- Book Chapter
3
- 10.1016/b978-0-12-386985-2.00004-6
Chapter 4 - Basic Principles of Business Process Management
- Jan 01, 2011
- OCEB Certification Guide
- Tim Weilkiens + 2 more +2
Chapter 4 - Basic Principles of Business Process Management
Whereas BPR (Business Process Re-engineering or Business Process Re-design) is being offered as a means by which organizations may be able to respond to the challenge of increased competition, Process Improvement, on the other hand aims to improve productivity, product quality and competitive advantage. Fundamentally, both activities offer a means by which organizations may be able to deal with a rapidly changing business environment, through internal change. BPR extends the concept of process change (albeit rapid change through innovation) to include changes to the basic assumptions and principles of management. The results, however are not positive: estimates of between 50 and 70% of firms fail to achieve the expected dramatic gains from BPR. An alternative to BPR for software development organizations is Process Assessment and Process Improvement. This paper presents a Process/Product Quality Model which incorporates three separate evaluations: process conformance, process effectiveness and product quality as a means of evaluating ‘what is’, i.e. the current status of activities, within a software development organization. The model aims to identify possible areas for process improvement and to uncover all relevant issues which may affect attempts to implement improvement initiatives. Preliminary findings from a set of case studies conducted within software development organizations in Australia are presented in support of the usefulness of the model.
Chapter 4 - Basic Principles of Business Process Management
Chapter 4 - Basic Principles of Business Process Management
Information architectural design in business process reengineering
Business process reengineering and information architecture share a common strategic and business process focus. Both can be mutually supportive of each other's objectives. Information architecture design can produce a stable IA capable of supporting existing as well as improved business processes. Reciprocally, business process redesign (BPR) provides a high profile business justification for the IA endeavour. Given proper collaboration between corporate and IT strategic planners, both BPR and IA efforts should produce a number of valuable common outputs. These include the identification of business processes within an organization, the prioritization of these processes based on their strategic relevance, the establishment of process performance measures, and the modelling of these processes and their supporting information resources. A synergistic model of IA and BPR is presented and selected IA techniques and modelling methods are recommended. Future research is suggested concerning the need to test the relationship between BPR and IA.
Read moreCommunication flow orientation in business process modeling and its effect on redesign success: Results from a field study
Communication flow orientation in business process modeling and its effect on redesign success: Results from a field study
Read moreBusiness Process Reengineering
The chapter defines business Process Re-Engineering (BPR) from a few perspectives to make clear what it is, what it is not, and what it should be. Essentially, the classic definitions provided by Hammer and Champy, as well as Davenport, are used. The common themes encountered in re-engineered business processes are also mentioned, including the kinds of changes that occur when a company re-engineers its business processes. In order to better explain the concepts of BPR, a business process is defined in fundamental terms and distinguished from a function or department (i.e. work unit). The basic types of business processes are described, and those that are mainly focused on by companies in implementing BPR are highlighted. In addition, a general description of the entire spectrum of business processes typical to organizations, comprising both core and support activities, is provided as an overview. Specifically, the core and support processes that apply to the construction industry are defined. In the next part, the enabling role of IT in BPR is explained in relation to how it is crucial to process innovation for e-business, as well as process integration for supply chain management in the new information (or knowledge) economy. In essence, it stresses that new information and communications technologies enable instant communication and networking, and facilitate timely data-sharing and exchange, leading to the transformation of traditional organizations into those that are highly information-based. Examples of e-business and supply chain management are provided, as well as two case studies of Internet-based construction process innovation. In particular, the design and construction process is examined to identify areas for developing process models. Focusing on achieving design and construction process integration over the life cycle of a project, the requirements for change in the construction industry are highlighted. The applications of 3D/4D models are cited as examples, showing the different areas where they can be applied to derive benefits. Building Information Models (BIM) are introduced in the later part of the chapter as an approach that enables dramatic process improvement and innovation. The key concepts of BIM are covered, including research insights into the scope of BIM use, barriers to BIM use, and effects from BIM use. Process improvements as a result of adopting BIM for the purpose of data integration, systems integration, or collaborative working are discussed in both contexts of intra- and inter-organizational use. Illustrations are provided for the three different purposes. Recent developments in BIM are reviewed to present the current state of BIM implementation in the construction industry. The chapter concludes with a summary of the main points covered on BPR.
Read moreExploration methods in business process re-engineering
Exploration methods in business process re-engineering
Customer Complaint Service Business Processes Redesign with Artificial Intelligence Technology Using Business Process Reengineering Approach (Study Case: Ceria BRI Application)
This article analyses the business process redesign of Ceria BRI's customer complaint service using Artificial Intelligence (AI) technology with Business Process Reengineering (BPR) approach. This qualitative research with a post-positivism paradigm reveals that making complaints at Ceria BRI currently uses several channels such as telephone, email, social media, and applications. The problems faced include the high number of complaints that received every month in 2023, and some complaints were resolved over Service Level Agreement (SLA). The proposed solution is to redesign the proposed business process design by applying the four stages of Business Process Reengineering (BPR), namely Visioning-Identifying-Analyzing-Redesigning. These steps aim to improve service quality, grow positive interactions with customers, and enhance the internal performance of the Ceria BRI customer complaint service team.
