How IT Enhance The Capability Of Business Process ReEngineering

Written By: Dr. Parimalendu Bandyopadhya (H.O.D of Business Administration Dept, Bengal Engineering College, Durgapur) Joydeep Chowdhury (Formal lecturer, Dept of Computer Science, B.B College) Gumamoy Hazra (Lecturer, Dept of Business Administration, B.B College, Asansol)

How IT Enhance The Capability Of Business Process ReEngineering

Abstract:
Business process reengineering (BPR) consists of radically transforming organizational processes through the optimal use of information technologies (IT) to achieve major improvements in quality, performance, and productivity. A fairly new organizational approach based on information technologies. The key findings of the research are some How to incorporate IT in BPR in an efficient way for Business Goal. As all most all factors above are venerable and any minor changes in any factor may bring a drastic changes in organization business model and directly to their revenue and growth, many organization requires the scope to redesigned the business processes which are executing with the factors like 1] Business Policies Changes 2] Changes in Production Model s 3] Changes in Product Marketing 4] Changes in Service Offering 6] Changes of company policies for shareholders 7] Companies approach to change vertical wise business 8] Changes in expansion plan of company. The purpose of this research is to incorporate IT with Enterprise business processes, and involve people, systems, and information, often across multiple departments and lines of business. The distributed, compartmentalized nature of these business processes makes it challenging for enterprises to adapt them to address competitive pressures, regulatory changes, market conditions, and customer demands. To manage all these things under one umbrella its requires a Software Technology base Enterprise Business Process Management System .This system can contain some packages like: Metastorm, MOSS, JBOSS, IBM BPM Suit, Oracle BPEL, Lombardi etc.

Key Word:
The key words of this article are: Total Quality Management (TQM), Process base solution, Time-based competition, Web-enabled e-business, Portal Model, Conceptualization, Tacit Knowledge etc.

How IT can be enable in BPR:

Business activities should be viewed as more than a collection of individual or even functional tasks: in a process view for maximizing effectiveness. IT and BPR have recursive relationship. IT capabilities should support business processes, and business processes should be in terms of the capabilities IT can provide. IT has enable Business Process Re-engineering in following way. The following figures shows the How phase wise IT can be added in a BPR application and Relationship between Business Process and Information Technology.

Implementation of IT in BPR from different stage.

Relationship between Organizational Form, BPR and IT

Total Quality Management (TQM): TQM and BPR share a cross-functional orientation. It has been observed that quality specialists tend to focus on incremental change and gradual improvement of processes, while proponents of reengineering often seek radical redesign and drastic improvement of processes. Quality management often referred to as total quality management (TQM) or continuous improvement refers to programs and initiatives that emphasize incremental improvement in work processes and outputs over an open-ended period of time. In contrast, Reengineering, also known as business process redesign or process innovation, refers to discrete initiatives that are intended to achieve radically redesigned and improved work processes in a bounded time frame. 1st Wave BPR: First Web BPR was facilitate by increase the use of Information Technology that structurally change the way that Business Process were carried out. First wave focused on cost cutting, making enterprises lean and mean..Dynamics of information flow using Information Technology changes the way the business process are carried out. Second wave more focused on 1) More strategically focused 2) Supply chain Management 3) Internet-centered 4) Knowledge management etc. The key reasons of doing BPR areReengineering a narrow process in a single area / department within a company. Second Web considers Reengineering a strategic extension or expansion of Customer Relationship Management Process, Financial Management Process, HR Process, Supply Chain Management Process and Workflow based Business Process those can extends across several companies reengineering as a common business process that affects the way business is done for an entire world.

