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8/2/2019 MDI-IPM IT and BPR
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MANAGEMENT DEVELOPMENT ISNTUTUTE
COLLEGE OF BUSINESS ADMINSTRATIONMISSOURI STATE UNIVERSITY
Mini MBA: Information Technology and
Business Process Reengineering
Presented by:
Waleed El-Naggar, MBA, PMP
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Contents
Introduction: The Information Age
Management Information Systems
Business Process Reengineering
E-Commerce
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Learning Objectives
Explain the importance of the use of
Information Technology in Business
Explain the role of Business Process
Reengineering (BPR) within the organization
Identify the basic steps of BPR
Explain the use of e-commerce
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THE INFORMATION AGE
“The stone age was marked by man's clever
use of crude tools; the information age, to
date, has been marked by man's crude use of
clever tools.”
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Information Age
Adam Smith in his book “Wealth of Nations”, stated
that the wealth of a nations is dependent on how well
a society organizes its production in national
businesses and factors.
The wealth of nations will be dependent upon how
well a society can organize information & knowledge Knowledge workers are those who use, manipulate,
process and transmit information.
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Computers Personal computer (PC) is a general-purpose computer
whose original price, size, and capabilities make it
useful for individuals, and which is intended to be
operated directly by an end user, with no interveningcomputer operator.
Today a PC may be a desktop computer or a laptop.
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Internet The Internet is a global network of interconnected
computers, enabling users to share information along
multiple channels
The World Wide Web (www) is a very large set of
interlinked hypertext documents accessed via the Internet.
Electronic mail (e-mail) is any method of creating,
transmitting, or storing primarily text-based humancommunications with digital communications systems File
Transfer/Sharing
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Management Information Systems
An 'MIS' is a planned system of the collecting,
processing, storing & disseminating data in the form
of information needed to carry out the functions of management
Academically, the term is commonly used to refer to
the group of information management methods tied to
the automation or support of human decision making
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Microsoft Office
Microsoft Word (Text Editor)
Microsoft Excel (Spreadsheets)
Microsoft Power Point (Presentations).
Microsoft Project (Project Management)
Microsoft Outlook (Email)
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Enterprise Resource Planning
Enterprise resource planning (ERP) is an enterprise-
wide information system designed to coordinate all
the resources, information, and activities needed tocomplete business processes such as order fulfillment
or billing
ERP delivers a single database that contains all data
for the software modules
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Enterprise Resource Planning
Manufacturing
Supply chain
management Financials
Projects
Human resources
Access control
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Customer relationship
management
Sales and marketing,commissions, service,
customer contact and call
center support
Data warehouse
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Enterprise Resource Planning
SAP
SAP ERP Financials
SAP ERP Logistics
SAP ERP Human Resource Management
Oracle ERP
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In-class Case Study
A software development company needs to implement an ERPsystem. Discuss what the company needs for successful
implementation.
Systems Analysis (HR, Accounting, HR, project reporting,
Supplier chain, sales, marketing
Required Resources (Machines, software, employees).Training.
Vendors
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Business Information Technology
Business Information Technology (BIT) is concerned with arange of factors that determine the effective and efficient
design, development and integration of information systems
and Information technology to increase the income or profit.
According to an American survey in 1990, over 50% of the
employees in the US are knowledge workers.
On average, over 75% of the national capital investment within
modern information-based economics is on IT and IS.
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Information Technology & Information System
• An information system within business results from the structure of
integrates to handle , store and process data.• There are three components parts to an information system:
The data processing activity
Information represent processed data
• Quality information for decision making is an essential asset for any competitive business.
Inputs Processing Outputs
Data InformationProcessing
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Technology Growth
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Business and Technology
Business organizations are often referred to as beinginformation based retrieval e.g.:
Banking sectors
Financial organization
Airlines companies
Stock keeping
Payroll
Professional Investment Systems (PIS)
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BUSINESS PROCESS REENGINEERING
“An organizational make-over”
“Reengineering is new, and it has to be done.”
Peter F. Drucker
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What is “Process”?
“A specific ordering of work activities across
time and space, with a beginning, an end, and
clearly identified inputs and outputs: a
structure for action”
(Davenport,
1993)
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Business Process Reengineering
• The search for, and implementation of, radical
change in business processes to achieve
breakthrough results
• Synonyms: business process redesign, business
transformation, process innovation, business
reinvention, change integration
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Business Process Reengineering
• Rather than organizing a firm into functionalspecialties (like production, accounting, marketing,
etc.); complete processes from materials acquisition,
to production, to marketing and distribution should
be considered.