Read moreРОЛЬ РЕІНЖИНІРИНГУ БІЗНЕС-ПРОЦЕСІВ У ЦИФРОВІЙ ТРАНСФОРМАЦІЇ БІЗНЕСУ
The article explores the relevance of changes in the modern business environment and the role of Business Process Reengineering (BPR) in achieving competitiveness and digital transformation in enterprises. In the context of increasing competition and market instability, the article presents arguments that changes have become a necessity for organizations, and BPR is a crucial tool for adaptation and achieving strategic goals. The article's objective is to assess the impact of BPR on efficiency improvement and successful implementation of digital transformation in contemporary organizations. The authors employed interdisciplinary research methods, including the comparative method to evaluate modern approaches to BPR in the context of digital transformation. The analysis method was used to determine the influence of BPR on the effectiveness of digital transformations. Systemic and structural analysis methods were utilized to provide an in-depth examination of the structure and components of BPR and to evaluate its impact on complex enterprise systems in the context of digital transformation. The authors emphasize the importance of integrating digital technologies into the BPR process as a means of optimizing business processes and increasing profitability. The benefits of digital transformation are highlighted, but the article also underscores that successful implementation requires careful preparation and the study of innovative approaches. Various types of enterprises that may undertake BPR, including those facing financial challenges, anticipating potential issues, and aiming to stay industry leaders, are discussed. The article explores the relationship between Business Process Reengineering and digital transformation in contemporary organizations, shedding light on BPR's role in data collection and analysis to transform outdated business processes and prepare the organization for digital transformations. The article provides insights into how both approaches can interact to help organizations prepare for successful digital transformation. Common characteristics between BPR and digital transformation are discussed, including their orientation towards innovation and the use of advanced technologies to optimize business processes. The authors emphasize the need for careful preparation and the management of the digital transformation process as a critical strategic initiative for organizations striving for innovation and competitive advantage.
Read moreBusiness Process Re-engineering is always framed to achieve good results when managerial and human-centred strategies of team-working are present. Discuss whether this is achieved in practice or not, and how?
Business Process Re-engineering / Re-design (BPR) was introduced as the radical redesign of core business processes of organizations to enable them achieve dramatic improvement in service, performance, productivity and quality of products / services. It was touted in the 1990s as the newest business strategy to make management of businesses effective, after less was derived from TQM. Unfortunately, the application of the BPR strategy on businesses, example in the automobile industry, was only marginal but better than TQM. BPR was designed to re-organize organizational processes, and then make extensive use of Information Technology (IT) for running organizations. However, most of the localized organizations that adopted the BPR strategy for use, complained bitterly about the application. This was due to the fact that the managerial and human-centred strategies of team-working was not effectively achieved. However, for organizations that go global, it is a different ball game all together, as there are string of successes associated with them. Localized organizations should therefore, create the right enablement for the strategy to work, as some MNCs have been able to use BPR to achieve competitive advantage.
Read moreThe Capability Maturity Model as an Industrial Process Improvement Model
This study examined the potential of adapting the software Capability Maturity Model as a process improvement paradigm within the context of industrial process improvement. Traditional methods of process improvement incorporate some facets of Total Quality Management (TQM), business process improvement (BPI), business process reengineering (BPR), business process management (BPM), benchmarking, regulation, legislation, Six Sigma, and standards. Hypothesis testing showed two statistically significant outcomes regarding the first and the fifth maturity levels reflecting ad hoc processes and optimized processes, respectively.
Read more(Re)Designing Business Processes Using Markov Theory and Constrained State, Transition and Actor Role Spaces
Decision-making processes are the utmost important to steer the organizational change whenever business process workarounds are attempted during operational times. However, to decide the non-compliant situations, e.g., bypasses, social resistance, or collusion; the business manager demands contextualized and correct interpretations of the existing business process redesign options to cope with workarounds. This article explores the need to aid the decision-making process with a full constructional perspective to optimize the business processes redesign. So, the Markov decision process is combined with the body of knowledge of business processes, in specific, the concepts of designing enterprise-wide business transactions. This methodology supports the management initiatives with more knowledge about the value of business processes redesign. A classical chain of Order-to-Cash business processes (the order, the production, the distribution and the selling of goods) illustrate the benefits of this quantitative approach. Results obtained for business processes redesign in reaction to workarounds are reported. The analysis results show that this approach can anticipate the sub-optimal solutions before taking actions and highlights the impact of discount factors in the final obtained value. The contribution of this novel conceptual integration to the business processes community is the forecast of value function of business transaction redesign options when facing non-compliant workarounds. From related literature, business processes compliance usually comprises offline computation and the redesign is only considered in the forthcoming business processes instances. This article is innovative in the sense that it anticipates the value impact of a redesign, allowing more effective decisions to be taken.
