Matakuliah
Tahun
: M0734-Business Process Reenginering
: 2010
The Development of BPR
Pertemuan 6
The Development of BPR
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Improvement Phase :
Why ?
How ?
Case Study
Outputs
Risks
Improvement Phase
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Why ?
The purpose of the improvement phase is to make
the process(es) within, the scope of the project as
efficient and effective as possible, to meet
stakeholders’ current and future expectations.
This phase also provides a unique opportunity to
quantify further, in a more rigorous manner, the
benefits outlined in the original business case.
“Getting the processes ‘right’ before automation should
definitely be a goal”
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How ?
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Step 1 :
Communications
To keep the relevant stakeholders informed about
the scope of the improvement phase, the options
being considered, and their status
If stakeholders’ suggestion cannot be
accommodated, it is important to inform them of the
reasons why
To assist the stakeholders in gaining greater
understanding of the objectives of, and choices
made by, the business on behalf of the project
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Step 2 :
Initial Improvement Workshops
Addresses Items like:
• Timeframes
• Process Goals
• Strategic
• Planning
• Constraints
• Success
• Automation
• Success Checklist
• Outcomes
This is where the project shifted from analysis (in Elaboration
Phase) to Creative (new ideas, innovative)
• Encourage the flow of ideas
• Organize ideas and evaluate based on agreed criteria
“ask the business participant to think of a new, more efficient process that will
meet the timeframe and other constraints ”
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Step 2 :
Initial Improvement Workshops Questions to ask
Scoping
• What is the scope and extent of the process(es) to be redesigned? What is out of scope?
Business
• To which overall business objective do these process contribute? (WHAT?)
• Which strategy should be used as a basis for the processes? (HOW?)
• What are the main driver(s) of process change? (WHY change?)
Processes
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What is good in the current process(es)?
What are the bottleneck/issues to be overcome in the current process(es)?
Which best practices can be included?
What are the most significant improvements that can be made to the process(es)?
What are the performance indicators/SLAs (quality and quantity)?
What are other relevant metrics associated with the process(es)?
How are the process(es) monitored and who by, and which variables can be used to adjust the process(es)?
What rules and regulations must this process comply with (internal and external)?
What significant interfaces does this process have with other process (es)?
Organization
• What organizational units are involved, and what criteria do they impose on the process?
• What positions and people are involved in the process, and do we need to take this into consideration in
the innovate workshop?
Information Systems
• What information systems are involved, and what restrictions and opportunities does this provide?
Documents
• What outputs and/or documents must be generated, and must they comply with any particular requirem
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(e.g. legal)?
Step 3 :
Future Metrics Projection
Review current process and timing (or other metrics)
Compare with the new process and determine expected
process timings
Extrapolate expected future transactions
Determine total processing times
(expected process timings X expected future transactions)
Review departmental budgets to calculate costs (payroll, IT
costs, etc.)
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Step 4 :
Simulation
To determine the feasibility and efficiency of the
proposed redesigned process options
Use the current metrics and expected metrics along
with assumptions to perform the simulation
Can be assisted by a good BPM solution that
provides simulation capabilities
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Step 5 :
People Capability Matrix and Capacity Planning
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Step 6 :
Proposed Improvement Workshops
Based on narrowed down improvement options after
evaluated using agreed criteria
The following are tabled during the workshops :
• Documented improvement options
• Simulation outcomes
• Activity-based Costing scenario
Address critical business requirements first (e.g.
making processes more efficient and effective), then
move on to the compliance, audit and operational
risk requirements
Obtain agreement and sign off of the new
improvement options
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Step 7 :
Feasibility Validation and Gap Analysis
Feasibility Validation
• Will the new process be able to be supported from an IT perspective?
• Will the business be able to function efficient and effectively as a result of
process?
• Build a prototype (PoC) and conduct walkthroughs with the business
Gap Analysis
To provide a comparison between the new and the old
processes for the business, IT department and developers of
the training material, a brief overview of the current process
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A brief overview of the new redesigned process
Key changes between the two
Process issues
Relevant metrics
Business and process impact comments
New (business) opportunities
Required changes (for example, IT changes)
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Step 8 :
Business Case and Approvals
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Improvement Case Study
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Outputs
 Redesigning process models
 Documentation supporting the
redesigned processes
 High-level business requirements of
the new process
 Simulation models and activitybased costing details
 Capacity planning information
 A process gap analysis report
 The project plan in detail for the
Development phases
 Detailed cost-benefit
 An updated business case
 A detailed report and approval from
the organization
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Risks
Risks
Mitigation Strategy
Don’t know where to start
Start by following the BPM implementation Framework
Organization is too ambitious
Provide practical goals and scenarios, do not try to solve every
Organization does not have
improvement
Organization Foundation phase provides clear direction for this
Scope is too small/too big
Refer back to scope defined in BPM Foundation Phase
Stakeholders expectations are
Make sure the Proposed Improvement Workshops and Feasibility
are conducted properly
BPM tools vendor is leading the
phase
The business needs to lead the process improvement activities,
solutions
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