Information Technology and Business Process Re-engineering. Linking re-engineering to business strategy. Strategic Re-. are needed, in this paper a business process reengineering method is presented that uses Business Process Reengineering, Enterprise ontology, Aris, Demo. Business Process Reengineering transformation towards value creation. 6. Strategy Implementation strategies through programmes. 7. Structural Change.
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Business process reengineering (BPR) has been receiving attention from industries as BPR is known by many names, such as 'core process redesign', ' new. BUSINESS PROCESS REENGINEERING. INTRODUCTION. Rapid technological advancements and increased expectations of customers are the key. According to Michael Hammer, “Business Process Reengineering (BPR) is the fundamental rethinking and radical redesign of business processes to achieve.
Unrealistic expectations According to Bashein et al , expecting BPR to solve all organisational problems combined with unrealistic expectations of what BPR can deliver, is yet another mechanism that can lead to failure within BPR programmes. Researchers consider adequate IT infrastructure reassessment and composition as a vital factor in successful BPR implementation. Levels of Improvement Question A3: The aspects of a BPM effort that are modified include organizational structures, management systems, employee responsibilities and performance measurements, incentive systems, skills development, and the use of IT. Useful Scales of Analysis This process-focused approach tends to identify BPR with traditional systems analysis and design and software engineering.
Business strategy is the primary driver of BPR initiatives and the other dimensions are governed by strategy's encompassing role. The organization dimension reflects the structural elements of the company, such as hierarchical levels, the composition of organizational units, and the distribution of work between them [ citation needed ]. Technology is concerned with the use of computer systems and other forms of communication technology in the business. In BPR, information technology is generally considered to act as enabler of new forms of organizing and collaborating, rather than supporting existing business functions.
The concept of business processes — interrelated activities aiming at creating a value added output to a customer — is the basic underlying idea of BPR. These processes are characterized by a number of attributes: Process ownership, customer focus, value adding, and cross-functionality. Information technology IT has historically played an important role in the reengineering concept.
BPR literature  identified several so called disruptive technologies that were supposed to challenge traditional wisdom about how work should be performed. In the mids especially, workflow management systems were considered a significant contributor to improved process efficiency. Although the labels and steps differ slightly, the early methodologies that were rooted in IT-centric BPR solutions share many of the same basic principles and elements.
Benefiting from lessons learned from the early adopters, some BPR practitioners advocated a change in emphasis to a customer-centric, as opposed to an IT-centric, methodology. One such methodology, that also incorporated a Risk and Impact Assessment to account for the effect that BPR can have on jobs and operations, was described by Lon Roberts Some items to use on a process analysis checklist are: Reduce handoffs, Centralize data, Reduce delays, Free resources faster, Combine similar activities.
Also within the management consulting industry, a significant number of methodological approaches have been developed. The seven steps of the framework are Initiate a new process reengineering project and prepare a business case for the same; Negotiate with senior management to get approval to start the process reengineering project; Select the key processes that need to be reengineered; Plan the process reengineering activities; Investigate the processes to analyze the problem areas; Redesign the selected processes to improve the performance and Ensure the successful implementation of redesigned processes through proper monitoring and evaluation.
The aspects of a BPM effort that are modified include organizational structures, management systems, employee responsibilities and performance measurements, incentive systems, skills development, and the use of IT. BPR can potentially affect every aspect of how business is conducted today. Wholesale changes can cause results ranging from enviable success to complete failure. If successful, a BPM initiative can result in improved quality, customer service, and competitiveness, as well as reductions in cost or cycle time.
Organizations were well aware that changes needed to be made, but did not know which areas to change or how to change them. As a result, process reengineering is a management concept that has been formed by trial and error or, in other words, practical experience.
As more and more businesses reengineer their processes, knowledge of what caused the successes or failures is becoming apparent. Otherwise, BPR is only a short-term efficiency exercise. Major changes to business processes have a direct effect on processes, technology, job roles, and workplace culture. Significant changes to even one of those areas require resources, money, and leadership. Changing them simultaneously is an extraordinary task.
Since BPR can involve multiple areas within the organization, it is important to get support from all affected departments. Through the involvement of selected department members, the organization can gain valuable input before a process is implemented; a step which promotes both the cooperation and the vital acceptance of the reengineered process by all segments of the organization.
Getting enterprise wide commitment involves the following: Before any BPR project can be implemented successfully, there must be a commitment to the project by the management of the organization, and strong leadership must be provided. However, top management commitment is imperative for success. Leadership has to be effective, strong, visible, and creative in thinking and understanding in order to provide a clear vision.
By informing all affected groups at every stage, and emphasizing the positive end results of the reengineering process, it is possible to minimize resistance to change and increase the odds for success. The ultimate success of BPR depends on the strong, consistent, and continuous involvement of all departmental levels within the organization.
Once organization-wide commitment has been secured from all departments involved in the reengineering effort and at different levels, the critical step of selecting a BPR team must be taken. This team will form the nucleus of the BPR effort, make key decisions and recommendations, and help communicate the details and benefits of the BPR program to the entire organization.
