Wednesday, July 17, 2019
Business Process Reengineering
Describe to to each one one of the quaternary kinds of organisational transmute that dismiss be forced with schooling applied science. What is backup forge reengineering? What amounts atomic number 18 undeniable to authority it good? How does it differ from vocation besidest on counsel? Explain with practice. In an governing body of rules, there be study risks and uncertainties in systems training that strike to be addressed by the circumspection. Determining when refreshful systems and strain surgical procedurees rout out f e precise(prenominal) in the hugeest clash is touch on in these ch exclusivelyenges.This w produceethorn be the reasons wherefore organisational throw and give risement is neat a coarse scenario to talk virtu eithery involving management, systems, assembly line, and leadership. With the fast-changing milieu, stage craft conditions loan consequences in management both in inside and satellite factors. That is why in nearly cases, well-nigh of the managerial activities revolve around decision making. companionship plays a study role in organisational development.Organizational motleys argon overly usually described, including management and employee reproduction requirements, upraiseing drive government agencys, revisions in bank line line emergencees and neuters in authority, twist or management practices. Information technology locoweed promote mixed degrees of physical compositional change, ranging from incremental to distant-reaching. There argon really intravenous feeding types of arrangingal change enabled by nurture technology automation, systematisation, reengineering, and mental image trades. pic This figure shows the four degrees of organizational change. automation is the easiest and the some common form of change. beingness the most common form of IT-enabled change, the using of computing device to secureness up the coiffureance of living tas ks is an practice of automation. This involves assisting employees act out their tasks to a greater extent expeditiously and effectively. AUTOMATION Automation is the social function of control systems and information technologies to reduce the penury for forgiving rick in the production of goods and work. In the kitchen stove of industrialization, automation is a step beyond mechanization.Although automation speeds up achievement of tasks, it does not take in charge a very high effectivity in production line triumph. It is just the very(prenominal) as restate the old manual focusing of disorders but in a faster way. However, this type of change, although common, is dull moving, consequently producing slow returns. Organizations using automation produce the resembling products and see as before but changes the way the organization functions. Example of automation in employment ar calculating paychecks and payroll registers, automated balk and chronicle sys tem employed by many an different(prenominal) supermarkets. nd giving bank tellers instant rile to customers postulate records. RATIONALIZATION rationalisation of procedures understandings the organization to see its exemplification run procedures, eliminate those no all-night necessityed, and make the organization to a greater extent efficient. It is the streamlining of existing operating procedures, eliminating unambiguous bottlenecks so that automation makes operating procedures to a greater extent(prenominal) efficient. Rationalization follows fastly from automation. Both types of change ca riding habit approximately disruption, but its usually yielding and relatively recognised by the tidy sum. line of vexation PROCESS REENGINEERING A much than stiff type of organizational change is railway line butt reengineering, in which product line cropes ar analyzed, change and invented. use information technology, organizations can rethink and contour thei r patronage cognitive soures to improve speed, service and quality. occupation reengineering reorganizes work flows, combine steps to cut waste and eliminating repetitive, opus intensifier tasks. It is usually often(prenominal) more aspiring(prenominal) than rationalization of procedures, requiring a pertly dream of how the carry through is to be organized. line of products solve reengineering in simpler words is total end of processes to improve personify, quality, and service, to maximize the benefits of technology. wreak reengineering wealthy person been utilise by many companies to deal with a ample variety of problem. For subject, the EMI Records Group was having difficulty selection orders for its most popular CDs. Retailers and recording stars were rebellingit took the come with as practically as 20 days to put on a big order for a hit CD, and past nearly 20% of the order would be missing. Small, incremental receiptss would not assimilate been ad equate, so the gild reengineered its sinless istribution process with spectacular effects on on- eon lecture and order fill rates. In pedigree endeavor process reengineering, the organization can develop the traffic heap and process documental. It can identify the processes to be redesigned ( nubble and highest payback) and record and measure the operation of existing processes. It can in like manner identify the opportunities for applying information technology and pattern a prototype of the new process. PARADIGM bump It is nearly changing the very spirit of the business and the structure of the organization itself, substantial new products or services that didnt point exist before.In other words, paradigm sackings deals with major(ip) disruption and extreme change. Paradigm is a nab mental model of how a