 bpr notes

http://slidepdf.com/reader/full/bpr-notes-56e09bea9d8b7 10/100" $ "© Minder Chen, $##!"27

A Co( Path

7/21/2019 bpr notes

http://slidepdf.com/reader/full/bpr-notes-56e09bea9d8b7 11/100" $$ "© Minder Chen, $##!"27

Reengineering $s 222

• Oliterate hat yo* have no andstart from scratch.

• 1ransform every as-ect of yo*rorgani0ation.

So*rce Michael ?ammer, B5eengineering +or8 Dont <*tomate, Oliterate,?arvard 4*siness 5evie, @*ly"<*g*st, $##, --. $3"$$2.

'6tremistIs Eie'6tremistIs Eie

7/21/2019 bpr notes

http://slidepdf.com/reader/full/bpr-notes-56e09bea9d8b7 12/100" $2 "© Minder Chen, $##!"27

ordian 4not

• /n a Gree8 legend, noody co*ld *ntie a 8nottied y Jing Gordi*s of Phrygia. Many -eo-letried to *ntie the 8not, *t noody s*cceeded.

• ... *ntil <le6ander the Great fo*nd a smart anddirect sol*tion.

7/21/2019 bpr notes

http://slidepdf.com/reader/full/bpr-notes-56e09bea9d8b7 13/100" $! "© Minder Chen, $##!"27

Deinition o Pro#ess

• < -rocess is sim-ly a str*ct*red, meas*red setof activities designed to -rod*ce a s-ecifico*t-*t for a -artic*lar c*stomers or mar8et.

"" 1homas Daven-ort

• Characteristics –

< s-ecific se=*encing of or8 activities across timeand -lace

– < eginning and an end

– Clearly defined in-*ts and o*t-*ts

– C*stomer"foc*s – ?o the or8 is done

– Process onershi-

– Meas*rale and meaningf*l -erformance

7/21/2019 bpr notes


&ypes o Pro#esses

<da-ted from Daven-ort, 1. ?. and Short, @. '., H1he ;e /nd*strial 'ngineering /nformation 1echnology and 4*siness Process5edesign,H Sloan Management Re!ie( , S*mmer $##, -. $7.

Dimensions K 1y-e '6am-les

Order from a s*--lier

Develo- a ne -rod*ct

<--rove a an8 loan

Man*fact*re a -rod*ct

Pre-are a -ro-osal

&ill a c*stomer order

Develo- a *dget

Organi0ation 'ntity• /nter"organi0ational

• /nter"f*nctional

• /nter"-ersonal

O:ects• Physical

• /nformational

<ctivities• O-erational

• Managerial

7/21/2019 bpr notes

http://slidepdf.com/reader/full/bpr-notes-56e09bea9d8b7 15/100" $ "© Minder Chen, $##!"27

Pro#esses Are Oten Cross 5un#tional Areas

M a r k e t i n g

& S a l e s

P u r c h a s e P r o d u c t i o n D i s t r i b u t i o n A c c o u n t i n g

C E O

S*--lier

C*stomerMar8ets;eeds

Eal*e"addedProd*ctsServices toC*stomers

HManage the (hite spa#e on the organi0ation chartLH

H+e cannot im-rove or meas*re the -erformance of ahierarchical str*ct*re. 4*t, e can increase o*t-*t =*alityand c*stomer satisfaction, as ell as red*ce the cost and

cycle time of a -rocess to im-rove it.H

7/21/2019 bpr notes

http://slidepdf.com/reader/full/bpr-notes-56e09bea9d8b7 16/100" $F "© Minder Chen, $##!"27

Pro#ess6Orientation

•Process"orientation is the 8ey to the 4P5 s*ccess

• 5emove stove-i-e f*nctions

• &oc*s on cross"f*nctional core -rocess redesign

•

B9in8 activities, f*nctions, and information in neays to achieve rea8thro*gh im-rovements incost, =*ality, and timeliness.

So*rce Dichter, Gagnon, and <le6ander, B9eading Organi0ational 1ransformation,1he McJinsey, >*arterly, $##!, ;*mer $.

7/21/2019 bpr notes


BPR A#hie!es Dramati# $mpro!ement

• &ord red*ced its acco*nt -ayale de-artmenty 7N

• 4ell <tlantic c*t the cycle time for installingcarrier services for c*stomer from $ days to !days.

• /4M Credit Com-any red*ce loan a--licationt*rn aro*nd time from F days to 3 ho*rs hileloan a--lications increased y $ times. ;o-ersonnel as added.

7/21/2019 bpr notes

http://slidepdf.com/reader/full/bpr-notes-56e09bea9d8b7 18/100" $% "© Minder Chen, $##!"27

Satisa#tion (ith the Results o BPR

SatisfiedF%N

@*ry still o*tN

Dissatisfied

27N

So*rce Deloitte K 1o*che, 9eading1rends in /nformation Services, $##3.

BN to 7N of reengineering effortsfail to achieve the goals set for them.

So*rce 1homas <. Steart, B5eengineering 1he ?ot ;e Managing 1ool,

&ort*ne, <*g*st 2!, $##!, --.. 3$"3%.

BPR d O h O i i l $ i i i

7/21/2019 bpr notes

http://slidepdf.com/reader/full/bpr-notes-56e09bea9d8b7 19/100" $# "© Minder Chen, $##!"27

BPR and Other Organi.ational $nitiati!es

• <lias – Process /nnovation

– Core Process 5edesign (CP5)

• 5elevant /nitiatives in Organi0ations

– 1>M

– Contin*o*s Process /m-rovement – /nformation Strategy Planning and /nformation

'ngineering

– /1 for Com-etitive <dvantages

• 5elated /nitiatives in P*lic Sectors – 5einventing the Government

– &*nctional Process /m-rovement (DOD)

7/21/2019 bpr notes


R i i A hi i St t i l

7/21/2019 bpr notes

http://slidepdf.com/reader/full/bpr-notes-56e09bea9d8b7 21/100" 2$ "© Minder Chen, $##!"27

Reengineering or A#hie!ing Strategi# oals

So*rce Gateay /nformation Services, /nc. ;e Aor8,

&ig*res are ased on res-onses from $2$ e6ec*tives at US firms in the man*fact*ring, ins*rance,and *tilities ind*stries.

