Week 8 (Lecture 8) - Process Redesign (1)

Source / Reference:

1)      Omar A.EI Sawy, Redesigning Enterprise Processes for e-Business

2)      http://dspace.mit.edu/bitstream/handle/1721.1/48613/newindustrialeng00dave.pdf

Response:

In lecture 7, in order to have a success of the BPR effort, we have clearly defined and proven the BPR methodologies. The central concerns that BPR methodologies try to alleviate stem from differences between business activities and organizational strategy, and between current and desired productivity of organizational resources. This methodology is designed to be used by reengineering teams in business organizations without tremendous reliance on external BPR consultants. The methodology consists of five typical phases, each of which addresses a logical section of the reengineering process. The five phases are Triggering and Executive Visioning, BPR Project Mobilisation, Process Redesign, Implementation and Organisational Transformation, and Monitoring and Maintaining.

In lecture 8, the Process Redesign phase, Phase 3 of the BPR, is the focus in this chapter. Process Redesign needs a tool to quickly capture and model existing processes as well as new processes and also to support rigorous changes and catalyze creative thinking. In the Process Redesign, it includes five steps and divided into three phases.

Phase 1: Scoping the process

Phase 2: Modeling, Analysis, and Redesign of the process

Phase 3: Planning process integration

However, we will focus on discussing on scoping the process in Process Redesign in this lecture. In scoping the process, it includes the following activities.

1.          Operationalize process performance targets

The objective of redesign is prioritized and regular. For every objective which can be separated into sub-goals and each objective need to be clarity distinctly. Also, Tangible measures must be defined for each process target.

For instance, cutting processing time for simple requests from five days average to 24 hours max, and for complicated requests, from ten days average to 90% being processed in three days or less.  

2.          Define process boundaries

The process boundaries can be the customers, output, input, starts, end and the triggers of the process. In order to define the scope of the process, it includes the BPR team with pointers for collecting data for the modeling phase. Moreover, it counteracts the temptation for grandiosity which guarantee the end-to-end process between multiple functional areas and organizations and balance of effort and return.

3.          Identify key process issues

First, it provides a common starting assessment point for the BPR team and flags areas requiring attention. Also, in order to identifying the issues directly related to the flow of the process itself, it identifies the key issues related to the work environment around the process.

4.          Understand best practices and define initial visions

Understanding known best practices is not benchmarking in the formal or rigorous sense. Formal benchmarking for a process can only be done after the process is modeled and carefully understood and detailed, which occurs in Phase 2 of process design.

5.          Familiarize participants with BPR software

By the end of this premodeling phase, the various BPR participants must become familiar with the selected BPR software and its capabilities. There are different degrees of familiarization with BPR software suitable for different types of participants.

6.          Outline data collection plan and collect baseline data

Having defined the process scope and assessed the key process issue, the BPR team is now aware of which subprocesses and which departments and external entities it needs to collect more data form, and what the nature of some of the data needed is. Now familiar with the BPR software tool, the team also knows which form and level of aggregation the data is most appropriately in.

7.          Plan for modeling phases

It is provided to the process owners for reporting and feedback purposes and used as a focusing and guiding device. 

Week 6 (Lecture 6) - Basics of BPR (2)

Source / Reference:

1)      Omar A.EI Sawy, Redesigning Enterprise Processes for e-Business

2)      Delvin Grant and Erhan Mergen, “Applying quality to Leavitt’s framework to solve information technology problems”

Response:

In lecture 6, Dr. Helen DU has introduced more about the Business Process Reengineering (BPR) and the role of IT. In order for Business Process Reengineering (BPR), organization cannot only just focus on information technology use, business, requisite people skills and organizational form. Therefore, I had the fundamental understanding of the Leavitt Diamond which is a conceptual framework for balancing IT-enabled organization transformation.

Business Process Reengineering (BPR) was built on Total Quality Management (TQM). Therefore, the definition of Business Process Reengineering (BPR) which I mentioned before is not totally complete to understand the component. In order to have a better insight into the concept, we will focus on Total Quality Management (TQM) and the difference between Business Process Reengineering (BPR) in lecture 6. Also, the evolution of Total Quality Management (TQM) and Business Process Reengineering (BPR) are resulted in Business Process Management (BPM).