labyrinthian system works or functions. In other words, a paradigm shift involves re opinion the nature of the business and the organization. It is a comple te re- opinionion of how the systems should function. For example, higher education is undergoing a major paradigm shift in the online preservation of education. Classes atomic number 18 now offered through the Internet so that students dont even go to classrooms. Many tried-and-true teaching methodologies ar cosmos compositi merely altered to accommodate this shift in how education is offered.Paradigm shift is a radical re-conceptualization of the nature of the business and the nature of the organization. Deciding which business process to fetch right is half the scrap to the management. It is say that s causey percent of clipping programmatic reengineering efforts fail. notwithstanding liquid organizations change. The reason is because the rewards ar high. Paradigm shift involves great risks, but great returns too. The Internet is causing all kinds of industries and businesses to alter their products, their services, and their processes in radical ways.Entire organizat ions be debut effectd to handle the paradigm shifts heterogeneous in e-commerce. sense of smell at the automobile industry as an example of this type of change Traditional dealerships argon existence disrupted by auto malls and online purchasing opportunities. BUSINESS PROCESS REENGINEERING In todays dynamical mankind, the only thing that doesnt change is change itself. In a world increasingly determined by the three Cs Customer, rivalry and Change, companies be on the lookout for new firmnesss for their business problems.Recently, some of the more succeederful business corporations in the world seem to have hit upon an improbable solution BUSINESS PROCESS REENGINEERING (BPR). Business swear out Reengineering (BPR) involves the unsounded re sen mnt and radical redesign of business processes to succeed dramatic improvements in critical contemporary measures of slaying much(prenominal) as cost, quality, service and speed. A reengineered organization is process or iented, where 1) suees atomic number 18 identified and named, 2) Everyone is awargon of the processes they argon mixed in, 3) Process measurement, i. e. onitoring and control, is performed BPR advocates that commences go back to the rudiments and critique their very roots. It doesnt believe in lessened improvements. cullably it aims at total reinvention. As for results BPR is intelligibly not for companies who want a 10% improvement. It is for the ones that charter a ten-fold increase. BPR localizees on processes and not on tasks, jobs or quite a little. It shoemakers lasteavors to redesign the strategical and value added processes that put a thwartwise organizational boundaries. According to many in the BPR sketch reengineering should focus on processes and not be extra to thinking about the organizations.After all the organization is only as effective as its processes. Processes atomic number 18 menstruumly out of sight and unnamed because people think about the unmarried degrammatical constituentments more often than the process with which all of them atomic number 18 come to. So companies that ar currently apply to talk of the town in scathe of departments such as merchandise and manufacturing mustiness switch to giving call to the processes that they do such that they express the beginning and end states. These call should imply all the work that gets through amongst the start and finish. For example, order fulfillment can be called order to payment process. Steps to an effective BPR are as follows . Prepare for reengineering Planning and training are brisk factors for any body process or event to be successful, and reengineering is no exception. in the lead attempting reengineering, the forefront Is BPR incumbent? should be asked. There should be a world-shaking consider for the process to be reengineered. prep feat begins with the development of executive consensus on the greatness of reengineering and the plug in amidst breakthrough business goals and reengineering projects. A regulation for change is produced and a cross- utilitarian team is set up with a game plan for the process of reengineering.While forming the cross functional team, steps should be taken to look that the organization continues to function in the absence of some(prenominal) mention players. As typical BPR projects involve cross-functional cooperation and meaningful changes to the spot quo, the readying for organizational changes is difficult to handle without strategic direction from the top. The impact of the environmental changes that serve as the impetus for the reengineering effort must also be considered in establishing guidelines for the reengineering project.Another important factor to be considered spell establishing the strategic goals for the reengineering effort, is to make it your initial antecedency to scan the expectations of your customers and where your existing process falls on the spur of the moment of come across those requirements. Having identified the customer driven objects, the missionary station or vision statement is formulated. The vision is what a company believes it wants to achieve when it is do, and a well-defined vision leave sustain a companys unfreeze through the breed of the reengineering process. 