Business Process Reengineering

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Business Process Reengineering
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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
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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

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Limits in Division of Work

• Co-ordination
• Technology
• People

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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?

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Yesterday
Structure Follows Strategy
Today
Structure Follows Process Follows Strategy
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What We Have Inherited
Themes specialisation of labour, hierarchical
management, task efficiency, control Consequence
fragmentation
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The Old Process
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The Improved Process
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The Reengineered Process
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Core Processes And Value Chain
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Example Process Organisation

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Success of Business Process Reengineering-Projec
ts