@oanne C*mmings, H5eengineering is high on list *t little *nderstood,H ;etor8 +orld, @*ly 27,$##2, -. 27.

Senior e6ec*tivesI choice for achieving strategic goals

%%

7%

77

F7

3

G $

O*tso*rcing

Donsi0ing

5estr*ct*ring

<*tomation

5eengineering

BPR * l

7/21/2019 bpr notes


BPR *+amples

• &ord <cco*nts Payale

• M*t*al 4enefit 9ife ;e 9ife /ns*rance Policy<--lication

• Ca-ital ?olding Co. C*stomer Service Process

• 1aco 4ell Com-any"ide 4P5• Others

5 d A t P /l P

7/21/2019 bpr notes

http://slidepdf.com/reader/full/bpr-notes-56e09bea9d8b7 23/100" 2! "© Minder Chen, $##!"27

5ord A##ounts Paya/le Pro#ess

<cco*ntsPayale

<cco*ntsPayale

Eendor Eendor

Goods5eceiving5eceiving

Payment

/nvoice

5eceivingdoc*ment

P*rchasingP*rchasing

P*rchase order

Co-y of -*rchase

order

PO 5eceiving Doc. /nvoice So*rce <da-ted from ?ammer andCham-y, $##!

& i 5 d- AP R i i

7/21/2019 bpr notes


&rigger or 5ord-s AP Reengineering

• Ma0da only *ses $ -ersonnel to do the same <P.

(&ord Q Ma0da )• +hen goods arrive at the loading doc8 at Ma0da

– Use ar"code reader is *sed to read delivery data.

– /nventory data are *-dated.

– Prod*ction sched*les may e resched*led ifnecessary.

– Send electronic -ayment to the s*--lier.

5 d P t P

7/21/2019 bpr notes


5ord Pro#urement Pro#ess

<cco*ntsPayale

<cco*nts

Payale

Eendor Eendor

Goods5eceiving5eceiving

Payment

Goodsreceived

P*rchasingP*rchasing

P*rchase order

P*rchaseorder

Data ase

5 d A t P /l

7/21/2019 bpr notes

http://slidepdf.com/reader/full/bpr-notes-56e09bea9d8b7 26/100" 2F "© Minder Chen, $##!"27

5ord A##ounts Paya/le

BeoreBeore

Ater Ater

• More than acco*nts -ayale cler8s matched-*rchase order, receiving doc*ments, and invoices andthen iss*ed -ayment.

• /t as slo and c*mersome.

• Mismatches ere common.

• 5eengineer B-roc*rement instead of <P -rocess.

• 1he ne -rocess c*ts head co*nt in <P y 7N.

• /nvoices are eliminated.

• Matching is com-*teri0ed.

• <cc*racy is im-roved.

;e 9ife /ns*rance Policy <--lication Process at

7/21/2019 bpr notes


• ! ste-s, de-artments, $# -ersons

• /ss*ance a--lication -rocessing cycle time23 ho*rs minim*mQ average 22 days

• only $7 min*tes in act*ally -rocessing the a--lication

De-artment <Ste- $

De-artment <Ste- 2

De-artment 'Ste- $#

. . . .

/ss*ance<--lication

/ss*ancePolicy

;e 9ife /ns*rance Policy <--lication Process atM*t*al 4enefits 9ife 4efore 5eengineering

So*rce <da-ted from Rethinking the Corporate %orkpla#e: Case Manager atMutual Beneit 8ie, ?arvard 4*siness School case #"3#2"$, $##$.

1he ;e 9ife /ns*rance Policy <--lication Process

7/21/2019 bpr notes


" 2% "© Minder Chen, $##!"27

1he ;e 9ife /ns*rance Policy <--lication Process?andled y Case Managers

Case Manager

Underriter Physician

Mainframe

9<;Server

PC

+or8station

• a--lication -rocessing cycle time3 ho*rs minim*mQ 2" days average

• <--lication handling ca-acity do*le

•

C*t $ field office -ositions

C t C dit < li ti < l i

7/21/2019 bpr notes


" 2# "© Minder Chen, $##!"27

Approve customer credit application

Event Subprocesses Result

Credit application

is submitted

Complete

application

Evaluateapplication

Decide on

application

Inform

customer

Set up

customer

Customer is

notified, recorded,and enabled to place

orders

Case for action Vision

·We’re losing maret s!are to competitors offering fast or instant credit, and our image is declining"

·#ur paper$based %orflo% involves man& starts and stops, and involves several departments and 'ob functions"·We don’t’t capture t!e rig!t information on t!e application, so %e needto go bac to t!e Customer repeatedl&"·We can’t ans%er Customer (ueries about in$process applications

·)!e effort and dela& aren*t’t 'ustified for small Customers %!o poseminimal ris as a group"·Credit Representatives spend most of t!eir time on small accounts, noton large ones %!ere t!eir e+pertise is needed"·nless %e fi+ t!e process, our maret s!are %ill continue to erode andclosure of t!e operation is liel&"

·We %ill offer instant, secured credit to small Customers"

·Applications from large Customers %ill be !andled in t%o da&s orless"

·All staff %ill perform !ig!er$value %or, and !ave more aut!orit&$Credit

Reps %ill focus on large clients, and Credit Admin Clers %ill !andlesmall applications completel&"

·Independent surve&s %ill s!o% t!at Customers perceive us as t!eCustomer Service leader in our industr&"

·#nce t!e ne% process is implemented, our maret s!are decline %illslo%,

and %it!in one &ear %e %ill again be gro%ing at -./ per &ear"

Actors 0ec!anisms 0etrics

·Applicant·Sales Representative·Credit Representative·Credit Administration Cler ·Credit 1ureau

·Word 2rocessing Cler

·0areting Administration Cler ·Customer Data 0aintenance Cler

·Credit Application

·Credit Report

·3otification 4etter

·Sales S&stem

·- to 5 %or !ours and up to 6 elapsed da&s per application·7 Credit Representatives

·-89 applications per mont!, gro%ing -9/ per &ear·68/ approved, .8/ declined

·:8/ of applications come from small Customers·;9/ of our sales volume comes from -9/ of Customers·-9/ of applications come from previousl& denied Applicants, and

-9/from former Customers·Small Customer bad debt %rite$offs are less t!an ./ of sales, andoverall t!e& are appro+imatel& -/ of sales

C*stomer Credit <--lication <nalysis

6

7/21/2019 bpr notes


" ! "© Minder Chen, $##!"27

2 6roup

• < direct mar8eter of ins*rance"life, health, -ro-erty, andcas*alty"via television, tele-hone, and direct mail.

