Business Process Re-engineering (Elective)

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1 Post-Graduate Diploma in Business Management Business Process Re-engineering (Elective) Institute of Management Technology Ghaziabad Course Background and Objectives: Business Process Re-engineering 2

2 In the current knowledge economy, the old ways of organizing and conducting business are out. In the current high velocity hypercompetitive business climate, executives are under real pressure to avoid commoditization and differentiate their firm s offerings from those of the competition through continuous differentiation and innovation. Constant pressure is there to seek enhanced performance throughout the organization (do more with less, more quickly, more uniquely); to make the firm easier to do business with the more agile, yet still ensure compliance and reduce operational risk. Consequently, a new paradigm is emerging with the integration and networking of business partners and the focus on the firms business processes. Many of the best World Class companies e.g. Cisco, Wall-mart, and Dell have embraced this new approach to business by becoming faster, more flexible, and more integrative, by focusing on customers (both in terms of their demands and their needs), competition, and business process management. Their organizations and those following their lead have been variously described as horizontal, process-centric or process oriented organization. Business processes, like never before, are now considered strategic intellectual assets. Amazon.com is protecting their business processes (such as their one-click ordering) through patents. Dell has over 40 process patents listed on their web site and considers these processes their competitive weapon. A business process-orientation is no more simply a new operations management strategy; rather it emphasizes processes as opposed to hierarchies with special emphasis on outcomes, particularly on customer satisfaction. This orientation looks at business processes from three different perspectives. From a Strategic perspective, a business process is an embodiment of organizational capability, and can be used for implementing organization s business strategy. From a Customer focus perspective, a business process is the delivery mechanism for a service the organization offers to its customers. Lastly, from the traditional Operational perspective, a business process is a workflow system, which may be partially or fully automated using business process management technological tools and techniques. Business Process Re-engineering 3

3 Consequently, Business Process Management (BPM) is beginning to emerge primarily as a management philosophy that is driven from the very top of the organization, and which is critical not merely from an operational perspective but also from a strategic as well as a marketing perspective. This philosophy recognizes that business processes how they are managed the key mechanism that allow a firm to deliver value to the customers, and ultimately its shareholders and stakeholders. It is a way of thinking that governs the structure of the business and drives its overall performance. It is about people, the way they work together, the technology they use and the performance objectives that these processes underpin. This elective course focuses on developing and building a high level business process orientation within companies in an effort to help them achieve a competitive advantage through better strategy formulation as well as service delivery. This course would be useful to those who as managers and/or professionals intend to be involved in implementing or influencing business process design and change, service design, or business process outsourcing initiatives, in positions such as Business Analysts, Operations Managers, Human Resource (HR) Managers, members of Business Process Reengineering (BPR) teams, members of ERP package implementation teams, members of business process outsourcing (BPO) teams, e business implementation teams, or e- government implementation teams. This course is designed to help the students: Develop their conceptual understanding of business processes and their management The students should be able to understand the nature of business processes, their redesign, outsourcing, and their management as a process portfolio. Develop their skills for analyzing existing (As Is) and design To Be business processes in any business enterprise for its strategic advantage Develop an overall understanding on innovatively integrating technology, information technologies and web based systems into redesigned business processes. Business Process Re-engineering 4

4 Develop an understanding on building effective process implementation and change management plans. Pedagogy The pedagogy will be a mix of lectures, experience sharing, real life case discussion, assignments and industry/research based projects. The course is focused on strategic issues with cases as the primary vehicle for learning. In addition to the reading materials, additional readings and cases will be distributed in the class from time to time. Students are also expected to prepare and analyze all the cases as class participation is very important. Course Requirements i. Since much of the course material requires class discussion, it is important that students are prepared for the class and present and defend their ideas. Preparation for class includes having read the assigned material. ii. iii. iv. There will be a number of cases in this course. Cases are a great educational experience but they absolutely require that the students are ready for the class. When cases are assigned, one should come to class ready to discuss the issues of the case. For each case, one should: a) identify the major problem, b) give recommendation to resolve this problem (both short and long term), and when appropriate d) provide supporting analysis (both qualitative and quantitative) for recommendations. Answering the questions provided for each case should help in this effort. The class will be divided into a number of groups and each group will have maximum 4 students. For all cases, each group will submit case analysis report and power point presentation one day before scheduled class. There will be several home assignments assigned throughout the Term along with a number of unannounced quizzes. Late homework will not be accepted and there will be no make-up quizzes. v. Each group is expected to take up a live problem related to BPR. The students are expected to solve the problem based on tools and techniques discussed in the class and submit report. Each group will Business Process Re-engineering 5

