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. James Champy

Time Magazine July 17,1996

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

Employees
Teams Less

product by an from better product order of magnitude Needs are met Examine process Tendency to return Vision Loyalty Increase Profits

Workers More Work

Empowered Layoffs

Why Reengineer
The 3 Cs 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 Rs
Redesign Cross-function approach

Retool Information Tools

Reorchestrate Organization changes

Problems
Fix vs. Change Focus

Ignore
Quit Scope HR / Unions Success Rate

Bell Atlantics 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 were 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 can be executed by proven methodologies and principles.

Instead - Flexible approach that

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 Abrupt,

Incr. Improv.
Gradual,

Effects
Involvement Investment Orientation Focus

volatile Immediate Few champions High initially, less later Technology Profits

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

Networked Organ.
Informal Loosely Structured Delegate/lead Ownership/participation Empower Employees an asset Information

management owned Risk avoidance Individual contributions

shared-ownership Risk management Team contributions

Enabling IT
(P. 133)

Old Rule
Information

Intervene Tech
Shared

New Rule

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

Information

appears simultaneously Novices can perform work Decision making is part of everyones job Items located automatically

Add p 138

CHANGE

It is an educational and

communications campaign
p.148