Chapter I: Introduction
1.1. Introductory paragraph
This paragraph is to introduce what is business process in general and what is business process redesign specifically.
1.1.1What is business process?
A business process is a group of activities designed to produce or deliver a specific output of product or service for a specific customer or market. It is based on a strong concentration on how the work is taking place within an organization, in contrast to be focus on the product itself. A process then is all about delivering and performing specific guidelines of work activities at precise time in a given place with clear beginning, planed end, and to identify what inputs used and outputs to be produce. Business Process Management (BPM) is
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It’s a rethinking about the way of doing the work in order to develop customer service, cut operational costs, and become world-class competitors. When the company decided to rethink about what it should be doing, this means that the company is trying to do the best. Within the structure of this basic assessment of mission and goals, redesign centers on the organization 's business processes, the steps and procedures that oversee how resources are used to make products and services that meet the needs of certain customers or markets. It’s a pressure of the company to function with reduced resources. As a planned ordering of work steps across time and place, a business process can be decomposed into specific activities, measures, models, and improvements. In addition, business process can either totally redesigned or eliminated at all …show more content…
This definition includes four main keywords:
Fundamental: which is the first step before redesign; it is based on understanding the basis of the operations. So, in order to be understood effectively, a basic questions should all business people ask it for themselves about their organizations and how they run: “why do we do?, what do we do?, and why do we do it at this way?”. The one who understand those basic questions, will be certainly able to understand what are the fundamental operations.
Radical: radical redesign means to ignore all the present framework and procedures, and then create a new way of working. Reengineering is all about to reinvent the business in different mode, begins with hypothesis and end up in a great results.
Dramatic: redesign aims to achieve dramatically developments and improvements in the final performance, it’s about improving and modifying the basis of the process. However, there is three kinds of companies undertake redesign as the best solution in
Bjerke, Juel M. "Week 2 Lecture Notes - Achieving Business Process Excellence and Process Re-engineering." MFGO 601 - The Globally Integrated Manufacturing Company. 2 Nov. 2011.
Incremental renewal is about business evolution by expanding current business into new product lines or services or to seek improvement in current lines of production. It is related to gradual improvement over long period of time. For example, Swiss Business School has been developing since 1998 by adding off-site programs, expanding international network, etc. Transformational strategic renewal is fundamental change such as brand or model of business. This type seeks to redefine customer’s expectations. Transformational renewal is drastic change that happens at once. For instance, McDonalds introdiced McCafe as an additional part of its chain. Even though transformational changes involve large scale of changes, we must try to explain the obstacles of these changes to come into life on individual and large scale
In the case, Marks & Spencer and Zara, it discusses two business process designs that each company took. You first had Marks & Spencer, who had a more traditional approach. Their chain started of with the buying team, design, developers, merchandisers, technologist, suppliers, logistics, and lastly the store. Zara, however, comes up with a new innovative design. With this new design in effect the delivery of new collections only has a lead-time of 5 days. They were able to cut down this time due to the fact that products where mainly produced on Galicia.
Changing situations throughout the world affect all organizations in business today. Therefore, most organizations acknowledge the need to experience change and transformation in order to survive. The key challenges companies face are due to the advancements in technology, the social environment caused by globalization, the pace of competition, and the demands regarding customer expectations. It is difficult to overcome the obstacles involved with change despite all the articles, books, and publications devoted to the topic. People are naturally resistant to fundamental changes and often intimidated by the process; the old traditional patterns and methods are no longer effective.
Sydney, F., Charles, H., & Thomas, L. (2008). Vision by design: a reflexive approach to enterprise regeneration. The Journal of Business Strategy, 29(2), 4.
