BUSINESS PROCESS RE-ENGINEERING

(BPR)

PRESENTED BY:Vikramjit Singh

Roll No. 130423392MBA, Ist Semester

INTRODUCTION

BUSINESS PROCESS A process is an activity which provides an

output by adding value to an input.

This process invariably includes any action which would result into a better and value added key performance indicator (KPI).

http://www.rajeshtimane.com/wp-content/uploads/2010/06/Business-Process-Examples.jpg

• Business process must have a definite Customer i.e. there has to be a recipient of the outcome of the business process. Further, it should be Integral and Adding Value to the business.

RE-ENGINEERING

The term engineering implies the application of technology to modify something; say; a design, process, product, system, etc.

BUSINESS PROCESS RE-ENGINEERING (BPR)

BPR is about taking a tough look at why, what, when, how and where the organization does the things; the way it does.

NEED OF BPR

The business dynamics today is governed by factors like new technologies, new competitors and again, new rules of competition.

In such an ever-changing business environment, BPR is needed for One, the rapid change, Secondly, the customer and lastly, today’s intense competition demands the business processes at par with the ‘best practices’ prevalent in the industry.

BPR IN USA, EUROPE AND INDIA

REVERSE INNOVATION (BUSINESS MODEL RE-ENGINEERING)

Globalization thus being coined as: the localisation of globally successful technologies.

ENGINEERING INITIATIVES A few reengineering initiatives undertaken by the

banks, railways, Management institutes of repute for admission process in India. ATM (Automatic Tellers Machine) Common Entrance Test (CAT) Railway Reservation Assessment of Income Tax

Inspite of the above cited illustrations for BPR,

The example of these kinds can be noticed in every field of life. Some of them are: (i) Auto matic clearance of Foreign Direct

Investment Proposal, and (ii)  Removal of quantitative restrictions on

import and (iii) Exports of some items/commodities, sales

tax self assessment schemes, etc.

BPR: A REVOLUTIONATY IMPROVEMENTS FOR BUSINESS OPERATIONS

Business Process Reengineering means not only change -- but dramatic change.

EMERGENCE OF BPR In 1990 and again in 1993, some definitive works

were put forth by Dr. Michael Hammer, James Champy, and Thomas Davenport.

CONCEPT OF A BUSINESS PROCESS REENGINEERING

Around the early to mid 90’s the concept of business process reengineering gained popularity, through the publishing of ideas of several well known management guru’s.

IMPACT OF BPR ON ORGANIZATIONAL PERFORMANCE

Business Process Reengineering is the key to transforming how people work.

Even the act of documenting business processes alone will typically improve organizational efficiency by 10%.

IMPLEMENT A BPR PROJECT

Build these into a clear business strategy thereby deriving the project objectives.

Defining behaviors that will enable the organization to achieve its' aims.

Producing key performance measures to track progress.

Relating efficiency improvements to the culture of the organization

Identifying initiatives that will improve performance.

TOOLS TO SUPPORT BPR

The types of attributes you should look for in BPR software are: Graphical interface for fast documentation "Object oriented" technology Drag and drop facility Customizable meta data fields Analysis, such as swim-lanes Support for Value Stream mapping Simulation software to support 'what-if' analyses The production of word documents or web site

versions

DRAMATIC IMPROVEMENTS Business Process Reengineering or BPR is the radical

redesign of business processes through fundamental rethinking.

CORE BUSINESS PROCESSES Well known processes that can be counted as core are

Customer Service, Sales- and Marketing, and Business Development.

THE ROLE OF INFORMATION TECHNOLOGY IN BPR

The role of Information Technology in BPR programs is that of an enabler.

BUSINESS PROCESS IMPROVEMENT AND BUSINESS PROCESS MANAGEMENT

For almost every company Business Process Improvement (BPI) and Business Process Management (BPM) have become critical and essential methods and tools.

