Business Process Reengineering (BPR)

The fundamental rethinking and

radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance such as cost, quality, service and speed.

Dr Michael Hammer

Five Elements of Working Definition

1) 2) 3) 4) 5) Focus on Business Processes Questioning of the Status Quo Specific Objectives Breakthrough Achievement Significant Cultural Change

Management Gaps
Top
Management

Policy Middle Management Planning Supervisors Scheduling

Workers Operations

Functional Gaps: Departmentalization

Manufacturing

Finance

Isolated Islands of Activity

Classification of Reengineering Projects

Extensive

Functional Integration
Functional Refinement

Business Redefinition Process Redesign

Scale of BPR
Limited

Narrow

Broad

Scope of BPR

BPR Process
1. Business Drivers of Reengineering 2. Reengineering Process 3. Reengineering Facilitators 4. Reengineering End Product

Framework for Business Reengineering

Reengineering Facilitators

Business Drivers 1. Competitive Environment 2. Recent Internal Changes Reengineering End Product

Business Reengineering Process

1. Strategic Intent 2. Core Competencies 3. Process Definition 4. Activity Analysis 5. Root Cause Analysis 6. Process Refinement

3. IT Infrastructure

From the Vertical Organization

Research

Manufacturing

Marketing

Finance

To the Horizontal Organization

KEY PERFORMANCE OBJECTIVES Reduce Cycle Time

Process Owners

Team

Team
Reduce Costs

ORDER GENERATION AND FULFILLMENT

Process Owners

Team

Team
Reduce throughput time

INTEGRATED LOGISTICS

Process Owners

Team

Team

COMMERCIALIZATION OF TECHNOLOGY CORE PROCESSES

Corporate Transformation
Three Types of Transformation
1. Improving Operations 2. Strategic Transformation 3. Corporate Self-Renewal