Time-based competition: This part BPR is used Information Technology to enhance the productivity and processing speed and capacity of the Business Process. As customer and the end user preferring now a days the Less Execution Time, Less chance to failure, More information Providing business process. By these means organizations are trying to be from their competitors. Web-enabled e-business: BPR for e-Business involves redesigning both enterprise and supply processes around the Internet that will satisfy the Customer Urgency. The Web based business model can be implemented easily. Customer can get any information regarding Product or Services at a glance from anywhere i.e. Opportunities for information will be increase. Flows and knowledge management around processes will be increase i.e. Enhanced re-engineered document will take Information of Feasibility analysis from every level and that will be crystallized and parsed by Knowledge Expert. It also differentiates BPR for e-Business for brick-and-mortar enterprises than it is for Internetonly enterprises. It will also take care the processing of e-Processes. This part also increase the Ubiquity. Knowledge Management: Knowledge Management came in Second Wave of BPR. Work. Knowledge Management is proved as an essential component of BPR system when any CRM system is related with that. Knowledge Management helps to measure value of BPR on Process Enhancement. The use of Knowledge Management tools can enhance any Business Process Reengineering/ Design effort by bringing in more inputs from critical points throughout the organization. Even within the same building groups may not often talk to one another or know what the other is doing. Collaborative tools are particularly essential if the organization operates from more than one location.

Phases of Information Technology enable Business Process Reengineering (BPR):

1.Involvement of Senior Management to initiate BPR progra m: The Senior Management have the hierarchical knowledge about the 1] Organizational process flow and execution, 2]Technical capability of organization capability 3] Human Resource 4] Financial Stability 5] Stability in organizational As-Is-Value Chain and Target Value Chain6] Activity models of Business Focus Area of organization. 7] Integrated Service Model and Business Services Model of Business Focus Area 8] Conceptual Data Model to Business Function Matrix and Industry Standard Business Documents. 2.Identify and document the shortcomings and inefficiencies of current business processes: This step is responsible to find out the pit fault of Current Business Process. In this step we ensure why the revamp or re-engineering is require. There are lots of step is there to identify the flaws of a process. First, when a process is executing, there will be a dedicated team to identify and track down the flaws of process. When the system face a bug/issue, or end-user face some critical scenarios or even the requester face some problems, the team immediately track down the problem and create a Business Document which use to depict What is the issue,Why is the

issue,What should be done to resolve the issue in future etc. This document is use to called Enhancement Document or Re-engineering Process Document etc. Second, when the process starts to execute, there will be one diary where the End user, Customer can provide their feedback about system. End of certain time period Senior Management and the other dedicated team member gather and decide what should reengineered for this system.

3.Create a Strategy and Goal Specific architecture for organization and choose Strategic Partner: The core business of the existing and future organization must be identified. It is possible that a significant proportion of company resources are involved in support or peripheral activities, and are not key to revenue generation. The core skills required by the company can thus be identified and other skills possibly outsourced. This may again result in "early wins" of the project. During this phase the following issues are used to discuss: 1. Describe the business issue or problem that justifies the project from a process perspective and document this within the BPR Scope. 2. Examine existing Business Focus Area process artifacts for the conceptual diagram of the current process and clearly delineate the process boundaries for that which is in scope for the BPR effort. 3. Specific software and hardware requirements to be selected. 4. Does the team plan to utilize the Business Process Transformation Lab? What are the estimated fees associated with consultants involved. 5. What other resources will be required. 6. Other anticipated expenses are included or not. Note: Hitachi Data System (HDS), the software hand of Hitachi wanted to introduce new high speed processer in all its device and by moving toward an open systems environment, they frequently need outside help to make the transition smoothly. IT Services will provide the software development resources needed to take full advantage of equipments. As the analysis report was depicting that the software hand of HDS is not too strong to support such kind of complex software development and even this project may hampered the basic productivity, Hitachi built a Strategic Partnership with Information Technology Services, Inc to provide Custom Client/Server Application solutions and Software Outsourcing Services. 4.Market Research on Business Focus Areas and Customer Needs: Understanding customer needs is key to the success of the program. Market research can be conducted by specialist companies to ascertain customers' opinion of the organizations product and services portfolio, and how it can be improved.

