Reengineering BPR Process Innovation ERP Mass Customization Networked

Reengineering…. BPR, Process Innovation, ERP, Mass Customization, Networked Organization, Empowerment, Teams, Virtual Corporations, TQM, JIT

Supply Chain u. Flow of materials, information, and services u. Includes organizations and processes u. Manage the entire process u. Business Process Reengineering(BPR)

Reengineering the Corporation u. Written - 1993 u. Michael Hammer – One of 1996 most influential people in the U. S. Time Magazine July 17, 1996 u. James Champy

What is Reengineering? u“the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures or performance, such as cost, quality, service, and speed” p. 32

Reengineering is. . . u. Reversing the Industrial revolution u. Starting Over from Scratch u. Re-creating u. Re-Inventing u. Innovation u. Process Oriented

Impacts Company u Increase Customers u Benefit product by an from better product order of magnitude u Needs are met u Examine process u Tendency to return u Vision u Loyalty u Increase Profits Employees u. Teams u. Less Workers More Work u. Empowered u. Layoffs

Why Reengineer u. The 3 C’s – Customers – Competition – Change u. Nothing is Constant or Predictable u. Change is the only constant

u. To reengineer a company is to take a journey from the familiar into the unknown. The journey has to begin somewhere and with someone. Where and with whom? – P. 101

Keys u. Leaders u. Staff Empowerment u. Broader Scope – Knowledge / Skills u. Tasks to Process – Redesign of Systems u. Information Technology u. Community

The 3 R’s u. Redesign – Cross-function approach u. Retool – Information Tools u. Reorchestrate – Organization changes

Problems u. Fix vs. Change u. Focus u. Ignore u. Quit u. Scope u. HR / Unions u. Success Rate

Bell Atlantic’s Experience u The difference is that in a compliance mode I do what I must do because my boss tells me I must do it. In a commitment mode, I understand what the corporation is trying to achieve and how we’re going to achieve it, and I will do whatever it takes to make that happen, including changing the way I do my job if that is what is required – p. 196/197

BPR u. No longer a need to destroy everything - start from scratch u. Instead - Flexible approach that can be executed by proven methodologies and principles. Hammer and Stanton[1995] & Champy [1995]

Process Innovation Encompasses the envisioning of new work strategies, the actual process design activity, and the implementation of the change in all its complex technological, human, and organizational dimensions – order-of-magnitude improvements Davenport (1993)

Process Innovation vs. Incremental Improvement Process Innov. u Change u Effects u Involvement u Investment u Orientation u Focus u Abrupt, volatile u Immediate u Few champions u High initially, less later u Technology u Profits Incr. Improv. u Gradual, constant u Long-term u From few to everybody u Low initially, high to sustain u People u Processes

Networked Organization Classical/Hierarchical u Formal u Highly Structured u Manage u Control u Direct u Employee a cost u Information management owned u Risk avoidance u Individual contributions Networked Organ. u Informal u Loosely Structured u Delegate/lead u Ownership/participation u Empower u Employees an asset u Information shared-ownership u Risk management u Team contributions

Enabling IT (P. 133) Old Rule u Information Intervene Tech u Shared appears in only Database, one place Inter, Intra u Only expert can u Expert perform Systems complex work u Decision u Only managers support make decisions systems u Locate items u Tracking manually technology New Rule u Information appears simultaneously u Novices can perform work u Decision making is part of everyone’s job u Items located automatically

Add p 138

CHANGE u“It is an educational and communications campaign” – p. 148