Information Technology a Key for Business Process Re Engineering

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    Information Technology: A Key for Business

    Process Reengineering

    Authors:

    Dr. RAJESH VERMA

    Assistant Professor

    Lovely Professional University

    Phagwara

    Mob: 98729-74457

    e-mail: [email protected]

    ASHU GUPTA

    Senior Lecturer in Computer Applications

    Apeejay Institute of Management

    Rama Mandi-Hoshiarpur RoadJalandhar-144023

    Mob: 98158-91562

    e-mail: [email protected]

    Dr. KAWALJEET SINGH

    Director

    University Computer Centre

    Punjabi University

    Patiala

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    Information Technology: A Key for Business Process

    Reengineering

    ABSTRACTThe purpose of the paper is to take a comprehensive look at Business Process

    Reengineering (BPR), which is a popular term for the reoptimization of organizational

    processes and structures after the implementation of new information technologies into

    an organization. There is some evidence that changes in the use of information

    technology (IT) in an organization may require major restructuring of the organization to

    take full advantage of the technologies. This paper will attempt to demystify the myths of

    BPR. It will examine the advantages and disadvantages of BPR in organizations. The

    paper will also explore the various phases of the BPR process and the relationship

    between BPR and Information Technology (IT). Information Technology should be

    viewed as more than an automating tool but rather a fundamental way to reshape the way

    business is done. The examination of IT will reveal the use of IT tools within the BPR

    process which typically results in faster, better and cheaper solutions at each phase of the

    BPR process. The primary methodology of the research will be through literature.

    Keywords: Business Process Reengineering, Competency, Information Technology,

    IT Tools, Transformation

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    1. Introduction

    Business Process Reengineering (BPR) is known by many names, such as core

    process redesign, new industrial engineering or working smarter. All of them imply

    the same concept that focuses on integrating both business process redesign and

    deployment of information technologies (IT) to support the reengineering work. This

    paper will attempt to introduce some of the more important aspects of BPR and the

    significance and role of information technology in BPR. In addition, the paper will

    explore two questions: where does BPR comes from and what is involved in BPR in

    terms of principals and assumptions.

    2. What is BPR?

    Business process reengineering ideas are based on the premise that every

    organization needs a sense of direction. Without that direction in the form of strategic

    plans and business plans, the organization has no foundation upon which to build process

    improvements. BPR is a method of improving the operation and therefore the outputs of

    organizations. Generally the topic of BPR involves discovering how business processes

    currently operate, how to redesign these processes to eliminate the wasted or redundant

    effort, improve efficiency, and how to implement the process changes in order to gain

    competitiveness. The purpose of BPR is to find new ways to organize tasks, organize

    people and use information technology so that the processes support the organizations

    goals. It means analyzing and altering the business processes of the organization as a

    whole. For a thorough and effective reengineering project, organizations should first meet

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    certain conditions before starting such a project. Initially, the management should

    abandon all the rules and procedures that have been used upto that time. In addition they

    should abandon other inadequate organizational and production principles. At this point,

    the design of a renovated and redesigned organization should begin.

    According to Hammer and Champy (1993), Reengineering is the fundamental

    rethinking and radical redesign of business processes to achieve dramatic improvements

    in critical, contemporary measures of performance, such as cost, quality, service and

    speed.

    Vidgen (1994) defines the central key points of BPR as:

    radical change and assumption challenge

    process and goal orientation

    organizational restructuring

    the exploitation of enabling technologies, particularly information technology

    which means that by focusing on business objectives, processes are analyzed in

    the organization, non-essential or redundant procedures are eliminated, and then

    IT is used to redesign and streamline organizational processes.

    2.1 BPR as Radical Change

    BPR is a radical change rather than an incremental change. Davenport (1993)

    advocates radical change as:

    Objectives of 5% or 10% improvement in all business processes each year must give way

    to efforts to achieve 50%, 100%, or even higher improvement levels in a few key

    processes. Radical change is the only means of obtaining the order of magnitude

    improvements necessary in todays global marketplace. Existing approaches to meeting

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    customer needs are so functionally based that incremental change will never yield the

    requisite interdependence.