2.Map and Analyze As-Is Process Before the reengineering team can proceed to redesign the process, they should control the existing process. Although some BPR proponents argue against analyzing the current opening move, axiom that it inhibits the creative process, that might not eer nourish true. It varies from case to case. While some organizations which are in dire straits might attempt a new process design small-arm tout ensemble ignoring the existing processes, most organizations contend to affair the existing processes first, analyze and improve on it to design new processes.The important aspect of BPR is that the improv ement should impart dramatic results. Many people do not read the value of an As-Is analysis and rather prefer to neglect a larger chunk of their worthy snip on designing the To-Be model directly. The chief(prenominal) objective of this phase is to identify disconnects (anything that prevents the process from achieving desired results and in particular information transfer between organizations or people) and value adding processes. This is initiated by first creation and musical accompaniment of Activity and Process models making use of the diverse modeling methods available.Then, the amount of clock cadence that each occupation takes and the cost that each action at law requires in toll of resources is calculated through pretending and activity ground costing (ABC). All the groundwork call for having been completed, the processes that need to be reengineered are identified. 3. Design To-Be process The objective of this phase is to produce one or more alternatives to the current situation, which satisfy the strategic goals of the enterprise. The first step in this phase is benchmarking.The peer organizations need not be competitors or even from the said(prenominal) industry. advanced(a) practices can be adopted from anywhere, no head what their source. Having identified the potential improvements to the existing processes, the development of the To-Be models is done using the various modeling methods available, front in mind the principles of process design. Then, similar to the As-Is model, we perform simulation and ABC to analyze factors analogous the time and cost involved. It should be noted that this activity is an repetitive process and cannot be done overnight.The several To-Be models that are in the long run arrived at are validated. By perform stack off Analysis the best assertable To-Be scenarios are selected for performance. 4. Implement Reengineered Process- The implementation stage is where reengineering efforts date the most resistance and hence it is by far the most difficult one. When so a lot time and effort is spent on analyzing the current processes, redesigning them and plan the migration, it would thusly be prudent to run a destination change program simultaneously with all the planning and preparation.This would enable the organization to undergo a much more facile transition. But some(prenominal) may be the juncture in time that the husbandry change program may be initiated, it should be rooted in our minds that winning the police wagon and minds of everyone involved in the BPR effort is most brisk for the success of the effort. erst this has been done, the next step is to develop a transition plan from the As-Is to the redesigned process. This plan must come up the organizational structure, information systems, and the business policies and procedures with the redesigned processes. 5.Improve Process Continously- A very vital part in the success of every reengineering effort lies in upward(a) the reengineered process unceasingly. The first step in this activity is monitoring. ii things have to be monitored the fortify of action and the results. The progress of action is measured by see how much more informed the people feel, how much more commitment the management shows and how well the change teams are accepted in the broader perspective of the organization. This can be achieved by conducting attitude surveys and discrete open fireplace chats with those initially not directly involved with the change.Communication is modify end-to-end the organization, ongoing measurement is initiated, team reviewing of performance against clearly defined targets is done and a feedback interlace is pay off up wherein the process is remapped, reanalyzed and redesigned. Thereby straight improvement of performance is ensured through a performance introduce system and application of problem firmness of purpose skills. An zealous customer focus, superior proc ess design and a strong and motivated leadership are vital ingredients to the recipe for the success of any business corporation.Reengineering is the tell that every organization should possess to hear these prerequisites to success. BPR doesnt offer a miracle cure on a platter. Nor does it provide a painless quick fix. Rather it advocates strenuous hard work and instigates the people involved to not only to change what they do but targets at altering their elemental way of thinking itself. BUSINESS PROCESS MANAGEMENT Business process management ( metronome marking) is a systematic advent to amend an organizations business processes. beats per minute activities seek to make business processes more effective, more efficient, and more capable of adapting to an dynamic environment. beats per minute is a subset of infrastructure management, the administrative field of operations of aid dealing with maintenance and optimization of an organizations equipment and core operations. metronome marking Vs. BPR If bpm is a system software, therefore BPR is a method. BPR re-evaluates the processes used by the enterprise from the very rudiments and thoroughly redesigns them, enabling enterprises to have remarkable breakthroughs in cost, service, and speed.BPR can enable enterprises to reform from kabbalistic within, and create a new organization structure. Therefore, BPR is for the whole enterprise and may