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117840564 Business Process Reengineering

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By Gunjan Narulkar 
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Page 1: 117840564 Business Process Reengineering

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By Gunjan Narulkar 

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Michael Hammer and James Champy define

reengineering as ”the fundamental rethinking

and radical redesign of business processes to

achieve dramatic improvements in critical

contemporary measures of performance, suchas cost, quality, service, and speed”.

Most of the work being done does not add any value for 

customers, and this work should be removed, notaccelerated through automation. Instead, companies

should reconsider their processes in order to maximize

customer value, while minimizing the consumption of 

resources required for delivering their product or service.

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Business strategy is the primary driver. BPR is different from other approaches (such

as TQM). Its aim is fundamental and radical change

rather than iterative improvement. IT is major contributing factor and should be

used as an enabler of new organizationalforms instead of just increasingorganizational efficiency.

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PLAN

ANALYZE

DESIGN

DEPLOY

MONITOR

• 

Forcast of systemrequirements for

next 20 years.• Assessment of 

urgency•

Budget• Resources

• 

•The existingsystem was

analyzed for itscharacteristics.• Assessment

alternatives wasdone

• Best possiblealternative chosen

• 

The best possibletechnology was

choosen.•Vender was

chosen to deploy it.• Other

requirements wereplanned for.

• 

• A pilot was done on

1 million customers.• Stage-wise planned

deployment modelused.

• Customers werekept in loop

• A competency /customer

support center wascreated to facilitate

the transfer and engagecustomers.

• Quality guidelines were

created for venders aswell as support staff.•Weekly reports weremonitored by higher

management.

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Customer Buy-

In & Education• Use of Marketing

channels

• Setting upexclusive cells

Organization

widecommitment

• Representationfrom alldepartments

• Dedicated BPR

team and Budget• Strong Leadership

BPR Team

Composition• Members from

SBU affected

• New members

• Old members

• Customer

representative• Technologists

Continuous

Improvements• Performance

measurementshould be builtinside the system

• Pilots should bedone beforedeployment

• Risk managementshould be built in

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BPR assumes that the limiting factors are theinefficiencies in the process – might not be

true! BPR totally disregard status quo and starts

from scratch BPR has been commonly accused of focusing

only on technology and efficiency andmissing out on “human” factor 

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BPR is a great tool if used in proper context and in a

proper way

Human focus of the organization should be taken

care at all the stages of the changes

No single pill for all sorrows! Innovation in otherareas is as important

Hammer admitted that:"I wasn't smart enough about that. I was reflecting my

engineering background and was insufficient

appreciative of the human dimension. I've learned

that's critical."

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Thank You


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