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Underlying Principles
Fundamental, Radical,Dramatic Radix : Business reinvention(not business improvement, business enhancement) Processes: Collection of activities that takes one or more kinds of input and creates an output that is of value to the customer
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BPR Features Process Orientation Ambition Rule Breaking
Creative use of IT
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Who undertake Reengineering
Companies in deep trouble(Ford-Early 80s) Not yet in trouble but see trouble coming New competitors Changing customer requirements Altered regulatory framework Peak Condition (GE, Wal-Mart etc.)
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Misunderstandings about BPR
BPR is not same as automation BPR is not restructuring or downsizing(less with less to more with less) BPR is not delayering or flattening : BPR may result in flatter organization (BPR targets the process structure rather than organization structure)
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BPR vs. TQM Commonality Importance of processes Need of process customers and work backwards TQM : Within the framework of company’s existing processes – seek to enhance with continuous incremental improvement – Kaizen BPR : Seeks breakthroughs, different approach to change management
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BPR : The Path to Change Starting Over
Rejecting conventional wisdom and assumptions of the past Rejects Adam Smith’s Industrial Paradigm like hierarchical control, division of labour BPR : search for new models of organizing work
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