BUSINESS PROCESS RE-ENGINEERING

(BPR)
PRESENTED BY:
Vikramjit Singh
Roll No. 130423392
MBA, Ist Semester

INTRODUCTION

BUSINESS PROCESS
A process is an activity which provides an output
by adding value to an input.

This process invariably includes any action
which would result into a better and value added
key performance indicator (KPI).



Business process must have a definite Customer i.e.
there has to be a recipient of the outcome of the
business process. Further, it should be Integral and
Adding Value to the business.

RE-ENGINEERING

The term engineering implies the application of technology
to modify something; say; a design, process, product,
system, etc.
BUSINESS PROCESS RE-ENGINEERING (BPR)
BPR is about taking a tough look at why, what, when, how
and where the organization does the things; the way it
does.
NEED OF BPR

The business dynamics today is governed by factors like
new technologies, new competitors and again, new rules of
competition.

In such an ever-changing business environment, BPR is
needed for One, the rapid change, Secondly, the customer
and lastly, todays intense competition demands the
business processes at par with the best practices prevalent
in the industry.

BPR IN USA, EUROPE AND INDIA

REVERSE INNOVATION (BUSINESS MODEL RE-
ENGINEERING)
Globalization thus being coined as: the localisation of
globally successful technologies.

ENGINEERING INITIATIVES
A few reengineering initiatives undertaken by the banks,
railways, Management institutes of repute for admission
process in India.
ATM (Automatic Tellers Machine)
Common Entrance Test (CAT)
Railway Reservation
Assessment of Income Tax


Inspite of the above cited illustrations for BPR,

The example of these kinds can be noticed in
every field of life. Some of them are:
(i) Automatic clearance of Foreign Direct Investment
Proposal, and
(ii) Removal of quantitative restrictions on import and
(iii) Exports of some items/commodities, sales tax self
assessment schemes, etc.

BPR: A REVOLUTIONATY IMPROVEMENTS FOR
BUSINESS OPERATIONS
Business Process Reengineering means not only change --
but dramatic change.

EMERGENCE OF BPR
In 1990 and again in 1993, some definitive works were put
forth by Dr. Michael Hammer, James Champy, and Thomas
Davenport.

CONCEPT OF A BUSINESS PROCESS REENGINEERING
Around the early to mid 90s the concept of
business process reengineering gained popularity,
through the publishing of ideas of several well
known management gurus.
IMPACT OF BPR ON ORGANIZATIONAL
PERFORMANCE
Business Process Reengineering is the key to
transforming how people work.

Even the act of documenting business processes
alone will typically improve organizational efficiency
by 10%.

IMPLEMENT A BPR PROJECT

Build these into a clear business strategy thereby deriving the project
objectives.

Defining behaviors that will enable the organization to achieve its'
aims.

Producing key performance measures to track progress.

Relating efficiency improvements to the culture of the organization

Identifying initiatives that will improve performance.

TOOLS TO SUPPORT BPR

The types of attributes you should look for in
BPR software are:
Graphical interface for fast documentation
"Object oriented" technology
Drag and drop facility
Customizable meta data fields
Analysis, such as swim-lanes
Support for Value Stream mapping
Simulation software to support 'what-if' analyses
The production of word documents or web site
versions

DRAMATIC IMPROVEMENTS
Business Process Reengineering or BPR is the radical redesign
of business processes through fundamental rethinking.

CORE BUSINESS PROCESSES
Well known processes that can be counted as core are Customer
Service, Sales- and Marketing, and Business Development.

THE ROLE OF INFORMATION TECHNOLOGY IN
BPR
The role of Information Technology in BPR programs is that
of an enabler.





BUSINESS PROCESS IMPROVEMENT AND
BUSINESS PROCESS MANAGEMENT
For almost every company Business Process Improvement
(BPI) and Business Process Management (BPM) have
become critical and essential methods and tools.
COMMON STEPS WHEN PERFORMING BPR
Project Phases Required For Successful BPR:
Phase 1: Begin Organizational Change
Phase 2: Build the Reengineering Organization
Phase 3: Identify BPR Opportunities
Phase 4: Understand the Existing Process
Phase 5: Reengineer the Process
Phase 6: Blueprint the New Business System
Phase 7: Perform the Transformation

BPR CASE STUDIES

ENTERPRISE-WIDE BPR FOR A LEADING INDIAN
AUTO MANUFACTURER
Business Challenge
The client, a leading Indian automobile
manufacturer of multi-utility vehicles and light
commercial vehicles (LCVs), had plants in four
locations, an extensive supplier base and a
distribution and service network across India.