    3. Process-Orientation: From Structure to Process

    Many current business processes with their functional structures were designed to

    enable efficient management by separating processes into small tasks that could be

    performed by less skilled workers with little responsibility. Under this structure, the

    higher skilled and more trusted managers made the important decisions. Traditional

    structural approaches to a business reengineering generally follow this sequential order.

    First, a business strategy is proposed, then the business structures and processes are

    planned, and finally they are implemented with IT. In comparison, BPR is regarded as

    process-oriented which is trying to overcome some problems raised by hierarchical

    structures. That means, BPR as process-orientation changes the structural relationships

    between management and employers into the interactive processes between them. BPR

    attempts to radically break the existing process structures and replace them with

    innovative solutions.

    4. BPR Process and Approach

    Process redesign, often called BPR, takes a clean sheet approach to the process,

    which is usually either broken, or so slow that it is no longer competitive in delivering the

    companys value to its customer. Inputs and outputs are defined, and checked to ensure

    they align with customers present, and future, requirements. New technology, methods

    and data flows are considered in relation to the process. A new process is designed from

    scratch using the above. The change is planned and implemented to achieve minimum

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    disruption. Where a fundamental redesign of the entire process is not required, process

    improvement can take different forms like analysis and improvement, continuous

    improvement or simply attempts to gain more control.

    The most common approach to process improvement is to take an underperforming

    process, which is key to achieving the business objectives, and create a systematic

    analysis to determine the most important areas for improvement. These are then

    addressed on a project-by-project basis. A temporary process improvement team that

    primarily consists of people within the process controls the analysis and improvement.

    Continuous improvement is the ongoing management of the process after it has been

    redesigned and streamlined. This is part of an overall culture change that needs to be

    clearly thought through and well directed from the top of the organization.

    Davenport & Short (1990) define business process as "a set of logically related tasks

    performed to achieve a defined business outcome." A process is "a structured, measured

    set of activities designed to produce a specified output for a particular customer or

    market. It implies a strong emphasis on how work is done within an organization

    (Davenport 1993). In their view processes have two important characteristics:

    a) They have customers (internal or external)

    b) They cross-organizational boundaries

    Processes are generally identified in terms of beginning and end points, interfaces, and

    organization units involved, with special emphasis on customers. Examples of processes

    include developing a new product, ordering goods from a supplier, creating a marketing

    plan or processing and paying an insurance claim. According to Davenport & Short

    (1990), processes may be defined based on three dimensions:

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    a) Entities: Processes take place between organizational entities. They could be

    interorganizational, interfunctional or interpersonal.

    b) Objects: Processes result in manipulation of objects. These objects could be physical

    or informational.

    c) Activities: Processes could involve two types of activities: managerial and operational.

    5. Myths about BPR

    The concept of BPR is widely misunderstood and has been equated to downsizing,

    client/server computing and several other management techniques of the past several

    years. Davenport & Stoddard (1994) identify several reengineering myths:

    The Myth of Reengineering Novelty: Reengineering, although based on familiar

    concepts, introduces new concepts that are combined in a new format. These key

    components have never been together before.

    The Myth of the Clean Slate: Regardless of Hammer's (1990) sentiment: "Don't

    automate, obliterate!" clean slate change is rarely found in practice. Or, as Davenport and

    Stoddard (1994) state: A "blank sheet of paper" used in design usually requires a "blank

    check" for implementation. Therefore, a more affordable approach for most companies is

    to use Clean Slate Design, which involves a detailed vision for a process without concern

    for the existing environment. However, the implementation is done over several phased

    projects. Some opponents of BPR say that despite the delivery of radical design, it does

    not guarantee a revolutionary approach to change. Moreover, a revolutionary change

    process might not be feasible given the risk and cost of revolutionary tactics.

    The Myth of Information Systems Leadership: Information Systems (IS) is generally

    viewed as a partner within a cross-functional team that is generally headed by a non-IS

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    project leader and a non-IS business person who has better control over the processes that

    are being redesigned. The distinction between IT and IS begins with the idea that IT

    offers strategic relevance. Moreover, IT has an impact on BPR projects that can improve

    the quality of an organizations information systems management.

