...Business process re-engineering is a business management strategy, originally pioneered in the early 1990s, focusing on the analysis and design of workflows and processes within an organization. BPR aimed to help organizations fundamentally rethink how they do their work in order to dramatically improve customer service, cut operational costs, and become world-class competitors.[1] In the mid-1990s, as many as 60% of the Fortune 500 companies claimed to either have initiated reengineering efforts, or to have plans to do so.[2] BPR seeks to help companies radically restructure their organizations by focusing on the ground-up design of their business processes. According to Davenport (1990) a business process is a set of logically related tasks performed to achieve a defined business outcome. Re-engineering emphasized a holistic focus on business objectives and how processes related to them, encouraging full-scale recreation of processes rather than iterative optimization of subprocesses.[1] Business process re-engineering is also known as business process redesign, business transformation, or business process change management. Contents [hide] • 1 Overview • 2 History o 2.1 Reengineering Work: Don't Automate, Obliterate, 1990 o 2.2 Development after 1995 • 3 Business process reengineering topics o 3.1 The role of information technology o 3.2 Research and methodology • 4 BPR success & failure factors o 4.1 Organization wide commitment o 4.2 BPR team composition ...
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...underperforming Organizations According to Davenport (1990) a business process may be defined as a set of logically related tasks whose performance leads to a desired outcome. Re-engineering of these business processes means the analysis and re-design of workflow within and between enterprises. A cycle of BPR can be identified as under – (Radhakrishnan) * Identify the present processes and the outcomes of these processes * Analyze the process, review them and find out the points where business processes are lacking. * Make a new design to re-align the business processes along the lines of best practices within the industry or even outside the industry. * Implement the new business processes and test them. Once the BPR is done, we again analyze the processes which are being followed currently thus making BPR a continuous improvement process. When an underperforming organization embarks on a mission to re-engineer its business processes it can mean the turnaround of the firm or its complete collapse. As the firm is already underperforming so finding benchmarks will not be much difficult .However the difficulty with such a firm will be employee motivation and resource crunch. These are the key issues to be dealt with when doing BPR for an underperforming firm. IT is one of the means through which BPR can be achieved ; it is not an end itself. (Guy Doumeingts) The ERP package is there to help the BPR process. Many firms equate BPR with the implementation of the ERP...
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...Business Process Re-engineering Originally published as ETHIcol in the IMIS Journal Volume 6 No 2 (April 1996) Much has been written about the success and failure of Business Process Re-engineering (BPR). Leadership, organisational, cultural and people issues have been identified as the major obstacles in achieving BPR success. Without doubt, there will be winners and losers in this activity. There is evidence to suggest that BPR errs on being socially insensitive and perhaps this is why most re-engineering efforts have had little measurable impact on the overall business. Consequently, it is important that organisations about to embark on such programmes are fully aware of the potential impact on individuals, groups, and society as a whole. Given the major impact that BPR has on an organisation and that this impact involves the generation, dissemination and use of information to sustain the redesigned processes it is inevitable that IT has a central role in this activity. For example, telecommunications often figures in reducing co-ordination costs or increasing the scope of co-ordination, and shared databases are commonplace in the provision of information across and during processes. Within BPR there are numerous activities and decisions to be made and most of these will have an ethical dimension. There are issues relating to both the process and the outcome of BPR. In his recent book, The Re-engineering Revolution - The Handbook, Michael Hammer sets out 10 guidelines based...
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...of the system, the retrieval process willspeed-up. To be able to generate immediate sales report. With the use of thesystem, the incomes are classified as product sales. The total sales areautomatically computed and sales report is generated. In addition, the user canalso view the total sales daily, weekly,monthly and yearly. In this way, it canproduce an immediate sales report. To provide an efficient monitoring of stocksand re-ordering. By checking in the system, it will be easy to identify the numberof available and lessening product and which is need to re-order. In addition, theexpiration of the product is also monitored in the system. Brief Description of the System Information Technology or I.T is endless important to a business due toits plethora of function. Firstly I.T can be used to enhance your customersexperience with your company, through use of a well-designed website. Thisallows you to connect with people that you may not have previously been able toreach, due to them living away from cities or even branching out overseas. Thisis profitable for a business as quite simply, it brings in more customers andtherefore more money.The used of automated system nowadays has a great impact in manydifferent fields, especially in businesses. In this dynamic environment, theinformation processing of the business operations relies on the informationsystems and technology. It paved the way to improvement and development ofthe business process. One of the most common used...
