Introduction to BPR for eBusiness

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Introduction to BPR for e-Business

• The Process Redesign Phase of BPR A Design
  Focus
• Redesigning Business Processes
• The Properties of Business Processes
• Three Generic IT-Enabled Ways for Redesigning
  Business Processes
• The Learning Blocks of BPR For e-Business

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BPR Background
Accelerating Global Competition,Need for Speed
CustomerResponsiveness
Disenchantment with ROI in IT
Existing Work Structures,Processes, Designs not
Work-Friendly
BPR Emerges in mid-90s
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What is BPR?

• P A primary focus on essential processes that
  deliver outcomes is the signature of all variants
  of BPR
• B The BPR perspective defines the boundaries of
  a process in a way that makes sense in terms of
  business value.
• R Assumptions
• Search for quantum improvements
• Use of IT to enable the process to be done in new
  ways that are qualitatively different.
• Maximize value-added content of a process
• Value can be measured
• Environment will have to be concurrently changed

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What is BPR for e-Business?

• BPR for e-business involves rethinking and
  redesigning business processes at both the
  enterprise and supply chain level to take
  advantage of Internet connectivity and new ways
  of creating value.

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Ubiquitous Internet

• Connectivity provides for instant communication
  with customers, suppliers, and partners.
• Changes the way that information moves across
  the enterprise
• Front-Office
• Back-Office
• Connection Between
• Much more to e-business than e-commerce, not
  every e-business uses e-commerce

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Context of BPR for e-Business

• BPR is carried out within the larger context of
  organizational change
• Process-centric
• People
• Technologies
• Organizational form structure

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Balancing IT-Enabled Transformation
IT Use
Organizational Form
BusinessProcesses
RequisitePeople Skills
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Leavitt Diamond

• Different perspectives of org. change emphasize
  one of four sets of variables
• IT Driven
• Org Design
• HR
• Process-centric

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Evolution of BPR

• Roots of BPR go back 20 years or more
• TQM
• Continuous incremental improvement
• Early BPR
• Blow it all up and start over
• Second Wave BPR
• Time-based competition
• Web-enabled e-business
• Knowledge management

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How Does a BPR Project Work?

• Requires support of top management
• Project management
• Teams
• Targets
• Budgets
• Tools
• Milestones
• Deadlines7

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Design Mindset
Business Strategy
Business Processes
Information Systems
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Phases of BPR
Big Phase I Triggering and executive visioning
Big Phase II BPR Project mobilization
Big Phase III Process redesign
Big Phase IV Implementation and org.
transformation
Big Phase V Monitoring and maintaining
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Big Phase 1

• Trigger
• Performance problem
• Competitive e-Business move
• Supply chain partner pressure
• Deliberation / Discussion
• Proposal
• Management go-ahead

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Big Phase 2

• Project leader
• Core team
• Preliminary assessment of IT-infrastructure
  around processes
• BPR Plan Budget

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Big Phase 3

• Process is redesigned
• Performance comparison
• Benchmarking
• Prepare for implementation

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Big Phase 4

• Implementation and organization transformation
  phase
• Most difficult
• Introducing and instituting new process
• Org. design changes
• Training
• Political human problems

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Big Phase 5

• Continuous monitoring
• Modified as needed.

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Participants
Process owners
Process participants
BPR Project sponsors
Core BPRproject Team
BPR facilitators Consultants
IT e-CommerceSpecialists
HRSpecialists
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Cross-Enterprise BPR for e-Business

• BPR project that is carried out across a supply
  chain
• More difficult and complex
• Industry standards
• Political/Organizational issues
• Highest potential for impact

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Process Redesign Phase

• Main focus of BPR in this course
• Use of BPR Software
• Involves three phases that will be introduced
  through-out the course

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Redesigning Business Processes

• Changing topology of flows associated with
  business processes
• Physical products, information, knowledge
• Three generic ways to redesign a business
  process
• Restructuring/reconfiguring the process
• Changing information flows around the process
• Changing knowledge management around the process

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Properties of Business Processes

• Customer-facing
• Cross-functional, cross departmental,
  cross-enterprise
• Hand-offs
• Information flow around the process
• Knowledge created around the process
• Multiple versions vs. one-size-fits all
• Value-adding mix of a process
• Degree of structure of a process

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Customer-facing

• Process provides value to a recipient that is
  viewed as the customer of the process
• Outputs of process used by internal or external
  customers
• Customers can do some of the work, Self-Service

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Cross-functional, Cross-departmental,
Cross-enterprise

• Most business processes cut across multiple
  departments and functions
• Sales
• Customer contact
• Order fulfillment
• Shipping
• Invoicing
• Collections
• Supply-Chain

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Hand-offs

• A completed task (part of an overall process) is
  handed off to another person
• Key element of business processes
• Point of possible errors and delays
• Difficult to manage
• Management of coordination rather than improved
  efficiency can yield much improved overall
  process performance

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Information Flow Around Process

• Information flow needed to produce outputs of
  process
• Information flow needed to monitor the process
• Altering the dynamics of these information flows
  is often an effective way to redesign a business
  process

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Knowledge Created

• Collective requisite knowledge that the
  participants need to execute the process
• Knowledge about the process synthesized over
  time
• Trends, new exceptions, FAQ, improvement ideas
• Learning Process

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Multiple Versions

• Different versions of process performed based
  on
• Conditions
• Triggers
• Customer needs

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Value-adding Mix

• Value-adding
• Directly adds value for the customer
• Non-value-adding
• Facilitates other value adding
• Example Accounting
• Waste
• Balance is difficult

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Restructure It (L.L. Bean)

• Old batch process system for order fulfillment
• Single picker for each order
• Orders held for at least 12 hrs
• New system turns around 100 of orders in 24
  hrs.
• Break orders into components
• Pickers assigned to areas.

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Informate It (Marshall Industries)

• 1.2 Billion distributor of industrial
  electronic components and production supplies.
• Pressure from customers who were globalizing
  operations and wanted single sourcing for
  components.
• Marshall used Internet/Web technologies to
  provide access to information in real-time to
  customers and suppliers.

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Mind It (Storage Dimensions)

• 70 Million manufacturer of non-stop disk and
  tape storage systems.
• Need to respond to customer needs instantly.
• Reengineered customer support to respond faster.
• Expanded knowledge-creating capacity of the
  customer support process.