enterprise resource planning and business process reengineering pdf

Enterprise Resource Planning And Business Process Reengineering Pdf

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Literature Review 2.

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business process reengineering mba notes pdf

Business process re-engineering BPR is a business management strategy , originally pioneered in the early s, focusing on the analysis and design of workflows and business processes within an organization. BPR aimed to help organizations fundamentally rethink how they do their work in order to improve customer service , cut operational costs , and become world-class competitors.

BPR seeks to help companies radically restructure their organizations by focusing on the ground-up design of their business processes. Davenport , a business process is a set of logically related tasks performed to achieve a defined business outcome. Re-engineering emphasized a holistic focus on business objectives and how processes related to them, encouraging full-scale recreation of processes rather than iterative optimization of sub-processes.

Business process reengineering is also known as business process redesign, business transformation , or business process change management. Business process reengineering BPR is the practice of rethinking and redesigning the way work is done to better support an organization's mission and reduce costs. Organizations reengineer two key areas of their businesses. First, they use modern technology to enhance data dissemination and decision-making processes.

Then, they alter functional organizations to form functional teams. Basic questions are asked, such as "Does our mission need to be redefined? Are our strategic goals aligned with our mission? Who are our customers? Only after the organization rethinks what it should be doing, it does go on to decide how best to do it.

Within the framework of this basic assessment of mission and goals, re-engineering focuses on the organization's business processes—the steps and procedures that govern how resources are used to create products and services that meet the needs of particular customers or markets.

As a structured ordering of work steps across time and place, a business process can be decomposed into specific activities, measured, modeled, and improved. It can also be completely redesigned or eliminated altogether. Re-engineering identifies, analyzes, and re-designs an organization's core business processes with the aim of achieving improvements in critical performance measures, such as cost, quality, service, and speed.

Re-engineering recognizes that an organization's business processes are usually fragmented into sub-processes and tasks that are carried out by several specialized functional areas within the organization. Often, no one is responsible for the overall performance of the entire process. Reengineering maintains that optimizing the performance of sub-processes can result in some benefits but cannot yield improvements if the process itself is fundamentally inefficient and outmoded.

For that reason, re-engineering focuses on re-designing the process as a whole in order to achieve the greatest possible benefits to the organization and their customers. This drive for realizing improvements by fundamentally re-thinking how the organization's work should be done distinguishes the re-engineering from process improvement efforts that focus on functional or incremental improvement. BPR began as a private sector technique to help organizations rethink how they do their work in order to improve customer service , cut operational costs , and become world-class competitors.

A key stimulus for re-engineering has been the continuing development and deployment of information systems and networks. Organizations are becoming bolder in using this technology to support business processes, rather than refining current ways of doing work. In , Michael Hammer , a former professor of computer science at the Massachusetts Institute of Technology MIT , published the article "Reengineering Work: Don't Automate, Obliterate" in the Harvard Business Review , in which he claimed that the major challenge for managers is to obliterate forms of work that do not add value, rather than using technology for automating it.

Hammer's claim was simple: Most of the work being done does not add any value for customers, and this work should be removed, not accelerated through automation. Instead, companies should reconsider their inability to satisfy customer needs, and their insufficient cost structure [ citation needed ].

Even well-established management thinkers, such as Peter Drucker and Tom Peters , were accepting and advocating BPR as a new tool for re- achieving success in a dynamic world. However, the critics were fast to claim that BPR was a way to dehumanize the work place, increase managerial control, and to justify downsizing , i. With the publication of critiques in and by some [ who? Since then, considering business processes as a starting point for business analysis and redesign has become a widely accepted approach and is a standard part of the change methodology portfolio, but is typically performed in a less radical way than originally proposed.

More recently, the concept of Business Process Management BPM has gained major attention in the corporate world and can be considered a successor to the BPR wave of the s, as it is evenly driven by a striving for process efficiency supported by information technology. Equivalently to the critique brought forward against BPR, BPM is now accused [ citation needed ] of focusing on technology and disregarding the people aspects of change BPR is different from other approaches to organization development OD , especially the continuous improvement or TQM movement, by virtue of its aim for fundamental and radical change rather than iterative improvement.