This research enables reengineering effort to address customer's actual, rather than assumed, requirements. Great effort can be expended to provide specific products and services to customers who do not meet their requirements. The three basic requirement analyses are: The determination of customer needs, benchmarking, and understanding of existing processes, will enable the reengineering of core processes to be prioritized. It may be that one or more existing processes already provide satisfactory levels of performance. Depending on the resources available, one or more of the unsatisfactory processes will be identified and prioritized for reengineering. The performance goals for these processes will then be determined. This should also accurately reflect the true objectives of the organization, e.g. specific quality of service standards, cost reductions, defects etc., as identified from market research and benchmarking. For each process the costs of the reengineering project and the expected financial benefits are determined. It is important that the true costs of the projects, which are likely to be significant, are visible to senior management.
Existing Process
Customer needs, benchmarking, and understanding of existing processes.

Interaction with deferent departments for re-engineering prospects

Production Department

Customer
Specific quality of service standards, cost reductions, defects etc

Market Research Team

Re-engineering Process

Finance Department

Finance Department

Market Research on Business Focus Area 7.Change Management Toolkit: Change Management Toolkit contains templates and guidelines to help effectively employ change management and write a complete and professional change management plan. Complete assessment tools and implementation guidelines will help to implement change management strategy. The Change Management Toolkit includes three basic case along with Checklists, Templates and Assessments Documents. Tool to be prepared for change: Utilize the most up-to-date assessment tools to prepare a change management strategy.

Managing change: Templates, guidelines and checklists help you create effective change management plans including your communication plan, training plan, sponsor roadmap and Full flow of process resistance management strategy. Reinforcing change: Diagnosing Resistance and Reinforcing Change will make change management process complete. Use the popular models to manage employee resistance, resolve conflicts and identify corrective action steps. 8.Identify which functions and/or processes are performing well and are candidates for inclusion in the future state: In this state the existing functions are categorized in to different groups. First of all, expert use to examine the Entire Framework, Process Flow Diagram, Basic Business Needs etc. Then, expert creates the frame work of new system along with all functionalities that will be imposed. After that, the comparison between two process happen and the existing process are documentaries. For example, if the example of Software Asset Installation is considered the old system has couple of functions like 1] Conformation through call with License Management Team periodically about the acknowledge. 2] Checking the Valid License or Quality of License by the system. 3] Conformation through call with the user about the Asset Name (Machine or Laptop name, number, ID etc), Software to be Installed 4] Searching the contacts about correct person etc , will be consider as the functions that will not be changed and be implemented in reengineered process without any modification or with little bit modification. 9.Identify potential opportunities for functions and/or processes harmonization across departments, geographic locations, Bureaus, etc: In this step expert use to find out the Opportunities and Business Values for the process. The opportunities may be Revenue Generation Capability, Providing values to Customer, Providing Quality to Product, Change in Product chain, Quality or Price, Understand unrevealed customer needs, New requirement of customer depending on region and community and business verticals, Enhancing the execution capability of other process. The detail Market Research and Process Modeling use to happen in this phase. Note: A leading Indian automobile manufacturer of multiutility vehicles. The company was facing challenges due to globalization, entry of manufacturers such as Toyota into the Indian market, import of second-hand vehicles under World Trade Organization (WTO) mandates, and more stringent emission, noise and safety norms. Satyam analyzed the Market Condition along with the Geography and Verticals. Satyam found out in India preferable factors are the Availability of Service Centre, Easy Availability of Spare parts, Fast execution of Order, Marketing with Emotion etc. hence it suggested some System Solution which are :Order Management, Customer Management, Vendor Management. The benefit was dramatic, with the introduction of Order Management schedule adherence for vehicle dispatch i mproved from 70 percent to 95 percent and, in the spare parts department, order-to-delivery cycle times were trimmed by more than 50 percent. Similarly, Customer Management Processes were enhanced, too. Sales forecasting improved from 30 percent to 70 percent and a customer complaint reduced by 50 percent.