    The Myth of Reengineering vs. Quality: Most companies have approaches to

    organizational change including reengineering, continuous improvement, incremental

    approaches, and restructuring techniques.

    The Myth of Reengineering vs. Transformation: BPR is a process that contributes to

    organizational transformation; however it is not the same as transformation.

    Organizational transformation is defined as, "Profound, fundamental changes in thought

    and actions, which create an irreversible discontinuity in the experience of a system"

    (Adams 1984). Organizational transformation is generally about the emergence of a new

    belief system and necessarily involves reframing, which is a discontinuous change in the

    organizations or group's shared meaning or culture. It also involves broad changes in

    other organizational dimensions besides the work processes.

    6. BPR Success/Failure Factors

    There are both soft and hard factors that cause success and failure of BPR efforts. The

    factors listed below are based on various articles and empirical research on BPR

    implementation. These dimensions are:

    change management

    management competency and support

    organizational structure

    project planning and management

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    IT Infrastructure

    IT infrastructure Success Factors Failure Factors

    1. Motivations & Reward

    System

    2. People Involvement3. Empowerment

    4. Training & Education

    5. Stimulation ofReceptivity of

    Organization to

    Change

    6. Effective

    Communication

    Change of Mgt.Culture

    1. Committed & Strong

    Leadership

    2. Management of Risk

    3. Sponsorship Mgt. Competence

    Factors

    1. Adequate jobintegration Approach

    2. Effective BPR Teams

    3. Appropriate Jobs,

    Definitions &

    Responsibilities

    Allocation

    Organizational

    Structure Factors

    1. Alignment of BPR

    Strategy with

    Corporate Strategy

    2. Effective Planning &

    use of Project Mgt.

    Techniques.

    3. Adequate Resources

    4. External Orientation &

    Learning

    5. Effective use of Consultants

    6. Adequate

    identification of BPRvalues

    BPR Project Mgt.

    Factors

    1. Proper IS Integration

    2. EfectiveReengineering of

    Legacy IS

    3. Effective use of

    Software Tools

    IT infrastructure

    Factors

    1. Problems in

    Communication

    2. OrganizationalResistance

    3. Lack of Training &

    Education4. Problems related to

    creating a culture for

    change

    Change of Mgt.

    CultureFactors

    B

    U

    S

    I

    N

    E

    SS

    P

    R

    O

    C

    E

    S

    S

    R

    E

    E

    N

    G

    I

    N

    EE

    R

    I

    N

    G

    I

    M

    P

    L

    EM

    E

    N

    T

    A

    T

    I

    O

    N

    1. Problems related t

    commitment, support &

    leadership

    2. Problems related tsponsorship

    Mgt. SupportFactors

    1. Ineffective BPR Teams

    2. Problems related t

    integration mechanism

    job definition aresponsibility allocation

    Organizational

    StructureFactors

    1. Problems related to

    planning & project mgt.

    2. Problems related to

    goals & measure3. Inadequate focus &

    Objectives

    4. Ineffective process

    redesign

    5. Problems related to

    BPR resources

    6. Ineffective use of

    consultants7. Unrealistic expectations

    BPR Project

    Mgt. FactorsFactors

    1. Problems related to IT

    investment

    2. Improper IS integration

    3. Inadequate ISdevelopment

    4. Ineffective

    reengineering of Legacy

    IS

    IT infrastructure

    Factors

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    Figure 1: Summary of Key Success/ Failure Factors in BPR (Al-Mashari &Zairi,

    1999)

    6.1 Factors relating to Change Management Systems and Culture

    Factors relating to change management systems and culture are important to the

    success of BPR initiatives. Change management, which involves all human- and social

    related changes needed by management to facilitate the acceptance of newly designed

    processes and structures into working practice and to deal effectively with resistance, is

    considered by many researchers to be a crucial component of any BPR effort. Effective

    communication is considered a major key to successful BPR-related change efforts.

    Communication is needed throughout the change process at all levels and for all

    audiences, even with those not involved directly in the reengineering project. Effective

    communication between stakeholders inside and outside the organization is necessary to

    market a BPR program and to ensure patience and understanding of the structural and

    cultural changes needed as well as the organization's competitive position.