1)      Definition

1.1  What is Total Quality Management (TQM)?

The Total Quality Management (TQM) is a programmes and initiatives which focus on continuous incremental improvement and output over an open-ended period of time. It is also the approach that tries to improve the quality and performance which will meet or exceed customer satisfaction and expectations.

1.2  What is Business Process management (BPM)?

The Business Process management (BPM) is about modeling, automating and optimizing business processed to enhance profitability. It is appear out of Total Quality Management (TQM) and Business Process management (BPM) and across the business and technological indentation.

2)      The role of Information Technology in reengineering

Information technology is an integral section of reengineering as an enabler, since it allows organization to reengineer a business process. Also, Information Technology has the capabilities to support business process. Therefore, Information Technology plays an extremely important role for implementing a successful BPR.

There are various capabilities of Information Technology in reengineering which help to improve the process in the organization.

First, in the Automation, Information Technology can reduce human labor in certain process. Besides, in Informational, Information Technology can bring vast volumes of detailed information into a business process. Also, in Transactional, Information Technology can transform unstructured business process into standardized transactions. Moreover, in Analytical, Information Technology can bring complex analytical methods to bear on a process. Furthermore, in Knowledge management, Information Technology allows the capture and dissemination of knowledge and expertise to improve the process. In addition, in Tracking, Information Technology allows details tracking of status, inputs, and outputs. Finally, in Reduction of intermediaries, Information Technology can be used to connect two parties within a process that would otherwise communicate through intermediates.

Therefore, the Information Technology provides a good chance for changing business processes and transformation.

       

3)      The Leavitt Diamond Framework

In order to successfully support the Business Process Management (BPM), it cannot only just to redesign the business process. We need to take different perspectives. Therefore, the Leavitt Diamond Framework is a balance which is used to adjust the newly designed process to be implemented more effectively. It reveals four highly corresponding perspectives: technology, people, takes and structure. All perspectives need to be respect and consistent when introducing and designing the technologies. Any changes in one perspective will affect all other three components. Therefore, they are inter-related and conductive to effective organizational functioning.

4)      What is the Difference between Business Process Reengineering (BPR) and Total Quality Management (TQM)?

The Total Quality Management (TQM) is focus on process as well as select and adopt a whole sight of workplace activities. Base on Allender Hans D., “Total Quality Management is a frame for culture change in an organization and provides a framework for building organization culture that equips an organization to continuously learn and improve increasingly focuses on all aspects of the organization, including employees and finally provide an approach to build a culture consistent with success.”In Total Quality Management (TQM), the organization put the customers in the first for any change and strongly emphasizes on continual improvement of the process in the long term. The entire organization executes the Total Quality Management (TQM) programme with the operation in the certain aspect of concept and the core value.

The Business Process Reengineering (BPR) is concern about building up and clarify customer requirement and then implement the process-based horizontal which is cross-functional teams working on common processes in order to meet the customer needs. Also, the Business Process Reengineering can reduce the unnecessary need process which can help to have a deeply understand on the roles and the responsibilities. Finally, the process is optimized which create a continuous improvement through the empowered workforce.

Both of them improve the performance of quality in different dimensions area. Also, they are cross-functional and share the material to achieve customer satisfaction. However, the goal of Total Quality Management (TQM) is that improve the processes one at a time with continuous improvement. However, Business Process Reengineering (BPR) is a one-time effort, focusing on identifying one or two strategic business processes that need to change.

Week 5 (Lecture 5) - Basic of BPR (1)

Week 5 (Lecture 5) - Basic of BPR (1)

Source / Reference:

1)      Davenport, Thomas H;Prusak, Laurence;Wilson, H James, “Reengineering revisited”

2)      V. Grover, K. Malhotra ,“GroverMalhotra-BPRTutorial-JOM-1997”

3)      Omar A.EI Sawy, Redesigning Enterprise Processes for e-Business

Response:

In lecture 5, Dr. Helen DU has introduced the other IT related strategy for business and the basic principle of Business Process Reengineering (BPR). I had the fundamental understanding of the theory of Business Process Reengineering (BPR)  in terms of the separate definition of business, process and reengineering. Also, I had the concept of the definition, rationale and the properties of business process and the process-oriented view of an organization. Let’s get start by the definition of Business Process Reengineering (BPR).

