S5 6 Principles Of Reengineering
Business Process Reengineering
Principles of Reengineering
Agenda
• Principles of Reengineering
• Characteristics of Reengineering Processes
• High-Level Approach to Reengineering
Embarking on Re-engineering
1: A “case for action”- Here is where we are as a company and this is why we can‟t stay here
•show your balance sheet vs. Competitor‟s balance sheet
2: A “vision statement” - This is what we as a company need to become •Guiding question:
If I were re-creating this business process today, given what I know about current IT capabilities, how would I do it?
• Driven by competition * Less Management * Customer
Oriented, * Radical Change
The Essence of Reengineering
• Discontinuous Thinking- of recognizing and breaking away from the outdated rules and fundamental assumptions that underline operations.
General Principles of BPR
General Principles
Simplicity
Empowerment
Process Design - Think horizontally
Organizational Structure
Remove barriers
Support business processes
Customer Interfaces - Work from the customer perspective
Automation - Automate to advantage
Seven principles of reengineering-1
Organize around outcomes, not tasks
Product/
Service
Product/
Service
Reengineer
people task An example of reengineering principle 1
6
Organize Around Processes
• Formation of teams to perform an entire process
– Do not split work by function (organization)
– Teams co-located
– Each person understands another's responsibility
• Cross-Training
• Eliminate/minimize hand-offs
– Reduces delays, errors and rework
• Reduces management overhead
Seven principles of reengineering-2
Have those who use the output of the process perform the process
Vendor
Vendor
Reengineer
computerbased data
&
expertise
Databases
An example of reengineering principle 2
8
Seven principles of reengineering-3
Subsume information-processing work into the real work that produces the information
Purchasing
Dep. check Database
Purchase order goods
Material conrol
Dep.
Principles of Reengineering
Agenda
• Principles of Reengineering
• Characteristics of Reengineering Processes
• High-Level Approach to Reengineering
Embarking on Re-engineering
1: A “case for action”- Here is where we are as a company and this is why we can‟t stay here
•show your balance sheet vs. Competitor‟s balance sheet
2: A “vision statement” - This is what we as a company need to become •Guiding question:
If I were re-creating this business process today, given what I know about current IT capabilities, how would I do it?
• Driven by competition * Less Management * Customer
Oriented, * Radical Change
The Essence of Reengineering
• Discontinuous Thinking- of recognizing and breaking away from the outdated rules and fundamental assumptions that underline operations.
General Principles of BPR
General Principles
Simplicity
Empowerment
Process Design - Think horizontally
Organizational Structure
Remove barriers
Support business processes
Customer Interfaces - Work from the customer perspective
Automation - Automate to advantage
Seven principles of reengineering-1
Organize around outcomes, not tasks
Product/
Service
Product/
Service
Reengineer
people task An example of reengineering principle 1
6
Organize Around Processes
• Formation of teams to perform an entire process
– Do not split work by function (organization)
– Teams co-located
– Each person understands another's responsibility
• Cross-Training
• Eliminate/minimize hand-offs
– Reduces delays, errors and rework
• Reduces management overhead
Seven principles of reengineering-2
Have those who use the output of the process perform the process
Vendor
Vendor
Reengineer
computerbased data
&
expertise
Databases
An example of reengineering principle 2
8
Seven principles of reengineering-3
Subsume information-processing work into the real work that produces the information
Purchasing
Dep. check Database
Purchase order goods
Material conrol
Dep.