3. BPR – IT Relationship
Shared databases, making information available at many places
Change - BPR
Expert systems, allowing generalists to perform specialist tasks
Telecommunication networks, allowing organizations to be centralized
and decentralized at the same time
Decision-support tools, allowing decision-making to be a part of everybody's job
Wireless data communication and portable computers, allowing
field personnel to work office independent
Interactive videodisk, to get in immediate contact with potential buyers
Automatic identification and tracking, allowing things to tell where
they are, instead of requiring to be found
Company Affected IT as an Enabler
by - Market
High performance computing, allowing on-the-fly planning and envisioning.
Competition
2/12/2013 3
4. BPR calls for a radical
redesign and systematic
overhauling of strategic
systems and processes
in an organization
In the technology-
centric business
environment of today,
more and more
organizations are using
IT tools in their
mainstream processes
Hence, for BPR, it is
required that the
functionalities of these
IT systems are modified
2/12/2013 4
5. IT is more than a
collection of tools It can
for automating or fundamentally In leading edge
mechanizing reshape the way practices,
processes business is done information
and enable the technology makes
process design BPR possible and
worthwhile
2/12/2013 5
6. Before
the
process
is
designed
IT Roles
While
After
the
the
process
design is
design is
complet
underwa
e
y
2/12/2013 6
7. Befor
e the
proce
ss is
desig
ned
IT provides newer and
IT helps you track
information and
better technology to
break down
develop a strategic vision
geographic and the it
and to help improve
business process before
organizational
is designed
barriers was to eliminate
• Wal-Mart vision
unnecessary distribution steps
• At General to providee-mail
and cost and Electric value to
systems are used to speed
customers.
• analysis and design sharing
IT enabled Wal-Mart to
and to hold frequent An
implement this strategy. virtual
enterprise-wide information
meetings between group
system was developed that
from different regions and
directly connected all retail
overseasdistribution
locations,
warehouses, and major supplies
2/12/2013 7
8. Gathering and analyzing information about the performance and structure of a
process is an important step in identifying and selecting process for redesign
• Union Carbide’s plant in Taft, Louisiana used flow-charting to redraw their old
process and create new ones. The results were a saving of more than US$ 20
million
Computing technologies have facilitated a process- oriented approach to
system development where a database is shared in different functional units
participating in the same business process
• Ford Motor Corporation, used databases in its accounts payable process to cut
down many intermediate steps and to overhaul a sequential flow of paper
documents among involved functions. As the project progressed, the
reengineering efforts achieved a 75% reduction in the workforce
Telecommunication technologies such as LANs, groupware, etc. have improved
collaboration among personnel of different functional units in their efforts to
accomplish a common business process.
• At Texas Instruments, the process for new product development was
dramatically improved when a design team in different countries used global
network to work on design directly without sequential flow of documents
While
the
proce
ss
desig
2/12/2013 8
n is
9. After
the
desig
n is
Implementation
of the new compl
process through ete
the use of project Electronic
management communications
and process enable ongoing and
real time Evaluating the
analysis tools.
communication of potential
the process investments
between users and and returns of
facilitators the
reengineering
IT helps to efforts is
overcome absolutely
geographic essential
barriers.
2/12/2013 9
10. Disruptive power
IT has the power to break the rules and make people think inductively
and give the company a competitive advantage
Amazon.com broke the existing rules and sold books without a
physical presence for its customers, through Internet
Amazon.com in doing so has completely changed the book store
business and broke all the rules. The key to the effective use of IT lies
not in moving the information faster but in doing right things with it
2/12/2013 10
11. •Integrated •Analysis
enterprise (problem-solving
models capability)
•Visualization
•Software
and
functionality
Communication
•Intended Users
These properties address two major themes:
What tasks do the tools perform?
What support do the tools
require?
At the End
2/12/2013 11
12. IT to Participate
as a member of
the reengineering
team, but not
take control of
the project
Define
technology
solutions to
Implement enable new
technology business
needed to processes and
support the take time to
new business educate
processes operational
managers
about new
technology
2/12/2013 12
Implementation of the new process through the use of project management and process analysis toolsThese help identify structure and estimate all associated activities. They facilitate tracking and managing employee’s expectations against commitments. Contingencies and problems that arise during the implementation phase can be handled and controlled.