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Enterprise Resource Planning

notes King (1994) believes that although the current fadism of BPR may end, however, process
re-engineering, in some form or known by some other name (cf: Davenport & Stoddard 1994)
would be of enduring importance.

2.6.1 Davenport and short (1990) prescribe a five-step approach to Bpr

Develop the Business Vision and Process Objectives: BPR is driven by a business vision which
implies specific business objectives such as Cost Reduction, Time Reduction, Output Quality
improvement, QWL (Quality of work life,Learning/Empowerment. (cf: Shared Vision of Senge
1990, Ikujiro & Nonaka 1995).

Identify the Processes to be Redesigned: Most firms use the High- Impact approach which focuses
on the most important processes or those that conflict most with the business vision. Lesser
number of firms use the Exhaustive approach that attempts to identify all the processes within an
organization and then prioritize them in order of redesign urgency.
Understand and Measure the Existing Processes: For avoiding the repeating of old mistakes and
for providing a baseline for future improvements.
Identify IT Levers: Awareness of IT capabilities can and should influence process design.
Design and Build a Prototype of the New Process: The actual design should not be viewed as the
end of the BPR process. Rather, it should be viewed as a prototype, with successive iterations.
The metaphor of prototype aligns the BPR approach with quick delivery of results, and the
involvement and satisfaction of customers.
2.6.2 customer – focus and outcome orientation

Re-engineering is customer-focused and outcome-oriented. Customer needs are essential inputs
for defining what these outcomes should be, especially while setting performance goals. It is
perceived that the ultimate success of an organization depends on its ability to meet the needs
of the customers. One should also realize that, on one hand the competition has become global
and cut-throat and on the other hand, the customers have become much more sophisticated
and demanding. Customers have a much greater range of alternatives and are much more
knowledgeable about their own needs and therefore, are exerting even greater pressure on their
suppliers. Organizations should have a comprehensive understanding of who their customers
are and what their needs and expectations are, to serve, as the key input for improving the type,
cost, quality, and timeliness of the products and services provided.
Identifying new customers for increasing the customer base is also a part of this exercise.
In the re-engineered organizations, apart from the needs and expectations of the external
customers, the employees working within the organizations (internal customers), third party
support services providers (transporters, warehouse owners, financiers, bankers, etc.) and
stakeholders are also considered. Reassessing customer and stakeholder needs and other change
drivers help the organizations to reassess and clarify its strategic vision and goals. It also helps
an organization to detail out the description of its critical requirements and specifications which
are needed to drive the design of business processes and the information systems that support
them. This enables the organization to set mission performance goals for improving cost, quality
and timeliness based on customer needs.

Task Give an example of real life situation where BPR relationship with information
technology.

28 LoveLy professionaL university