Course Developed by - : 18 January 2011 18 January 2011 1 1

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18 January 2011 1
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Dr Michael Hammer a ERP/BPR Guru says´
Business Re-engineering is the fundamental re-
thinking 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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Following tasks are required to be carried out :
1.Begin Organizational Change
2. Building the Re-Engineering Organization
3.Identifying BPR Opportunities
4.Understanding Existing Processes
5. Re-engineering the Process
6. Blueprint the New Business System
7. Perform the Transformation
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Business processes and management systems,
job definitions, organizational structures and
beliefs and behaviors to achieve dramatic
performance improvements to meet
contemporary requirements.
Information technology (IT) is a key enabler in this
process. Acronym: BPR
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18 January 2011 6
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BPR is used when businesses are out of time,
ie, if they do not do something they will be
out-of -business or have huge financial problems,
or when people perform processes so differently
that there is no one clear process.
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| - Just in Time techniques applied to various areas
in the organization with particular emphasis on laying out
the work flow by process and breaking down the
traditional functional barriers between:
- Sales
- lanning
- Manufacturing
- Accounts
When |usiness rocess e-engineering is combined
with manufacturing Just in Time ideas the result is a
Focused Factory.
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The basic analysis and design changes of the processes in
question with the objective of overall improvement in
productivity is |usiness rocesses e-engineering (| .
It may involve radical changes in:
§ Management¶s style of functioning
§ Job definitions
§ Organizational structures and
§ olicies
All this to achieve dramatic performance improvements to meet
contemporary requirements.
Information technology (IT is a key enabler in this process
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| is the process of solving organization's needs and
problems by changing the organization's policies and
procedures.
The process of radically changing or re-engineering a
process. | is used when businesses are out of time, i.e.
, if they do not do something they will be out-of -business
or have huge financial problems, or when people perform
processes so differently that there is no one clear process.
| has a high risk associated with it, has radical results
and starts with a clean slate.
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(Companies like Texas Instruments and Harley Davidson are setting
the precedent for implementing reengineering initiatives with internal
process improvement teams. )
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initiatives has been often criticized because of their key
emphasis on restructuring and downsizing
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BPR efforts have been expected to
benefit the company and in several
cases the customers of the company.
How often have we heard of the BPR
efforts oriented to the

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For the "wholistic" perspective about management of

organizational change and organizational interdependence
the best option is to deploy Information Technology.
This way the survival and growth of organizations in an
increasingly turbulent environment would depend upon
effective utilization of information technology for aligning
the organizational structure with environmental preferences
and for creating symbiotic inter-organizational structures.
18 January 2011 17
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We are all familiar with the initial thrust of BPR on
'forcing' radical change on the employees.
We are also aware of the criticism of such 'radicalism' and
the later about turn when it is suggested that BPR needs
to take into consideration the human factors necessary for
successful implementation.

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In the redesign stage, a new process design is developed.
This is accomplished by devising process design
alternatives through brainstorming and creativity
techniques. The new design should meet strategic
objectives and fit with the human resource and IS
architectures.
Documentation and prototyping of the new process is
typically conducted and a design of the new
information system to support the new process is
completed.
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A Data warehouse is a collection of data gathered and
organized so that it can easily by analyzed, extracted,
synthesized, and be used for the purposes of further
understanding the position.
A technique for properly assembling and managing data
from various sources for the purpose of answering business
questions and making decisions that were not previously
possible.
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A Datawarehouse is, primarily, a record of an enterprise's
past transactional and operational information, stored in a
database designed to favour efficient data analysis and
reporting . Data warehousing is not meant for current,
"live" data.
A Datawarehouse is a copy of transaction data
specifically structured for querying and reporting.
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S me imp rtant characteristics are:
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- Cost Effective Decision making
- Better Enterprise Intelligence
- Enhanced Customer Services
- Business Re-engineering
- Information Systems Re-Engineering
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The structure of D/W has:
1. Physical D/W: Physical database in which
all the data for the data warehouse are stored.
2. Logical D/W: Contains metadata , including
organizational rules and processing logic. It
does not contain the actual data.
3. Data Mart: It is a subset of D/W. This typically
represents a section of the database or D/W e.g.
Region, Function, department etc.
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-Starting D/W Project without management support
- Setting impossible expectations
- Promising things like ´This will help managers make
better decisions´ which may backfire.
- Loading the warehouse with unnecessary/irrelevant
data.
- Handling this in a similar way as a Transactional
Database Management.
18 January 2011 52