• The firm should be re-engineered into a series of
processes.
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BPR is NOT:
• Automation• Outsourcing
• Downsizing
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BPR vs. Continuous Improvement
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Continuous Improvement
Incremental ChangePeople Focus
Low InvestmentImprove Existing
Work Unit Driven
Process Reengineering
Radical TransformationPeople & Technology Focus
High InvestmentRebuild
Champion Driven
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BPR, A System Perspective
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TransformationInputs Outputs
Feedback
Environment
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BPR in Action
Start from the future and work backwards BPR is not easy - serious work
BPR is not free - financial & cultural BPR often driven by fear and greed
Change is a “struggle”; BPR is a “war”
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BPR: Strategy
Stakeholder Assessment - shareholders,
customers, employees
Determine which stakeholder expectations should be met to gain competitive advantage
Determine how to redesign to meet expectations
Map out IT solutions to support
Develop & implement new processes, etc.
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BPR Key Steps
• Select The Process & Appoint Process Team
• Understand The Current Process
• Develop & Communicate Vision Of ImprovedProcess
• Identify Action Plan
• Execute Plan
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1. Select the Process
Review Business Strategy & Customer Requirements
Select Core Processes
Understand Customer Needs
Don’t Assume Anything
Select Correct Path for Change
Appoint BPR Champion
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1. Select the Process (Contd.)
Identify Process Owners
Establish Executive Improvement Team
Provide Training to Executive Team
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2. Understand the Current Process
Develop a Process Overview
Clearly define the process (Scope & Boundaries)
Set business and customer measurements
Understand customers expectations from the process
Clearly Identify Improvement Opportunities
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3. Develop & Communicate Vision of
Improved Process
Shared understanding among all stakeholders
Provide information on the progress of the BPR
Assure that the BPR is necessary & properly managed Indicate actions required and those responsible
Tackle any actions that need resolution
Direct communication to reinforce new patterns of
desired behavior
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4. Identify Action Plan
Develop an Improvement Plan & appoint Process
Owners
Simplify the Process to Reduce Process Time
Remove Bureaucracy that may hinder
implementation
Remove non-value-added activities
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4. Identify Action Plan (Contd.)
Standardize Process & Automate Where Possible
Up-grade Equipment
Plan/schedule the changes
Construct in-house metrics and targets
Introduce and firmly establish a feedback system
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5. Execute the Plan
Qualify/certify the process
Perform periodic qualification reviews
Define and eliminate process problems
Evaluate the change impact on the business and oncustomers
Benchmark the process
Provide advanced team training
Evaluate the Results
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Reengineering Success Factors
Strong Top Management Sponsorship Alignment with company strategic direction
Measurable objectives
Proven Methodology
Effective Change Management.
Line Ownership (pair ownership with accountability) Reengineering Team Composition (breadth &
knowledge)
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Case: Ford Motors, Reengineering
the Accounts Payable Department
Results of BPR effort
Reduction of paper flow (invoice-less processing)
Up-to-date data
Personnel reduction by 75% Accurate financial information
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Reengineered Process Enabled by IT
Process: Accounts Payable
Account Payable Department: 500 Personnel (400 after
improvement) vs. 15 in Mazda
Enormous paperwork, non-matching data: Purchase
order, Receiving documents, invoices
BPR: Just-in-time Purchasing – Eliminate non-value-adding activities
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Reengineered Process Enabled by IT
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Reengineered Process Enabled by IT
Technology Facilitates the ProcessPeople drive the Process
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E-Commerce
Buying and selling of products or services overelectronic systems such as the Internet.
The amount of trade conducted electronically grew
extraordinarily since the spread of the Internet.
Modern electronic commerce typically uses the
World Wide Web at least at some point in thetransaction's lifecycle, although it can encompass a
wider range of technologies such as e-mail as well.
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Online Activities
Buying online (amazon.com, ebay.com, … etc) –
Eliminate distance
On-line auctions.
Virtual Banking. Travel and booking information.
E-library
E-government
E-advertising (free services)
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Case Study – Send Results by Email Search engines are free tools used to search for anything
on the Internets.
Main Revenue: Advertising
Smart engines: which advertisement to show?
▫ User location
▫ User Interests
Engines evolve into portals (Google, Yahoo, … etc)
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