    Communication should be open, honest, and clear, especially when discussing sensitive

    issues related to change such as personnel reductions. As BPR results in decisions being

    pushed down to lower levels, empowerment of both individuals and teams becomes a

    critical factor for successful BPR efforts. Since it establishes a culture in which staff at all

    levels feel more responsible and accountable and it promotes self-management and a

    collaborative teamwork culture. Empowerment means that staff is given the chance to

    participate in redesign processes. When empowered, employees are able set their goals

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    and monitor their own performance as well as identify and solve problems that affect

    their work thereby supporting the BPR efforts.

    6.2Factors for Management Competency

    Sound management processes ensure that BPR efforts will be implemented in the

    most effective manner. The most noticeable managerial practices that directly influence

    the success of BPR implementation are top management support and commitment,

    championship and sponsorship, and effective management of risks. Commitment and

    leadership in the upper echelons of management are often cited as the most important

    factors of a successful BPR project. Leadership has to be effective and creative in

    thinking and understanding (Hammer and Champy, 1993) in order to provide a clear

    vision of the future. This vision must be clearly communicated to a wide range of

    employees who then become involved and motivated rather than directly guided.

    Commitment to and support for the change must constantly be reinforced from senior

    management throughout a BPR project. Sufficient authority and knowledge, and proper

    communication with all parts in the change process, are important in dealing with

    organizational resistance during BPR implementation (Hammer and Champy, 1993).

    Barriers such as political, economic, and organizational risks are all associated with BPR-

    related change. And champions of the change play a major role in overcoming these

    barriers and increasing the chance of successful BPR implementation. The champions

    must be able to persuade top management of the need to change and to continually push

    the change efforts throughout the organization. BPR implementation involves radical

    change to several systems in the organization. Risks associated with acceptance of

    changes in the organizational structure, deploying emerging technologies with little

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    familiarity, large investment in new resources needed for the new processes, loss of

    personnel, and loss of earnings (Towers, 1994; Clemons, 1995) are some examples of the

    many risks that an organization may take when implementing BPR. Therefore,

    continuous risk assessment is needed throughout the implementation process to deal with

    any risk at its initial stage and to ensure the success of the reengineering efforts.

    Anticipating and planning for risk handling is important for dealing effectively with any

    risk when it first occurs.

    6.3 Factors relating to Organizational Structure

    As BPR creates new processes that define jobs and responsibilities across the

    existing organizational functions (Davenport and Short, 1990), there is a clear need to

    create a new organizational structure which determines how BPR teams are going to

    look, how human resources are integrated, and how the new jobs and responsibilities are

    going to be formulated. An adequate job integration of organizational human resources

    infrastructure is important to a BPR project's success. When individuals within a process

    perform a series of tasks efficiently, product quality, processing time, and cost are all

    going to improve. However, the move to integrate human resources necessitates a careful

    consideration of all related organizational changes. Effective BPR cross-functional teams

    are a critical component of successful BPR implementation. Team members should be

    experienced in variety of techniques. Teams should be made up of people from both

    inside and outside the organization (Hammer and Champy, 1993). The determinants of an

    effective BPR team are as follows: competency of team members, their credibility within

    the organization and their creativity, team empowerment, motivation, effective team

    leadership, proper organization of the team, complementary skills among team members

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    and adequate size. As BPR results in a major structural change in the form of new jobs

    and responsibilities, it becomes necessary for successful implementation to have formal

    and clear descriptions of all jobs and responsibilities that the new designed processes

    bring along with them.

    6.4 Factors related to BPR Project Management

    Successful BPR implementation is highly dependent on an effective BPR

    Program management, which includes strategic alignment, effective planning and project

    management techniques, identification of performance, adequate resources, effective use

    of consultants, building a process vision integrating BPR with other improvement

    techniques. Proper planning for the BPR project with an adequate time frame are key

    factors in delivering a successful BPR project on time. Effective use of project

    management techniques and managing people-related issues have also a crucial role in

    smoothing the flow of the process redesign stages. Measurement of project progress

    should also be maintained continually throughout a BPR project.

