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An Investigation of the Methodologies of Business Process Reengineering

An Investigation of the Methodologies of Business Process Reengineering. Mihail Stoica Nimit Chawat Namchul Shin Pace University New York, NY. An Investigation of the Methodologies of Business Process Reengineering. Questions. What is reengineering? What to reengineer?

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An Investigation of the Methodologies of Business Process Reengineering

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  1. An Investigation of theMethodologies of Business Process Reengineering • Mihail Stoica • Nimit Chawat • Namchul Shin Pace University New York, NY M. Stoica, N. Chawat, N. Shin

  2. An Investigation of the Methodologies of Business Process Reengineering Questions • What is reengineering? • What to reengineer? • How to reengineer? M. Stoica, N. Chawat, N. Shin

  3. An Investigation of the Methodologies of Business Process Reengineering What is reengineering? • Radical change, fast • A fundamental rethinking and transformation of an integrated set of business processes • Aims for dramatic business results • Unlike quick hits and incremental improvement, reengineering is a form of organizational change • Characterized by dramatic process transformation M. Stoica, N. Chawat, N. Shin

  4. An Investigation of the Methodologies of Business Process Reengineering The term process in the context of reengineering • A process is a series of related activities that: • takes an input • adds value to it • produces an output for a customer M. Stoica, N. Chawat, N. Shin

  5. An Investigation of the Methodologies of Business Process Reengineering What to reengineer? BPR changes processes, not functions, departments, geographies or tasks. M. Stoica, N. Chawat, N. Shin

  6. An Investigation of the Methodologies of Business Process Reengineering How many BPR projects are failing? • 70 %(Murphy 1994, Malhotra 1998) • 50 %(Caron et al. 1994) M. Stoica, N. Chawat, N. Shin

  7. An Investigation of the Methodologies of Business Process Reengineering Why BPR projects are failing? • Lack of senior management sponsorship • Failure to make an ongoing commitment to the tough management decisions needed to effect these changes to the work environment • Lack of motivation M. Stoica, N. Chawat, N. Shin

  8. An Investigation of the Methodologies of Business Process Reengineering Methodologies: issues • SELECTION; Many companies are developing their own BPR methodologies • TIME; The need to test the project empirically so that it can be validated and modified as appropriate. In the case of BPR, this poses a problem since a typical reengineering project can last 1-2 years • BPR efforts cannot be uniformly applied across different cultures but need to be tailored to the specific contingencies of the situation M. Stoica, N. Chawat, N. Shin

  9. An Investigation of the Methodologies of Business Process Reengineering 5 methodologies M. Stoica, N. Chawat, N. Shin

  10. An Investigation of the Methodologies of Business Process Reengineering Consolidated Methodology: A consolidated methodology has been developed from the five methodologies previously presented and a model was developed to provide a structured approach and to facilitate understanding (Muthu, Whitman and Cheraghi 1999). M. Stoica, N. Chawat, N. Shin

  11. An Investigation of the Methodologies of Business Process Reengineering Gateway BPR Methodology A typical methodology developed by Gateway, a BPR consulting firm, helps illustrate the three levels of abstraction of Methodologies, Techniques and Tools (MTTs) for BPR. The Gateway methodology consists of six stages: 1.Preparation 2.Identification 3.Vision 4.Solution: technical design 5.Solution: social design 6.Transformation. M. Stoica, N. Chawat, N. Shin

  12. An Investigation of the Methodologies of Business Process Reengineering BPR Methodology (Evans 1993) • Evans proposes four general stages as follows: • Stage 1: To BeThis stage is concerned with defining the vision of where the organisation wants to be and what it requires of its business processes as a consequence. • Stage 2: As IsConcerned with defining the current business processes. • Stage 3: The PlanThis stage involves making a plan to accomplish the move from the 'as is' stage to the 'to be' stage. • Stage 4: The CrossingThis stage is concerned with implementing the plan. M. Stoica, N. Chawat, N. Shin

  13. An Investigation of the Methodologies of Business Process Reengineering BPR Methodology A Methodology for Business Process Reengineering (Fitzgerald and Murphy 1996) M. Stoica, N. Chawat, N. Shin

  14. Mobilize for Action ENERGIZE Assess Current Process • Case for Action • Communication Plan • Project Plan • Project Team • 10% Envision the Future FOCUS • Process Assessment • Entry Points • Quick Hits • 30% INVENT Plan the Journey • Future State • Process Design Implications • Organization • Technology • Proof of Concept • 40% LAUNCH • Project Definitions • Business Case • Blueprint • 20% An Investigation of the Methodologies of Business Process Reengineering Chase BPR Methodology The four phases in most reengineering projects: M. Stoica, N. Chawat, N. Shin

  15. An Investigation of the Methodologies of Business Process Reengineering Future Trends • Area of supply chain management and logistics. • Although currently fading, however BPR may increase in importance again, in some form or known by some other name; the BPR phenomenon would be of enduring importance. M. Stoica, N. Chawat, N. Shin

  16. An Investigation of the Methodologies of Business Process Reengineering Conclusions • 50 % to 70 % of reengineering efforts fail • A BPR effort is considered a failure just because it doesn’t provide the dramatic results it promised to deliver • BPR is providing some vital ingredients: • intense customer focus • superior process design • a strong and motivated leadership • BPR advocates strenuous hard work and instigates the people involved to not only to change what they do but targets at altering their basic way of thinking itself • Follow a methodology or create a new methodology • Success of BPR may depend on the people M. Stoica, N. Chawat, N. Shin

  17. An Investigation of the Methodologies of Business Process Reengineering companies need a methodology that takes a holistic view of the organization Conclusions: • Agent Relationship Morphism Analysis (Valiris and Glykas 1999) combines: • accounting BPR principles (e.g., efficiency, effectiveness, and cost), • organizational-theoretic concepts (e.g., roles and accountabilities), and • some powerful systematic business modeling techniques applied from IS development. • Highlights the importance of organizational strategy and its links to business processes throughout the redesign exercise. • Provides a set of modeling techniques that supports the modeling of business processes • Takes an individualistic (employee level) and a holistic (business process level) view • Takes a holistic and systematic approach to BPR. M. Stoica, N. Chawat, N. Shin

  18. An Investigation of the Methodologies of Business Process Reengineering ARMA M. Stoica, N. Chawat, N. Shin

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