10.Gather what materials exist and review these to identify Candidate Business activities: In these steps the organization concentrates on those Business Process that are already modified and applied. Possibly, some of the process that already converted to automated process or refine and redefine can be used as sub-procedure or sub-method of any large methodology. For example, To re-engineer Internal Process Management of any organization, one functionality implemented to another client can be accepted as Exist Material. For example, Bharat Sanchar Nigam Ltd or BSNL , one of the leading telecomm service provider of India had one system which was responsible for companys Finance, Commissioning & Operations. But, all system was separate. HCL who was the vender of the project, have first selected the modules of these three separate system and using the existing module with implementation of couple of new features. Then HCL implemented these entire modules in an ERP system. To implement this new system HCL didnt use any separate data storage. They also relayed on the existing data storage. 11.Extend and refine the baseline model: In this activity, the previously developed baseline model is extended and refined, based on input from representatives of all parts of the business, within the engagement scope. The cross-enterprise nature of the work product means that the objective is to produce a model that represents the requirements of all the business areas. As this requires a degree of cross-enterprise agreement, the best approach is to use facilitated, modeling workshops, attended by representatives from all parts of the business concerned. 12. Select functions and/or processes within the scope of the BFA effort need further analysis: After implementation of all the functions and Planed Re-engineered Process, it will be the time to review the system and get a bird-eye view. The top-down and bottom-up review of framework and proposed model show some opportunities that can be added as enhance hand. Once these opportunities are identified, the next step is to find out the 1) Create a demo application for entire re-engineered model. 2) Plug-in for the process 3) Plug-out if require 4] Examine the out-come and affect of out-come 5] finally the behavior of entire system. 13.Provide the basis for sizing the effort required to understand and assess the current environment and/or redesign the future environment: Create the model which has some Business Intelligence(BI), though this step can be consider as optional but in near future this step may be proved as essential. Because, now a days the data collection facilities and activities are becoming automated. BI has two kind of facilities: 1] BI can identify the Business Environment Changes automatically from the abstraction of input data, and can trigger the Required Business Case from pool of Business Related functions. 2] Even if BI could get any favorable process to trigger for the required business scenarios. It creates a Report for newly encountered Business Scenarios which will be useful for future enhancement. Note: Microsoft has one silent feature for its Windows Operating System services. It generates a Report automatically about the abstract condition that it has faced during execution and automatically sends to Microsoft Corporation after taking user permission. These documents are used to further Re-Engineering of products.

14.Use the Conceptual Data Model Identify all entities created by an activity: Conceptual data model is created by gathering business requirements from various sources like business documents, discussion with functional teams, business analysts, smart management experts and end users who do the reporting on the database. Data modelers create conceptual data model and forward that model to functional team for their review. AmeriChoice used to take acknowledgement reports from each of their customer after regular duration. Even, they have taken suggestions from their vender. The final Design Document showed end user like the security of their existing Data store but with high processing. So, organization decided to make their data storage intact and introduce one Oracle Data Base in middle layer as Load Sharing. AmeriChoice Health Services, Inc. implemented Perot Systems DIAMOND(R) 950 health benefits administration system software for security purpose and the obvious purpose of Load Sharing. 15.Create the business process map for the current normalized (As-Is) process: This step a method use to design to model the decisions, actions, and activities of an organization or system. The method construct (AS-IS) models that have a top-down representation and interpretation, but which are based on a bottom-up analysis process. Beginning with raw data (generally interview results with domain experts), the modeler starts grouping together activities that are closely related or functionally similar. This models help organize the analysis of a system and promote good communication between the analyst and the customer. It is useful in establishing the scope of an analysis, especially for a functional analysis.

16.Research and Benchmarking. After the creation of normalized process models, the next step is benchmarking and analysis. Benchmarking is the comparing of both the performance of the organizations processes and the way those processes are conducted with those relevant peer organizations to obtain ideas for improvement. The peer organizations need not be competitors or even from the same industry. Innovative practices can be adopted from anywhere, no matter what their source. For example, Bharat Sanchar Nigam Ltd or BSNL , one of the leading telecomm service provider of India had one system which was responsible for companys Finance, Commissioning & Operations. But, all system were separate. The service provider HCL has create a model which brought Finance, Commissioning and Operation in a single ERP package. Then it tested the performance issue. The result was incredible, this system delivered services in a more cost-efficient way. In addition to replacing legacy systems, this BPR & ERP transformation program would yield better efficiencies for BSNL. 17.Eliminate Non-Value-Added Activities and Perform Time Compression: Eliminate NonValue-Added Activities by identifying and eliminating any activities that do not provide value to either internal or external customers. Perform Time Compression to reduce process time and overlap activities whenever possible. Speeding up business cycles can reduce costs and increase customer satisfaction that translates into increased revenue. 18.To further refine and validate information and business requirements in support of BFA modernization objectives: The process contains the Requirement Specification document. The Structured Analysis documents, Base line model document, Ware frame,