    6.5 Factors related to IT infrastructure

    Building an effective IT infrastructure is a vital factor in successful BPR

    implementation. An adequate understanding of technologies for redesigning business

    processes is necessary for proper selection of IT platforms. Effective overall system

    architecture, flexible IT infrastructure and proper installation of IT components all

    contribute to building an effective IT infrastructure for business processes. The IT

    infrastructure and BPR are interdependent in the sense that deciding the information

    requirements for the new business processes determines the IT infrastructure. In addition,

    recognition of IT capabilities provides alternatives for BPR. Building a responsive IT

    infrastructure is highly dependent on an appropriate determination of business process

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    information needs . This, in turn, is determined by the types of activities within a business

    process, and the sequencing and reliance on other organizational processes. An effective

    IT infrastructure follows a top-down approach, beginning with business strategy and IS

    strategy and passing through designs of data, systems and computer architecture.

    Linkages between the IT infrastructure components are important for ensuring integrity

    and consistency among the IT infrastructure components. IT standards also have a major

    role in reconciling various infrastructure components to provide shared IT services that

    are of a certain degree of effectiveness to support business process applications. The IT

    infrastructure shared services and the human IT infrastructure components, in terms of

    their responsibilities and their expertise, are both vital to the process of the IT

    infrastructure composition.

    7. Selecting an IT ApplicationOne main objective of BPR is to use IT to support radical change. Some authors

    view IT as the central implementation vehicle of BPR. However BPR has not really

    worked as its proponents expected. Davenport and Short (1990) attribute this problem to

    a lack of understanding of the deeper issues of IT. They claim that IT has traditionally

    been used to increase the speed of work but not to transform it and BPR is about using IT

    to do things differently. Therefore, IT plays an important role in BPR. Properly

    implementing IT can improve the competitive position of organizations. But

    inappropriately implementing IT may create barriers to responding to the rapidly

    changing business environment. Further, simply picking IT packages cannot achieve

    successful BPR if it is simply used to speed up the process rather than reengineer it. As

    Davenport (1993) contends:

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    ... information and IT are rarely sufficient to bring about the process change; most

    process innovations are enabled by a combination of IT, information and

    organizational/human resource changes.

    Vendor User

    Driven Driven

    Vendor Developed

    Application Solution

    Application

    Adaptation

    Customized

    Application

    Narrow Focus

    Broad Focus

    Intrafunctional

    Functional Localized

    vendor constrained

    work-flow BPR

    Functional semi-

    customized

    localized work-

    flow BPR

    Functional

    customized

    localized work-

    flow BPR

    Interfunctional

    Cross functional

    vendor constrained

    BPR

    Cross functional

    semi customized

    BPR

    Cross

    functional

    customized

    BPR

    Interorganizational

    Strategic Business

    Network vendor

    constrained BPR

    Strategic Business

    Network semi

    customized BPR

    Strategic

    Business

    Network

    redefinition

    customized

    BPR

    Figure 2: BPR Strategies (Light, 2000)

    IT can continuously reflect and reinforce bureaucratic and functional structures or IT can

    help to create a leaner, flatter and more responsive organization. For example, IT tools

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    that are designed for functional hierarchies are primarily designed to support incremental

    improvements and cannot achieve the radical change in BPR projects.

    While information systems provide fast processing and response, they often fail to

    provide the flexibility for human communication, which can lead to serious

    consequences. This means IT may sometimes have a negative impact by merely

    automating the existing processes. However, it could also have a positive impact if it is

    deployed correctly in conjunction with the organizations goals. IT is the enabler to

    reengineer processes and is an important driving force for business transformation.