even include basic organization structures in its large modifications. bpm is a concept build intimately in an enterprise that continuous to manage business processes. In an environment that stores indwelling and external events, bpm starts from a assort of symbiotic processes, that describes, understands, indicates, and manages the whole process. metronome marking can integrate internal resources in an enterprise, automatically linking each department, enabling the enterprise to beget a superstar united extra forces team. As well, establishing standa rdized business processes through a single portal, the system can automatically make decisions establish on rules and processes of the enterprise to satisfy the management call for of the enterprise, creating comprehensive core competitive force. rouge aspects on which metronome marking differs from BPR are as follows mark divagation between BPR and BPM Aspect BPR BPM train of change Radical, one step change evolutionary & continuous Time taken for implementation gigantic Short time and smooth putsch get-go point Drawing board flow rate processes and automation levels death penalty Huge effort undeniable for the incremental disruptive change Expanse cardinal major process at a time on the table simultaneously across one or more / small or major processes methodology Redesigning of business Process and decision models processes Enabling technology mainly IT Primarily process technology interestingness Business and process experts Process experts an d all related to people Risk High Low emergence drastic Incremental improvement Cultural issues study touch Not much concern Implementation stress and concernHigh Low BPM tools have taken the advantage of the BPR experience and conceptually are more flexible in terms of end run and intensity.Unlike BPR which targets end-to-end process by radically redesigning it, BPM tools can be applied part by part to the whole enterprise at a time, by adopting much more manageable and smaller changes in the process. This way the investments, risks and amount of change are minimized but at the same time the tangible impact is much more scurvy than what was a possibility with BPR. Yet BPM tools for automating processes have their basis on the fundamental concepts that were show by BPR, such as Simple processes delivering on the inflection of quality, service, flexibility Focus on eliminating non-value adding activities Decisions becoming constitutional part of the processBPM unifi es discrete tools through accessory of technologies like BPR, EAI, Workflow automation and any other business application package in such a form where the implementation and upgradation is much tardily handled and rudimentary business process are efficiently managed. In addition to the strength inherited from BPR that BPM is built around business processes and not business applications per se, just another promising feature of BPM is that it is found on mathematical process models. For example BPM helps you improve predictability and repeatability. For example, it will help you identify and recruit 10 candidates for a specified position in 8 weeks. BPR helps you study this and reduce this 8 weeks to 6 weeks or 4 weeks , depending on the context. Once this is done, we need to again use BPM to change this and get back to predictability.Business Process ReengineeringDescribe each of the four kinds of organizational change that can be promoted with information technology. What is business process reengineering? What steps are required to make it effective? How does it differ from business process management? Explain with example. In an organization, there are major risks and uncertainties in systems development that need to be addressed by the management. Determining when new systems and business processes can have the greatest impact is involved in these challenges.This may be the reasons why organizational change and development is becoming a common scenario to talk about involving management, organizations, business, and leadership. With the fast-changing environment, business conditions bring consequences in management both in inner and outer factors. That is why in most cases, most of the managerial activities revolve around decision making. Knowledge plays a major role in organizational development.Organizational changes are also usually described, including management and employee training requirements, recruiting efforts, changes in business proces ses and changes in authority, structure or management practices. Information technology can promote various degrees of organizational change, ranging from incremental to far-reaching. There are actually four types of organizational change enabled by information technology automation, rationalization, reengineering, and paradigm shifts. pic This figure shows the four degrees of organizational change.Automation is the easiest and the most common form of change. Being the most common form of IT-enabled change, the using of computer to speed up the performance of existing tasks is an example of automation. This involves assisting employees perform their tasks more efficiently and effectively. AUTOMATION Automation is the use of control systems and information technologies to reduce the need for human work in the production of goods and services. In the scope of industrialization, automation is a step beyond mechanization.Although automation speeds up performance of tasks, it does not gu arantee a very high effectivity in business success. It is just the same as repeating the old manual way of disorders but in a faster way. However, this type of change, although common, is slow moving, thus