• /n $#%%, D5G -resident ;orm Phel-s and other seniore6ec*tives decided that for o*r com-any, the days ofmass mar8eting ere over.

• ;eed to strengthen D5GIs relationshi-s ith e6istingc*stomers and target o*r mar8eting to those -otentialc*stomers hose -rofiles matched s-ecific com-anystrategies.

• < ne vision for D5G 1he com-any needed to ee6actly hat most -eo-le didnIt e6-ect it to e anins*rance com-any that cares ao*t its c*stomers andants to give them the est -ossile val*e for their-remi*m dollar. So*rce <da-ted from Capital 'olding Corporation6Reengineering the

Dire#t Response roup" ?arvard 4*siness School case $#2"$, $##2.

Capital 'olding Co : 9ision

7/21/2019 bpr notes


" !$ "© Minder Chen, $##!"27

Capital 'olding Co2: 9ision

Caring, 9istening, Satisfying... one y oneCaring, 9istening, Satisfying... one y one

'ach of *s is devoted to satisfying the financial concernsof every memer of o*r c*stomer family y

•

Dee-ly caring ao*t and *nderstanding each memers*ni=*e financial concerns.

• Providing val*e thro*gh -rod*cts and services that

meet each memers financial concerns.

• 5es-onding ith the clear information, -ersonalattention and res-ect to hich each memer is entitled.

• ;*rt*ring an end*ring relationshi- that earns each

memers loyalty and recommendation.

Capital 'olding Co : 9ision

7/21/2019 bpr notes


" !2 "© Minder Chen, $##!"27

Capital 'olding Co2: 9ision

1o carry o*t o*r vision e m*st

• &ind and serve -eo-le ho have a strong sense of

affiliation, reaching them thro*gh ne or e6isting

memershi- gro*-s.

• Provide o*r memers ith a road range of ins*ranceand savings -rod*cts.

• Comm*nicate -ersonally ith each memer thro*gh

direct res-onse, em-hasi0ing tele-hone and technology

to *ild close relationshi-s.

DR Cultural Audit 5indings

7/21/2019 bpr notes


" !! "© Minder Chen, $##!"27

• <ss*m-tion Ao* can only tr*st yo*r friends.

/m-lications – 9ac8 of tr*st may indicate a lac8 of confidence in the organi0ation and

may im-ede the organi0ations aility to im-lement change

– /f ideas arent shared, there is li8ely to e less innovation.

– +ithholding Bad nes gives an incom-lete -ict*re hich can res*lt in-oor decisions.

DR Cultural Audit 5indings

• C*lt*ral <*dit &irst initiative *nder reengineering*mrella.

• /t o*ld e im-ossile to reengineer o*r systems and-rocesses itho*t an *nderstand of the c*lt*re arriers" the -eo-le iss*e.

• 1rigger ma:or changes in h*man reso*rce management "

redesigning of -romotion and reard systems.

&he nder(ritten Rules o the ame

7/21/2019 bpr notes


" !3 "© Minder Chen, $##!"27

&he nder(ritten Rules o the ame

1he most nole organi0ation

initiatives are doomed to fail*re if theyre=*ire em-loyees to ehave in aysthat conflict ith (ater6#ooler (isdom

on ho to get on in the com-any.

So*rce <da-ted from Peter Scott"Morgan, &he nder(ritten Rules o the ame: mater&hem" Shatter &hem" and Break &hrough the Barriers to Organi.ational Change, McGra"?ill /nc., $##3.

;e 4*siness Model < Conce-t*al 4rea8thro*gh

7/21/2019 bpr notes


" ! "© Minder Chen, $##!"27

;e 4*siness Model < Conce-t*al 4rea8thro*gh

1arget K Segmentof <ggregate Mar8et

Use /ndivid*al/nformation

Use Gro*-/nformation

Pros-ects

C*stomers

Sell K5eneCa-t*re /ndivid*al/nformation

K

Personali0edService

B/ 1hin8 / Jno.

B/ Jno for S*re.

Mar8et Management

C*stomer Management

A 'igh68e!el Ser!i#e Pro#ess Model &oday

7/21/2019 bpr notes


" !F "© Minder Chen, $##!"27

A 'igh68e!el Ser!i#e Pro#ess Model &oday

CS5 9ife <K? Micro" Data 9etter" SystemC*stomer Corres. Policy film 'ntry sho-

Change

+hats yo*r -olicy Rs

Challis !

9ife 7 Micro"film5e=*est

<ction5e=*est

Day $

Micro"film

5es-onseDay

• /ncrease my <K? coverage• Give me information ao*t my 9ife Policy eneficiaries

<ction

5e=*est

Day 2

/n-*t5e=*estedChange

Day

<K? changeconfirmation lettermailed to c*stomer

SystemU-date

9ife Policyeneficiaries letter

mailed to c*stomer

Day F

Day F(4atch)

Day %C*stomer receivesto se-arateres-onses

Customer Management &eam ;CM&<:

7/21/2019 bpr notes


" !7 "© Minder Chen, $##!"27

g ; < A 5la!or o 'o( DR Ser!i#e Pro#ess %ill Change

/mmediate5es-onse to

C*stomer

Day $<nsers

Day !"3

Day $"2

Day $

Send rittenac8noledgment

• /ncrease my <K? coverage• Give me information ao*t my

9ife Policy eneficiaries

C*stomer

CM11eleservice

5e-resentative

System

Client"serverarchitect*re

O*to*ndPa-er

&a#o Bell

7/21/2019 bpr notes


" !% "© Minder Chen, $##!"27

&a#o Bell

•

B+e ere going ac8ards " fast ... /fsomething as sim-le, e made it com-le6. /fit as hard, e fig*red o*t a ay to ma8e itim-ossile. " 1aco 4ell C'O, @ohn '. Martin

•C*stomer *y for $ are orth ao*t 2 cents.7 cents goes into mar8eting, advertising, andoverhead.

• 5eengineering from the c*stomers -oint of

vie. B<re c*stomer illing to -ay for theseT!alue6added- activities

So*rce <da-ted from ?ammer and Cham-y, $##!