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-Taking only traditional data for D/W and ignoring
the potential value of external data and of text
- Believing the performance ,capacity and scalability
promises
-Believing that once the data warehouse is up and
running, your problems are finished
18 January 2011 53
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2ategory Operational Database Data warehouse
Function Data/ |usiness rocessing Decision Support
Data rocess oriented, 2urrent Subject Oriented, 2urrent

Values, Highly detailed and Historical values,
Summarized
Usage Structured, epetitive Ad hoc, Some epetitive
reports and structured
applications
rocessing Data Entry, |atch, OLT End-user, Initiated Queries
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-The process of analyzing data to identify patterns or
relationships.
- Data mining is derogatory. It means sorting through a
huge volume of data, extracting decision rules .
- Searching large volumes of data looking for patterns
that accurately predict behavior in customers and
prospects.
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ºhe pr cess f data mining c nsists f
three stages:
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Stage 1: Exp rati n.
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Stage 2: M de buiding and vaidati n.
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Stage 3: èp yment.
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What can data mining d
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S me Exampes:
WaMart is pi neering massive data mining t transf rm its
suppier reati nships.
WaMart captures p int- f-sae transacti ns fr m ver 2,900
st res in 6 c untries and c ntinu usy transmits this data t
its massive 7.5 terabyte ºeradata data wareh use.
WaMart a ws m re than 3,500 suppiers, t access data n
their pr ducts and perf rm data anayses. ºhese suppiers use
this data t identify cust mer buying patterns at the st re
dispay eve. ºhey use this inf rmati n t manage ca st re
invent ry and identify new merchandising pp rtunities.
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Ô w d es data mining w rk

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àta mining c nsists f five maj r eements:

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is defined as
``the non-trivial extraction of implicit,
unknown, and potentially useful
information from data'' . In a clear
distinction between data mining and
knowledge discovery is drawn.
18 January 2011 71
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©DD is a growing field: There are many

knowledge discovery methodologies in
use and under development.
Some of these techniques are generic,
while others are domain-specific.
18 January 2011 72
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- All approaches deal with large amounts of data
- Efficiency is required due to volume of data
- Accuracy is an essential element
- All require the use of a high-level language
- All approaches use some form of automated
learning
- All produce some interesting results
18 January 2011 73
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- Use data Mining to develop, test, implement,
measure and modify tailored marketing programs
- Maintain a life-long relationship with customer
- redicting the probability of default for consumer
loan applications
- redicting audience share for television programs
- Fraud/Non-2ompliance Anomaly Detection
- Isolate the factors that lead to fraud, waste and abuse
- Target auditing and investigative efforts more effectively
- 2redit /isk Scoring
18 January 2011 74
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- Forecasting what may happen in the future
- 2lassifying people or things into groups by
recognizing
- 2lustering people or things into groups based
on their attributes
- Associating what events are likely to occur
together
- Sequencing what events are likely to lead to
later events
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"¦ ¦

-2hanges in the |usiness Environment
- 2ustomers becoming more demanding
- Markets are saturated
- Databases today are huge
- Databases are growing at an unprecedented rate
- Decisions must be made rapidly
- Decisions must be made with maximum knowledge
18 January 2011 76
º
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For the "wholistic" perspective about management of

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Data rocess oriented, 2urrent Subject Oriented, 2urrent

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