Week 5 – Business Process Reengineering

Week 5 – Business Process Reengineering
Source / Reference:
1) BPR Critics – Computer World by Davenport 2003
2) BPR Tutorial JOM by Grover Malhotra 1997
3) http://www.prosci.com/index-bpr.htm

Subject:
In Lect 5 – What kind of firms need BPR?

  In this lecture, I learned the basis of BPR. Business process is one of the key factors when carrying BPR. Once business processes are defined inaccurately, it may causes downsize of the company but the organization’s performance cannot improve. As a result, ‘P’ in BPR should focus on essential processes but not only to reduce business processes.

  In my opinion, there are three type of organization can take advantage of BPR. Firstly, organization that is in difficulties needs reengineering to overcome the hurdles. As Grover and Malhortra [1] stated, BPR can results in dramatic productivity improvements, cost reduction, efficiency gains and etc. Therefore, a successful BPR can improve the survival chance if they can carry out effective BPR.

  Secondly, organization that has a satisfactory financial state can make use of BPR. This kind of organization may not have problem in current situation. However, BPR may reduce the cost and improve efficiency. Then the organization can take advantage of BPR to increase their market shares or prepare for the future situation.

  Thirdly, BPR can increase the competitive force of an organization. Some companies are aggressive enough to promote to a higher level. BPR is an appropriate mean to achieve their goal. An effective BPR can make these organizations on the top. With improvement in productivity, the market coverage can also be increased. As a result, BPR can significantly enhance the profitability of the organization.

  In conclusion, after I have read some successful and failure cases, I realize that the BPR concern with ‘how to do’ in business process. We must understand the business thoroughly before we carry out BPR. We may omit some key processes when we do not know that field of business well.

Besides, critical thinking is very important in BPR. Due to the organizational culture, employees may be reluctant to adapt changes in BPR. They see many processes as elementary but somehow they can be redesigned. Therefore, critical thinking can help the business process more efficient and effective.

Source / Reference:
1) "Strategic Alignment: Leverage Information Technology for transforming organization" by J C Henderson and N Venkartraman 1993
http://search.proquest.com/docview/26252741/134A6C8B53F19A4F606/1?accountid=16210

2)Leonard, Jenny: What are we aligning? Implications of a Dynamic Approach to Alignment, 19th Australian Conference on Information Systems, Christchurch, 2008

In my opinion, no alignment strategy is the best. It depends on the field of business and the company’s maturity between IT and business.

  After I read the paper of Henderson and Venkatraman, I wonder how a company can assess or what criteria they can use when choosing a suitable alignment model. Every model has their characteristics. For example, I think nowadays banks need a technology transformation in SAM model. IT competencies are important. A more comprehensive IS system is needed to provide a more secure and strong backup in the bank.

A fast food shop may just need a strategy execution in SAM model. IT infrastructure is just an expense to achieve their business strategy in a more efficient way.

  Service level is an alignment strategy suitable for service industry. Service concerned with providing the direction to stimulate customer demands. Therefore, industry like book store can apply it very effectively as they can provide online store to enhance customer satisfaction on book retailing.

  Competitive potential concerned with the new impact of the company which can be applied to some industry that need a breakthrough. This approach makes use of the IT strategy to drive business strategy. New product or service may be invented and develop a new situation in business.

  However, I think business alignment is very variable that not all business belong to a particular industry are suitable to a particular alignment approach. For example, not all service industry can use service level approach. Some traditional company cannot apply the alignment sufficiently as the employees are not familiar in IT. Therefore, such alignment is not suitable to those companies. I have read some article about suitability of choosing alignment and my conclusion is no best alignment in SAM model.

  I have read some other articles about business alignment strategy. I found Leonard and Jenny [2] approach can be considered as a possible solution of criteria of choosing business alignment. It concerned how maturity of IT that company is. Firstly, communication is important. Technical and business staff should communicate effectively as technical should know the needs of the business staff. Secondly, it stated the measurement of the strategy how to evaluate the performance of alignment. Thirdly, the relationship between IT and business is import. I quote 2 figure below and show some factors of choosing alignment strategy.