&a#o Bell

7/21/2019 bpr notes


" !# "© Minder Chen, $##!"27

&a#o Bell

• Cor-orate Eision B+e ant to e n*mer one in

share of stomach.• Slashed 8itchen

Jitchens Seating ca-acity

7N !N !N 7N

• 'liminate district managers. 5esta*rant managers aregiven -rofit"and"loss res-onsiility.

• Moving coo8ing of meat and ean o*tside.

• 4oost -ea8 serving ca-acity at average resta*rant from3 an ho*r to $, a ho*r.

• millions regional com-any in $#%2 to ! illionnational com-any in $##2.

Reengineering *+ample

7/21/2019 bpr notes


" 3 "© Minder Chen, $##!"27

Reengineering *+ample

+hich line isshorter andfaster

Cash 9ane

;o more than$ items

Reengineered Pro#ess

7/21/2019 bpr notes


" 3$ "© Minder Chen, $##!"27

Reengineered Pro#ess

Jey Conce-t• One =*e*e for m*lti-le

service -oints

• M*lti-le servicesor8station

BPR Prin#iples

7/21/2019 bpr notes


" 32 "© Minder Chen, $##!"27

BPR Prin#iples

• Organi0e aro*nd o*tcomes, not tas8s.

• ?ave those ho *se the o*t-*t of the -rocess-erform the -rocess.

• S*s*me information"-rocessing or8 into thereal or8 that -rod*ces the information.

• 1reat geogra-hically dis-ersed reso*rces astho*gh they ere centrali0ed.

• 9in8 -arallel activities instead of integratingtheir res*lts.

• P*t decision -oints here the or8 is-erformed and *ild controls into the -rocess.

• Ca-t*re information once and at the so*rce.So*rce Michael ?ammer, B5eengineering +or8 Dont <*tomate, Oliterate,

?arvard 4*siness 5evie, @*ly"<*g*st, $##, --. $3"$$2.

BPR Prin#iples 6 Deri!ed

7/21/2019 bpr notes


" 3! "© Minder Chen, $##!"27

BPR Prin#iples Deri!ed

• 5edesign -rocess ste-s s*ch that they are -erformin a correct order. Comine several -rocess ste-sinto one.

• Design for -arallel s*-rocesses henever -ossileto red*ce aiting time eteen tas8s. /ntegrates*-rocesses.

• Processes may have m*lti-le versions. 5emovecom-le6, e6ce-tions, and s-ecial cases.

• 'm-oer h*man -otentials. Give front"line or8ersthe res-onsiility to ma8e decisions.

• Provide mechanism in the -rocess to enco*rageindivid*al, team, and organi0ational learning

So*rce Derived from Michael ?ammer and @ames Cham-y, Reengineering the Corporation: A Maniesto or

Business Re!olution" ?ar-erCollins P*lishers, /nc., $##!

$normating 0ot Automation

7/21/2019 bpr notes


" 33 "© Minder Chen, $##!"27

$normating" 0ot Automation

<n individ*al itho*t information

cannot ta8e res-onsiilityQan individ*al ho is given

information cannot hel- *t ta8eres-onsiility.

@an Cal0onC'O, Scandinavian <irlines

BPR Prin#iples 6 Deri!ed ;Continued<

7/21/2019 bpr notes


" 3 "© Minder Chen, $##!"27

BPR Prin#iples Deri!ed ;Continued<

• Perform the or8 here it ma8es sense.

• 5ed*ce controls and chec8s. 4*ild in feedac8

mechanisms at each ste-s to minimi0e the need for thechec8-oints and control.

• Minimi0e reconciliation.

• 'liminate m*lti-le e6ternal contact -oints. Use case

managers to -rovide a single -oint of contact forc*stomers. One"sto- c*stomer service or c*stomerservice center.

• Design -rocesses ith centrali0ed and decentrali0edo-erations.

• Coordinate inventory, *ffers, and other assets y sharingdata cross organi0ation o*ndaries. @/1, contin*o*sre-lenishment, s*--lier shelf management.

• Strive for Bdoing things right the first time. 'liminate

reor8 and iteration.

A BPR 5rame(ork

7/21/2019 bpr notes


" 3F "© Minder Chen, $##!"27

A BPR 5rame(ork

Organi0ation – @o s8ills

– Str*ct*res – 5eard – Eal*es

1echnology – 'naling technologies

– /S architect*res – Methods and tools – /S organi0ations

Process – Core *siness -rocesses – Eal*e"added –

C*stomer"foc*s – /nnovation

Approa#hes to BPR

7/21/2019 bpr notes


" 37 "© Minder Chen, $##!"27

Approa#hes to BPR

• &oc*s on core *siness -rocesses.

• Use information technology to ena/le ne*siness -rocesses, not :*st to a*tomate e6istingones.

• Start ith a clean sheet of -a-er and thin8 o*t"of"

the"o6.• Consider all as-ects of the -rocess.

• <do-t a 4P5 methodology.

• Use -roven methods and tools in analy0ing andredesigning the -rocess.

• Manage the im-lementation and change -rocessfrom the eginning.

Managing BPR Pro=e#ts

7/21/2019 bpr notes


" 3% "© Minder Chen, $##!"27

Managing BPR Pro=e#ts

• 4P5 9ife Cycle Management

• 4P5 1eam Str*ct*res

Business Pro#ess Reengineering 8ie Cy#le

7/21/2019 bpr notes


" 3# "© Minder Chen, $##!"27

Business Pro#ess Reengineering 8ie Cy#le

1he 4P5 life cycle a--roach decom-oses

*siness reengineering -ro:ects into inter"related -hases in hich a set of integrated

str*ct*red methods and tools is a--lied to

s-ecific tas8s in each 4P5 -hases. 'ach

-hase and its detailed tas8s contain clearly

defined goals and deliverales.