    8. BPR and Information TechnologyThere is a relationship between BPR and information technology (IT). Hammer

    (1990) considers it to be the key implementation of BPR. He says the use of IT is to

    challenge the assumptions inherent in the work processes that have existed since before

    the advent of modern computer and communications technology. He argues that at the

    heart of reengineering is the idea of discontinuous thinking. Discontinuous thinking is a

    way to recognize and break away from the outdated rules and fundamental assumptions

    that underlie operations. Usually, these rules are based on assumptions about technology,

    people, and organizational goals that no longer exist. Hammer (1990) suggests the

    following principles of reengineering:

    Organize around outcomes, not tasks

    Have those who use the output of the process perform the process

    Interleave information processing work into the real work that produces the

    information

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    Treat geographically dispersed resources as though they were centralized

    Link parallel activities instead of integrating their results

    Put the decision point where the work is performed, and build control into the

    process

    Capture information once and at the source

    Davenport & Short (1990) argue that BPR requires taking a broader view of both IT and

    business activity, and of the relationships between them. IT should be viewed as more

    than an automating or mechanizing force but rather as a way to fundamentally reshape

    the way business is done. Many researchers and practitioners have increasingly

    considered factors related to IT infrastructure as a vital component of successful BPR

    efforts. Effective alignment of IT infrastructure and BPR strategy, building an effective

    IT infrastructure, adequate IT infrastructure investment decision, adequate measurement

    of IT infrastructure effectiveness, proper IS integration, effective reengineering of legacy

    IS, increasing IT function competency, and effective use of software tools are a few of

    the most important factors that contribute to the success of BPR projects. This alignment

    of IT infrastructure and BPR strategy are needed to ensure the success of the BPR

    initiative.

    IT can best enhance an organizations position by supporting a business-thrust strategy

    (McDonald, 1993). The business strategy should be clear and detailed. Top management

    should act as a strategy formulator who provides commitment for the whole process of

    redesign, while the IS manager should be responsible for designing and implementing the

    IS strategy. The strategy describes the role of IT in leveraging changes to business

    processes and infrastructures. IT strategic alignment is approached through the process of

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    integration between business strategy and IT strategy, as well as between IT

    infrastructure and organizational infrastructure. The degree of alignment between the

    BPR strategy and the IT infrastructure strategy is indicated by including the identification

    of information resource needs in the BPR strategy, deriving the IT infrastructure strategy

    from the business strategy, examining the IT infrastructure strategy against the BPR

    strategy, the active involvement of management in the process of IT infrastructure

    planning and IT managers in business planning, and by the degree of synchronization in

    formulating the two strategies. The following figure shows the multidimensional nature

    of BPR.

    Figure 3: Multidimensional View of BPR (Light, 2000)

    Business activities should be viewed as more than a collection of individual or even

    functional tasks. They should be viewed as a way to achieve maximum effectiveness. IT

    and BPR have recursive relationships. IT capabilities should support business processes

    Strategic Choice

    Strategic Vision

    BPR Strategy:

    -Unit of Analysis

    -Scope

    -Scale-Pace

    IT Strategy

    Business pressures

    Business Legacy

    IT Legacy

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    and business processes should be implemented in terms of the capabilities IT can provide.

    Davenport & Short (1990) refer to this broadened, recursive view of IT and BPR as the

    new industrial engineering. Business processes represent a new approach to coordination

    across an organization. IT's promise is to be the most powerful tool for reducing the costs

    of coordination (Davenport & Short 1990). The way related functions participate in a

    process can be differentiated along two dimensions: degree of mediation and degree of

    collaboration. They define the Degree of Mediation of the process as the extent of

    sequential flow of input and output among participating functions. They define the

    Degree of Collaboration of the process is the extent of information exchange and mutual

    adjustment among functions when participating in the same process. In this framework,

    information technology is critical in reducing the Degree of Mediation and enhancing the

    Degree of Collaboration. Also, innovative uses of IT would inevitably lead many firms to

    develop new structures, enabling them to coordinate their activities in ways that were not

    possible before. Such structures may raise the organization's capabilities and

    responsiveness, leading to potential strategic advantages.

    Although, BPR has its roots in IT management, it is primarily a business initiative that

    has broad consequences in terms of satisfying the needs of customers and the firm's other

    constituents (Davenport & Stoddard 1994). The IS group may need to play a behind-the-

    scenes advocacy role, convincing senior management of the power offered by IT and

    process redesign. It would also need to incorporate the skills of process measurement,

    analysis, and redesign.

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    9. Davenport and Short (1990) prescribe a five-step approach to BPR:

    Develop the Business Vision and Process Objectives: BPR is driven by a business

    vision, which implies specific business objectives such as Cost Reduction, Time

    Reduction or Output Quality improvement.