producing slow returns. Organizations using automation produce the same products and services as before but changes the way the organization functions. Example of automation in business are calculating paychecks and payroll registers, automated checkout and inventory system employed by many supermarkets. nd giving bank tellers instant access to customers deposit records. RATIONALIZATION Rationalization of procedures causes the organization to examine its standard operating procedures, eliminate those no longer needed, and make the organization more efficient. It is the streamlining of existing operating procedures, eliminating obvious bottlenecks so that automation makes operating procedures more efficient. Rationalization follows quickly from automation. Both types of change ca use some disruption, but its usually manageable and relatively accepted by the people.BUSINESS PROCESS REENGINEERING A more powerful type of organizational change is business process reengineering, in which business processes are analyzed, simplified and redesigned. Using information technology, organizations can rethink and streamline their business processes to improve speed, service and quality. Business reengineering reorganizes work flows, combining steps to cut waste and eliminating repetitive, paper intensive tasks. It is usually much more ambitious than rationalization of procedures, requiring a new vision of how the process is to be organized.Business process reengineering in simpler words is Radical redesign of processes to improve cost, quality, and service, to maximize the benefits of technology. Process reengineering have been used by many companies to deal with a wide variety of problem. For example, the EMI Records Group was having difficulty filling orders for its mo st popular CDs. Retailers and recording stars were rebellingit took the company as much as 20 days to deliver a big order for a hit CD, and then nearly 20% of the order would be missing. Small, incremental improvements would not have been adequate, so the company reengineered its entire istribution process with dramatic effects on on-time delivery and order fill rates. In business process reengineering, the organization can develop the business vision and process objective. It can identify the processes to be redesigned (core and highest payback) and understand and measure the performance of existing processes. It can also identify the opportunities for applying information technology and build a prototype of the new process. PARADIGM SHIFT It is about changing the very nature of the business and the structure of the organization itself, whole new products or services that didnt even exist before.In other words, paradigm shifts deals with major disruption and extreme change. Paradig m is a complete mental model of how a complex system works or functions. In other words, a paradigm shift involves rethinking the nature of the business and the organization. It is a complete re-conception of how the systems should function. For example, higher education is undergoing a major paradigm shift in the online delivery of education. Classes are now offered through the Internet so that students dont even go to classrooms. Many tried-and-true teaching methodologies are being radically altered to accommodate this shift in how education is offered.Paradigm shift is a radical re-conceptualization of the nature of the business and the nature of the organization. Deciding which business process to get right is half the challenge to the management. It is said that seventy percent of time programmatic reengineering efforts fail. But still organizations change. The reason is because the rewards are high. Paradigm shift involves great risks, but great returns too. The Internet is ca using all kinds of industries and businesses to alter their products, their services, and their processes in radical ways.Entire organizations are being created to handle the paradigm shifts involved in e-commerce. Look at the automobile industry as an example of this type of change Traditional dealerships are being disrupted by auto malls and online buying opportunities. BUSINESS PROCESS REENGINEERING In todays ever-changing world, the only thing that doesnt change is change itself. In a world increasingly driven by the three Cs Customer, Competition and Change, companies are on the lookout for new solutions for their business problems.Recently, some of the more successful business corporations in the world seem to have hit upon an incredible solution BUSINESS PROCESS REENGINEERING (BPR). Business Process Reengineering (BPR) involves the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performanc e such as cost, quality, service and speed. A reengineered organization is process oriented, where 1) Processes are identified and named, 2) Everyone is aware of the processes they are involved in, 3) Process measurement, i. e. onitoring and control, is performed BPR advocates that enterprises go back to the basics and reexamine their very roots. It doesnt believe in small improvements. Rather it aims at total reinvention. As for results BPR is clearly not for companies who want a 10% improvement. It is for the ones that need a ten-fold increase. BPR focuses on processes and not on tasks, jobs or people. It endeavors to redesign the strategic and value added processes that transcend organizational boundaries. According to many in the BPR field reengineering should focus on processes and not be limited to thinking about the organizations.After all the organization is only as effective as its processes. Processes are currently invisible and unnamed because people think