RERE--ENGINEERING PROCESSES AND ENGINEERING PROCESSES AND
PROCEDURES:PROCEDURES:
STARTING HOTEL BUSINESS IN STARTING HOTEL BUSINESS IN
MALAYSIAMALAYSIAMALAYSIAMALAYSIA
�Early steps in transforming the public
service delivery in Malaysia
� to improve business performance, attract
foreign investment and enhance national
competitiveness
��Hotel Business Hotel Business –– one of the subone of the sub--sectors sectors
BACKGROUNDBACKGROUNDBACKGROUNDBACKGROUND
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��Hotel Business Hotel Business –– one of the subone of the sub--sectors sectors
prescribed under the services sector in the prescribed under the services sector in the
Third Industrial Master Plan (IMP3)Third Industrial Master Plan (IMP3)
��Business Process ReBusiness Process Re--engineering (BPR) engineering (BPR)
methodology adopts a holistic approach that methodology adopts a holistic approach that
covers endcovers end--toto--end cycles of the business end cycles of the business
processprocess
�Multi Agency, Cross Sector
� cross sector processes, both vertical and
horizontal
� cooperation to achieve shared vision to
enhance public service delivery
BACKGROUND BACKGROUND (Cont.)(Cont.)BACKGROUND BACKGROUND (Cont.)(Cont.)
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enhance public service delivery
� initial challenges: coordinate cooperation
from agencies
� resolves through understanding the
needs to enhance capacity of all
government agencies – national interest
��Why start with Hotel BusinessWhy start with Hotel Business ??
� estimated tourist receipts (24.6 million
tourists) are set to raise RM59.4 billion
by 2010
�other sub-sectors processes currently
RE-ENGINEERING INITIATIVE FOR
HOTEL INDUSTRY
RE-ENGINEERING INITIATIVE FOR
HOTEL INDUSTRY
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�other sub-sectors processes currently
being studied: construction services,
business and professional services, ,
education and training serviceseducation and training services, ,
integrated logistic servicesintegrated logistic services, , health health
servicesservices, , distributive trade servicesdistributive trade services and and
ICT servicesICT services
��hotelhotel industryindustry businessbusiness processprocess involvedinvolved 55
stagesstages
��total time taken and number of approvalstotal time taken and number of approvals::
� 546 days or approximately one and a half
THE ‘AS-IS’ HOTEL INDUSTRY
BUSINESS PROCESS
THE ‘AS-IS’ HOTEL INDUSTRY
BUSINESS PROCESS
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� 546 days or approximately one and a half
year for complete approvals
�� 72 types of licenses/approvals from a 72 types of licenses/approvals from a
total of 22 agencies at the Ministries/ total of 22 agencies at the Ministries/
Departments at the Federal, State and Departments at the Federal, State and
Local Authorities levelsLocal Authorities levels
BUSINESS PROCESS RE-ENGINEERING (BPR) METHODOLOGY
BUSINESS PROCESS RE-ENGINEERING (BPR) METHODOLOGY
Document Current Business
Processes
Document Current Business
Processes
Evaluate Potential
Improvements
Evaluate Potential
Improvements
Document Recommended Processes
and Data Requirements
Document Recommended Processes
and Data Requirements
4 main4 main
processprocess
stepssteps
�
�
�
A challenge to:
�Reduce cost…
�Increase quality…
�Reduce cycle time…
�Improve customer
service
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and Data Requirementsand Data Requirements
Develop Short- and Long- Term
Recommendations
Develop Short- and Long- Term
Recommendations
Business Process
Recommendations
Business Process
Recommendations
Automation
Recommendations
Automation
Recommendations
Monitor ProgressMonitor Progress
Transition
� Evaluates technological solutions�Implement process improvements
�Document policy changes
�Identify and track performance
measures and targets
�
IMPROVED PROCESS OF HOTEL
INDUSTRY
IMPROVED PROCESS OF HOTEL
INDUSTRY
��DramaticDramatic improvementimprovement inin thethe overalloverall
processprocess::
� total time taken for complete approval has
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� total time taken for complete approval has
been reduced from 546 days to 166
days
�� number of approvals required has been number of approvals required has been
reduced from 72 to only 44reduced from 72 to only 44
IMPROVED PROCESS OF HOTEL
INDUSTRY (cont.)
IMPROVED PROCESS OF HOTEL
INDUSTRY (cont.)
��MadeMade possiblepossible byby::
� streamlining the work processes
�� eliminating noneliminating non--productive work productive work
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�� eliminating noneliminating non--productive work productive work
processprocess
�� integrating similar work processintegrating similar work process
especially those that uses the similar especially those that uses the similar
information in the decision makinginformation in the decision making
HIGHLIGHTS OF HOTEL INDUSTRY BPR
HIGHLIGHTS OF HOTEL INDUSTRY BPR
��FourFour highhigh impactimpact processesprocesses::
� online registration for company set up and
other mandatory employer-employee
registration
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registration
�� composite license formcomposite license form
�� immediate commencement of business immediate commencement of business
upon applicationupon application
�� longer validity of license periodlonger validity of license period
LESSONS LEARNEDLESSONS LEARNED
��resistanceresistance toto changechange byby processprocess ownerowner
��toto dealdeal withwith threethree differentdifferent levelslevels ofof authority,authority,
namelynamely FederalFederal Level,Level, StateState LevelLevel andand thethe
LocalLocal AuthoritiesAuthorities
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LocalLocal AuthoritiesAuthorities
��toto deducededuce thethe correctcorrect scenarioscenario ofof thethe asas--isis
hotelhotel industryindustry businessbusiness processprocess basedbased onon
thethe informationinformation andand feedbacksfeedbacks collectedcollected
CONCLUSIONSCONCLUSIONS
� Malaysian government to embark on the total
transformation of public service delivery system
� ministries and government agencies to further
improve other business processes in all sectors
using the Business Process Re-engineering (BPR),
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using the Business Process Re-engineering (BPR),
Business Process Improvement (BPI) and Business
Process Re-alignment (BPR) approach
� its implementation and effectiveness to be
monitored and reviewed constantly