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5. A Cow Path?

8. Processes Are Often Cross Functional Areas Supplier Customer/ Markets Needs Value-added Products/ Services to Customers "Manage the white space on the organization chart!" "We cannot improve or measure the performance of a hierarchical structure. But, we can increase output quality and customer satisfaction, as well as reduce the cost and cycle time of a process to improve it."

12. Ford Procurement Process Accounts Payable Vendor Goods Receiving Payment Goods received Purchasing Purchase order Purchase order Data base

18. New Business Model: A Conceptual Breakthrough Target & Segment of Aggregate Market Use Individual Information Use Group Information Prospects Customers Sell & Renew Capture Individual Information & Personalized Service “ I Think I Know.” “ I Know for Sure.” Market Management Customer Management

23. Reengineering Example Which line is shorter and faster? Cash Lane No more than 10 items

27. Business Process Reengineering Life Cycle Define corporate visions and business goals Identify business processes to be reengineered Analyze and measure an existing process Identify enabling IT & generate alternative process redesigns Evaluate and select a process redesign Implement the reengineered process Continuous improvement of the process Visioning Identifying Analyzing Redesigning Evaluating Implementing Improving Manage change and stakeholder interests BPR-LC   Enterprise-wide engineering Process-specific engineering

28. TI Semiconductor Business Process Map Manufacturing Capability Development Strategy Development Product Development Customer Design & Support Order Fulfillment Concept Development Manufacturing Market Customers Customer Communication Source: Adapted from Hammer and Champy, 1993, p. 119.

29. Using Value Chain to Identify High-Level Processes Added Value Corporate Infrastructure Inbound Logistic Operation Outbound Logistic Service Sales and Marketing Primary Activity Supporting Activity Human Resource Management Procurement Technology Deployment

32. Phase 4: Redesigning Identify enabling IT & generate alternative process redesigns Information Technology Business Reengineering How can IT support business processes? How can business processes be transformed using IT? Source: Thomas H. Davenport and James E. Short, “The New Industrial Engineering: Information technology and Business Process Redesign,” Sloan Management Review, Summer 1990, pp. 11-26. Technology-driven Business-pulled

36. End-to-End Processes Customer Manufacturing Inventory Mgmt. Shipping Marketing/ Sales Account Receivable

38. Empowered Customer-Focus Processes Values and Quality delivered to Customers timely Empowered Font-line worker Customer-facing Process Manager as Coach Teamwork

39. Think from the Customer Back The Customer Management Organization Functions/Processes Activities/Tasks Define Outcomes Redesign Outputs Determine Activities Define Job Responsibilities Develop Organization Structure * Adapted from The Price Waterhouse Change Integration Team, Better Change , Irwin, 1995, p. 163.

41. Standard Flowchart Symbols Activity Movement/ Transportation Decision Point Paper document Delay Storage Connector Begin/End Annotation Direction of process flow Transmission

42. Functional Flowchart (Process Mapping) Customer Service Credit Checking Inventory Shipping Begin Enter Order Check Credit Yes Order Processing Update Inventory Ship order End PROCESS  CYCLE  1 2 1 1 1 2 0.1 4 3 0.2 1 4 ... ... ... ACTIVITY Wait for shipping No Customer

43. The Reengineering Diamond Business Processes & Functions Management & Measurement Systems Jobs , Skills, & Organizational Structures Values and Beliefs Enlighten Entail Demand Foster Culture Customers & Info. Tech. Competitors Markets Customers & Suppliers