Strategic Management MGM4139

1. Strategic ManagementMGM4139 Business Process Reengineering (BPR) Group 17 Prepared by: Aina bt Jamaludin 116976 Wong Siew Peng 121049 Yeau Su Kah 124723

2. Objectives To understand • The meaning of BPR • The 7 principles of BPR • The 5 key steps of BPR • The benefits of BPR

3. What is BPR? Reengineering is the fundamental rethinking and redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed. (Hammer & Champy, 1993)

4. What is a Process? A specific ordering of work activities across time and space, with a beginning, an end, and clearly identified inputs and outputs: a structure for action. (Davenport, 1993)

5. What is a Business Process? A group of logically related tasks that use the firm's resources to provide customer-oriented results in support of the organization's objectives

6. 7 principles of BPR • Organize around outcomes, not tasks • Identify all the processes in an organization • Integrate information processing work into the real world • Treat geographically dispersed resources as though they were centralized

7. 7 principles of BPR • Link parallel activities in the workflow instead of integrating their results • Put the decision point where the work is performed and build control into the process • Capture information once and at the source

8. 5 Key Steps of BPR Select the Process & Appoint Process Team Understand the Current Process Develop the Improved Process Implement Reengineered Process Improve continuously

9. Select The Process & Appoint Process Team • Build process team • Review business strategy and customer requirements • Develop strategic goals for reengineering efforts

10. Understand the Current Process • Develop a process overview • Clearly define the process • Mission, scope • Identify disconnects and value-added processes

11. Develop the Improved Process • Benchmarking • Develop an improvement plan • Indicate actions required and those responsible

12. Implement Reengineered Process • Implement the plan • Define and eliminate process problems • Provide advanced team training

13. Improve Continuously • Initiate on-going measurement • Review performance against target • Improve process continuously

14. Benefits of BPR • Empowering employees • Eliminating waste, unnecessary management overhead and inefficient process • Reduce in cost and cycle times • Enabling radical improvement in many business processes as measured by quality and customers service

15. Conclusion Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements.

16. Thank you