For being able to reap the achievable benefits fully, the use of information technology IT is conceived as a major contributing factor. While IT traditionally has been used for supporting the existing business functions, i. BPR derives its existence from different disciplines, and four major areas can be identified as being subjected to change in BPR — organization, technology, strategy, and people — where a process view is used as common framework for considering these dimensions.

Business strategy is the primary driver of BPR initiatives and the other dimensions are governed by strategy's encompassing role.

The organization dimension reflects the structural elements of the company, such as hierarchical levels, the composition of organizational units, and the distribution of work between them [ citation needed ]. Technology is concerned with the use of computer systems and other forms of communication technology in the business. In BPR, information technology is generally considered to act as enabler of new forms of organizing and collaborating, rather than supporting existing business functions.

The concept of business processes — interrelated activities aiming at creating a value added output to a customer — is the basic underlying idea of BPR. These processes are characterized by a number of attributes: Process ownership, customer focus, value adding, and cross-functionality.

Information technology IT has historically played an important role in the reengineering concept. BPR literature [11] identified several so called disruptive technologies that were supposed to challenge traditional wisdom about how work should be performed. In the mids especially, workflow management systems were considered a significant contributor to improved process efficiency.

Although the labels and steps differ slightly, the early methodologies that were rooted in IT-centric BPR solutions share many of the same basic principles and elements. Benefiting from lessons learned from the early adopters, some BPR practitioners advocated a change in emphasis to a customer-centric, as opposed to an IT-centric, methodology.

One such methodology, that also incorporated a Risk and Impact Assessment to account for the effect that BPR can have on jobs and operations, was described by Lon Roberts Some items to use on a process analysis checklist are: Reduce handoffs, Centralize data, Reduce delays, Free resources faster, Combine similar activities.

Also within the management consulting industry, a significant number of methodological approaches have been developed. The seven steps of the framework are Initiate a new process reengineering project and prepare a business case for the same; Negotiate with senior management to get approval to start the process reengineering project; Select the key processes that need to be reengineered; Plan the process reengineering activities; Investigate the processes to analyze the problem areas; Redesign the selected processes to improve the performance and Ensure the successful implementation of redesigned processes through proper monitoring and evaluation.

The aspects of a BPM effort that are modified include organizational structures, management systems, employee responsibilities, and performance measurements, incentive systems, skills development, and the use of IT. BPR can potentially affect every aspect of how business is conducted today. Wholesale changes can cause results ranging from enviable success to complete failure. If successful, a BPM initiative can result in improved quality, customer service, and competitiveness, as well as reductions in cost or cycle time.

Organizations were well aware that changes needed to be made but did not know which areas to change or how to change them. As a result, process reengineering is a management concept that has been formed by trial and error or, in other words, practical experience. As more and more businesses reengineer their processes, knowledge of what caused the successes or failures is becoming apparent.

Otherwise, BPR is only a short-term efficiency exercise. Major changes to business processes have a direct effect on processes, technology, job roles, and workplace culture. Significant changes to even one of those areas require resources, money, and leadership.

Changing them simultaneously is an extraordinary task. Since BPR can involve multiple areas within the organization, it is important to get support from all affected departments. Through the involvement of selected department members, the organization can gain valuable input before a process is implemented; a step that promotes both the cooperation and the vital acceptance of the re engineered process by all segments of the organization.

Getting enterprise-wide commitment involves the following: top management sponsorship, bottom-up buy-in from process users, dedicated BPR team, and budget allocation for the total solution with measures to demonstrate value.

Before any BPR project can be implemented successfully, there must be a commitment to the project by the management of the organization, and strong leadership must be provided.

However, top management commitment is imperative for success. Leadership has to be effective, strong, visible, and creative in thinking and understanding in order to provide a clear vision. By informing all affected groups at every stage, and emphasizing the positive end results of the re engineering process, it is possible to minimize resistance to change and increase the odds for success.

