The document discusses business process reengineering (BPR), including its key concepts, approaches, examples, and benefits. BPR involves fundamentally rethinking and radically redesigning business processes to achieve dramatic improvements. It ignores the current processes and concentrates on designing new, improved processes. The examples of IBM Credit and Kodak show how BPR was used to dramatically reduce processing times and improve productivity.

1. Teguh I Santoso, MBA BUSINESS PROCESS REENGINEERING Chapter 1

11. Process: Where and Who? NEED CUSTOMER PRODUCT/SERVICE

12. Reasons for BPR Competition Market Share/ Profits Technology Stock Price More Important Less Important

20. Obstacle to Reengineering Most Important Least Important Organization Time Risk Cost

21. Reengineering Vs Incremental Incremental improvement Time Performance Improvement Reengineering then continuous improvement

22. Reengineering vs. Other Methods Dimension Reengineering Rightsizing Restructuring TQM Automation Assumptions Questioned Fundamental Staffing Reporting relationship Cust. wants and needs Technology applications Scope of Change Radical Staffing, job responsibilities Organization Bottom-up Top-down Orientation Process Functional Functional Process Procedure Improvement Goals Dramatic Incremental Incremental Incremental Incremental

28. Example Case: IBM Credit 1 Request for financing from IBM Corp sales representative, IBM Credit staff log on a piece of paper (14 Staff) 2 Someone carted that paper to the credit department, where the specialist entered the information into a computer system and checked the potential borrower’s creditworthiness The specialist write the result of the credit check on the piece of paper and dispatch it to the business practices department 3 The business practices department modify the standard loan agreement in response to customer request When done, a person in that department would attach the special terms to the request form 4 Appraiser write the rate on a piece of paper, enter the data into a PC spreadsheet and give the paper to a clerical group 5 An administrator turn all this information into a quote letter that could be delivered to the IBM sales representative by Federal Express

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