COMMON STEPS WHEN PERFORMING BPR

Project Phases Required For Successful BPR: Phase 1: Begin Organizational Change Phase 2: Build the Reengineering Organization Phase 3: Identify BPR Opportunities Phase 4: Understand the Existing Process Phase 5: Reengineer the Process Phase 6: Blueprint the New Business System Phase 7: Perform the Transformation

BPR CASE STUDIES

ENTERPRISE-WIDE BPR FOR A LEADING INDIAN AUTO MANUFACTURER Business Challenge

The client, a leading Indian automobile manufacturer of multi-utility vehicles and light commercial vehicles (LCVs), had plants in four locations, an extensive supplier base and a distribution and service network across India.

MAHINDRA SATYAM’S SOLUTION

They were: Long-term Business Strategy Process-Centric Enterprise (PCE) Phase I Process-Centric Enterprise PCE) Phase II The core processes were identified as: Business Planning Product Management Order Management Customer Management Vendor Management

Benefits The BPR program produced dramatic

benefits that affected every area of the company

Business Value Enhancement (BVE)

Business Value Enhancement (BVE), the Business Process and Technology Consulting group in Mahindra Satyam

THE BPR STORY AT ONGC – A SUCCESS STORY When Oil and Natural Gas Corporation Limited-

India's largest oil exploration and production company- set out to completely transform its business, it turned to SAP solutions and services.

PRE-ERP DAYS

ONGC used PC-based legacy system for material management, project monitoring and maintenance planning.

EXISTING ENVIRONMENT

Database: Oracle Hardware: HP, Compaq, IBM and Sun Operating system: Microsoft Win NT,

Sun Solaris, and Unix

PROJECT OBJECTIVE FOR SAP IMPLEMENTATION:

Optimization and standardization of business processes

Higher visibility of operations to improve productivity

More efficient processes with higher visibility of costs

Integration and extension of value chain

Other objectives of Project ICE:

Integrate all scientific systems

The rest of the amount will be spent on EPNet

The company’s hardware investment would relate high power computing

IMPLEMENTATION

SAP India signed its largest ever deal in India ONGC for implementation of the ICE (Information Consolidation for Efficiency) project.

POST IMPLEMENTATION

Business Process Re-engineering Improved, disciplined approach to accounting,

procurement and financial systems

Rapid acceptance and improved performance by workers

Improved ability to compete through the strategic use of new IT platform

Improved visibility of business processes across different business functions from exploration to production to sales and offshore joint ventures

BUSINESS PROCESS REENGINEERING PROJECT OF INCOME TAX DEPARTMENT,

MINISTRY OF FINANCE, GOVERNMENT OF INDIA

Background & Need for the Project Collection of Direct Taxes which is administered

by the Income Tax Department (ITD for short) has been growing at a very fast pace in recent years.

Objectives of the Project In recent years Income Tax Department has taken

a number of initiatives and implemented projects aimed at providing better taxpayer service, reducing compliance burden on tax payers and improving enforcement

The BPR project was conceptualized with the prime objective of identifying the bottlenecks and providing solutions

Re-evaluation of all current processes to remove the redundant and obsolete processes

Identification of stakeholder’s needs Use best and leading practices of other

organizations to develop milestones Increase alignment between people, processes and

technology Enhance employee involvement, skills and

organizational creativity

Outcomes The Business process Re-

engineering of the Income tax Department is first such project initiated by the Government of India where a comprehensive study

Whereas all the recommendations made in the BPR report cannot be summarized here, some of the recommendations focused around taxpayers services and revenue augmentation are highlighted here :

CONCLUSION

The BPR exercise has come up with a major recommendation of functionally segregating the working of the Department across two broad lines – a Bulk Operations Division (BOD), and a Compliance Operations Division (COD) to carry out specialized activities for a smaller number of taxpayers.

The new technology initiatives together with functional segregation of department’s operations into bulk and compliance and upgradation of manpower skills would help the department to deliver better taxpayer services

CONCLUSION

The business process reengineering effort seeks to change process structure by empowering motivated front-line workers to make decisions by providing ac cess to relevant information.

The concept of BPR is actually industry-neutral. Typically medium to large companies in any sector will benefit from BPR.

At this stage, companies must step back and look at their business models to identify the key business processes in their value chains.

They must look for any bottlenecks, devise means to improve processes, or do them differently.

They must also look out for any organizational and procedural hurdles, which stop them from maximizing efficiency and value-focus.

THANKYOU