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Business Process Reengineering and Best Practices

Learn about the concept of Business Process Reengineering (BPR) and its significance in achieving improvements in critical business measures. Discover the two main methods of BPR and understand the risks and factors that contribute to failure. Get valuable tips to ensure the success of your BPR projects.

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Business Process Reengineering and Best Practices

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  1. Business Process Reengineering and Best Practices By Chris Carlisle

  2. Business Process Reengineering • Business Process Definition: A collection of related, structured activities--a chain of events--that produce a specific service or product for a particular customer or customers. (ICHNET) • Process Reengineering Definition: The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed. (NJ. State Treasury)

  3. Business Process Reengineering • BPR is used to cut costs and reform a companies tasks to create a better overall service or product for the least amount of resources. • One major function of BPR is to generate Best Practices for a Business Process.

  4. Best Practices • A best practice is a way of doing a task that is deemed superior then the rest. • BPR uses best practices to redesign a business the best possible way by making sure all of its tasks are the easiest and most efficient for the company. • Most ERP software packages use best practices to help the reengineering process succeed. SAP includes 800-1000 best practices.

  5. Business Process Reengineering • There are two main methods of business process reengineering. • Clean Slate Reengineering • Technology-Enabled Reengineering

  6. Clean Slate Reengineering • Clean Slate Reengineering provides companies the ability to reform the business from scratch. Nothing is predetermined and everything is negotiable. The main goal of this type of reengineering is to provide specific organizational requirements and have them met. In this approach software is an afterthought.

  7. Clean Slate Reengineering • Pros: • Tasks are custom made to the company and better fit the needs of the business • No constraints, anything can be designed. • Some of the underlying business components can stay the same without having to modify it to a specific software package.

  8. Clean Slate Reengineering • Cons: • Most expensive from other methods because your creating it from the ground up. • Slower to design and harder to implement since everything is in-house with no external support. • Higher risk of failure due to slower implementation.

  9. Technology-Enabled Reengineering • In Technology-Enabled Reengineering the software package is chosen first and the organizational needs are subject to change. The company decides on an ERP package and then decides what it can and cannot have dependent upon the software.

  10. Technology-Enabled Reengineering • Pros: • Cheaper then other methods due to the system and software already being available. • More support due to having external resources. • Faster to implement and design.

  11. Technology-Enabled Reengineering • Cons: • Involves the most business change due to having to build your company around the software package. • Possibility of more training involved for employees because there are no guarantees any of your previous business tasks will remain.

  12. Risks of Failure in Business Process Reengineering • Average estimate of BPR project failure is 70% due to initial problems within the implementation, which include: • Internal resistance • Lack of a company sponsor • Inability to staff employees to the need of the project • Lack of attention to employees concerns • Inadequate support of software or incorrect software chosen dependant on organization

  13. Tips to help Business Process Reengineering Succeed • Tips to succeed with BPR: • Make sure the BPR project has a spokesperson high in the company. • Plan the company’s goals and needs adequately before hand. • Listen to the employees, they run the business. • Plan specific project time frames of when it must be completed by and do not extend it.

  14. References • http://www.kmnetwork.com/RealTime.pdf • http://www.cio.com/archive/041596/risk.html • http://www.reengineering.com/articles/aug96/goalone.htm • http://www.cio.com/archive/021597/quantum.html • http://houston.bizjournals.com/houston/stories/2001/09/24/smallb2.html • http://www.automotive-advisors.com/Briefings/10_principles_for_making_BPR_a/10_principles_for_making_bpr_a.html • Olson, David. Managerial Issues of Enterprise Resource Planning Systems. New York: McGraw-Hill Companies, Inc., 2004.

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