Process Document, Architectural document etc. From BFA perspective the requirement will be analysis again. 19. Reengineer the Process: Once all the process has been completed now it is the time to create the modules responsible for according to the Process Document with the Proposed tool. After Creation this will run in two Consecutive environment or serve i.e. 1] Development Environment: Where the user check the accuracy of execution and can do White Box, Black Box, Unit testing, and Regration Testing etc,2] Implementation in Testing Environment: Then the package or solution will be transfer to the Test Server for System Testing and Integration Testing etc 20. Apply in Real World: After completion off all the above process the product or the solution will be launch to Business Focus Are, Production Environment or Operational Environment etc. Today, e-business initiatives have made the need to streamline, integrate and automate processes even more pressing. But this time, we have an opportunity to do it right.

How it integrated with other Technology

I] Application of Workflow Management in BPR [PEGA, Microsoft (Windows Workflow Foundation), Metastorm have already implemented this approach]: Workflow management helps businesses find ways to improve their production or service process. By streamlining the responsibilities of each employee and clarifying the roles of every employee and machine within the process, the organization can more easily determine where improvements can be made to increase efficiency and to improve the quality of the product or service. Workflow is the main part of Business Process Management software. Each Business Process related Life Cycle which contains some mandatory steps like 1] Initialization of Process or Request 2] Changing of Step 3]Action Related with the Stage Change 4] Conditional Processing 5] Completion of Process and 6] Storing Data. To implement this Life Cycle in Automated Business Process , to trigger required function depending upon Stage, Action, Condition and Time, to shoot Alert to respective entities etc it requires Work Flow Management. II] Application of Enterprise Content Management in BPR [Microsoft (SharePoint), IBM (FIleNet), Documentam are some content management tools] : The Business Process ReEngineering require to store the Process Request, Related Documents, Respective Document, Norms of Process. Its also require to store Re-engineering Documents of process, Benchmarking Documents, Change Management Toolkit, M arket Research Document, Strategic Documents, Design Document, Data Model etc. This document library use to featured with a High Performance based Search.

III] Application of Advance Exchange Server in BPR (Windows Exchange Server (Microsoft has introduced Advance Outlook along with Microsoft Office, Conference Management System etc)): E-mail response management is necessary for all Workflow based system. As BPR is tightly related with the workflow, the all BPR system requires the use of Exchange Server. The function should route, prioritize and track customer e-mail based on content. It must automatically acknowledge the receipt of a customer e-mail by sending an immediate, standard response. IV] Application of Advance Data ware housing (dataSTOR from Datacom International) in BPR: Data warehouse provides cutting across application domains and subject data areas to a reengineered analytical perspective of any process. The combination data warehousing and BPR sets the data warehouse apart from other information assets like files, application databases, report caches, content stores, data marts etc. The biggest benefit the enterprise are about to enjoy is-after implementing Business Process Reengineering as Business Intelligence in data warehousing numerous recent acquisitions, mergers, and increased feature sets in Business IntelligenceData Warehousing (BI-DW) tools and products across the industry, deciphering the BI landscape and offerings and deciding how to adopt particular technologies from the one platform into an another portfolio of products. V] Application of Advance Supply Chain Management in BPR: supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers. For example, BizTalk Server 2006 R2 is central to Microsofts RFID strategy, which places BizTalk in the middle of an integrated stack of RFID data, back-end systems and line-of-business applications. Kawasaki claimed that Microsofts allin-one approach eliminates the extra costs that inhibit companies from deploying connected supply chain solutions. VI] Application of Advance CRM System in BPR: When CRM implemented with Business Process Re-engineering service is to improve business process performance. This means improving integration, coordination, communication, flexibility, and responsiveness. This may mean reducing cycle times, reducing the cost of doing business, improving quality and customer satisfaction, or reducing the amount of capital required to run the business process. VII] Application of Advance Human Resource Management (PeopleSoft Enterprise from Oracle) in BPR: Human Resource Software Re-engineered Solution significantly reduces the amount of time that your human resources department spends managing employee information. Easily create reports in an instant that showcase your staff's competencies. Free up resources to address mission critical projects. VIII] Application of Enterprise Resource Planning System (Business One, mySAP All-inOne, mySAP ERP,R/3 from SAP, Oracle APP, JDE from Oracle, Accpac ERP, BusinessVision from Stage Software) in BPR: The primary objective of an enterprise resource planning (ERP) system is to help integrate an organization's business operations and processes effectively and efficiently. Not all firms have been successful in their ERP implementations and to that end research has helped to identify many factors that might be critical to a successful