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...The Information Society, 16:5–21, 2000 Copyright ° c 2000 Taylor & Francis 0197-2243/00 $12.00 + .00 Re ning and Extending the Business Model With Information Technology: Dell Computer Corporation Kenneth L. Kraemer, Jason Dedrick, and Sandra Yamashiro Center for Research on Information Technology and Organizations (CRITO), Graduate School of Management, and Department of Information and Computer Science, University of California, Irvine, Irvine, California, USA Keywords The exceptional performance of Dell Computer in recent years illustratesan innovative response to a fundamental competitive factor in the personal computer industry—the value of time. This article shows how Dell’s strategies of direct sales and build-to-order production have proven successful in minimizing inventory and bringing new products to market quickly, enabling it to increase market share and achieve high returns on investment. The Dell case illustrates how one business model may have inherent advantages under particular market conditions, but it also shows the importance of execution in exploiting those advantages. In particular, Dell’s use of information technology (IT) has been vital to executing both elements of its business model—direct sales and build-to-order—and provides valuable insights into how IT can be applied to achieve speed and exibility in an industry in which time is critical. Many of the insights gained from this case can be applied more generally to other time-dependent industries...
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...and business process discipline as strategic capabilities. As companies move through each stage they can realise benefits rangin from reduced IT operating costs to greater strategic agility. Stage 1: Business silos In this stage companies focus IT investments on delivering solutions for local business unit or functional needs and have do not utilise technology standards. The role of IT in this stage is to automate or facilitate specific business processes. One off solutions Bottom-up. IT led by local business units Poor integration with other IT systems Poor server utilisation Little shared data Stage 2: Standardised technology This stage means moving some IT investments from local applications to shared infrastructure. Technology standards are now established intended to increase reliability and decrease the number of technology platforms to manage. Fewer platforms means lower cost (around 15% less) but also less choice, however companies are willing to accept this tradeoff. Rationalisation, standardisation, and consolidation of the IT infrastructure Achieving a reliable, cost-effective IT infrastructure shared services model Focus on quick wins Stage 3: Optimised core The next move is from a local view of data and applications to an enterprise view. IT staff eliminate data redundancy by extracting transaction data from individual applications and making it available to all processes. In this stage companies are also standardising business processes...
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...Staffing Plan Paper The following report is an overview of Dell Company as it expands its computer business into the Indian market. This paper identifies the challenges facing Dell as it expands into India, including the cultural and regulatory factors involved. In addition this paper will identify the staffing strategies employed by Dell including the recruitment and selection process of its business managers. This paper will discuss the changes to Dell's organizational structure as it expands into the Indian market. A competitive analysis is also made, which shows the strategic alternatives and choices for the future Industry Identifications In both manufacturing and consumption, Asia/Pacific represents the most dynamic region of the worldwide PC industry. The people at Dell believe that their continued successful will require teamwork and continuous learning on the part of each team member in order to develop and grow. Dell focuses on building a pipeline of talented, diversified individuals in order to meet current and future staffing needs in order to develop Dell's leaders of tomorrow. They focus on attracting top candidates with the skill sets they require by working on the basis of early recruitment and full utilization of their pipeline program. This strategy has supported their mission statement fully until now. But if Dell plans to take a large amount of the market share in India, it will have to change its mission and strategy according to the needs of...
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...company was facing. Maria Chen would lead part of the team for her first time on this 12-week engagement, but would in occur some difficulties throughout the first 6 weeks of the project. The Deloitte team has a lot of work to do before the end of the engagement in order stabilize the company and prepare them for a more radical long term project that plans to “reengineer” their business process. Most of the responsibility for the slow start on the project is resting on Chen’s shoulders due to the choices she has made during the first half of this engagement. Why does SKS need Deloitte’s services? Would you have approached the improvement problem in the same way as Deloitte in terms of defining the problem and work planning? SKS needs Deloitte’s services for a number of reasons with the main influence being that they were having a cash flow problem, and they didn’t have the experience or manpower to address this problem themselves. As there were a number of unfinished components sitting between presses and “‘split-batches’” making the production shop “a little chaotic”, their whole process scheduling likely had issues. Additionally, they were having difficulty maintaining acceptable levels of customer service by being late to ship a significant proportion of the orders. Deloitte focuses on four improvements in four main areas: operations, information technology, financial management, and strategy development. These areas are very pertinent to solving the cash flow...
