Reengineering….

BPR, Process Innovation, ERP, Mass Customization, Networked

Organization, Empowerment, Teams, Virtual Corporations, TQM, JIT

Supply Chain

Flow of materials, information, and services

Includes organizations and processes

Manage the entire processBusiness Process

Reengineering(BPR)

Reengineering the Corporation

Written - 1993Michael Hammer

– One of 1996 most influential people in the U.S.

Time Magazine July 17,1996

James Champy

What is Reengineering?

“the fundamental rethinking and radical redesign of businessprocesses to achieve dramatic improvements in critical, contemporary measures or performance, such as cost, quality, service, and speed”

p. 32

Reengineering is...

Reversing the Industrial revolution

InnovationProcess Oriented

Re-Inventing

Re-creating

Starting Over from Scratch

Impacts

Increase product by an order of magnitude

Examine process

VisionIncrease Profits

Benefit from better product

Needs are met

Tendency to return

Loyalty

Teams

Less Workers - More Work

Empowered

Layoffs

Company Customers Employees

Why Reengineer

The 3 C’s– Customers– Competition– Change

Nothing is Constant or PredictableChange is the only constant

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

Keys

Leaders Staff EmpowermentBroader Scope

– Knowledge / SkillsTasks to Process

– Redesign of SystemsInformation TechnologyCommunity

The 3 R’s

Redesign– Cross-function approach

Retool– Information Tools

Reorchestrate– Organization changes

Problems

Fix vs. ChangeFocusIgnoreQuitScope HR / UnionsSuccess Rate

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

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]

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)

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.

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.

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

Add p 138

CHANGE

“It is an educational and communications campaign”

– p.148