BUSINESS PROCESS RE-ENGINEERING Presentation

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Presentation transcript:

BUSINESS PROCESS RE-ENGINEERING Presentation www.AssignmentPoint.com

Management Accounting www.AssignmentPoint.com

INTRODUCTION BUSINESS PROCESS RE-ENGINEERING 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. Business process re-engineering is also known as business process redesign, business transformation, or business process change management. www.AssignmentPoint.com

BACKGROUND Business Process Re-engineering (BPR) has been a management concept since the late 1980s. Its popularity was greatly accelerated by an article published by Hammer in the Harvard Business Review . Over the past five years, Gintic has been involved in several business processes Reengineering projects in different industrial sectors and with varying scope, Most of which resulted in the selection of appropriate enterprise solutions to support the reengineered processes. www.AssignmentPoint.com

THE ROLE OF INFORMATION TECHNOLOGY 1. Shared databases, making information available at many places. 2. Expert systems, allowing generalists to perform specialist tasks. 3. Decision-support tools, allowing decision-making to be a part of everybody's job. 4. Wireless data communication and portable computers, allowing field personnel to work office independent. 5. Interactive videodisk, to get in immediate contact with potential buyers. 6. Automatic identification and tracking, allowing things to tell where they are, instead of requiring to be found. 7. High performance computing, allowing on-the-fly planning and provisioning. www.AssignmentPoint.com

REASONS FOR PROCESS REENGINEERING There are several reasons for organizations to reengineer their business processes: To re-invent the way they do work to satisfy their customers; To be competitive; To cure systemic process and behavioral problems; To enhance their capability to expand to other industries; To accommodate an era of change; To survive and be successful in the long term; and To invent the "rules of the game." www.AssignmentPoint.com

REQUIREMENTS FOR SUCCESSFUL PROCESS REENGINEERING. Many experts indicate that there are essential elements of process reengineering, including: Initiation from the top by someone with a vision for the whole process and relentless deployment of the vision throughout the organization. Leadership that drives rapid, dramatic process redesign. A new value system which includes a greater emphasis on satisfying customers and other stakeholders. An emphasis on the use of cross-functional work teams which may result in structural redesign as well as process redesign. Rewards based on results; and a disciplined approach. www.AssignmentPoint.com

THERE A NUMBER OF COMMON PITFALLS. Those same experts state there are many reasons that process reengineering fails, including: Not focusing on critical processes first. Trying to gradually "fix" a process instead of dramatically re-inventing it. Settling" for small successes instead of requiring dramatic results. Stopping the process reengineering effort too early before results can be achieved. Trying to implement reengineering from the bottom up instead of top down. Assigning someone who doesn't understand Reengineering to lead the effort. Skimping on reengineering resources. www.AssignmentPoint.com

THE DARK SIDE OF PROCESS REENGINEERING - POSSIBLE DISADVANTAGE Process reengineering that is imposed from above and that results in disruptions and layoffs can lead to cynicism. Eileen Shapiro, a management consultant, says that “reengineering as often implemented can erode the bonds of trust that employees have toward their employers. Nevertheless, many companies reengineer at the same time that they issue mission statements proclaiming, 'Our employees are most important assets, 'or launch new initiatives to increase 'employee involvement www.AssignmentPoint.com

ALTERNATIVES TO BUSINESS PROCESS REENGINEERING (BPR ) Reengineering focuses on changing existing business practices. This "impairs the entire reengineering process, as it stifles innovation in finding new ways to compete." BPR falls short when dealing with new products or services, since "any strategic objectives achieved are simply the by- product of improved productivity." Strategic reengineering addresses this shortcoming by focusing on designing the organization to compete. www.AssignmentPoint.com

REENGINEERING RECOMMENDATIONS BPR must be accompanied by strategic planning, which addresses leveraging IT as a competitive tool. 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 will actually do the work. The IT group should be an integral part of the reengineering team from the start. www.AssignmentPoint.com

CONCLUSION In this report we have briefly traced the progress of BPR in the 1990s and how we have extended it to cover business process reengineering beyond the Strategic level to the tactical and operational levels of managing an enterprise.   A formalized methodology for carrying out business process reengineering has been developed. The primary objective of this methodology is to help companies to streamline their business processes according to the goals of each company. www.AssignmentPoint.com

END OF PRESENTATION www.AssignmentPoint.com