No. 0  Business Process Innovation through IT ● The Concept of Business Process Innovation ● What is Reengineering? ● Principles of Reengineering ● Examples of Reengineering ● Stages of Reengineering ● Factors Leading to a Failure in Reengineering

No. 1 AttributeProcess ImprovementProcess Innovation Level of ChangeIncrementalRadical Starting PointExisting processClean slate Frequency of ChangeOne-time/continuousOne-time Time RequiredShortLong ParticipationBottom-upTop-down Typical ScopeNarrow, within functionsBroad, cross-functional RiskModerateHigh Primary EnablerStatistical controlInformation technology Type of ChangeCulturalCultural/structural [Source:Davenport, Thomas H. Process Innovation: Reengineering Work through Information Technology, Boston, MA: Harvard Business School, 1993]  What is Business Process Innovation? ● Business process innovation refers to a means or process through which a firm can increase competitiveness by making big changes in the way the firm conducts its business. ● Examples: reengineering, benchmarking, TQM(total quality management) ● Process innovation is different from process improvement.

No. 2  What is Reengineering? ● Often referred to as BPR(Business Process Reengineering) ● a business process innovation technique that seeks cost reduction, increase in market responsiveness, and improvement in product/service quality for the purpose of increasing customer satisfaction and of creating a competitive edge. ● Michael Hammer’s definition of 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.” ● Key words: fundamental, radical, zero-base, dramatic, processes

No. 3  Sample Business Processes [ 출처 :Davenport, Thomas H. Process Innovation: Reengineering Work through Information Technology, Boston, MA: Harvard Business School, 1993]

No. 4  Principles of Reengineering ● Integrate related parts of work - Tasks are integrated rather than divided, specialized, or fragmented - Work integration makes it possible to respond to external changes more rapidly ● Centralize resource management - Centralized resource management can increase efficient utilization of resources and reduce the costs of resource management ● Focus on concurrent processing of tasks - Strengthen the ties among sequential functions, and process functions concurrently if necessary (‘concurrent processing’) - Concurrent processing of work can significantly reduce the cycle time of a work process

No. 5  Examples of Reengineering

No. 6 고객 영업사원전화응답 직원 신용담당 부서 운영 부서 이윤책정 담당자 사무 직원 Old Process 고객 영업사원종합업무 수행자 New Process  Process Innovation at IBM Credit

No. 7 카메라 설계 카메라 제조설비 설계 Old Process New Process 동시 진행 카메라 설계 카메라 제조설비 설계  Process Innovation at Kodak

No. 8  Stages of Reengineering Select a target process Understand the existing process Set the objectives of the process Design the new process Develop a change model Implement the process Operate the process

No. 9  Factors Leading to a BPR Failure