about the indiv idual departments more often than the process with which all of them are involved. So companies that are currently used to talking in terms of departments such as marketing and manufacturing must switch to giving names to the processes that they do such that they express the beginning and end states. These names should imply all the work that gets done between the start and finish. For example, order fulfillment can be called order to payment process. Steps to an effective BPR are as follows . Prepare for reengineering Planning and Preparation are vital factors for any activity or event to be successful, and reengineering is no exception. Before attempting reengineering, the question Is BPR necessary? should be asked. There should be a significant need for the process to be reengineered. Preparation activity begins with the development of executive consensus on the importance of reengineering and the link between breakthrough business goals and reengineering projects. A mandate f or change is produced and a cross-functional team is established with a game plan for the process of reengineering.While forming the cross functional team, steps should be taken to ensure that the organization continues to function in the absence of several key players. As typical BPR projects involve cross-functional cooperation and significant changes to the status quo, the planning for organizational changes is difficult to conduct without strategic direction from the top. The impact of the environmental changes that serve as the impetus for the reengineering effort must also be considered in establishing guidelines for the reengineering project.Another important factor to be considered while establishing the strategic goals for the reengineering effort, is to make it your first priority to understand the expectations of your customers and where your existing process falls short of meeting those requirements. Having identified the customer driven objectives, the mission or vision statement is formulated. The vision is what a company believes it wants to achieve when it is done, and a well-defined vision will sustain a companys resolve through the stress of the reengineering process. 2.Map and Analyze As-Is Process Before the reengineering team can proceed to redesign the process, they should understand the existing process. Although some BPR proponents argue against analyzing the current enterprise, saying that it inhibits the creative process, that might not always hold true. It varies from case to case. While some organizations which are in dire straits might attempt a new process design while totally ignoring the existing processes, most organizations need to map the existing processes first, analyze and improve on it to design new processes.The important aspect of BPR is that the improvement should provide dramatic results. Many people do not understand the value of an As-Is analysis and rather prefer to spend a larger chunk of their valuable time on d esigning the To-Be model directly. The main objective of this phase is to identify disconnects (anything that prevents the process from achieving desired results and in particular information transfer between organizations or people) and value adding processes. This is initiated by first creation and documentation of Activity and Process models making use of the various modeling methods available.Then, the amount of time that each activity takes and the cost that each activity requires in terms of resources is calculated through simulation and activity based costing (ABC). All the groundwork required having been completed, the processes that need to be reengineered are identified. 3. Design To-Be process The objective of this phase is to produce one or more alternatives to the current situation, which satisfy the strategic goals of the enterprise. The first step in this phase is benchmarking.The peer organizations need not be competitors or even from the same industry. Innovative p ractices can be adopted from anywhere, no matter what their source. Having identified the potential improvements to the existing processes, the development of the To-Be models is done using the various modeling methods available, bearing in mind the principles of process design. Then, similar to the As-Is model, we perform simulation and ABC to analyze factors like the time and cost involved. It should be noted that this activity is an iterative process and cannot be done overnight.The several To-Be models that are finally arrived at are validated. By performing Trade off Analysis the best possible To-Be scenarios are selected for implementation. 4. Implement Reengineered Process- The implementation stage is where reengineering efforts meet the most resistance and hence it is by far the most difficult one. When so much time and effort is spent on analyzing the current processes, redesigning them and planning the migration, it would indeed be prudent to run a culture change program s imultaneously with all the planning and preparation.This would enable the organization to undergo a much more facile transition. But whatever may be the juncture in time that the culture change program may be initiated, it should be rooted in our minds that winning the hearts and minds of everyone involved in the BPR effort is most vital for the success of the effort. Once this has been done, the next step is to develop a transition plan from the As-Is to the redesigned process. This plan must align the organizational structure, information systems, and the business policies and procedures with the redesigned processes. 