&hree 8ie Cy#le Models o BPR

7/21/2019 bpr notes



y

Define *sinessgoal

<naly0e the*siness -rocess

5edesign the-rocess

/m-lement thene -rocess

Meas*re the ne-rocess

Develo- *siness visionK -rocess o:ectives

/dentify -rocesses to eredesigned

Understand and meas*ree6isting -rocesses

/dentify informationtechnology levers

Design K *ild a-rototy-e of the -rocess

Moili0ation(Get serio*s)

Diagnosis(Get started)

5edesign(Get cra0y)

5eali0ation(Get real)

+ang+ang?ammer ?ammer Daven-ort and ShortDaven-ort and Short

Methodology Components

7/21/2019 bpr notes


" $ "© Minder Chen, $##!"27

Methodology Components

Phase

1as8

Ste-

+or8 4rea8dons

Partici-ant

5ole

4P5 1eam Str*ct*res

Conce-t

Method 1ool

Methods and 1ools

Deliverale

<--ly to

Use

<re /nvolvedin

7/21/2019 bpr notes


Phase 1: 9isioning

7/21/2019 bpr notes


" ! "© Minder Chen, $##!"27

g

• <--ly to enter-rise"ide reengineering effort.• Develo- overvie of c*rrent and f*t*re *siness

strategies, organi0ational str*ct*re, and *siness-rocesses.

• Develo- organi0ational commitment toreengineering.

• Develo- and comm*nicate a *siness case foraction.

• Create a ne cor-orate vision.• Set stretched goals.• Prioriti0e o:ectives.•

<ssess im-lementation ca-ailities and arriers.

Deine #orporate !ision and /usiness goalsDeine #orporate !ision and /usiness goals

Case or A#tion

7/21/2019 bpr notes


" 3 "© Minder Chen, $##!"27

• Business #onte+t +hat is ha--ening, hat ischanging, and hat is nely im-ortant in theenvironment in hich the com-any o-erates.

• Business pro/lem 1he ma:or concern of thecom-any.

• Marketpla#e demands ;e -erformancere=*irements that cannot e met y thecom-any.

• Diagnosti#s +hy the com-any cannot meet

the ne -erformance re=*irements +hy theincremental im-rovement is not eno*gh

• Cost o ina#tion Conse=*ences of notreengineering. So*rce ?ammer and Cham-y, $##!.

O/=e#ti!es or Business Reengineering

7/21/2019 bpr notes



= g g

• /m-rove c*stomer satisfaction

• Shorten cycle time• /m-rove o*t-*t =*ality

• C*t don costs

•/ncrease com-etitiveness

• Maintain the leadershi- -osition

Business 9ision" Strategy" and Pro#esses

7/21/2019 bpr notes



" gy"

'nter-rise"+ide Eision

4*siness Strategy

Process Eis*ali0ation

Determine ho eare and hat e are

doing ao*t

Define the right

things to do

Do the right thingsright

so*rce @ohn 9. 4arrett, BProcess Eis*ali0ation Getting the Eision 5ight /s Jey,

$normation Systems Management" S-ring $##3, --. $3"2!.

Phase >: $dentiying

7/21/2019 bpr notes


" 7 "© Minder Chen, $##!"27

y g

• Constr*ct high"level -rocess ma-

• Develo- a -rocess hierarchy

• 4*ild enter-rise"ide data models (o-tional)• 'val*ate the -rocesses

• Select -rocesses to e reengineered

• Prioriti0e and sched*le -rocesses to ereengineered

$dentiy /usiness pro#esses to /e reengineered $dentiy /usiness pro#esses to /e reengineered

&$ Semi#ondu#tor Business Pro#ess Map

7/21/2019 bpr notes


" % "© Minder Chen, $##!"27

p

Man*fact*ring Ca-aility Develo-ment

StrategyDevelo-ment

Prod*ctDevelo-ment

C*stomer Design KS*--ort

Order &*lfillment

Conce-t

Develo-ment

Man*fact*ring

Mar8et

C*stomers

C*stomer Comm*nicationC*stomer Comm*nication

So*rce <da-ted from ?ammer and Cham-y, $##!, -. $$#.

A eneri# 'igh68e!el Pro#ess Map

7/21/2019 bpr notes


" # "© Minder Chen, $##!"27

g p

Mar8etC*stomer

Develo-strategy

Understand c*stomer needsK develo- sol*tions

<ttract and retainc*stomer

Deliver -rod*ctsand services

Deliver s*--orting services

So*rce <da-ted from Mar8 Ao*nglood, eating the Cho#olate *lephant: &ake Charge o

Change &hrough &otal Pro#ess Management" Micrograf6 /nc., $##3, -. $3F.

Organi0ation9earning

Organi0ation9earning

sing 9alue Chain to $dentiy 'igh68e!el Pro#esses

7/21/2019 bpr notes



<ddedEal*e

Cor-orate /nfrastr*ct*re

/no*nd9ogistic O-eration O*to*nd

9ogistic

ServiceSalesand

Mar8etingPrimary<ctivity

S*--orting<ctivity

?*man 5eso*rce Management

Proc*rement

1echnology De-loyment

'igh68e!el Pro#ess Diagram o 5irm ?

Customer Patent O""ice Customer

Su!!lier su!!lier in#oice

!a%ment

Marketesearch

7/21/2019 bpr notes


Fund usinessO!erations

!!

Pro#ide$echnolog%

Su!!ort

Pro#ide PersonnelSu!!ort

Maintain Financialecords

Su!!lier

!roduct 'market

!romotions

!roduction!lan

!roduct'market(!ricing in"ormation(market anal%sis

market anal%sis

!lans andbudgets

!atent a!!lication

!ilot !roduct

!roductim!ro#ementre)uirements

materialselection

"orecasts *material '!arts and timing+

e)ui!ment needed"or !roduction

!roductim!ro#ements( "uture

!roduct needs

!roduction designdocuments( method o"

!roduction( OM(in#entor%( so"t,are !roduct

im!ro#ements

su!!liercredentials

!roduction order(general order

!roduct & !roductionsu!!lies

!roblems,ith order

su!!lier in#oice

maintenance!lan

maintenance

!roblem summar% and!roduct "eature re)uests

monthl% sales "orecasts "or !roduction ' customer order

order

customer!a%ment

sales in#oice

in#oice details

deli#eredgoods

!roductinstallation

customertraining

!roduct!ricing

customised !roduct

maintenancematerials

customeren)uiries(

!roblemnoti"ication(com!laints

de"ecti#e!arts

maintenance 'su!!ort

maintenancematerialre)uirements

!arts "or re!air're"urbishing

"inished !roducts "ordistribution

Customer

esearch

marketing "orecast

!roduction materialre)uirements

"inished !roduct(re!aired 're"urbished !arts

!roductionmaterials

Customer

customer order details

!roductionstatistics

Deli#er ' -nstallProduct

ecei#e Accounts

!ricing

Market Product

Plan and Monitorusiness

Manu"actureProduct

Procure Materials Pa% Accounts

Pro#ide Post SaleCustomer Su!!ort

De#elo!

