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 Customers Employees

Increase Benefit Teams
product by an from better Less
order of product
Workers -
magnitude Needs are More Work
Examine met
process Empowered
Tendency
Vision to return Layoffs
Increase Loyalty
Profits
 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

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. Incr. Improv.

Change Abrupt, Gradual,
volatile constant
Effects Immediate Long-term
Involvement Few From few to
champions everybody
High initially, Low initially,
Investment
less later high to sustain
Orientation Technology People
Focus Profits Processes
 Networked Organization

Classical/Hierarchical Networked Organ.

Formal Informal
Highly Structured Loosely Structured
Manage Delegate/lead
Control Ownership/participation
Direct Empower
Employee a cost Employees an asset
Information Information
management owned shared-ownership
Risk avoidance Risk management
Individual Team
contributions contributions
 Enabling IT
(P. 133)

Old Rule Intervene Tech New Rule

Information Shared Information
appears in only Database, appears
one place Inter, Intra simultaneously
Only expert can Expert Novices can
perform Systems perform work
complex work Decision Decision making
Only managers support is part of
make decisions systems everyones job
Locate items Tracking Items located
manually technology automatically
Add p 138
 CHANGE

It is an educational and
communications campaign
p.148