CONDITIONS RIPE FOR BPR (HAMMER STYLE)SUMMARY OF BPR PRINCIPLES (HAMMER STYLE)BPR RISKSBPR SCOPEIT-ENABLED BUSINESS TRANSFORMATIONREENGINEERING PROCESSREVIEW OF FIVE STEP PROCESS (D & S)Slide 8KEYS TO THE DEMISE OF BUREAUCRACYCONDITIONS RIPE FOR BPR(HAMMER STYLE)•Unarticulated/out-of-date rules•Not right first time•Sequential process•Lack of focal point of responsibility•Worker desire for autonomy•Management trust of workers•Lack of ability to respondSUMMARY OF BPR PRINCIPLES (HAMMER STYLE)1. Focus on outcomes, not tasks2. With those who use the output, doing it themselves3. And processing the information too4. Without regard to geographic barriers5. Linking functions (interdependence)6. And allowing decision making authority (empowerment)BPR RISKS•Transition is hell -- may lost customers•Transition never ends -- when is enough?•Legacy systems will get in the way•Current information technology still has its limitsBPR SCOPE•Reinvent the business you’re inAnd/Or•Reinvent what business you’re inIT-ENABLED BUSINESS TRANSFORMATIONEstablishing DirectionEstablishing DirectionDesign/RedesignDesign/RedesignImplementationImplementation• Defining a broad vision for change• Building infrastructure – Human – Technical – Capital• Clarifying the vision and establishing the focus for change – Organizational and interorganizational prototypes• Gaining commitment – Cascading levels of agreement• Assessing risk/return• Selecting partners• Developing detailed design – Business process redesign – Management process redesign (structure, control, HRM, culture) – Information technology• Implementing technology -- applying project manage- ment techniques to keep on schedule & within budget• Managing risks• Detailed cost-benefit analysis• Developing education & communication materials• Developing roll-out schedule• Implementing change• Managing organizational learningFeedback and EvaluationSource: Applegate, L.M., “IT-Enabled Business Transformation”, Boston: Harvard Business School Publishing, 1992.REENGINEERING PROCESSMobilizatioMobilizationnDiagnosisDiagnosisRedesignRedesignTransitionTransition- Create a Business Process Map- Appoint Process Owners and Establish Governance Structure- Formulate Reengineering Strategy- Determine Process Prioritization- Assign Reengineering Team Members- Bound and Scope the Process- Understand Customer Needs- Understand the Current Process- Identify Weaknesses in the Existing Design- Set Targets for New Designs- Create Breakthrough Process Design Concept- Redesign the Entire Business System- Develop Detailed Process Design- Build Laboratory Prototype- Test, Simulate, Learn, and Iterate- Implement Initial Field Release (Pilot)- Realize Initial Benefits- Adjust the Business Systems- Develop Supporting Infrastructure- Rollout and Institution- alize- Implement Succeeding ReleasesREVIEW OF FIVE STEP PROCESS (D & S)1. Vision & Process Objectives -- Who & How is This Determined?– Input From Customers/Marketplace– Technology Transfer from Another Company/Industry– An Executive Brainstorm2. Processes to Be Redesigned– Exhaustive (Getting Something Done?)– High Impact (One Gets Better -- Others Get Worse?)3. Existing Processes– Don’t Repeat Problems– Likely Doing Something Right4. IT Levers (Discuss Table)5. Prototype of New Process– Building Prototypes Not Easy– Pilot Identification & ControlKEYS TO THE DEMISE OF BUREAUCRACY•Knowledge of people -- is there a gap developing? Are people committed to continuous learning?•Willingness to accept responsibility for decisions/actions -- we’re going in two different directions at the same time.•Not every job needs reinventing or can be reinvented with current technology.•Board of Directors fulfilling their