Product

.arehouseMaterials and

Product

MaintainProductionE)ui!ment

Plan Production

Sell Product

customer,ants 'needs(satis"actionsur#e%s

'igh 8e!el Segmentations o *nterprise Pro#esses

7/21/2019 bpr notes


" F2 "© Minder Chen, $##!"27

8ogi#al 5un#tional Pro#ess Model

7/21/2019 bpr notes


" F! "© Minder Chen, $##!"27

7/21/2019 bpr notes


" F3 "© Minder Chen, $##!"27

Pro#esses

7/21/2019 bpr notes



Pro#esses

• /dentify -rocesses to e redesign

– Systemic K e6ha*stive a--roach /nformationengineering can e *sed to identify critical *siness-rocesses *sing activity"data matri6.

– ?igh"im-act K int*itive a--roach Use facilitated

or8sho-s or e6tensive intervies involving seniormanagement.

• G*idelines

–

2V *siness -rocesses at a time – /dentify oners of *siness -rocesses.

– '6-and the sco-e of a -rocess een analy0ed

Criteria or Sele#ting Pro#esses

7/21/2019 bpr notes


" FF "© Minder Chen, $##!"27

• 4ro8en

• 4ottlenec8

• Cross"f*nctional or cross"organi0ational *nits

• Core -rocesses that have high im-acts

• &ront"line and c*stomer serving " the momentof the tr*th

• Eal*e"adding

• ;e -rocesses and services• &easile

&he @6rid Model or Sele#ting Pro#esses to Reengineer

7/21/2019 bpr notes


" F7 "© Minder Chen, $##!"27

5is8y*siness Pic8 lohanging fr*its Pic8 lohanging fr*its

4ar8 *- the

rong tree

Good for a

serio*s -ilot-ro:ect

Pic8 lo

hanging fr*its

4ar8 *- therong tree

&r*itless'ffort

&r*itless'ffort

/m-lementation Diffic*lty

P r o c e s s

/ m - a c t s

?igh Medi*m 9o

? i g h

M e d

i * m

9

o 7

+oofL

Phase 3: Analy.ing

7/21/2019 bpr notes


" F% "© Minder Chen, $##!"27

• Cond*ct -reliminary sco-ing.• Develo- a high"level <S"/S aseline -rocess model (or8

flo model). <void analysis paralysis y cond*cting-reliminary analysis at fairly high level.

• S*rface -*r-ose and ass*m-tions of the -rocess (<s8+?A).

• Perform activity"ased costing costs can e assignedased on act*al activities and -rod*ctivity.

• 5eveal hidden time and nonval*e"added activities.• Meas*re cycle"time and =*ality.

• Meas*re -rofitaility in terms of tas8, -rod*ct, andc*stomer ty-e.

Analy.e and Measure an *+isting Pro#ess Analy.e and Measure an *+isting Pro#ess

$nter!ie( uestions

7/21/2019 bpr notes


" F# "© Minder Chen, $##!"27

• +hat ma8es it go

• /s anyone else involved• Does the name of the ste- acc*rately convey

the res*lt

• <re all o*tcomes shon

• /f there is a handoff,ho does it get there

PROC*SS o athering Reuirements

7/21/2019 bpr notes


" 7 "© Minder Chen, $##!"27

• P Plan to intervie

• 5 5ehearse intervie• O O-en intervie

• C Collect data

• ' 'nd intervie

• S S*mmari0e intervie

• S Synthesi0e intervie

7/21/2019 bpr notes


7/21/2019 bpr notes


" 72 "© Minder Chen, $##!"27

'W'CU1/;G +</1/;G

1/M' 1/M' /;EO9E'M';1 '&&/C/';CA COS1

Cycle time /dle Peo-leScra- Cost -er

e6ec*tion

+or8 time 1ransit De-artments 5eor8

1ime or8ed >*e*e ?andoffs Defect y ty-e Cost of defects

Set*- @o 'rrors &i6ed vers*s

classifications variale costs

9aor *nions /terations

9ocations C*stomer

contacts

9ang*ages Com-laints Co*ntries Com-liments

c*lt*res

+hatever else

is relevant

Pro#ess Model

7/21/2019 bpr notes


" 7! "© Minder Chen, $##!"27

• Process decom-osition

• Process de-endency or or8 flo

• /COM of a -rocess as defined in /D'& – /n-*ts information and materials

– O*t-*ts Prod*cts and services

– Controls Policy, s-ecification, and timing – Mechanism 5eso*rces incl*ding -eo-le, tools, and

facility.

Pro#ess Data

7/21/2019 bpr notes


" 73 "© Minder Chen, $##!"27

• 4asic Overall -rocess data – C*stomers and c*stomer re=*irements – S*--liers and s*--liers =*alifications – 4rea8thro*gh goals – Performance characteristics Cost, cycle time,

reliaility, and defect rate.

– Systems constraints 4*dgetary, *siness, legal,social, environmental, and safety iss*es andconstraints.

• Meas*re critical -rocess metrics – Cycle time – Cost – /n-*t =*ality – O*t-*t =*ality – &re=*ency and distri*tion of in-*ts

$dentiied Broken Pro#esses

7/21/2019 bpr notes


" 7 "© Minder Chen, $##!"27

• 1erminal Disease – Sym-tom '6tensive data e6change , red*ndancy, re8eying – Disease <ritrary fragmentation of a nat*ral -rocess

• @*st /n Case – Sym-tom '6cess *ffers of assets, e.g., inventory – Disease System slac8 to co-e ith *ncertainty

• Over"ins-ection

– Sym-tom ?igh ratio of chec8ing and control to val*e adding – Disease /ncom-etence and mistr*st eca*se of fragmentation

• 5eor8 – Sym-tom &re=*ent reor8 and iteration – Disease /nade=*ate feedac8 along -rocess chain

• S-ecial Cases – Sym-tom 1oo many e6ce-tions and s-ecial cases – Disease Grad*ate accretion onto a sim-le -rocess

So*rce <da-ted from ?ammer and Cham-y, $##!.

