Underlying Principles b Fundamental Radical Dramatic b Radix
Underlying Principles b Fundamental, Radical, Dramatic b Radix : Business reinvention(not business improvement, business enhancement) b Processes: Collection of activities that takes one or more kinds of input and creates an output that is of value to the customer
BPR Features b Process Orientation b Ambition b Rule Breaking b Creative use of IT
Who undertake Reengineering b Companies in deep trouble(Ford-Early 80 s) b Not yet in trouble but see trouble coming • • • New competitors Changing customer requirements Altered regulatory framework b Peak Condition (GE, Wal-Mart etc. )
Misunderstandings about BPR b BPR is not same as automation b BPR is not restructuring or downsizing(less with less to more with less) b BPR is not delayering or flattening : BPR may result in flatter organization (BPR targets the process structure rather than organization structure)
BPR vs. TQM b Commonality • • Importance of processes Need of process customers and work backwards b TQM : Within the framework of company’s existing processes – seek to enhance with continuous incremental improvement – Kaizen BPR : Seeks breakthroughs, different approach to change management
BPR : The Path to Change b Starting Over b Rejecting conventional wisdom and assumptions of the past b Rejects Adam Smith’s Industrial Paradigm like hierarchical control, division of labour b BPR : search for new models of organizing work
- Slides: 6