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...Meleandez Assistant Operations Site Manager CC: James Castro Regional Operations Manager Date: [ 7/9/2012 ] Re: Operational gap with in organization and Business development Purpose This memo is being forwarded to you in regards to addressing a potential operational gap and limitation of growth with in our organization that needs to be addressed. There is a need to add an outside sales representative to develop and improve existing account possibilities. Summary In an attempt to analyze current market trends and possible business growth with in the solid waste industry, I have found that our current business model has been out grown by our current business needs. Currently, the Assistant Operations Manager develops and establishes new accounts, services existing customer’s accounts, provides the safety training and regulation implementation, and manages the work force outside of the office. The in-house sales representative position has not been able to meet all of our customers needs completely with all of the office duties associated with the position, in addition to developing new cliental. This indicates that there are a number of possible business opportunities with in our region that are not being addressed and possibly lost by our organization. When the business was acquired 15 years ago, by our conglomerate the current business model satisfied the business’ needs. Since then or organization has grown to three times the size. By developing and providing new products...
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...control of foreign subsidiaries. Global integration from a control perspective is thus both about control and co-ordination with these being used in combination to achieve consistency of international business activities across borders. The transfer of practices to those subsidiaries The transfer of firm-specific practices for the purposes of achieving consistency and alignment amongst foreign subsidiaries also addresses the need to intergrade dispersed knowledge and practices, which is argued to be an important basis for competitive advantage firm. The appropriate adaptation of activities that requires both an understanding of parent practices and local conditions. Drivers of Global integration 1. Environmental drivers The novelty and limits of globalization notwithstanding, there are many features of globalization that are making global integration more feasible, more desirable and even more necessary. Few of them are the diminishing significance of national borders, supernational integration, the dismantling of trade and investment barriers etc. Environmental drivers of global integration put pressure on MNCs to take a course of action regarding their international strategy and structure. 2. Strategic drivers capture the business advantages that are realizable by pursuing global integration. Evans (2002) list a number of such strategic drivers that they see as supporting the adoption of a globally integrated approach to managing...
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...Importance of Six Sigma as Process and Sustainability Improvement in United Parcel Services Martin Tunggadjaja March 2013 ABSTRACT Six Sigma is a process improvement developed by Motorola in 1985 that encompasses a set of strategies and tools acquired in order to improve the current business practice and systematic processes to fulfill the objectives. It is initially designed to measure how many faults or defects are in the process so that they can be eliminated systematically as part of improvement to reduce weaknesses and reinforce quality. One of popular process improvement methodology that is part of Six Sigma is DMAIC, which consists of: Define, Measure, Analysis, Improve and Control. Originally Six Sigma was first incorporated into manufacturing industries; this methodology also applies well to logistics companies since the focus is customer-oriented. Supply chain management is a key strategic factor for increasing organizational effectiveness and for better realization of goals such as enhanced competitiveness, better customer care and increased profitability (Gunasekaran, Patel, Tirtiroglu, 2001, p71). Therefore, Six Sigma as shown to be successful in delivering business benefits through variation reduction (Knowles, Whicker, Femat, 2005, p51). This paper discusses how Six Sigma apply to the logistics processes and an example case study of United Parcel Service (UPS) incorporating this technique to reposition itself in the world’s most improved logistics and...
