Business Proces Reengineering (BPR) Fundamental rethinking and radical redesign of business processes to bring about dramatic improvements in performance -Hammer

History Began as thinking in the 1990s. Started as a revolution with phrases such as: –...taking and ax and machine gun to your existing organization... –...shoot the dissenters... –...reengineering will require a lobotomy... –...what you do with the existing structure is nuke it! –...break legs... –...the way you deal with resistance is a bloody ax... –...we will run over you with the train... Has a tarnished history because of badly managed projects.

Continuous Process Improvement

Motivation poor financial performance external competition erosion of market share emerging market opportunities.

BPR is not downsizing restructuring reorganization automation new technology etc. But…..

Focus areas Involvement of Top management Heavy use of "Change Management"

Change management Quy Nguyen Huy Formal structures –Changed through commanding Work processes –Changed through engineering Beliefs –Changed through teaching Social relationships –Changed through socializing

BPR today Example: Implementing an ERP system

The seven basic principles

Organize around outcomes, not tasks –Away with the assembly-lines

Have those who use the output of the process perform the process. –Away with specialists

Subsume information-processing work into the real work that produces the information. –Have department that gets information also process it.

Treat geographically dispersed resources as though they were centralized –Have a server.

Link parallel activities instead of integrating their result –E.g. testing in software development.

Put the decision point where the work is performed, and build control into the process. –E.g. sales the does accounting.

Capture information once and at the source. –Have a server.

BPR and MUST

Objectives MUSTBPR The goal is improvement with focus on existing system The goal is improvement, by completely rearranging the business structure Improvements by ”small”, but relevant, changes Improvements by radical changes

Objectives (cont) MUSTBPR CSCW – Improvement with technology/IT as a primary tool Technology/IT should not be used a stop-gap solution. The problems lies in the processes

Objectives and visions… when? MUSTBPR Goals and visions are made clear after observations and surveys are made Goals and visions are decided in the beginning, used as final objectives

Focus MUSTBPR Examine work processes with improvements in mind Break down work processes and reengineer Consider existing routines Break down existing routines Find hidden workmethods Break down workmethods

Tools / Methods MUSTBPR Work with the users, not against Change Management Evaluate advantages, disadvantages and costs Only the advantages are in focus

Tools/Methods (cont.) MUSTBPR Observe / interview / get inspiration Best Practice / Learn from others FlexibilityRigid structure Users as expertsConsultants as experts