Reengineering….
BPR, Process Innovation, ERP,
Mass Customization, Networked
Organization, Empowerment, Teams,
Virtual Corporations, TQM, JIT
Supply Chain
Flow of materials, information,
and services
Includes organizations and
processes
Manage the entire process
Business Process
Reengineering(BPR)
Reengineering the
Corporation
Written - 1993
Michael Hammer
– One of 1996 most influential
people in the U.S.
Time Magazine
July 17,1996
James Champy
What is Reengineering?
“the fundamental rethinking and
radical redesign of business
processes to achieve dramatic
improvements in critical,
contemporary measures or
performance, such as cost,
quality, service, and speed”
p. 32
Reengineering is...
Reversing the Industrial
revolution
Starting Over from Scratch
Re-creating
Re-Inventing
Innovation
Process Oriented
Impacts
Company
 Increase
Customers
 Benefit
product by an from better
product
order of
magnitude
 Needs are
met
 Examine
process
 Tendency
to return
 Vision
 Loyalty
 Increase
Profits
Employees
Teams
Less
Workers More Work
Empowered
Layoffs
Why Reengineer
The 3 C’s
– Customers
– Competition
– Change
Nothing is Constant or Predictable
Change is the only constant
To reengineer a company is to
take a journey from the familiar
into the unknown. The journey
has to begin somewhere and
with someone. Where and with
whom?
– P. 101
Keys
Leaders
Staff Empowerment
Broader Scope
– Knowledge / Skills
Tasks to Process
– Redesign of Systems
Information Technology
Community
The 3 R’s
Redesign
– Cross-function approach
Retool
– Information Tools
Reorchestrate
– Organization changes
Problems
Fix vs. Change
Focus
Ignore
Quit
Scope
HR / Unions
Success Rate
Bell Atlantic’s
Experience
 The difference is that in a compliance
mode I do what I must do because my
boss tells me I must do it. In a
commitment mode, I understand what the
corporation is trying to achieve and how
we’re going to achieve it, and I will do
whatever it takes to make that happen,
including changing the way I do my job if
that is what is required
– p. 196/197
BPR
No longer a need to destroy
everything - start from scratch
Instead - Flexible approach that
can be executed by proven
methodologies and principles.
Hammer and Stanton[1995]
& Champy [1995]
Process Innovation
Encompasses the envisioning of
new work strategies, the actual
process design activity, and the
implementation of the change in
all its complex technological,
human, and organizational
dimensions – order-of-magnitude
improvements
Davenport (1993)
Process Innovation vs.
Incremental Improvement
Process Innov.
 Change
 Effects
 Involvement
 Investment
 Orientation
 Focus
 Abrupt,
volatile
 Immediate
 Few
champions
 High initially,
less later
 Technology
 Profits
Incr. Improv.
 Gradual,
constant
 Long-term
 From few to
everybody
 Low initially,
high to sustain
 People
 Processes
Networked Organization
Classical/Hierarchical
 Formal
 Highly Structured
 Manage
 Control
 Direct
 Employee a cost
 Information
management owned
 Risk avoidance
 Individual
contributions
Networked Organ.
 Informal
 Loosely Structured
 Delegate/lead
 Ownership/participation
 Empower
 Employees an asset
 Information
shared-ownership
 Risk management
 Team
contributions
Enabling IT
(P. 133)
Old Rule
 Information
Intervene Tech
 Shared
appears in only
Database,
one place
Inter, Intra
 Only expert can  Expert
perform
Systems
complex work  Decision
 Only managers
support
make decisions systems
 Locate items
 Tracking
manually
technology
New Rule
 Information
appears
simultaneously
 Novices can
perform work
 Decision making
is part of
everyone’s job
 Items located
automatically
Add p 138
CHANGE
“It is an educational and
communications campaign”
– p.148