5 be required to give a presentation. Evaluation for this assignment will be done based on individual as well as group performance. vi. Class participation will be based on the value one brings to the class through questions, statement, and comments. It is the quality of these that is more important than the quantity. Evaluation This course will carry 100 points and will have the following assessment components. Final grades will be based on the relative performance of a student in the class. Quizzes : 20% Mid Term : 20% End Term : 30% Project : 20% Assignments : 10% Group Project The group project will be one of the most important learning tools of the course. Each group will comprise of only four students. Project guidelines are given below. Assignments Additional assignments may be given during the course. Text Book Implementing BPR: An Agenda for the CEO, Jayaraman, M.S. and Natarajan, G., Tata McGraw-Hill Publishing Company Limited Reference Books Jeston and Nelis (2008) Management by Process : A Roadmap to sustainable Business Porcess Management, Butterworth Heinemann An Imprint of Elseiver Business Process Re-engineering 6

6 Harmon P. (2003) Business process change : A Manager s Guide To Improving, Redesigning, And Automating Business Processes, Morgan Kaufman, San Franscisco Jacka and Keller (2002) Business Process Mapping : John Wiley And Sons, Inc. Business Process Reengineering: Text and Cases, R.Radhakrishnan and S.Balasubramanian, Prentice Hall of India The Essence of Business Process Reengineering, Peppard, J. and Rowland, P., 1995, Prentice-Hall. Business Process Improvement: The Breakthrough Strategy for Total Quality, Productivity, and Competitiveness, Dr. Harrington, H.J., 1991, McGraw-Hill, Inc. Reengineering Management: The Mandate for New Leadership- Managing the Change to the Reengineering Corporation, Champy, J., 1995, Harper Collins Publishers Implementing BPR: An Agenda for the CEO, Jayaraman, M.S. and Natarajan, G., 1996, Tata McGraw-Hill Publishing Company Limited Beyond Reengineering, Hammer, M., 1996, Harper Collins Publishers Journals In addition to above mentioned journals, please keep track of other journals, websites, published articles and papers on BPR. Websites Useful websites to be visited for the course Business Process Re-engineering 7

7 Course Outline Topic Sessions Business processes and their strategic implications 1 & 2 Case Business processes as Strategic capability 3 & 4 Business process mapping :tools/methodology 5 & 6 Analyzing and diagnosing Business Processes Business Process Analysis Exercise 7 & 8 Business Process Performance Measurement and 9 & 10 benchmarking Benchmarking exercise Mid term Examination Business Process improvement 11 & 12 ERP driven business process redesign 13 & 14 Case : ERP driven business process management Business process design and service oriented 15 & 16 architecture (SOA) Business process innovation 17 & 18 Project presentation 19 & 20 Detail of course coverage is as follows: Introduction to the course: What is a business process? Why process-based change? Stakeholders of a business process, Manufacturing and service processes, Core and support processes, Process ownership/stewardship, Business process as a service and its implications, Business processes as organizational capability, Using business processes as strategic drivers. Business processes Mapping: Challenge of process discovery, Identifying where the knowledge is, Importance of facilitation, Gathering process information using appropriate techniques: interviews, observations, document tracking, storyboarding, Understanding and categorizing business rules, What is a process model?, Importance of modeling current process, Documenting Business Process Re-engineering 8