    Identify the Processes to be Redesigned: Most firms use an approach, which focuses on

    the most important processes, or those that conflict most with the business vision. A

    fewer number of firms use the exhaustive approach that attempts to identify all the

    processes within an organization and then prioritize them in order of redesign urgency.

    Understand and Measure the Existing Processes: Important to avoid the repetition of

    old mistakes and for providing a baseline for future improvements.

    Identify IT Levers: Awareness of IT capabilities can and should influence process

    design.

    Design and Build a Prototype of the New Process: The actual design should not be

    viewed as the end of the BPR process. In contrast, it should be viewed as a prototype,

    with successive iterations. The metaphor of prototype aligns the BPR approach with

    quick delivery of results, and the involvement and satisfaction of customers.

    According to Malhotra (1998), 70% of the BPR projects fail. He states the biggest

    obstacles that reengineering faces are:

    Lack of sustained management commitment and leadership.

    Unrealistic scope and expectations.

    Resistance to change.

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    Based on the BPR consultants' interviews, Bashein et al. (1994) outline the positive

    preconditions for BPR success as: Senior Management Commitment and Sponsorship;

    Realistic Expectations; Empowered and Collaborative Workers; Strategic Context of

    Growth and Expansion; Shared Vision; Sound Management Practices; Appropriate

    People Participating Full-Time and Sufficient Budget. They also identify negative

    preconditions related to BPR as: The Wrong Sponsor; A "Do It to Me" Attitude; Cost-

    Cutting Focus; and Narrow Technical Focus. The negative preconditions relating to the

    Organization include: Unsound Financial Condition; Too Many Projects Under Way;

    Fear and Lack of Optimism; and, Animosity Toward and By IS and HR Specialists. To

    turn around negative conditions, organizations should: Do Something Smaller First (pilot

    project); Conduct Personal Transformation (change of mindset); and Get IS and HR

    Involved.

    King (1994) views the primary reason for BPR failure as overemphasis on the tactical

    aspects and the strategic dimensions being compromised. He notes that most failures of

    reengineering are attributable to the process being viewed and applied at a tactical, rather

    than strategic, levels. He discusses that there are important strategic dimensions to BPR,

    notably, Developing and Prioritizing Objectives; Defining the Process Structure and

    Assumptions; Identifying Trade-Offs Between Processes; Identifying New Product and

    Market Opportunities; Coordinating the Reengineering Effort; and, Developing a Human

    Resources Strategy. He concludes that the ultimate success of BPR depends on the people

    who do it and on how well they can be motivated to be creative and to apply their

    detailed knowledge to the redesign of business processes (Davenport & Stoddard 1994,

    Markus et al. 1994).

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    Kettinger & Grover (1995) outline some propositions to guide future questions into the

    phenomenon of BPR. Their propositions center around the concepts of knowledge

    management, employee empowerment, adoption of new IT's, and a shared vision. Earl et

    al. (1995) have proposed a "process alignment model" that consists of four emphases:

    process, strategy, IS, and change management and control and used it to develop more

    BPR strategies. Malhotra (1998) has developed the key emphasis on these issues based

    primarily on an integrated view of recent literature from organization theory, organization

    control, strategy, and IS. King (1994) believes that although the current interest in BPR

    may end, process reengineering, in some form or another would endure.

    ConclusionDramatic changes in the business environment throughout the nineteen eighties forced

    organizations to examine outdated modes of work and develop new focused strategies

    based on new business models. Many business management concepts emerged but BPR

    has probably been the most influential. BPR emerged as a concept geared towards a clean

    slate, radial approach. However, the original ideas did not take into account the situations

    in organizations where factors such as the evolution of the ways of work, organizational

    cultures and IT infrastructures had become significantly linked with organizations. A

    variety of methodologies, tools and techniques for BPR projects have developed out of

    implementation failures. As a result, the concept of BPR has survived and has been

    broadened to become more commonly associated with multidimensional process change

    efforts. Reengineering is not just a matter of fundamental and radical improvements in

    performance, but is also an approach to analyzing and transforming the nature of

    businesses and industries.

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