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Case study in business process reengineering
Executive summary business process reengineering
Case study in business process reengineering
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Background
Business process reengineering has widely become a significant trend in enterprise organizations seeking to innovate and massage business processes. It should come as no surprise that “over the last decade, numerous organizations have significantly changed their business processes in order to remain competitive in the global market” (Hadaya &Pellerin, 2008). The text analyzes business process reengineering as a business process solution for efficiently improving information systems within the context of ERP implementations. The authors suggest that “BPR is one of the best methods for determining the need to move to an ERP system and set the high level goals and project implementation scope” (Motiwalla & Thompson, 2011). In order to fully analyze business process reengineering we must analyze the concept and methodologies associated with this process. Business process re-engineering is “the analysis and design of workflows and processes within an organization” (“BPR”, 2011).
A key function directly related to the business process reengineering is the information system process of information technology. The concept of business process reengineering is often discussed in management circles seeking to improve the way things are done within an organization. If you are looking to redesign the functionality of business process you are in fact taking a business reengineering approach. Ultimately this idea is “an approach for redesigning the way work is done to better support the organization’s mission and reduce costs” (“BPR”, 2011). If we analyze this process improvement change within the context of information technology we find that “IT is considered one of the most important enablers of process change” (Paul & Serrano,...
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...ya, P., Pellerin, R. (2008). Proposing a new framework and an innovative approach to teaching reengineering and ERP implementation concepts. Journal of Information Systems Education, 19 (1), 65-73. Retrieved from http://go.galegroup.com.
Larson, M., Myers, M. (1997). BPR success or failure? A business process reengineering project in the financial services industry. ICIS '97 Proceedings of the eighteenth international conference on Information systems. Retrieved from ACM Digital Library database.
Motiwalla, L., Thompson, J. (2011). Enterprise Systems for Management 2nd Edition. Upper Saddle River, NJ: Pearson.
Paul, R., Serrano, A. (2003). The process of process reengineering: simulation for business processes and information systems design. WSC '03 Proceedings of the 35th conference on Winter simulation: driving innovation. Retrieve from http://dl.acm.org.
In today's competitive marketplace, all firms are seeking ways to improve their overall performance. One such method of improvement, recently adopted by many firms, is benchmarking. Benchmarking is a technique used to evaluate internal business processes. "In this analysis, managers determine the firm's critical processes and outputs, baseline those processes, then compare the performance of each process against a standard outside the industry" (Bounds, Yorks, Adams, & Ranney 1994). To effectively improve a business process to world-class quality, managers must find a firm that is recognized as a global leader, not just the industry standard. Successful benchmarking requires tailor-made solutions, not just blind copying of another organization. Measurement and interpretation of data collected is the key to creating business process solutions.
A system integrated approach would improve the business process and hence enable the different functions to share information. It was clearly identified that the ERP deployment would benefit the company through all these elements. In the case, benefits of ERP adoption were not quantified but improved cost and better pricing strategy were discussed to justify the ERP project financially. It can be interpreted that ERP, leading to improved cost analysis, cost control, less redundancy, optimized production and better pricing, would result in low costs and hence higher profit for the company. Financial justification for the ERP adoption can also be inferred through the fact that it would lead to resolution of several problems which the company faces
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.
...l for enterprise resource planning implementation¡±, Proceedings of the 7th European Conference on Information Systems, Vol. 1, pp. 273-97.
Organizations are finding that computer systems are very complex and seldom do these systems produce a real business value to the organization (Session, 2007). Businesses are searching for an answer and that answer may be for an organizational to develop an enterprise architecture (EA). The complexity and constant change that occurs in business may be controlled by developing an EA, and this will facilitate alignment between the business objectives, business processes, and information systems (Ylim & Halttunenb, 2007). This may reduce the redundancies of system functions, the data redundancies that exist, and help to integrate the data into meaningful information for various levels within the organization. Developing a useable EA is no easy task, but using one of the available frameworks should help to accomplish this task. The framework provides guidelines for the documentation that needs to be considered and present in an Enterprise Architecture (Bernard, 2005).
Computer simulations are software applications that enable a user to run a model of a system. Users can interact with computer systems, setting input variables and observing what changes occur to outputs. They can animatedly explore the model domain in real time, start and stop the model, make changes to test hypotheses, and experiment in a non-prescriptive fashion. The interactive, dynamic and open nature computer-based simulation is an excellent teaching tool. A tool that put users in charge of their own learning, thinking process, and own understanding of a particular system, which create valuable individual learning experiences. Reflections, title of our team paper explores some of those lessons learned as we assimilated into the world of Process Control and Problem Solving, Managing a Process Layout, and Inventory Management. Why not come alone with us as we reflect back on the various processes used in the world of business.
Ratinder Core (2011) studied the business process reengineering in the State Bank of Patiala. In India, has been the changing dynamics of the Indian economy has led many of the reforms in the financial sector, especially in banking and insurance sector. To meet new competitive challenges due to the induction of technology in banks and change in customers ' perspective has forced organizations to rethink about the ways of doing business operations activities. She stressed monotheism, amalgamations and pressures to reduce operating banking community costs to the adoption of tools such as Business Process Reengineering (BPR) in order to achieve strategic advantages to organizations. the State Bank
Haag, S. & Cummings, M. (2008). Management information systems for the information age (Laureate Education, Inc., custom ed.). Boston: McGraw-Hill/Irwin.
described the ERP system as packaged (but customisable) software applications, which manage data from various organizational activities and provide a fully integrated solution to major organizational data management problems. They provide for both the core administrative functions, such as human resource management and accounting, as well as integrated modules which can be selected to support key business processes, such as warehousing, production and client management.
“An Enterprise resource planning (ERP) systems are software systems for business management, supporting areas such as planning, manufacturing, sales, marketing, distribution, accounting, finance, human resource management, project management, inventory management, service and maintenance, transportation, and e-business”.( Haag, Cummings, Phillips, S, M, A (2007). Mangement Information Systems. New Yory, NY: The McGraw-Hill Company Inc..)
The reengineering plan will consist of the following phases: 1. Implementation Recovery - During implementation recover the purpose of the application is determined. By analyzing how the application is built and its’ behavior, you can sometimes predict its rules.
Yahia Zare Mehrjerdi, (2010) "Enterprise resource planning: risk and benefit analysis", Business Strategy Series, Vol. 11 Iss: 5, pp.308 – 324.
Zeleny, M (ed.) 2000, The IEBM handbook of information technology in business, Thomson Learning, London.
The rest of this chapter is organized as follows: Firstly, we introduce the origins and history of BPM in section 2.1. Secondly, we present a number of basic BPM concepts, definitions, and terminologies in section 2.2. Thirdly, we show the relation- ship between BPMS and other systems or applications, such as Enterprise Resource Planning (ERP), Groupware Systems or Computer Supported Cooperative Work (CSCW), and Workflow Management Systems (WfMS) in section
Effectively integrating information technology (IT) into an organization’s business processes is critical if the organization wants to increase productivity and remain profitable. IT includes items such as the systems software, application software, computer hardware, and the networks and databases that help manage the organization’s information. When implementing quality standards and processes that are forever changing in the IT world, organizations must balance these changes while continuing to rapidly implement new systems technologies in order to stay competitive.