8 roles and responsibilities, Popular business process modeling techniques: swimlane diagramming, Business Process Management Notations (BPMN), Defining a business process architecture. Analyzing and diagnosing Business Processes: Analyzing process as a soft system, Prioritizing the focus, Learning from process models, Conducting a process walkthrough, Use of problem solving techniques, Solution envisioning approach to process problem solving. Business Process Analysis Exercise: Understanding and scoping process problems, Use of solution envisioning approach for identifying process solution. Business process performance Measurement and benchmarking: Determining what to measure, Defining measurement criteria, Using value for money and balanced score card (BSC) approach, Designing measurement techniques, Key performance indicators and performance dashboards. Business process improvement (BPI): Overview of a framework for successful process based change, Business process improvement versus business process redesign (reengineering). identifying opportunity for process improvement, Impact assessment of process changes, Techniques for improving processes: value addition approach, gaps and disconnect approach, six sigma approach, Managing a BPI project feasibility study, As-Is and To-Be process design. ERP driven Business Process Redesign: ERP packages and processes. Planning for ERP and ERP II systems, Implementing ERP driven process design. Business process design and service oriented Architecture (SOA): Concept of business services and their linkage with business processes, Service oriented Architecture (SOA) based business modeling, Services identification, analysis and design, SOA service integration model. Business Process Innovation: Why business process innovation? Creative process design techniques, Communication focused business Business Process Re-engineering 9

9 processes, Developing process scenarios, Impact analysis, Cost/benefit and risk analysis. Teaching methods: The teaching method is highly participative based on Class room discussions and lecturers Simulation game Case discussions Role plays Live projects Group Project The group project will be one of the most important learning tools of the course. Each group will comprise of maximum 4 students. This is a highly interactive real life project, which requires a high degree of analysis and tangible recommendations. Your group is required to identify a company as well as project. Some projects are identified at the end of this note. The deliverables of the project include: Project proposal Interim Report Final Report Presentation The proposal should include following: Introduction/Background of the project Rational for taking the project Objective of the study Scope of the study Methodology (provide flow diagram) Expected outcome Project schedule Interim report is like progress report and should be about 10 pages (maximum). It should include following: Introduction/Background of the study Business Process Re-engineering 10

10 Objective of the study Scope of the study Methodology (provide flow diagram) Existing System Data collection Data analysis The final report has to be prepared and submitted in the format encompassing the areas mentioned here under the heading of Contents. Introduction/Background of the study Objective of the study Scope of the study Methodology (provide flow diagram) Existing Process Data collection Data analysis Proposed Process Recommendations References Appendix It could be a live project or it could be a campus based project, with one of them acting as group leader. Each group will represent a consulting organization who is bidding for a BPR assignment. One of the IMT departments will act as the client organization and will invite bids for reengineering one of its business processes from all the consulting organizations. The project will involve: 1) preparing a process solution to the client department s process problems and business aspirations. Each group will interview the process owner(s) and process workers, find out how the process is carried out and its performance measures, problems they have with the As-Is process, and their aspirations from the to-be process; 2) mapping the As-Is process and analyzing it for solving the problems and meeting the aspirations; Business Process Re-engineering 11

11 3) designing the To-Be process using one of the taught reengineering methods, ensuring the new design is better in performance of the As-Is process, is free from As-Is process problems and accommodates user and process owner aspirations; 4) mapping the To-Be process and explaining how it solves the problems of As Is process as well as meets the users and process owner aspirations. 5) Cost benefit/business case analysis of the To-Be process implementation, if the solution proposed by the given consulting organization (group) is accepted by the MDI department. Then collecting information and analyzing it to enable the group to map this process, suggest indicative performance measures and propose a design of the improved process. The entire report/ppt must be in the range of pages/slides. It is subject to change depending on the sector specific requirements that need to be incorporated and highlighted so as to improve the understanding. Grading of the project will be done on the strength of the analysis and explanation therein. Case Study This shall consist of a 4-5 page (A4 size, Times New Roman, 11 font, single spacing) case on one or more issues related to Business Process Management practices of anyone Indian player in the Sector under study. The case should clearly highlight the imperatives driving the BPM, benefits envisaged and methodology followed. Presentation The presentation should cover both the analysis of primary and secondary data. Each presentation will be of 20 minutes with 12 minutes given to the group to highlight the key findings and 8 minutes for open discussion with the students. Deadlines In order to ensure a quality output, the following deadlines shall be adhered to: Business Process Re-engineering 12

12 Freezing of groups : First Class Identification of company and submission of project proposal: Third Class Process Study and Data Collection and Analysis: Fifth Class Submission of Interim Report with To be Design (max. 10 pages): Seventh Class Submission of Final Report: Tenth Class Business Process Re-engineering 13

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