Business Process Reengineering

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1 Sanjay Mohapatra Business Process Reengineering Automation Decision Points in Process Reengineering 4y Springer

2 1 Business Process Reengineering: A Consolidated Approach to Different Models Background Introduction? Office Process Reengineering and Change Management Traditional Businesses and Problems History and Development of Business Process Reengineering What Is Business/Office Process Reengineering? Understanding Office/Business Process Reengineering A Different Approach in the Government The Reengineering Vision Reusable Technology., The Principles of Reengineering Process Reengineering Methodologies Selecting Methodology for Process Reengineered RTI Role of Information Technology in BPR Change Management Intervention Models Change Management Process Sponsor Activities and Sponsor Roadmaps Resistance Management Data Collection, Feedback Analysis, and Corrective Action Celebrating and Recognizing Success The Benefits of Reengineering Ensuring Reengineering Success Possible Impediments to Success Business Process Reengineering Principles of Reengineering 31

3 1.18 A Consolidated Framework Pictorial Representation of Different Methodologies Summary 37 Bibliography 38 The Need for BPR and Its History Executive Summary Objective Introduction TQM, Six Sigma, and PIP: The Precursors Total Quality Management Six Sigma Process Improvement Process Business Process Reengineering: A New Paradigm Why BPR? Two Cases Difference Between PIP and BPR Conclusion., 48 Bibliography 49 Business Process Reengineering: Framework and Approach Learning Objective Introduction BPR Framework Develop the Business Vision and Business Objective Choosing the Process to Be Redesigned Human Resource Function Finance and Accounts Function Material Management Function Office Automation and MIS Function Administration Functions Understanding and Measuring the Existing Processes Redesigning the Processes Information as Technology Enabler Prototyping Pilot Test.' Continuous Improvement Reengineering Methodologies BPR Implementation Approach BPR Implementation Approach BPR Implementation Approach BPR Implementation Approach BPR Implementation Approach Best Approach Case of Ford Motor Company 65

4 3.14 Conclusion 66 Bibliography 67 Business Process Management (Process Life Cycle, Process Maturity) Objectives Historical Background Defining Business Process Management Drivers and Triggers for BPM Business Process Modeling Process Management Process The Activities Involved in Process Management Definition Process Implementation Activities Improving Processes Through Change Management Process Life Cycle Process Life Cycle Stages Process Maturity Level 1: Initial Organizations Level 2: Managed Organizations Level 3: Standardized Organizations Level 4: Predictable Organizations Level 5: Optimizing Organizations Case Study Siemens: An example of Achieving/Implementing Process Maturity Summary The Golden Rules for High Maturity Process Implementation 94 Bibliography 94 Organization Life Cycle and Its Relationship with Process Reengineering Learning Objectives Introduction ' Organizational Life Cycle Model Downs Model: Motivation Based Lippitt and Schmidt Model: Management Concerns Scott Model: Strategy and Structure Greiner's Model: Crisis Leading to Transition Torbert's Model: Organizational Mind-Set Lyden: Functional Focus Katz and Kahn: Organizational Structure Adizes: Organizational Activities 98

5 Kimberly's Model A Generic Organization Life Cycle Model Stage 1: Birth Stage Stage 2: Growth Stage Stage 3: Maturity Stage Stage 4: Decline/Revitalization Stage Organization Characteristics and Metrics During OLC Stages Organization Characteristics During OLC Stages Organization Metrics and Tools/Techniques During OLC Stages Action Steps to Be Taken During OLC Stages Effect of Organization Life Cycle on Board of Directors Framework to Determine Organization Evolution: S-Curve S-Curve: A Framework to Determine Stages of Organizational Evolution Mapping of OLC to Growth in Organisms: Principle of Homeokinesis._ Homeokinesis: A Framework to Map Growth in Organization to Growth in Organisms Transition from Stage 3 to Stage 2 of Organization Life Cycle Reasons for the Transition of an Organization from Stage 3 to Stage 2, Mapping of Process Life Cycle with Organization Life Cycle Process Life Cycle Mapping of Process Life Cycle with Organization Life Cycle Organization Life Cycle for Nonprofit Organizations Overview of Nonprofit Organization Life Cycle Characteristics of Nonprofit Organization Life Cycle Case Study: Computer Sciences Corporation Stage 1: Birth Stage 2: Growth Stage 3: Maturity Stage 4: Decline/Revitalization Summary 114 Business Process Modelling Learning Objective Why Do We Need Business Processes? Business Process Modelling BPM Background Process Modelling Requirements Step-by-Step Procedure for BPM 120

6 6.4 Service-Oriented Architecture Simulation and Optimization Process Modelling Standards Business Process Modelling Steps Business Process Connections Assessing Reengineering Assessment Issues Has the Organization Changed Its VMG (Vision, Mission, Goals)? Is the New Process Delivering Desired Results? Workflow Modelling My Definition of Workflow The Key Benefits of Workflow Types of Business Process Submodel Private (Internal) Business Processes Abstract (Public) Processes Collaboration (Global) Processes Weaknesses of the Business Process Models Case Steps Workflow Management and BPM: Difference ROI Reducing Costs Competitive Advantage Calculating ROI Common ROI Pitfalls Case Study Business Framework Versus Model Summary 147 Bibliography 147 People Issues with BPR and Change Management Objectives Introduction ' What Is Change Management? Importance of Change Management and People in BPR Major People-Related Issues in BPR Change Management Frameworks McKinsey's 7S Framework: Analysis Phase Change Management Heat Map End-to-End Change Management Framework Best Practices in Managing Change During a BPR Exercise Case Study: SAP HR/Payroll Implementation at Toyota Australia 158

7 xvi Contents Challenges Change Management Process Outcomes Summary 160 Bibliography Change Management Approach in Implementing BPR Objective Background BPR Implementation Initiate Strategic Change Current Process Diagnosis Process Redesign Plan the Implementation and Go Live Monitor Process and Feedback The Iron Triangle Managing Change Managing the Change: People Focus A BPR Case Study * Summary 189 Bibliography BPR and Malcolm Baldrige National Quality Program Objectives of the Report Background Review What Is MBNQA? To Improve National Competitiveness Through B Case Study Why Use MBNQA as a Performance Management Program? Brief Overview of the.criteria Baldrige National Quality Program Self-Assessment Process Feedback and Improvement Process Core Values and Concept Future Outlook: Alignment of TQM and Balance Scorecard: An Integrated Overview..' Case Study: A Conclusive End Motorola 211 Bibliography BPR and Automation Learning Objectives Introduction Business Process Reengineering Recommendations for BPR Business Process Automation 214

8 xvii 10.4 Considerations for Automation Prioritization for Automation Conclusion Summary 219 Bibliography TQM and BPR A Brief History Definition Critical Success Factors BPR Methodology Total Quality Management Introduction Origins of TQM TQM Principles Deming's Approach Making TQM Work Implementing TQM BPR and TQM Quality Function Deployment QFDs and the Voice of Clients The Quality Focus :3 Methodology Used Conclusion 238 Bibliography Case Study: AEGON Religare Introduction Objective Challenges Solution Lead Management System Case Management System Sales Management System 243, Agency Portal System Incidence Management System Business Benefits, Summary 247 Bibliography 247 Glossary 249 Index 253

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