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...Current Events in Business Research Shequyta Boyd RES /351 11/23/2015 DEBRA MARRANO-LUCAS Current Events in Business Research In the manufacturing world, the goal is to reduce manufacturing cost and to increase speed to market. By employing lean techniques to a company’s everyday manufacturing process can help an organization successfully work to its full potential. Lean Manufacturing streamlines processes that help organizations minimize or remove non-value work activity from the company’s manufacturing process. I work for General Dynamics Mission Systems, a global company that specializes in military defense. To improve product cost, scheduling, quality, and performance, General Dynamics Mission System have deployed an active Lean Six Sigma program. Lean Six Sigma is a combination of two processes, Lean and Six Sigma. Lean is a systematic method for the elimination of waste. Six Sigma is a methodology for eliminating defects, mistakes, or failures in business processes. Both processes are a set of principles aimed at continuous improvement. Lean Six Sigma has become a popular technique for deploying continuous improvement in the manufacturing arena, but not all companies have successfully benefited from the Lean Six Sigma process—mainly due to poor execution. Jeyaraman and Teo (2010) “A Systematic Review of Lean Six Sigma for the Manufacturing Industry” and Albliw, Antony, and Lim (2015) “A Conceptual Framework for Critical Success Factors of Lean...
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...The two risks involved with outsourcing a business process (the off-shore ministry of health) 1. Does the outsourced vendor have adequate internal controls in place 2. Is the outsourced vendor able to provide the same or better quality of the product or service that could be achieved by keeping the business process in house. Three recommendations for the two above risks 1. Ensure there are means of monitoring the effectiveness of the outsourced business process 2. Obtain assurance that the internal controls imbedded in the outsourced business process are operating effectively, through internal audits or external reviews of these controls. 3. Periodically Re-evaluate whether the business case for outsourcing the process remains valid. Limitations of Internal control (5 examples) 1. Human judgment is not perfect(subject to bias) 2. Breakdowns can occur because of errors or mistakes 3. Controls can be circumvented by collusion (two or more people) 4. Management can override controls 5. Controls must be cost effective (costs versus benefits)/ 6. External events outside the organizations control. Why is important from a governance prospective to have an outside director on the Board of Directors. 1) Management receives direct compensation for their work and makes decisions that benefit the short run instead of shareholders long term goals. Having independent directors who don’t receive direct compensation but receive...
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...introduce the concept of technology into an HRM office? What factual information would you share to convince the business leaders of the value of HRM technology? Provide a thorough explanation. TCO B: Explain how HRM technology can improve efficiency and effectiveness of HRM functions. How, specifically, can technology support the business. Provide an example. (Points : 30) TCO C: You are the new staffing manager for Square, Inc., a large and still growing company with 23 locations nationwide. Square Inc. hires approximately 300 employees per year. They currently place advertisements in their local paper to source candidates. They also receive an estimated 2,000 unsolicited resumes annually, but usually find it too time consuming to review them all. Currently, Square Inc. does not utilize technology in their staffing processes. Assess the given situation at Square, Inc. and recommend specific ways that Square, Inc. could utilize HRM technology to improve the effectiveness of their staffing function. In your recommendations, be sure to address any potential problems that might arise from the use of each technology you are recommending, and provide solutions for those problems. (Points : 35) TCO D: You’ve heard the cliché, “if it’s not broken, don’t fix it.” When, why and how would you re-engineer business processes, specifically HRM? Explain and assess the process you would follow in responding to each of these components (when, why and how). (Points : 30) TCO H: What are some...
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...without interruption whenever someone requests them, and perform them more and more effectively. In short, lean thinking is lean because it provides a way to do more and more with less and less – less human effort, less human equipment, less time, and less space – while coming closer and closer to providing customers with exactly what they want.”- Womack and Jones (1996). “Becoming ‘lean’ is a process of eliminating waste with the goal of creating value.” – Womack & Jones There are FIVE overriding principles to Lean. Identify Customers and Specify Value - The starting point is to recognise that only a small fraction of the total time and effort in any organisation actually adds value for the end customer. By clearly defining Value for a specific product or service from the end customer’s perspective, all the non value activities - or waste - can be targeted for removal. Identify and Map the Value Stream – The Value Stream is the entire set of activities across all parts of the organisation involved in jointly delivering the product or service. This represents the end-to-end process that delivers the value to the customer. Once you understand what your customer wants the next step is to identify how you are delivering (or not) that to them. Create Flow by Eliminating Waste – Typically when you first map the Value Stream you will find that only 5% of activities add value, this can rise to 45% in a service environment. Eliminating this waste ensures that your product or service...
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