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Business Process Innovation

& Management

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Reengineering a Business Process

1. Develop a process map

Identify business processes

Determine process boundaries

Assess strategic relevance of each

process

Qualify the culture and politics of eachprocess

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Reengineering a Business Process

Determine health of each process

1. Extensive information exchange, data

redundancy, and rekeying2. Inventory buffers

3. High ratio of checking and control to value-

adding

4. Rework and iteration5. Complexity, exceptions, and special cases.

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Reengineering a Business Process

Develop a case for action

Why should we reengineer?

Concise, comprehensive, and compelling

A dramatic persuasive argument, supported by

evidence

Loss of competitive advantage, erosion of its

profit margins, outright failure

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Reengineering a Business Process

2. Identify change enablers

assess information technology enablers

of BPR

assess organizational and human

resource enablers of BPR

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Reengineering a Business Process

3. Develop a business vision and processobjectives

Assess existing business strategy for processdirections

Consult with process customers to determineperformance objectives

Benchmark process performance targets and

examine examples of innovation Formulate process performance objectives

Develop specific process attributes

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Business Vision Destination of the BPR effort

Kind of organization the company needs to

become Both a qualitative and quantitative statement

Acts as a flag around which to rally the troopswhen morale starts to sag

Provides a continuing focus Provides a yardstick for measuring the

progress of reengineering

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Business Vision Has 3 elements:

focuses on operations

includes measurable objectives and

metrics

is powerful, it changes the basis for

competition in the industry

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Reengineering a Business Process

4. Understand existing processes

assess the current process flow

measure the process in relation to thenew process objectives and attributes

identify problems with or shortcomings ofthe process

assess current IT and organization

identify short-term improvement in theprocess

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Reengineering a Business Process

5. Design the new processes and

organization

brainstorm design alternatives

assess feasibility, risks, and benefits of

design alternatives and select the

preferred process design prototype the new process design

develop the migration strategy

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Redesign Tactics

Combine several jobs in one

Let workers make decisions

Perform steps in the process in the

natural order

Have multiple versions of the process

Perform the work where it makes the

most sense

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Redesign Tactics

Reduce checks and controls

Minimize reconciliation

Provide a single point of contact

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Redesign Tactics

Restructure it

Lose wait

Orchestrate

Mass customize

Synchronize

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Redesign Tactics

Inform-ate it

Digitize and propagate

Sensitize

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Redesign Tactics

Mind it

Analyze and synthesize

Connect, collect, and create

Personalize

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Reengineering a Business Process

6. Implement the new process-based

organization

Create new organizational structure Create detailed system design

Develop new performance-measurement

systems and skills

Construct new system Deploy

Monitor key behaviors of process operational

performance and key financial indicators