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Business Process Reengineering (BPR)

Business Process Reengineering (BPR). A fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed. Role of Information Systems (IS). I.S.: Enabler Real World Examples:

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Business Process Reengineering (BPR)

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  1. Business Process Reengineering (BPR) A fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed.

  2. Role of Information Systems (IS) • I.S.: Enabler • Real World Examples: • IBM Credit Corporation: A new I.S. enables one generalist to perform multi-tasking which used to be done by five specialists.

  3. Processing a Loan Application at IBM Credit Corp. Before and After BPR Work Flow Using Specialists Customer Service Receptionist Credit Checker Business Practices Specialist Admini- strator To Cus- tomer Pricer Log in call from sales rep Do credit check on customer Modify std. loan covenant based on cust. req. Compute interest rate on loan Convert information into a quote letter Work Flow After BPR Deal Structurer To Customer Use sophisticated computer program to process entire loan application

  4. BPR vs. Downsizing • Downsizing • Simple lay-off of employees • Often across the board • Laid-off employees are most likely picked randomly • BPR: • Apply to only where it is needed; • Where there is room for improvement • Where inefficiency exists

  5. BPR vs. TQM/CQI (Continuous Quality Improvement) • CQI: • Tool: SPC (statistical process control) • 3 Sigma, 4, 5, 6 Sigma • Never ending, on-going business strategy • Incremental (small) improvement • Pre-requisite for Just-In-Time (JIT) system, Lean manufacturing system.

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