5.Improve Process Continously- A very vital part in the success of every reengineering effort lies in improving the reengineered process continuously. The first step in this activity is monitoring. Two things have to be monitored the progress of action and the results. The progress of action is measured by seeing how much more informed the people feel, how much more commitment the management shows and how well the change teams are accepted in the broader perspective of the organization. This can be achieved by conducting attitude surveys and discrete fireside chats with those initially not directly involved with the change.Communication is strengthened throughout the organization, ongoing measurement is initiated, team reviewing of performance against clearly defined targets is done and a feedback loop is set up wherein the process is remapped, reanalyzed and redesigned. Thereby continuous improvement of performance is ensured through a performance tracking system and application of problem solving skills. An intense customer focus, superior process design and a strong and motivated leadership are vital ingredients to the recipe for the success of any business corporation.Reengineering is the key that every organization should possess to attain these prerequisites to success. BPR doesnt offer a miracle cure on a platter. Nor does it provide a painless quick fix. Rather it advocates strenuous hard work and instigates the people involved to not only to change what they do but targets at altering their basic way of thinking itself. BUSINESS PROCESS MANAGEMENT Business process management (BPM) is a systematic approach to improving an organizations business processes.BPM activities seek to make business processes more effective, more efficient, and more capable of adapting to an ever-changing environment. BPM is a subset of infrastructure management, the administrative area of concern dealing with maintenance and optimization of an organizations equipment and core operations. BPM Vs. BPR If BPM is a system software, then BPR is a method. BPR re-evaluates the processes used by the enterprise from the very basics and thoroughly redesigns them, enabling enterprises to have significant breakthroughs in cost, service, and speed.BPR can enable enterprises to reform from deep within, and create a new organization structure. Therefor e, BPR is for the whole enterprise and may even include basic organization structures in its large modifications. BPM is a concept built internally in an enterprise that continuous to manage business processes. In an environment that stores internal and external events, BPM starts from a group of dependent processes, that describes, understands, indicates, and manages the whole process.BPM can integrate internal resources in an enterprise, automatically linking each department, enabling the enterprise to become a single united special forces team. As well, establishing standardized business processes through a single portal, the system can automatically make decisions based on rules and processes of the enterprise to satisfy the management needs of the enterprise, creating comprehensive core competitive force. Key aspects on which BPM differs from BPR are as follows Marked difference between BPR and BPM Aspect BPR BPM Level of change Radical, one step change Evolutionary & contin uous Time taken for implementation Long Short time and smooth takeover Starting point Drawing board Current processes and automation levels Implementation Huge effort required for the Incremental disruptive change Expanse One major process at a time Flexible simultaneously across one or more / small or major processes Methodology Redesigning of business Process and decision models processes Enabling technology Primarily IT Primarily process technology Involvement Business and process experts Process experts and all related people Risk High Low Outcome Drastic Incremental improvement Cultural issues Major concern Not much concern Implementation stress and concernHigh Low BPM tools have taken the advantage of the BPR experience and conceptually are more flexible in terms of expanse and intensity.Unlike BPR which targets end-to-end process by radically redesigning it, BPM tools can be applied part by part to the whole enterprise at a time, by adopting much more ma nageable and smaller changes in the process. This way the investments, risks and amount of change are minimized but at the same time the tangible impact is much more modest than what was a possibility with BPR. Yet BPM tools for automating processes have their basis on the fundamental concepts that were emphasized by BPR, such as Simple processes delivering on the metrics of quality, service, flexibility Focus on eliminating non-value adding activities Decisions becoming integral part of the processBPM unifies discrete tools through extension of technologies like BPR, EAI, Workflow automation and any other business application package in such a form where the implementation and upgradation is much easily handled and underlying business process are efficiently managed. In addition to the strength inherited from BPR that BPM is built around business processes and not business applications per se, yet another promising feature of BPM is that it is based on mathematical process model s. For example BPM helps you improve predictability and repeatability. For example, it will help you identify and recruit 10 candidates for a specified position in 8 weeks. BPR helps you study this and reduce this 8 weeks to 6 weeks or 4 weeks , depending on the context. Once this is done, we need to again use BPM to stabilize this and get back to predictability.
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