Analy.ing a Pro#ess

7/21/2019 bpr notes


" 7F "© Minder Chen, $##!"27

• +hy +hat are the *nderlying ass*m-tions – ?o do the ass*m-tions affect -rocess str*ct*re

– <re the ass*m-tions still valid Can yo* ma8e them invalid – ?o o*ld changing the ass*m-tions affect the or8 and its

val*e

• +ho does the or8 – <re yo* ass*ming that a s-ecialist m*st do the or8

• +hen +hat is the flo of the or8 – <re yo* ass*ming that one gro*- m*st finish (collecting all

data) efore another gro*- can egin

• +here is the or8 -erformed

– <re yo* ass*ming that decision m*st e made at thehead=*arters

• +hat reso*rces are re=*ired – <re yo* ass*ming that local inventory is re=*ired for good

service

Phase : Redesigning

7/21/2019 bpr notes


" 77 "© Minder Chen, $##!"27

$dentiy ena/ling $& , generate

alternati!e pro#ess redesigns

$dentiy ena/ling $& , generatealternati!e pro#ess redesigns

/nformation1echnology


4*siness5eengineerin

g

4*siness5eengineerin

g

?o can /1 s*--ort*siness -rocesses

?o can *siness-rocesses etransformed *sing /1

So*rce 1homas ?. Daven-ort and @ames '. Short, B1he ;e /nd*strial 'ngineering /nformation technology and

4*siness Process 5edesign, Sloan Management 5evie, S*mmer $##, --. $$"2F.

&e#hnology6dri!enBusiness6pulled

Phase : Redesigning

7/21/2019 bpr notes


" 7% "© Minder Chen, $##!"27



4*siness5eengineering

4*siness5eengineering

?o can /1 s*--ort*siness strategiesand *siness

-rocesses

&e#hnology6dri!en

4*siness Eision

K Strategy

4*siness Eision

K Strategy

Business6pulled

?o can *siness

strategies e changed*siness -rocesses etransformed *sing /1

&hree Steps in Redesigning Pro#esses

7/21/2019 bpr notes


" 7# "© Minder Chen, $##!"27

• Sim-lification – 1as8 Change *siness r*les or -roced*res of a s-ecific tas8

– +or8flo < -rocess chain is sim-lified y elimination ofnonval*e"adding activities

• /ntegration – 5edesign tas8s into a logical and effective -rocess.

– < reengineered -rocess often crosses f*nctional o*ndaries.

– /t offers o--ort*nity for eradicating interde-artmentalred*ndancies and restr*ct*ring the organi0ation.

• <*tomation – Us*ally accom-anies nontechnical redesign of organi0ation

str*ct*res and -roced*res. – <ll reengineering costs and enefits can e -ro:ected into a

model.

– 5eengineering often -ays for itself " so*rces of f*nding fortechnology investments are fre=*ently cost savings generated y

organi0ational change.

Steps in Redesigning

7/21/2019 bpr notes


" % "© Minder Chen, $##!"27

• Generate ne visions for the -rocess• Create ideas for dramatic changes

• /dentify core s*"-rocesses

•/dentify enaling technologies

• Design alternative ne -rocesses

• 'stimate costenefitris8 involved in alternative-rocess redesigns

Phase : *!aluating

7/21/2019 bpr notes


" %$ "© Minder Chen, $##!"27

• Develo- criteria of eval*ating alternatives ofredesigned -rocesses

• 'val*ate design alternatives

• Select and recommend a reengineered -rocess

'val*ate and select a -rocess redesign'val*ate and select a -rocess redesign

*!aluation Criteria

7/21/2019 bpr notes


" %2 "© Minder Chen, $##!"27

• Costs – Design and im-lementing the *siness -rocess

– ?ire and train em-loyee – Develo- s*--orting /S – P*rchase of other e=*i-ment and facilities

• 4enefits

– C*stomer re=*irements – 4rea8thro*gh goals – Performance criteria – Constraints

• 5is8 – 1echnology availaility and mat*rity – 1ime re=*ired for design and im-lementation – 9earning c*rve

– Cost and sched*le overr*n

Phase E: $mplementing

7/21/2019 bpr notes


" %! "© Minder Chen, $##!"27

• Plan /1 im-lementation

• Plan organi0ation im-lementation

• Cond*ct a -ilot -ro:ect

• Develo- a -rototy-e system – &e#hni#al Design

– So#ial Design

• 'val*ate res*lts from the -ilot -ro:ect andthe -rototy-e

• Pre-are large"scale roll o*t

/m-lement the reengineered -rocess/m-lement the reengineered -rocess

Phase 7: $mpro!ing

7/21/2019 bpr notes


" %3 "© Minder Chen, $##!"27

• Develo- -erformance meas*rement andreard systems in the reengineered -rocess

• Monitor -rocess -erformance constantly

• /m-rove the -rocess on a contin*o*s asis

/m-rove the -rocess contin*o*sly/m-rove the -rocess contin*o*sly

*lements o $ntegrated Pro#ess Management

7/21/2019 bpr notes


" % "© Minder Chen, $##!"27

Process5eengineering

ProcessMonitoring

Process/m-rovement

/ntegrated Process Management

&arget Design 9isioning: Pri#e %aterhouse

7/21/2019 bpr notes


" %F "© Minder Chen, $##!"27

4*siness <nalysis

9evel• Strategic• 1actical

• O-erational/nformation• &acts• Prolems• O--ort*nities

Eisioning +or8sho-

• &acilitation• Partici-ation• Consens*s

?igh"9evel Goals

• Desired end state• Sco-e of vision

'6ternal Eie

• 4est -ractices• 4P5 -rinci-les• 1echnologies• /nd*stry K

f*nctional

Eision

• Peo-le K c*lt*re• Processes

• Systems K /1• Organi0ation K Str*ct*re• Performance meas*res K

targets

Process Design

• Segment -rocesses• Select high"ret*rn -rocess

redesign o--ort*nities• Perform detailed redesign of

*siness -rocesses

1arget 'nvironment Design

• Peo-le K c*lt*re• Processes• Systems K /1• Organi0ation K str*ct*re

Rapid Re Approa#h

7/21/2019 bpr notes


" %7 "© Minder Chen, $##!"27

Pre-aration

5ecogni0e needDevelo- e6ec*tive

consens*s1rain teamPlan change

/dentification

Model c*stomer Define K meas*re

-erformanceDefine entitiesModel -rocessesMa- organi0ationMa- reso*rcesPrioriti0e

-rocesses

Eision

Understand -rocessstr*ct*re

Understand -rocessflo

/dentify val*e"adding

activities4enchmar8-erformance

Determine enchmar8drivers

'stimateo--ort*nities

'nvision and

integrate theinternal K e6ternalideal

Sol*tion 1echnical Design

Model data K ree6amine-rocess lin8ages

/nstr*ment and informateConsolidate interfaces K

information5edefine alternatives5elocate K retime controlsMod*lari0e K s-ecify

de-loyment<--ly technologyPlan im-lementation

Sol*tion Social Design

'm-oer c*stomer contact-ersonnel

Define :os, teams, s8ills,S-ecify management

str*ct*re, org.o*ndaries, K transitionalorg.

