Business Process Reengineering &

E Commerce

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Presentation Outline
 General Introduction

 Business Process Reengineering

BPR Symbols
 Understand and be able to implement a
BPR Strategy
 Understand the main challenges in
implementing a BPR Strategy
 Conclusion: Summary

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Business Process Reengineering

 “Reengineering is 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.”

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BPR & The Organization

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BPR is Not?
 BPR may sometimes be mistaken for the following
five tools:

 1. Automation refers to computerizing

processes to speed up the existing tasks.
Improves efficiency and effectiveness.


 2. Downsizing is the reduction of expenditures

in order to become financial stable. Those
expenditures could include but are not limited to:
the total number of employees at a company,
retirements, or spin-off companies.

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BPR is Not?
 3. Outsourcing involves paying another
company to provide the services a company
might otherwise have employed its own staff
to perform. Outsourcing is readily seen in
the software development sector.
 4. Continuous improvement emphasizes
small and measurable refinements to an
organization's current processes and
systems. Continuous improvements’ origins
were derived from total quality management
(TQM)

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What is a Process?
 A specific ordering of work activities
across time and space, with a
beginning, an end, and clearly
identified inputs and outputs: a
structure for action.

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What is a Business Process?
 A group of logically related tasks
that use the firm's resources to
provide customer-oriented results in
support of the organization's
objectives

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Why Reengineer?
 Customers
 Demanding
 Sophistication
 Changing Needs

 Competition
 Local
 Global

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 Customer Demands

• Customer expects that manufacturer or supplier

has remedy for all the problems
• Manufacturer who make the right decisions at
right time could grow with each decade.
• Each competitive manufacturer changes his
product with change in customers taste.
• Each manufacturer tries to reduce his expenses
• Each manufacturer wants to alter his goods and
services as competition changes.
• By e commerce information is quick & adds value
in each spectrum of business.
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 Need of BPR-

Integrate people, technology & organizational culture

To Respond to rapidly changing technical & business
environment and customer’s needs to achieve Big
performance gains

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Why Organizations Don’t Reengineer?

 Complacency

 Political Resistance

 New Developments

 Fear of Unknown and Failure

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Performance
 BPR seeks improvements of

 Cost
 Quality
 Service
 Speed

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 The C’s related to
Organization Re-engineering Projects

The 3C’s of The 4C’s of effective

organization Re- teams:
engineering:
- Customers - Commitment
- Competition - Cooperation
- Change - Communication
- Contribution

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Information Technology & BPR

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Benefits From IT
 Assists the Implementation of
Business Processes by modern
technology only.
 Enables Product & Service Innovations
 Improve Operational Efficiency
 Coordinate Vendors & Customers in the
Process Chain

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BPR Challenges

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Common Problems with BPR
 Process under review too big or too small
 Reliance on existing process too strong
 The Costs of the Change Seem Too Large
 BPR Isolated Activity not Aligned to the
Business Objectives
 Allocation of Resources
 Poor Timing and Planning
 Keeping the Team and Organization on
Target

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How to Avoid BPR Failure
 To avoid failure of the BPR process it is
recommended that:

 BPR must be accompanied by strategic planning

 Place the customer at the centre of the
reengineering effort, concentrate on reengineering
fragmented processes that lead to delays or other
negative impacts on customer service.
 BPR must be "owned" throughout the
organization, not driven by a group of outside
consultants.
 Case teams must be comprised of both managers
as well as those who will actually do the work.

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How to Avoid BPR Failure
 The Information technology group should be an
integral part of the reengineering team from the
start.

 BPR must be sponsored by top executives, who

are not about to leave or retire.

 BPR must not ignore corporate culture and must

emphasize constant communication and feedback.

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QUESTIONS FOR THIS SESSION
 What is Business Process Re-engineering and why is it needed ?

 What is the impact of IT in BPR ?

 What are the common problems in BPR ?

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