The ultimate success of BPR depends on the strong, consistent, and continuous involvement of all departmental levels within the organization. Once an organization-wide commitment has been secured from all departments involved in the re engineering effort and at different levels, the critical step of selecting a BPR team must be taken. This team will form the nucleus of the BPR effort, make key decisions and recommendations, and help communicate the details and benefits of the BPR program to the entire organization.

The determinants of an effective BPR team may be summarized as follows:. The most effective BPR teams include active representatives from the following work groups: top management, the business area responsible for the process being addressed, technology groups, finance, and members of all ultimate process users' groups.

Team members who are selected from each work group within the organization will affect the outcome of the re engineered process according to their desired requirements.

The BPR team should be mixed in-depth and knowledge. For example, it may include members with the following characteristics:. Moreover, Covert recommends that in order to have an effective BPR team, it must be kept under ten players.

If the organization fails to keep the team at a manageable size, the entire process will be much more difficult to execute efficiently and effectively. The efforts of the team must be focused on identifying breakthrough opportunities and designing new work steps or processes that will create quantum gains and competitive advantage. Another important factor in the success of any BPR effort is performing a thorough business needs analysis. Too often, BPR teams jump directly into the technology without first assessing the current processes of the organization and determining what exactly needs re engineering.

In this analysis phase, a series of sessions should be held with process owners and stakeholders, regarding the need and strategy for BPR. These sessions build a consensus as to the vision of the ideal business process. They help identify essential goals for BPR within each department and then collectively define objectives for how the project will affect each work group or department on an individual basis and the business organization as a whole.

The idea of these sessions is to conceptualize the ideal business process for the organization and build a business process model. Those items that seem unnecessary or unrealistic may be eliminated or modified later on in the diagnosing stage of the BPR project. It is important to acknowledge and evaluate all ideas in order to make all participants feel that they are a part of this important and crucial process.

The results of these meetings will help formulate the basic plan for the project. The business needs analysis contributes tremendously to the re-engineering effort by helping the BPR team to prioritize and determine where it should focus its improvements efforts.

The business needs analysis also helps in relating the BPR project goals back to key business objectives and the overall strategic direction for the organization. This linkage should show the thread from the top to the bottom of the organization, so each person can easily connect the overall business direction with the re-engineering effort.

This alignment must be demonstrated from the perspective of financial performance, customer service, associate value, and the vision for the organization. BPR projects that are not in alignment with the organization's strategic direction can be counterproductive. There is always a possibility that an organization may make significant investments in an area that is not a core competency for the company and later outsource this capability.

Such re engineering initiatives are wasteful and steal resources from other strategic projects.

The Impact of ERP on the Effectiveness of Business Process Management

Highlights the need for business process reengineering and impact of IT on enterprises. Presents in detail the evolution, modules, verticals, model, management concerns and network infrastructure, selection of software packages and enterprise preparedness for implementation of enterprise resource planning. Briefly describes the key features of popular ERP packages, viz. Edwards, Marshal R and PeopleSoft. Rao Siriginidi, S. Report bugs here. Please share your general feedback.

Business process re-engineering

Skip to Main Content. A not-for-profit organization, IEEE is the world's largest technical professional organization dedicated to advancing technology for the benefit of humanity. Use of this web site signifies your agreement to the terms and conditions. This evolution reflects both the increasing maturity of information technology and also the business outlook of firms seeking to use IT for competitive advantage. In this paper we argue that system development is now entering a new phase of maturity with the advent of enterprise resource planning ERP software packages.

Business process integration and automation have gained popularity among business community, in the recent past. This paper presents a framework for integrating applications and workflows within an ERP system environment. The framework is based on enhanced Eventdriven Process Chain EPC methodology, incorporating unitary structure-based models for business process applications and workflows.

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Беккер расхохотался. Он дожил до тридцати пяти лет, а сердце у него прыгало, как у влюбленного мальчишки. Никогда еще его не влекло ни к одной женщине.

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