S-ecify :o changes Kcareer -aths

Deign change mgmt -rog.Design incentives

Plan im-lementation

1ransformation

4*ild K test the

system1rain staff Pilot ne -rocessDefine transitionContin*o*s

im-rovement

So*rce <da-ted form Manganelli K Jlein, &he

Reengineering 'and/ook , <M<COM, $##3.

*nterprise *ngineering 6 A 5rame(ork or Change

7/21/2019 bpr notes


" %% "© Minder Chen, $##!"27

Contin*o*sProcess

/m-rovement

4*sinessProcess

5edesign

4*siness 5e"

engineering

9earningOrgani0ation

Strategic

Eisioning

/nformation/nfrastr*ct*reDevelo-ment

Organi0ation and

C*lt*reDevelo-ment

So*rce <da-ted from @ames Martin K Co.,Business Re6engineering ui#k Reeren#e uide"

$##!.

BPR &eam Stru#tures

7/21/2019 bpr notes


" %# "© Minder Chen, $##!"27

M e t h o d o l o g i s t 1 o o l s ' 6 - e r t s C h a n g e M a s t e r

4 P 5 C 0 a r 4 P 5 S t e e r i n g C o m m i t e e

4 P 5 1 e a m

4 P 5 ' 6 - e r t s

D o m a i n ' 6 - e r t s / S ' 6 - e r t s

1 e a m 9 e a d e r

P r o c e s s O 7 n e r

4 P 5 1 e a m 4 P 5 1 e a m

4 P 5 9 e a d e r ( C h a m - i o n )

B1he 9'<D'5 a--oints theP5OC'SS O+;'5, hoconvenes a 5'';G/;''5/;G

1'<M, ith assistance from the4P5 CX<5 and *nder thea*s-ices of the 4P5 S1''5/;GCOMM/11''. (?ammer andCham-y, $##!)

Stakeholders o the Reengineering Pro=e#t

7/21/2019 bpr notes


" # "© Minder Chen, $##!"27

• 'nd *sers, o-erators, managers of the -rocess

• Gainers and losers of enefits

• 'm-loyees ho may e affected

• Decision ma8ers

• Controllers of reso*rces

• S*--liers and c*stomers of the -rocess

BPR &eam

7/21/2019 bpr notes


" #$ "© Minder Chen, $##!"27

• Si0e *- to % memers in the core teama*gmented y s*:ect"matter e6-erts hen

needed.• Commitment half" to f*ll"time.

• S8ills team s8ills, -rocess engineering, =*ality,information systems, enchmar8ing,organi0ational and :o design, and changemanagement.

• Com-osition 'm-loyees, c*stomers, s*--liers,

and e6ternal cons*ltants.

7/21/2019 bpr notes


ualii#ations o a BPR 5a#ilitator

7/21/2019 bpr notes


" #! "© Minder Chen, $##!"27

• /s s8illf*l in team *ilding and leading

• Manages gro*- -rocess and dynamics

• ?as energetic and o*tgoing -ersonality

• S*mmari0es disc*ssion

• /s a good comm*nicator (listening and s-ea8ing)

• ?as -ro:ect management aility

• ?as mastered facilitation s8ills

• Understands 4P5 methods

7/21/2019 bpr notes


8essons 8earned

7/21/2019 bpr notes


" # "© Minder Chen, $##!"27

• Peo-le tend to foc*s on the shortcoming of e6istingsystems, rather than entirely ne ay to deliver

services to c*stomers.• 1as8"oriented -eo-le in 4P5 teams may not e ale to

see and change the ig -ict*re.

• Ao* need data ao*t yo*r c*stomers, their needs, andyo*r com-etitors efore yo* start.

• +or8 hard at *ilding a consens*s of -*r-ose and anidentity for the 4P5 team. Memers sho*ld not seethemselves as re-resentatives of vario*s f*nctional*nits ro*ght together to -rotect their interests. 1hey

sho*ld or8 as a team to enefit the *siness.• /nsist on direct and active *--er management

-artici-ation s*ch that the team ill have the -oliticalclo*d to act*ally reengineer and ill 8no the changesin *siness strategies.

9ision

7/21/2019 bpr notes


" #F "© Minder Chen, $##!"27

• < statement of the f*t*re *siness environment

and ho the com-any ill o-erate in thatenvironment.

• Eision is the res*lt of dreams in action . /t is a-ositive image of the f*t*re that is the strongest

motivator for change.• Characteristics

– Common -*r-ose orth the effort

– Positive feeling and diff*se fear

– Clarity and val*es

– Ca-t*re the imagination

– /ns-ires and em-oers

– Sho*ld have HreachH and HrangeH

Mission

7/21/2019 bpr notes


" #7 "© Minder Chen, $##!"27

• < statement of the asic -*r-ose or reason for

the com-any to e6it.• 9ines of =*estioning

– +hat *siness are e in

– +hat is the geogra-hic sco-e

– +hat mar8ets do e serve

– +hat -rod*cts and services do e -rovide

– +hat are the critical s*ccessf*l factors of theorgani0ation

– ?o can e achieve o*r com-etitive advantage

Mission: *+amples

7/21/2019 bpr notes


" #% "© Minder Chen, $##!"27

• <1K1 O*r *siness is service

• Gerer 4aies are o*r *siness

• D* Pont 4etter things for etter living thro*ghchemistry

Strategi# 9isioning Pro#ess

7/21/2019 bpr notes


" ## "© Minder Chen, $##!"27

Past Present &*t*re

Conte6t

Stories

/nsight

EisionsEisions

&oresight

7/21/2019 bpr notes


Documents

bpr notes