1)      Definition

1.1  What is Business Process Reengineering?

According to Teng et al. (1994), Business Process Reengineering (BPR) defines as “the critical analysis and radical redesign of existing business processes to achieve breakthrough improvements in performance measures.”

According to Davenport & Short 1990, Business Process Reengineering (BPR) defines as “The analysis and design of workflows and processes within and between organizations”

In my understanding, Business Process Reengineering (BPR) is the intensive rethinking of all business processes, work flow, management systems, organizational structure, job definitions , underlying assumptions and beliefs. Business Process Reengineering’ s major aim is to break away from old ways of working, and effect radical (not incremental) redesign of processes to achieve dramatic improvements in critical areas. For instance, the cost, quality, service, and response time through the in-depth using of information technology. 

1.2  What is a Business?

In my understanding, business focuses on end-to-end business. It is broadening the scope to the customers. The organization and the customers can also add the value via the process. The objective of business is to coordinate the activity through the use of outside-in perspective instead of top-down perspective. Therefore, the organization should define the business process through the eyes of the customers.

1.3  What is a Process?

In my understanding, process refers to a particular process to form a structured business system. It is taken by the specific input and output in order to finally achieve value added outcomes. It is not focus on a static organizational structure. It is cross-functional in scope. Therefore, the flow is flexible.

1.4  What is a Business Process?

In my understanding, business process can be focus in three sections: input, processing and outcome. Firstly, the input is the data which collected by the customers or other channel. Secondly, the processing is the deal with the data. Thirdly, the outcomes are the delivery of the expected outcome.

1.5  What is a Reengineering?

In my understanding, reengineering refers to the diversified implicit supposition with regard to the degree of performance improvements owing to reengineering and how the reengineering is accomplished.

2)      A case study of an organization transformation

 According to the lecture notes, it had described an example of how the organization transforms the current process (AS-IS) to an improved process (TO-BE).

In the above graph, it is the current process (AS-IS). It is the vertical organization. In order to solve a problem, the customer must visit various different department and staffs according to the organization structure. Therefore, the customers involve many processes for dealing a problem and inquire.

In the above graph, it is the improved process (TO-BE). It is cross functional organization. The organization organizes an order processing team which serves the customer’s request directly and individually. They have the power of owing and exchanging the information as well as assigning the case to the certain person in charge through the use of information technology and network. Finally, the team gives back the result to the customers.

From the above case study, the vertical organization is organized base on functional units. The cross-functional organization bases on the process unit. Therefore, BPR is focus on team which has the power of internal control. Also, the team can break the departmental barriers as well as reduce the confusion and sub-optimization across functions. Finally, it can help to build a customer-oriented effective organization.

3)      How can Business Process Reengineering (BPR) be applied to an organization?

      The Business Process Reengineering (BPR) emphasizes on Horizontal Organization, not the Traditional Organization. The customers are the CEO of the organization. Therefore, the organization’s strategic goal is to provide customers oriented services, not formulate the strategy by the top management of the organization. Also, the organization enables the role of Information Technology. It is used for cross-functional teams which enable effective and efficient communication and transformation of information no matter the location.

4)      What is the potential impact of Business Process Reengineering (BPR)?

Some of the factors may affect the implementation of Business Process Reengineering (BPR). They are top management supports, formalization of procedure, customer involvement, change management, organization culture and centralization of decision making.

5)      What are the success factors to achieve the successful Business Process Reengineering        (BPR) of the organization?

The organization should have the customer involvement, top management commitment and support, effective communication, change the management culture, integrate of IT with BPR, technical and business knowledge, integration of the system, user training and education, software development and good award.

6)      Why BPR still fail in the organization nowadays?

According to the statistic, 50% to 70% organization failed to achieve the benefit from the Business Process Reengineering (BPR). The reasons are as follow.

1. Misunderstanding of the concept

          Many people have an illusion that when a company undergoes some changes or breaks goals into sub goals, it is called reengineering. To make matters worse, many companies use reengineering as a way to lay off staff. Misunderstanding of the concept and inappropriate application leads to the organization failure.

2. Lack of proper strategies

         Strategies are crucial to the success of the reengineering as they allow the companies to gain the comparative advantages over other companies. Companies need careful observation of the nature of the exiting process. Strategies can be a guideline in redesigning process to enhance the specific output goal and help to determine the number of people to run a specific process effectively and efficiently. We need to state the output goal clearly with quantitative measurable terms.