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Business Process Reengineering

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Davenport Methodology. Emphasizes IT as driver. Manganelli/Klein Methodology ... Davenport. 6. Implementation. 4. Understanding. 5. Redesign. 1. Introduction. 2. ... – PowerPoint PPT presentation

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Title: Business Process Reengineering


1
Business Process Reengineering
  • Prince Adarkwah
  • Javier Alvarez
  • Sean Hildreth
  • Torrey Maggard

2
What is BPR?
  • Hammer and Champy 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.

3
What is BPR?
  • Hammer/Champy methodology 6 steps
  • Envisioning
  • Initiate
  • Process Diagnosis
  • Process Redesign
  • Reconstruction
  • Process Monitoring
  • BPR process loops back to step 3

4
Detailed view of 6 steps
5
Relationship to IS
  • Use of information systems is often key
    contributing factors to BPR success
  • Information technology is considered a major
    enabler in providing new ways of working and
    collaborating

6
Relationship to IS
  • Studies indicate that over 50 of all
    reengineering efforts are initiated because of a
    perceived information technology opportunitythe
    actual technological solution is far less
    important than educating employees to use IT as
    both a strategic initiative and as a tool in the
    reengineering process. (Weicher 5)

7
Alternative approaches to BPR
  • Davenport Methodology
  • Emphasizes IT as driver
  • Manganelli/Klein Methodology
  • focuses on business processes that directly
    support the strategic goals of the company and
    customer requirements
  • Kodak Methodology
  • Stresses change management as key

8
Alternative approaches to BPR
  • Alternatives are very similar

9
Key Factors to Success
  • Most business analysts tend to agree that
    successful implementation of BPR requires the
    ability to effectively lead change.
  • John P. Kotter has written several books for the
    Harvard Business Review on how to lead effective
    change in an organization.
  • In his book, Leading Change, Kotter has outlined
    8 steps that must be followed in order to
    successfully bring about change.

10
Key Factors to Success
  • Step 1 Establish a Sense of Urgency
  • Set a Burning Platform Atmosphere
  • Expose Weaknesses compared to competitors
  • Eliminate signs of excess
  • Set high unachievable targets
  • Stop measure subunit performance
  • Send more data about customer satisfaction
    compared to competitors.
  • Insist people talk to unsatisfied customers,
    unhappy suppliers, and disgruntled shareholders.
  • Use consultants to force relevant data and honest
    discussion into management meetings.
  • Eliminate senior management happy talk
  • Bombard people with information on future
    opportunities and the organizations current
    inability to pursue those opportunities.

11
Key Factors to Success
  • Step 2 Create a Guiding Coalition
  • Team must be comprised of the right individuals.
  • These individuals must posses 4 key qualities.
  • Position Power
  • Expertise
  • Credibility
  • Leadership

12
Key Factors to Success
  • Step 3 Develop a Vision Strategy
  • Vision refers to a picture of the future with
    some implicit or explicit commentary on why
    people should strive to create that future
  • Six Key Characteristics with a good vision.
  • Imaginable
  • Desirable
  • Feasible
  • Focused
  • Flexible
  • Easy to Communicate

13
Key Factors to Success
  • Step 4 Communicate the Vision
  • Vision must be communicated effectively in order
    for individuals to act.
  • Several key elements in effective communication.
  • Simplicity
  • Use of Metaphors / Analogies
  • Use of Multiple Forums
  • Constant Repetition
  • Leadership by example
  • Explanation of Inconsistencies
  • Two-way communication

14
Key Factors to Success
  • Step 5 Empower Employees

15
Key Factors to Success
  • Step 6 Generate Short-Term Wins
  • Set up project milestones
  • Celebrate wins frequently
  • Acknowledge failures
  • Make adjustments to BP

16
Key Factors to Success
  • Step 7 Consolidate Gains Produce More Change
  • Never declare final victory
  • Keep change alive!
  • This eliminates complacent attitudes
  • DAveni Hyper-competition Model

17
Key Factors to Success
  • Step 8 Anchor New Approaches in Culture
  • Transform BP to align with vision
  • Promote Individuals in Upper Management that live
    and breathe the vision
  • Hire Individuals that believe in the new culture
  • Remove the bad apples

18
Management Responsibilities
  • Start with a vision
  • Course of action
  • Current condition analysis
  • Readiness for change
  • Build credibility with the rest of the
    organization

19
The Changes of BPR
  • Work flow process
  • Creation of a new process
  • The objective

20
Management Responsibilities Cont
  • Identify metrics
  • Choosing metrics
  • Measure the effectiveness of any new processes

21
Managements Final steps to BPR
  • Transition Plan
  • Implementation Plan

22
  • Company Background
  • Started in 1595 in Amsterdam, Netherlands
  • Major product Heineken beer
  • Second largest brewer in the world
  • Operates in 170 countries worldwide
  • Started in the United States in 1931
  • 1 of over 300 imported beer in the US

23
Business Environment
  • Heinekens market share was 2
  • Over 300 imported beers in the US
  • Local breweries gaining popularity
  • Lead-time for Heineken beer was 12wks
  • Order processing labor intensive
  • Customs clearance

24
BPR Strategy
  • A new business model
  • Market the business model to employees
  • Overhaul of business operations
  • New technology should be easy to use and require
    minimal support
  • Distributors should not have to pay to use the
    technology

25
The Technology
  • Heineken Operational Planning System
  • Web based system built around supply-chain
    software
  • Form of collaborative planning ,forecasting and
    replenishment software
  • Provides customized forecasting data
  • Does not require proprietary software, equipment
    or support
  • Uses Oracle database,SSL2,runs on Windows or Unix
    and supports all Windows applications

26
The BPR Implementation
  • One company developed the entire system
  • Required no work by distributors
  • Distributors need only internet access
  • Full implementation completed in 12 months and
    all distributors had access in another 12 months.
  • Reduced lead-time by 50
  • Increased sales by 10

27
Success factors
  • Senior management commitment
  • Employee Involvement
  • Distributors involvement
  • Choice of technology mix
  • Cost of technology to distributors

28
Conclusion
Questions?
29
References
  • http//www.siemon.com/us/company/case_studies/hein
    eken.asp
  • www.wikipedia.com
  • Smith, M., Wintermyer, P. (2000). Distribution
    supply chain management. Connector specifier, May
    24, available form http//www.csmag.com.
  • Stalk, G. (1988, July/August). Time The next
    source of competitive advantage. Harvard Business
    Review, 4151.
  • Venkatraman, N. (1994, Winter). IT-enabled
    business transformation From automation to
    business scope redefinition. Sloan Management
    Review, 7387.
  • Weston, R. (1997). Heineken taps online ordering.
    Computerworld, 31(9), 69
  • Kotter, John P., Leading Change, Harvard Business
    School Press 1st edition, 1996.
  • Schumacher, Wolf D. (2004, February). Managing
    Barriers to Business Reengineering Success.
    March 17, 2007. http//www.prosci.com/w_2.htm.
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