implementation. Such factors as the use of business process reengineering (BPR), and establishing a total quality management (TQM) culture have all shown to play important roles in ERP implementation. IX] Application of Advance Enterprise Financial Management System (Oracle Financials (E-Business Suite) is a Oracle Finance System, M3 Enterprise Financial Management from Lawson, CYMAIV Accounting for Windows from CYMA Systems, Inc.) in BPR: Todays business required an efficient financial reporting system to align its organization with its business strategy, correctly measure performance, meet shareholder expectations and use its business plan to forecast and steer the correct course. X] Reporting and Analysis: Reporting and analysis play an important role in Business Process Management. Operational data such as average response time, abandonment rate, elevation/transfer rate and call duration are vital to forecasting resources and understanding performance. New re-engineered reporting tool can also be used to provide insight into enterprise operations. Information such as number of interactions or incidents by product can be used in product development efforts. Nearly all Reporting Solution provide some reporting functionality, but usually additional third-party reporting solutions are needed in order to optimize the use of the contact center data fully. The BPR enhance the reporting tools as follows:

Conclusion:
Today, e-business initiatives have made the need to streamline, integrate and automate processes even more pressing. But this time, we have an opportunity to do it right. Companies are seeking ways to integrate redundant processes, eliminate unnecessary tasks and automate deployment of processes. The intent: Make tasks more efficient and less error-prone. Two things differentiate BPR efforts of the past from today's process integration initiatives. The IT-enable methodology has following feature The first is the motivation for process integration. The second is the ability to deliver technological solutions that streamline processes and support new external e-business requirements. The Second motivator behind process integration is the need to function more efficiently within and beyond the enterprise. Consider a company that has spread its order-processing capabilities across redundant business units, processes and information systems. It could consolidate those capabilities into one center if management wants to eliminate discrepancies that arise when different people use different approaches to serve the same customers. But unlike BPR efforts, process integration must consider interfaces with various third parties, such as customers, suppliers, business partners and even competitors.

Reference:
During the research we took the help of following books which help us to collect all the tabulated secondary data and the structural approach to prepare the write ups. The books and links are as follows: Books: 1. Exploring the relationships between information technology adoption and business process reengineering Author(s): Ya-Ching Lee,Pin-Yu Chu,Hsien-Lee Tseng May 2009 2. Title: The role of BPR in the implementation of ERP systems; Author(s): Suresh Subramoniam, Mohamed Tounsi, K.V. Krishnankutty; Journal: Business Process Management Journal ; Year: 2009; Volume:15 3. Do business process reengineering projects payoff? Evidence from the United States; by 4. Yasin Ozcelik on 7 April 2009. 5. Desired organizational capabilities (DOCs): mapping in BPR context M Aghdasi, A Albadvi, B Ostadi - International Journal of Production Research, 2009 - Taylor & Francis 6. Title: Selecting the best strategic practices for business process redesign Author(s): Payam Hanafizadeh, Morteza Moosakhani, Javad Bakhshi; Journal: Business Process Management Journal; Year: 2009 ; Volume: 15