Chapter 8 Process Implementation Reference: Tan, A. (2007). Business Process Reengineering in Asia: A Practical Approach, Pearson Education, Singapore.

Learning outcomes To understand the activities involved in this phase. To understand the considerations that have to take during this phase To outline the requirements in this phase.

Introduction The purpose of this phase is: To establish the financial, manpower and skills training needed for implementing the new process. To outline the considerations used to decide the priority of implementation. A preliminary implementation schedule

Introduction Implementation plan should include: Management structure for implementation Financial costs and benefits analysis Business and policy review Implementation options Preliminary implementation schedule

Management Structure The management structure should be outlined clearly to support the new process. This include: The number of staff involved The relations/positions and reporting to whom Job responsibilities This can be done by setting up a project plan as per project management standard (refer to Table 1).

Management Structure Table 1: Example of Staff Training program

Management Structure All special skills needed, must be clearly defined. For example, IT literate, designing skill, etc. To ensure the IT applications development and migration run smoothly, the IT and management skills have to be developed in parallel within the organization.

Management Structure Any development or recruitment have to be planned. This includes the training, recruiting, purchasing or related resources.

Financial Costs and Benefits Analysis The cost involved in IT development is the highest in the BPR cases. This will involved: Purchasing of hardware and software Building the infrastructure such as servers, network, etc. Licensing

Financial Costs and Benefits Analysis Table 2 shows the example project benefits. For example: However, a detailed scheduled of cost and benefit analysis will be needed to present the value of investment and benefit stream. DepartmentDirect and Intuitive Benefits Indirect and strategic benefits Information Services  More effectively integrated systems  Ease of support  Increased system availability  More satisfied end-users  Availability of more accurate information to support data analysis.

Business and Policy Review Business and policy developments will need to be reviewed to align with the new process and new measurements This includes: Change in policies, rules New initiative Relocation for business units, new building or infrastructure developments Changes in management

Business and Policy Review During the implementation, the impact of these changes towards the scope, resources and schedule will be identified. However strict regulations is not always the best solution. It may involve extra cost such as processing and fee. Any regulation in the past must be reviewed and re-examined and changed to a dynamic, business friendly and competitive environment.

Implementation Options It will be some challenges to migrate from the current process environment to the new design. For example, the process could involve customers, revenues or valued employees and the risk of the transition process. A full cutover or transformation may be difficult or impossible. The transformation can be done in stages.

Implementation Options Issues that may affect the success of BPR Personnel consideration Corporate cultures

Implementation Options Creating a pilot is one of the alternative. Focus on a smaller scale of unit but fully operational and large enough to get a substantial benefits. The unit selected should be the one most capable of achieving successful change. Another approach is to begin with a pilot and follow with a phased introduction as shown in Figure 1.

Implementation Options This approach may be the most economically feasible. The company may derive some financial benefits from the process change Minimize the risk Giving some time to the employees to adapt to the new process environment Current process analysis Preliminary design Detailed redesign Implementation planning Proto type Pilot Imple ment months 6- 9 months

Preliminary Implementation Schedule A workshop can be carried out. Form the implementation team. Fine-tuning the implementation plan. Each IT applications or process needs to be assessed on a variety of criteria. These criteria later on need to be verified by the business managers. It is important to identify and agree on the criteria before assessment begins. After decision have been made, a migration path for the existing system and a new system will be derived.

Preliminary Implementation Schedule Things to be considered Manual processes Automated processes Systems development Documentation Testing Training Assessment on what have been done

Summary Key consideration in this phase: New organization structure Financial costs and benefits Business and policies Implementation options Implementation plan