1. Phase 4: Redesigning Sumber Kepustakaan : gunston.gmu.edu/ecommerce/mba731/doc/BP R_all_Part_I.ppt 1 Identify enabling IT & generate alternative process redesigns Identify enabling IT & generate alternative process redesigns Information Technology Information Technology Business Reengineerin g Business Reengineerin g How can IT support business processes? How can business processes be transformed using IT? Source: Thomas H. Davenport and James E. Short, “The New Industrial Engineering: Information technology and Business Process Redesign,” Sloan Management Review, Summer 1990, pp. 11-26. Technology-driven Business-pulled

2. Phase 4: Redesigning Sumber Kepustakaan : gunston.gmu.edu/ecommerce/mba731/doc/BP R_all_Part_I.ppt 2 Information Technology Information Technology Business Reengineering Business Reengineering How can IT support business strategies and business processes? Technology-driven Business Vision & Strategy Business-pulled How can business strategies be changed business processes be transformed using IT?

3. Three Steps in Redesigning Processes Sumber Kepustakaan : gunston.gmu.edu/ecommerce/mba731/doc/BP R_all_Part_I.ppt 3 Simplification:  Task: Change business rules or procedures of a specific task  Workflow: A process chain is simplified by elimination of nonvalue-adding activities Integration:  Redesign tasks into a logical and effective process.  A reengineered process often crosses functional boundaries.  It offers opportunity for eradicating interdepartmental redundancies and restructuring the organization. Automation:  Usually accompanies nontechnical redesign of organization structures and procedures.  All reengineering costs and benefits can be projected into a model.  Reengineering often pays for itself - sources of funding for technology investments are frequently cost savings generated by organizational change.

4. Steps in Redesigning Sumber Kepustakaan : gunston.gmu.edu/ecommerce/mba731/doc/BP R_all_Part_I.ppt 4 Generate new visions for the process Create ideas for dramatic changes Identify core sub-processes Identify enabling technologies Design alternative new processes Estimate cost/benefit/risk involved in alternative process redesigns

5. Phase 5: Evaluating Sumber Kepustakaan : gunston.gmu.edu/ecommerce/mba731/doc/BP R_all_Part_I.ppt 5 Develop criteria of evaluating alternatives of redesigned processes Evaluate design alternatives Select and recommend a reengineered process Evaluate and select a process redesign

6. Evaluation Criteria Sumber Kepustakaan : gunston.gmu.edu/ecommerce/mba731/doc/BP R_all_Part_I.ppt 6 Costs  Design and implementing the business process  Hire and train employee  Develop supporting IS  Purchase of other equipment and facilities Benefits  Customer requirements  Breakthrough goals  Performance criteria  Constraints Risk  Technology availability and maturity  Time required for design and implementation  Learning curve  Cost and schedule overrun