Change happens all the time and affects all facets of life. It is unavoidable; and occurs for various reasons. Change is constant. In the business world, change is defined as a process that moves an organization from a present state to a desired future state with the goal of enhancing their effective¬ness (Weiss, 2012). Organizational change is generally triggered by external and/or internal forces (Weiss, 2012). Some external forces that cause change are the economy, technology, political and socio-cultural issues. Internal forces that lead to change can be attributed to leadership skills and abilities, goals and objectives, as well as improvements in technology. These forces then lead to changes within the business structure, processes and procedures, physical work environment, job design and duties as well as skills and knowledge levels. Regardless of the type of force that triggers the change, organizations need to take advantage of the opportunity, communicate the vision and strategy, create value and gain the support of the employees and stakeholders. Change is an ongoing and never-ending process of organizational life (Van de Ven, & Sun, 2011). One corporation that has gone through numerous changes is AT & T; a global corporation that is recognized as one of the leading worldwide telecommunications providers of innovative, reliable, high-quality products and services (att.com). Just like other global corporations, within this corporation there are many business entities such as Finance. Within this entity there is an organization called Bill Review. This paper will examine how the Bill Review organization has a critical need for change in regards to customer satisfaction and how to effectively utilize the Kotter Eight Step...
It is important to know the current state of an organization when preparing for organizational redesign. The current state includes understanding variables and the relationships that the organization is comprised of, and the effect the changes will have on the organization. Part of determining the current state of a business is having an awareness of the processes and functions that make up the business, such as identifying internal and external conflicts, and trends that influence the business. An accurate assessment of the business is important to lay the groundwork for redesigning, or restructuring. To ensure the strategy remains aligned and on course, the business needs to review constantly and assess progress.
Project managers may decide that major changes to business processes may be required. Change management is important for project managers and business leaders, starting at the project phase and continuing throughout the entire life cycle. Employees need training to understand how the system will change business processes.
Reasons for change can be down to adopting new corporate strategies, structures, process and technology to assist organisations handle internal and external environmental conditions effectively (Goksoy, 2015). However, merely adopting change cannot drastically drive through change so organisations need to go through reconstructive change to realign the organisations objectives (Green, 2007). Although change can be introduced in these drastic fashions it can also be emergent within an organisation due
Focus On Process Change, Plan, and Update Carlson's infers persistent business change and relentless sending of the present dangers and openings from nature. It incorporates minor process change, new process outline, or critical process overhaul. Carlson has chosen six sigma as its procedure quality structure. All capacities and exercises to support concentrate on • Strategic arrangement, • Processes/strategies, • Organization/individuals • Service conveyance, and • Technology.
Basically transformation strategies are quite complicated because the process of innovation in any business environments will depends on it. We knows that in order to develop a business environment that supports the activities of innovation, most of the organizations will require an extensive changes in terms of the culture and systems of the organizational itself. The process can be difficult to achieve and also can caused disruptive, cost overflowing and time consuming. The innovation can give the potential of long term benefits but most of organizations more interested in short terms gains and cost reductions. The...
Business leaders today face many complicated challenges which calls for more collaborative interactions across all departments resulting in better employee relationships. Many of these challenges come from communication methods, external pressures on business strategies or advances in technology. Technology advancements in a competitor or partner are one of the main reasons why consumer is dropping. To bring in new technologies and upgrade existing technologies would require an investment of people, time and money from solution to implementation. Processes that are internal and external should be defined which depends on whom the stakeholders for new service or change is Most companies today use business process management solutions in order to deal with many issues arising as a result of change or technical which is dependent on a part technical solution.
The world is constantly changing in many different ways. Whether it is technological or cultural change is present and inevitable. Organizations are not exempt from change. As a matter of fact, organizations have to change with the world and society in order to be successful. Organizations have to constantly incorporate change in order to have a competitive advantage and satisfy their customers. Organizations use change in order to learn and grow. However, change is not something that can happen in an organization overnight. It has to be thought through and planned. The General Model of Planned Change focuses on what processes are used by the organization to implement change. In the General Model of Planned Change, four steps are used in order to complete the process of change. Entering and Contracting, Diagnosing, Planning and Implementing, and Evaluating and Institutionalizing are the four steps used in order to complete the process of change in an organization. The diagnostic process is one of the most important activities in OD(Cummings, 2009, p. 30).
The success of an organization is dependent on the efficiencies and effectiveness of its processes and procedures. The goal of our Business Process Improvement (BPI) services is to assess and evaluate the current processes within your organization and implement action steps to improve productivity, efficiency and increase cost savings.
3. Reengineering. This recent intervention radically redesigns the organization 's core work processes to create tighter linkage and coordination among the different tasks. This work-flow integration results in faster, more responsive task performance. Reengineering is often accomplished with new information technology that permits employees to control and coordinate work processes more effectively. Reengineering often fails if it ignores basic principles and processes of OD.