Read moreThe Critical Improvement of Hospital Claim Fulfillment towards Public Insurance, using BPR and MIS Approach
Public insurance claim management in hospitals faces several problems managing claims hospital costs. This study aims to design improvement in the claim fulfillment process managed by the hospital using the Business Process Reengineering (BPR) and Management Information Systems (MIS) to improve service process time (efficiency) in submitting claim files and diminish claim file returns. Business process reengineering divided into two stages; modeling and simulating current business processes and proposed business processes. This study resulted in four scenarios to improve the public insurance claim process with different processing times in each scenario. The best scenario designed with entity-relationship diagram (ERD) and data flow diagram (DFD). The best combination of proposed scenarios uses Electronic Medical Record (EMR), Hospital Information Systems (HIS), and improved fulfillment claim systems at Public Insurance Institution. This study result average cycle business process time reduced from 28 days to 14 days with an increase in efficiency of 78,73%.
Read moreBusiness process redesign at CompuNet—standardizing top-quality service through IT
Business process redesign at CompuNet—standardizing top-quality service through IT
Analisis Proses Bisnis pada Dinas Perdagangan Kota XYZ dengan Menggunakan Business Process Management Lifecycle
The XYZ City Trade Office is a government organization that is engaged in regulating the stability of staple food through trade activities in XYZ City. This study aims to identify the existing business processes at the XYZ City Trade Office, in addition to being identified, this study will also conduct an analysis and improvement and redesign of the business processes currently being implemented by the XYZ City Trade Office. The steps taken to identify business processes are by conducting interviews related to the duties and functions of each entity and the Office to stakeholders in the XYZ City Trade Office. The methodology used to identify, describe, analyze and redesign business processes is the Business Process Life Cycle (BPM Lifecycle). The identification results are 36 business processes, and 3 of them are export business processes, import business processes, and processes Business Can Send and Evaluate. In all three business processes further evaluation and analysis are carried out. The analysis and evaluation is to first describe the business process in the form of business process modeling notation (BPMN) using bizagi modeller, then measure the quality of business processes, and analyze weaknesses, and compare with the duties and functions of the Ministry of Trade of the Republic of Indonesia, so that improvements to the process for the third the business process. Improvements for the Export and Import business processes are by adding oversight processes at the shipping stage, and business process improvements Conducting Shipment and Evaluation is by removing the activities of Giving Delivery News.
 
 Keywords: Business Process, BPMN, BPM Lifecycle, Bizagi Modeller
Read moreBusiness Process Reengineering a Sustained Trend?
Business Process Reengineering (BPR) is an important aspect of Business Process Management. The concept of BPR has been widely discussed in the past decade; however, it remains undetermined how prevalent the applications of Davenport, Hammer and Champy’s ideas are, especially with respect to their relevancy for actual business practice. This paper analyses which ideas of BPR actually have been implemented in practice many years after the “hype”. Based on a survey, the BPR-practices of major German enterprises listed in the German stock market are investigated. The study indicates that BPR is important in practice, although not all ideas of BPR seem to be wholly implemented. Especially the ideas of radical redesign of business processes and the process-oriented organizational structure could not be confirmed by the survey.
Read moreBusiness process redesign as a basic aspect of digital business transformation
Background: It is widely accepted that the digital transformation of business is increasingly attracting the attention of researchers from the academic circles as well as professionals from the business community. The main consequence of this lies in the daily development of new and improvement of existing digital technologies. The outcomes of such events on the market are reflected in all aspects of companies' operations. For this reason, they are constantly looking for various improvements to their business, which most often include the implementation of new technology. Mere implementation of a new technology without any other changes very often leads to failure. The core of this failure can be found and attributed to inadequately identified, analysed, documented and established business processes. Business process management (BPM) and redesign as its integral part are actually an indispensable segment of a successful process of digital business transformation. Therefore, the digital transformation of business should not be viewed exclusively from a technological perspective, but also from a process viewpoint. Purpose: With the aim of shedding additional light on the connection between business process management and digital business transformation, the paper aims to identify and explain the importance of business process redesign. Study design/methodology/approach: For the purposes of this paper, a systematic literature review was conducted. Findings/conclusions: The result of the conducted research indicates that a process approach to the digital transformation of business can contribute to significantly different, more successful results. Limitations/future research: Limitations refer to the number of databases searched during this systematic literature review. Subsequent research could include additional sources that would include additional works that can contribute to a better research result.
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