2. Reengineering…. BPR, Process Innovation, ERP, Mass Customization, Networked Organization, Empowerment, Teams, Virtual Corporations, TQM, JIT

3. Supply Chain  Flow of materials, information, and services  Includes organizations and processes  Manage the entire process  Business Process Reengineering(BPR)

4. Reengineering the Corporation  Written - 1993  Michael Hammer –One of 1996 most influential people in the U.S. Time Magazine July 17,1996  James Champy

5. What is Reengineering?  “the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures or performance, such as cost, quality, service, and speed” p. 32

6. Reengineering is...  Reversing the Industrial revolution  Innovation  Process Oriented  Re-Inventing  Re-creating  Starting Over from Scratch

7. Impacts  Increase product by an order of magnitude  Examine process  Vision  Increase Profits  Benefit from better product  Needs are met  Tendency to return  Loyalty  Teams  Less Workers - More Work  Empowered  Layoffs Company Customers Employees

8. Why Reengineer  The 3 C’s –Customers –Competition –Change  Nothing is Constant or Predictable  Change is the only constant

9.  To reengineer a company is to take a journey from the familiar into the unknown. The journey has to begin somewhere and with someone. Where and with whom? –P. 101

10. Keys  Leaders  Staff Empowerment  Broader Scope –Knowledge / Skills  Tasks to Process –Redesign of Systems  Information Technology  Community

11. The 3 R’s  Redesign –Cross-function approach  Retool –Information Tools  Reorchestrate –Organization changes

12. Problems  Fix vs. Change  Focus  Ignore  Quit  Scope  HR / Unions  Success Rate

13. Bell Atlantic’s Experience  The difference is that in a compliance mode I do what I must do because my boss tells me I must do it. In a commitment mode, I understand what the corporation is trying to achieve and how we’re going to achieve it, and I will do whatever it takes to make that happen, including changing the way I do my job if that is what is required –p. 196/197

14. BPR  No longer a need to destroy everything - start from scratch  Instead - Flexible approach that can be executed by proven methodologies and principles. Hammer and Stanton[1995] & Champy [1995]

15. Process Innovation Encompasses the envisioning of new work strategies, the actual process design activity, and the implementation of the change in all its complex technological, human, and organizational dimensions – order-of-magnitude improvements Davenport (1993)

16. Process Innovation vs. Incremental Improvement  Change  Effects  Involvement  Investment  Orientation  Focus  Abrupt, volatile  Immediate  Few champions  High initially, less later  Technology  Profits  Gradual, constant  Long-term  From few to everybody  Low initially, high to sustain  People  Processes Process Innov. Incr. Improv.

17. Networked Organization  Formal  Highly Structured  Manage  Control  Direct  Employee a cost  Information management owned  Risk avoidance  Individual contributions  Informal  Loosely Structured  Delegate/lead  Ownership/participation  Empower  Employees an asset  Information shared-ownership  Risk management  Team contributions Classical/Hierarchical Networked Organ.

18. Enabling IT (P. 133)  Information appears in only one place  Only expert can perform complex work  Only managers make decisions  Locate items manually  Shared Database, Inter, Intra  Expert Systems  Decision support systems  Tracking technology  Information appears simultaneously  Novices can perform work  Decision making is part of everyone’s job  Items located automatically Old Rule Intervene Tech New Rule

19. Add p 138

20. CHANGE  “It is an educational and communications campaign” –p.148