week 10 - BPR Methodologies - 5th post

Sources:
1) Definition of Methodology http://en.wikipedia.org/wiki/Methodology
2) HCL Technology (Process Consultant) http://www.hcltech.com
3) Sotiris Zigiaris. (2000) Business Process Re-engineering. InnoRegio.
4) Bertrand Iroegbu. (2011) Business Process Re-engineering (Case study of CISCO).
http://www.articlesbase.com/strategic-planning-articles/business-process-re-engineering-case-study-of-cisco-4332955.html

Subject:
In Lecture 7 - BPR Methodologies
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What is methodology?

It is a framework with several steps in logical order. It can be treated as an approach for development of a project effectively. For BPR methodology, it is an algorithm or a set of rules for business to follow and work out the business process improvement. It is not only a number of orderly steps, but also procedures with theory support. That’s the point to differentiate from method and procedure.

The BPR methodologies in lecture notes

The BPR methodologies in the lecture notes are more like Hammer's. They are:
Phase 1: Triggering & executive visioning

        This is the initiation of a BPR project. It starts with the purposes, aims, problems to be solved, and internal and/or external forces. Process(es) to be re-engineered are chosen at this stage.

Phase 2: BPR Project mobilization

        This is the start of working in a BPR project. Human resources going to take part in the project are selected. It is suggested that people with sufficient IT knowledge have to be one of the participants to ensure the IT-enabled improvement utilizing technology well.

Phase 3: Process redesign

        This is the design stage of business process. The AS-IS and TO-BE processes are considered. New business processes arrangement is derived.

Phase 4: Implementation & organizational transformation

        This is the stage of applying the design. There are actual amendments to the AS-IS process. The TO-BE processes will be put into practice.

Phase 5: Monitoring & maintaining

        This is the stage of maintaining the TO-BE processes and keep them work as planned. Modification of IT may be made to fit the current environment.

However, for the Davenport's, it includes assessment for IT resources, which provides a more comprehensive analysis about the feasibility of BPR project.

The BPR methodologies for HCL

HCL is an India IT solution company. It has a different set of BPR methodologies than the classical one. The following figure is the methodology it adopted while providing recommendations and assistance to client companies.

One of the businesses it had applied the methodologies to, is a leading provider of advanced wireless solutions. The business needed to reduce huge use of resources derived from its fast growth. It also needed to increase connection between processes to improve responsiveness to the market. Therefore, HCL provided the following solutions, which also reflected the BPR methodologies it applied.

Analysis of business process >> Comparison between industry best practices and AS-IS process >> Advices of improvements can be done >> Provision of framework >> Implementation >> Roadmap and advices of long-term improvements required

Another business it had applied its own methodologies to is a leading portal. The business needed to automate its online shopping service and track customer taste efficiently. Therefore, HCL provided the following solutions, which are similar to those for the business in previous paragraph.

Analyze business processes >> Identify business objectives >> Identify processes causing the problem >> Compare industry best practices and AS-IS process >> Examine the existing IT resources and possible IT development >> Examine the related IT infrastructure available in the market >> Translate the IT development possibilities to the requirements >> Prioritize requirements >> Implement the plan along with continuous recommendations

From the 2 examples and the methodology shown in the figure, we can abstractly conclude the methodologies as followings:

Phase 1: Planning

        Understand the objectives of the business and processes and analyze AS-IS processes.

Phase 2: Discover

Compare AS-IS processes and industry best practices, collect information (e.g. IT resources available) to facilitate analysis.

Phase 3: Analysis

Assess IT resources in the firm and the market, evaluate opportunities of improvement.

Phase 4: Re-model

Design for TO-BE processes using analysis results and prioritize requirements.

Phase 5: Implementation

        Put design into practice, prepare for impact after re-engineering, and make refinement continuously.

Both business cases are updated in 2010. In other words, it may be revealing the workable BPR methodologies nowadays. Besides, as the information flow is better than before, it is not a must to follow the academic suggestion. Comparison with the industry best practices may help identify the issues and possible area of improvement. 

The methodologies are actually mostly the same as that of Davenport's. Davenport's one includes consideration of IT resources available, which is a feature different from that of Hammer's. The 2 examples show that the contemporary BPR is mostly following Davenport's rather than Hammer's.

Other than compliance with modern business world, the HCL methodologies also merge with change management and project management. It is more comprehensive. Not only the improvement of business processes is concerned, the success of implementing the project and impact of change to the firm are concerned. These considerations imply that other than the quality of process design part, the quality of the supporting stages (e.g. smoothness of the project implementation, impact and risk brought by the TO-BE processes, etc.) are also vital to the success of BPR.

HCL and Cisco, a networking leader, had BPR methodologies. They are:
Phase 1: Visioning, setting objectives
Phase 2: Identify processes to be re-engineered
        Identify and prioritize processes needs to be re-engineered.
Phase 3: Evaluate AS-IS processes
        Examine the processes while developing solutions.
Phase 4: Assess the IT available in the market and the firm
Phase 5: Re-design
        Re-design and develop TO-BE processes.

It includes assessment for IT resources, which further proves that Davenport's suggestion is more popular and applicable in the business environment nowadays.

The BPR methodologies in between

A research study carried out by the InnoRegio had more like Hammer's methodologies. (InnoRegio was a program initiated by the German Federal Ministry of Education and Research)

Phase 1: Envision

Review existing business, identify improvement to be made.

Phase 2: Initiation

Mobilize project teams, plan for project, set goals.

Phase 3: Diagnosis

Assess and document the details of processes including IT resources, costs, activities, etc.

Phase 4: Redesign stage

Design new process through brainstorming.

Phase 5: Reconstruction

Change management strategies and practices to smooth migration to the new process.

Phase 6: Evaluation

Monitor new processes and carry out Total Quality Management.

Though they are similar to the methodologies in the notes, the smooth migration to TO-BE processes is emphasized. It is done before monitoring stage. It implies the migration measures is important to provide a foundation for further development of BPR.

Also, the motive of BPR project was not considered as important. Instead, it starts by understanding the objectives of business processes. Evaluation of resource availability and technical difficulties, is in Analysis stage (Phase 3). But, the evaluation of business strategy is in Phase 1.


Moreover, the phase of mobilization is not considered as one of the methodologies. It is an implied step. The reason for it maybe the popularity of IT managers in a firm, and perhaps it is common for IT experts involve in change management of the firm.

Conclusion

We can see that the new methodologies include all the principles for BPR in classical view and add some more management concern. The new ones act as a supplement for the classical ones. However, they have little focus on the process re-design comparatively. For example, HCL does not have a description showing systematic approach for the redesign phase.

Even the generalized methodologies are not the same as the one in lecture notes, I believe different companies need to have little amendment and alternation for the generalized methodologies. As stated in the lecture notes, BPR methodologies are different because of deviations between operations, performance, and organizational strategy of businesses. They should be evolved. Applying them requires evolution and referencing from past experience to achieve better BPR.