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Business Process Re-Engineering (BPR)
Dr. A. Albadvi
Asst. professor of IT
Tarbiat Modarres University
School of Engineering, Information Technology Dept.
e-mail: mail@albadvi.net
Sharif University of Technology
School of Management and Economics
2004© Dr A Albadvi
2004© Dr A Albadvi
Business Process Design (optimization)
ï Benchmarking
ï Optimization Tactics
ï Optimization Tools, Process Mapping (selfstudy through case study: Chapter 16 ebook)
ï Business process optimization & Six Sigma concept
2004© Dr A Albadvi
Business Process Optimization Tactics
Principle # 0: STREAMLINE
¾ Remove waste
¾ Simplify
¾ Consolidate similar activities
2004© Dr A Albadvi
ï Ground zero common sense principle!
3 Types of Redesign Principles
TYPES
PRINCIPLES
Restructing & reconfiguring around processes
1.
2.
3.
4.
Reengineering principles
Changing information flows around processes
Changing knowledge management around processes
2004© Dr A Albadvi
5.
6.
7.
Lose Wait
Orchestrate
Mass Customize
Synchronize
Digitize & Propagate
Vitrify
Sensitize
Analyze & Synthesize
9. Connect, Collect, & Create
10. Personalize
8.
Restructure & Reconfigure them!
Principle #1: LOSE WAIT
ï Common Tactics:
¾ Squeeze out waiting time in process links to create value
2004© Dr A Albadvi
ñ Redesign time-sequential activities to be executed concurrently Create closedloop teams for quicker flexible interaction
ñ Do NOT allow a support activity to gate a core valueadding process
ñ Design for continuous flow rather than stop-start batches
ñ Modify upstream practice to relieve downstream bottlenecks.
Restructure & Reconfigure them!
Principle #2: ORCHESTRATE
¾ Let the swiftest and most ablest enterprise execute
2004© Dr A Albadvi
ï Common Tactics:
ñ Partner a process with another enterprise Outsource a process to another enterprise ñ Insource a process back into the enterprise www.ups.com
ñ Route the process through an infomediary
Restructure & Reconfigure them!
Principle #3: MASS-CUSTOMIZE
ï Common Tactics:
¾ Flex the process for ANY TIME, ANY PLACE, ANY WAY
2004© Dr A Albadvi
ñ Flex access by expanding the time window for the process
ñ Flex access by migrating the physical space in which the process happens ñ Create modular process platforms
ñ Push customization to occur closest to the customer
ñ Enable dynamic customization of product offerings www.dell.com
Restructure & Reconfigure them!
Principle #4: Synchronize
ï Common Tactics:
¾ Synchronize the physical and virtual parts of the process
ñ Match the offerings on the physical and virtual parts of the process ñ Create common process platforms for physical and electronic processes ñ Track the movement of physical products electronically
ï Examples:
ñ FORD Corporation
2004© Dr A Albadvi
Informate them!
Principle #5: DIGITIZE and PROPAGATE
ï Common Tactics:
¾ Capture information digitally at the source ¾ Propagate it throughout the process
2004© Dr A Albadvi
ñ Shift data entry to customers and digitize it
ñ Make the process as paperless as possible as early as you can www.microsoft.com
ñ Make information more easily accessible upstream and downstream to those who need it www.walmartstores.com
ñ Shrink the distance between the information and the decision
ï Examples:
ñ E-wallets
ñ Microsoft: job application process
ñ Swedish police: issuance of passports
Informate them!
Principle #6: Vitrify
¾ Provide glasslike visibility through fresher & richer information about the process
ï Common Tactics:
ñ Provide on-demand tracking information for customers of the process
ñ Provide reporting capabilities that provide onthe-fly analysis
ñ Design standard partner interface processes for seamless exchange of information
ï Examples:
ñ FEDEX: shipping process
ñ MISQ: review process
2004© Dr A Albadvi
Informate them!
Principle #7: SENSITIZE
ï Common Tactics:
¾ Fit the process with vigilant sensors and feedback loops that can prompt action
ñ Build in customer feedback loops to detect process dysfunction
ñ Enable software smarts to trigger quick business reflexes
ñ Attach environmental probes to the process to monitor change
ï Examples:
ñ HERTZ: Pricing process www.hertz.com
2004© Dr A Albadvi
Mind them!
Principle #8: ANALYZE and
SYNTHESIZE
¾ Augment the interactive analysis and synthesis capabilities around a process to generate value added
ï Common Tactics:
ñ Provide ì what-ifî
capabilities to analyze decision options
ñ Provide ì slice and diceî
data analysis capabilities that detect patterns
ñ Provide intelligent integration capabilities across multiple information sources
ï Examples:
ñ Amazon www.amazon.com
2004© Dr A Albadvi
Mind them!
Principle # 9: CONNECT, COLLECT, &
CREATE
ï Common Tactics:
¾ Grow intelligently reusable knowledge around the process through all who touch it
2004© Dr A Albadvi
ñ Create a community of practice around the process
ñ Create expertise maps and ì yellow pagesî related to the process
ñ Build knowledge repositories that can be reused to enhance the performance of the process
ñ Develop a FAQ database through the doers of the process
ñ Embed knowledge-sharing spaces for interactive dialogues around the process
ï Examples:
ñ DaimlerChrysler www.daimlerchrysler.com
Mind them!
Principle # 10: PERSONALIZE
ï Common Tactics:
¾ Make the process intimate with the preferences and habits of participants
2004© Dr A Albadvi
ñ Learn preferences of customers and doers of the process through profiling
ñ Insert business rules in process that are triggered based on dynamic personal profile
ñ Use automatic collaborative filtering techniques
ñ Keep track of personal process execution habits
ï Examples:
ñ Ritz-Carlton Hotels www.ritzcarlton.com
ñ American Airlines www.aa.com
ñ Amazon.com; Barnes & Noble www.barnesandnoble.com