The determinants of an effective BPR team may be summarized as follows:. The most effective BPR teams include active representatives from the following work groups: Team members who are selected from each work group within the organization will affect the outcome of the reengineered process according to their desired requirements.
The BPR team should be mixed in depth and knowledge. For example, it may include members with the following characteristics:.
Moreover, Covert recommends that in order to have an effective BPR team, it must be kept under ten players. If the organization fails to keep the team at a manageable size, the entire process will be much more difficult to execute efficiently and effectively. The efforts of the team must be focused on identifying breakthrough opportunities and designing new work steps or processes that will create quantum gains and competitive advantage.
Another important factor in the success of any BPR effort is performing a thorough business needs analysis. Too often, BPR teams jump directly into the technology without first assessing the current processes of the organization and determining what exactly needs reengineering. In this analysis phase, a series of sessions should be held with process owners and stakeholders, regarding the need and strategy for BPR.
These sessions build a consensus as to the vision of the ideal business process. They help identify essential goals for BPR within each department and then collectively define objectives for how the project will affect each work group or department on individual basis and the business organization as a whole.
The idea of these sessions is to conceptualize the ideal business process for the organization and build a business process model. Those items that seem unnecessary or unrealistic may be eliminated or modified later on in the diagnosing stage of the BPR project.
It is important to acknowledge and evaluate all ideas in order to make all participants feel that they are a part of this important and crucial process. Results of these meetings will help formulate the basic plan for the project. The business needs analysis contributes tremendously to the re-engineering effort by helping the BPR team to prioritize and determine where it should focus its improvements efforts. The business needs analysis also helps in relating the BPR project goals back to key business objectives and the overall strategic direction for the organization.
This linkage should show the thread from the top to the bottom of the organization, so each person can easily connect the overall business direction with the re-engineering effort.
This alignment must be demonstrated from the perspective of financial performance, customer service, associate value, and the vision for the organization. There is always a possibility that an organization may make significant investments in an area that is not a core competency for the company and later outsource this capability.
Such reengineering initiatives are wasteful and steal resources from other strategic projects. Researchers consider adequate IT infrastructure reassessment and composition as a vital factor in successful BPR implementation.
These are vital factors that contribute to building an effective IT infrastructure for business processes. An effective IT infrastructure composition process follows a top-down approach, beginning with business strategy and IS strategy and passing through designs of data, systems, and computer architecture. Linkages between the IT infrastructure components, as well as descriptions of their contexts of interaction, are important for ensuring integrity and consistency among the IT infrastructure components.
IT strategic alignment is approached through the process of integration between business and IT strategies, as well as between IT and organizational infrastructures.
Walmart, for example, would not have been able to reengineer the processes used to procure and distribute mass-market retail goods without IT.
Ford was able to decrease its headcount in the procurement department by 75 percent by using IT in conjunction with BPR, in another well-known example. This, in turn, is determined by the types of activities embedded in a business process, and their sequencing and reliance on other organizational processes. Al-Mashari and Zairi suggest that BPR involves changes in people behavior and culture, processes, and technology. As a result, there are many factors that prevent the effective implementation of BPR and hence restrict innovation and continuous improvement.
Change management , which involves all human and social related changes and cultural adjustment techniques needed by management to facilitate the insertion of newly designed processes and structures into working practice and to deal effectively with resistance, is considered by many researchers to be a crucial component of any BPR effort. One of the most overlooked obstacles to successful BPR project implementation is resistance from those whom implementers believe will benefit the most.
Most projects underestimate the cultural effect of major process and structural change and as a result, do not achieve the full potential of their change effort.
Many people fail to understand that change is not an event, but rather a management technique. Change management is the discipline of managing change as a process, with due consideration that employees are people, not programmable machines.
An important step towards any successful reengineering effort is to convey an understanding of the necessity for change. Organizational culture is a determining factor in successful BPR implementation.
Culture in an organization is a self-reinforcing set of beliefs, attitudes, and behavior. Culture is one of the most resistant elements of organizational behavior and is extremely difficult to change. BPR must consider current culture in order to change these beliefs, attitudes, and behaviors effectively.
Messages conveyed from management in an organization continually enforce current culture. Change is implicitly driven by motivation which is fueled by the recognition of the need for change. The first step towards any successful transformation effort is to convey an understanding of the necessity for change. Implementing BPR successfully is dependent on how thoroughly management conveys the new cultural messages to the organization.
People should be the focus for any successful business change. BPR is not a recipe for successful business transformation if it focuses on only computer technology and process redesign. Extent of BPR 3. Mean, Average Score and Standard Deviation 60 55 Own Survey In this section, the results of the inferential statistical techniques used in the study are presented. Pearson Chi-Square Asymptote Sig. The respondents are asked to rate the degree of BPR implementation, challenges and success factors of the redesign process in the university using questions related to management support, change management, IT usage, empowerment and management system, IT infrastructure, and educating employees.
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