Slide 1 1 Business Process Reengineering Prof Dr

Slide 1. 1 Business Process Reengineering Prof. Dr. Jean-Paul Thommen, University of Zagreb

Slide 1. 2 Example Division of Work • 1776 Adam Smith: The Wealth of Nations • Example: producing needles • without division of work: • 1 worker • all performings result: 20 needles/day 20 needles/worker • with division of work: • 10 workers • 2 to 3 performings each result: 48000 needles/day 4800 needles/worker Comparison in productivity: With division of work increasing by factor 240 Prof. Dr. Jean-Paul Thommen, University of Zagreb

Slide 1. 3 Hypothesis of Division of Work • Productivity rises with increasing division of work Productivity Division of Work Results of Division of Work: • increasing dependencies • increasing complexity Prof. Dr. Jean-Paul Thommen, University of Zagreb

Slide 1. 4 Limits in Division of Work • Co-ordination • Technology • People Productivity Division of Work Prof. Dr. Jean-Paul Thommen, University of Zagreb

Slide 1. 5 How to Start Organising • Why does a company have to organise? General task Multipersonal completion of the general task Different tasks Division of Work • Which Division of Work (organisational structure) does a company have to choose? Useful Division of Work Prof. Dr. Jean-Paul Thommen, University of Zagreb

Slide 1. 6 Yesterday: Structure Follows Strategy Today: Structure Follows Process Follows Strategy Prof. Dr. Jean-Paul Thommen, University of Zagreb

Slide 1. 7 What We Have Inherited Themes: specialisation of labour, hierarchical management, task efficiency, control Consequence: fragmentation Prof. Dr. Jean-Paul Thommen, University of Zagreb

Slide 1. 8 The Old Process Prof. Dr. Jean-Paul Thommen, University of Zagreb

Slide 1. 9 The „Improved“ Process Prof. Dr. Jean-Paul Thommen, University of Zagreb

Slide 1. 10 The Reengineered Process Prof. Dr. Jean-Paul Thommen, University of Zagreb

Slide 1. 11 Core Processes And Value Chain Prof. Dr. Jean-Paul Thommen, University of Zagreb

Slide 1. 12 Example: Process Organisation Prof. Dr. Jean-Paul Thommen, University of Zagreb

Slide 1. 13 Success of “Business Process Reengineering”Projects 44% 38% 24% 23% 29% 27% Cut cycle times Increased productivity 15% Cut costs Increased revenue American companies European companies Prof. Dr. Jean-Paul Thommen, University of Zagreb