MAHINDRA SATYAMS SOLUTION

They were:
Long-term Business Strategy
Process-Centric Enterprise (PCE) Phase I
Process-Centric Enterprise PCE) Phase II
The core processes were identified as:
Business Planning
Product Management
Order Management
Customer Management
Vendor Management





Benefits
The BPR program produced dramatic benefits
that affected every area of the company

Business Value Enhancement (BVE)
Business Value Enhancement (BVE), the
Business Process and Technology Consulting
group in Mahindra Satyam

THE BPR STORY AT ONGC A SUCCESS
STORY
When Oil and Natural Gas Corporation Limited- India's
largest oil exploration and production company- set out
to completely transform its business, it turned to SAP
solutions and services.

PRE-ERP DAYS
ONGC used PC-based legacy system for material
management, project monitoring and maintenance
planning.

EXISTING ENVIRONMENT

Database: Oracle
Hardware: HP, Compaq, IBM and Sun
Operating system: Microsoft Win NT, Sun
Solaris, and Unix

PROJECT OBJECTIVE FOR SAP IMPLEMENTATION:
Optimization and standardization of business processes

Higher visibility of operations to improve productivity

More efficient processes with higher visibility of costs

Integration and extension of value chain
Other objectives of Project ICE:

Integrate all scientific systems

The rest of the amount will be spent on EPNet

The companys hardware investment would
relate high power computing
IMPLEMENTATION

SAP India signed its largest ever deal in India
ONGC for implementation of the ICE (Information
Consolidation for Efficiency) project.

POST IMPLEMENTATION

Business Process Re-engineering
Improved, disciplined approach to accounting, procurement
and financial systems

Rapid acceptance and improved performance by workers

Improved ability to compete through the strategic use of new
IT platform

Improved visibility of business processes across different
business functions from exploration to production to sales and
offshore joint ventures

BUSINESS PROCESS REENGINEERING PROJECT OF
INCOME TAX DEPARTMENT, MINISTRY OF FINANCE,
GOVERNMENT OF INDIA
Background & Need for the Project
Collection of Direct Taxes which is administered by the
Income Tax Department (ITD for short) has been
growing at a very fast pace in recent years.

Objectives of the Project
In recent years Income Tax Department has taken a
number of initiatives and implemented projects aimed at
providing better taxpayer service, reducing compliance
burden on tax payers and improving enforcement

The BPR project was conceptualized with the prime
objective of identifying the bottlenecks and providing
solutions
Re-evaluation of all current processes to remove the
redundant and obsolete processes
Identification of stakeholders needs
Use best and leading practices of other organizations to
develop milestones
Increase alignment between people, processes and technology
Enhance employee involvement, skills and organizational
creativity

Outcomes
The Business process Re-
engineering of the Income tax
Department is first such project
initiated by the Government of
India where a comprehensive
study

Whereas all the
recommendations made in the
BPR report cannot be
summarized here, some of the
recommendations focused
around taxpayers services and
revenue augmentation are
highlighted here :

CONCLUSION

The BPR exercise has come up with a major recommendation of
functionally segregating the working of the Department across two broad
lines a Bulk Operations Division (BOD), and a Compliance Operations
Division (COD) to carry out specialized activities for a smaller number of
taxpayers.

The new technology initiatives together with functional segregation of
departments operations into bulk and compliance and upgradation of
manpower skills would help the department to deliver better taxpayer
services

CONCLUSION

The business process reengineering effort seeks to
change process structure by empowering motivated
front-line workers to make decisions by providing access
to relevant information.

The concept of BPR is actually industry-neutral. Typically
medium to large companies in any sector will benefit
from BPR.

At this stage, companies must step back and look at
their business models to identify the key business
processes in their value chains.

They must look for any bottlenecks, devise means to
improve processes, or do them differently.

They must also look out for any organizational and
procedural hurdles, which stop them from maximizing
efficiency and value-focus.