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.