Health Information System

BUSINESS PROCESS REENGINEERING

 Agenda
(1) Philosophy of Business Process Reengineering (BPR)
(2) Underlying Principles of BPR
(3) Implementing BPR
(4) Summary and Conclusion
(5) Discussion and Q&A
THE PHYLOSOPHY OF BPR
 Brief Definition

BPR is an improvement philosophy

It aims to achieve step improvements in performance
by redesigning the processes through which an
organization operates, maximizing their value-added
content and minimizing everything else.
Business Philosophy

• Total Quality Management (TQM)

• Just-In-Time (JIT)
• Simultaneous Engineering (SE)
• Fast Cycle Response (FCR)
• Business Process Reengineering (BPR)
Focus

TQM Quality, Attitude to customers

JIT Reduced inventory, raised throughput

SE Reduced time to market, increased quality

FCR Reduced time (time=cost)

BPR Processes, minimize non-value added

 Improvement Scale

TQM Continuous, incremental

JIT Continuous, incremental

SE Radical

FCR Radical

BPR Radical
 Organization

TQM Common goals across functions

JIT ‘Cells’ and team working

SE R&D and Production work as a single team

FCR Processed based

BPR Process based

 Customer Focus

TQM Internal and external satisfaction

JIT Initiator of action ‘pulls’ production

SE Internal partnerships

FCR Quick response

BPR ‘Outcomes’ driven

 Process Focus

TQM Simplify, improve, measure to control

JIT Workflow/throughput efficiency

SE Simultaneous R&D and Production development

FCR Eliminate time in all processes

BPR ‘Ideal’ or streamlined

 Techniques

Process maps, benchmarking,

TQM
self-assessment, SPC diagrams
JIT Visibility, Kanban, small batches, quick set-up

SE Program teams, CAD/CAM

FCR Process maps, benchmarking

Process maps, benchmarking, self-assessment,
BPR
IS/IT, creativity/out of box thinking
 Expectations for Improvement

High

Scale of Potential
Bottom-Line
Improvement

Low
Narrow Single Organization Supply Broad
Function Wide Chain
Scope of BPR Program
Worse
 5 Levels of IT-Business Reconfiguration

HIGH Business Scope Redefinition

Degree of Business

Business Network Redesign

Transformation

Business Process Redesign Revolutionary

Evolutionary
Integration

Localized Exploitation
LOW

LOW Range of Potential Benefits HIGH

 IT within the Configuration

Localized Exploitation One part of organization, one isolated IT system

Integration Link the islands of automation

Business Process Redesign IT transforms the way a process is done internally

Business Network Redesign Working together with other organization through IT

Business Scope Redefinition IT can create new business opportunities

 BPR Analysis Framework
Risk Zone Strike Zone

Critical Zone
HIGH
SURVIVAL
LAUNCH
Launch campaign now
Launch BPR soon
Manage risk
Business Need

Invest in capability
Maximize commitment

Managed Zone
RECONSIDER ADVANTAGE
Focus on continuous Invent the new paradigm
improvement Focus on business case
Launch awareness Leverage capabilities
LOW program
LOW HIGH
Readiness
UNDERLYING PRINCIPLES OF BPR
 Organizational Pillars

The Environment

PEOPLE PROCESS TECHNOLOGY

CUSTOMERS
 Pillar 1: Process

The Environment

PEOPLE PROCESS TECHNOLOGY

CUSTOMERS
 The Service Task of Process

2 4
pattern
1 on efficiency
customer demand
requirements target

constraints
Service Task
3
1 - Customer Requirements

Quality Speed

Flexibility Price

Delivery Reliability Relationship Management

 1A - Quality
Quality

CONSISTENCY CAPABILITY
How consistently How well the product
the product or or service actually
service conforms fulfils the needs
to what is expected of the customer
 Quality

GARVIN’s 8
FITZGERALD’s 12
1 Performance
2 Features 1 Access
3 Reliability 2 Appearance 7 Competence
4 Conformance 3 Availability 8 Courtesy
5 Durability 4 Cleanliness 9 Friendliness
6 Serviceability 5 Comfort 10 Reliability
7 Aesthetics 6 Communication11 Responsiveness
8 Perceived quality 12 Security
 Flexibility

DESIGN VOLUME VARIETY

RANGE RESPONSE MOBILITY UNIFORMITY

Delivery Reliability

How reliable or dependable

is the delivery of the
product or service ?
 Speed

DEVELOPMENT DELIVERY
lead time lead time
 Price

Price should not be confused with cost !

COST is a factor in considering a company’s
competitive advantage,
but PRICE is a mechanism by which it can
compete and manage demand !
 Relationship Management

PARTNERSHIP LEARNING
Companies willing and able to learn
Companies working in partnership can
from others, including suppliers,
sustain a customer relationship
customers and others in different
longer and more profitably than
industries can ensure that they do not
those seeking only a straight
get complacent and can maintain
contractual agreement ...
their competitive edge
 2 - Pattern on Demand

Trend
Runners
Season
Repeaters
Cycle
Strangers
Random

Variety and Volume Variation in the Nature

and Level of Demand
 3 - Constraints

Government
Regulatory
Limited
Finance

Company Policy
 4 - Efficiency Target

The organization should set efficiency targets.

These efficiency targets will impact the amount
and type of resources that can be utilized by the
process, including people, machines, computers,
facilities, financial resources, and so on.
 Process within Organization

Front Office Back Office

Customers
 Pillar 2: People

The Environment

PEOPLE PROCESS TECHNOLOGY

CUSTOMERS
 Main Aspects

Behavior, Skills,
and Development
Culture
Pay and
Rewards
Training and
Recruitment Development
and Selection

Teamwork

Empowerment Job Description

Ultimate Goal
 Pillar 3: Technology

The Environment

PEOPLE PROCESS TECHNOLOGY

CUSTOMERS
Additional Technologies to Watch

Workflow
Automation Virtual
Reality

Multimedia

Artificial Intelligence Communication

IMPLEMENTING BPR
 The Generic Methodology

INFORMATION SYSTEM DOMAIN

Plan Analyze Design Construct Implement Maintain

Plan Evaluate Envision Empower Excel Improve

BUSINESS DOMAIN
 Plan: The Scope

Vision Mission Value

Objectives

Critical Success Factors

Key Performance Indicators

Business Strategy I/T Strategy

Business Process and Tactical Procedures

Standards, Structure, and Rule of the Game

 Plan: The Priorities

HIGH
Concentrate Maintain
here ? performance ?
IMPORTANCE

LOW
Not Possible
important ? overkill ?

LOW HIGH

PERFORMANCE
Plan: Multi Input Channels

Staff

Supplier Customers
LEARNING
ORGANIZATION

Consultants Benchmarking
 Analysis: Process Anatomy

Control Mechanism

Inputs PROCESS 1 Outputs

Time, Frequency,
and Volume
 Analysis: Process Mapping

Process 1.0 Process 2.0 Process 3.0 Process 4.0

Process 5.0

Process 2.1 Process 2.2 Process 2.3 Process 2.4

 Analysis: Non-Value Added Activity

Traditional
Way of Work
Queuing Too
Expensive
Redundancy Bad
Control
Nice to
Have

EFFICIENCY
EFFECTIVENESS
INTERNAL CONTROL
 Design: Systematic Method

SIMPLIFY

INTEGRATE
ELIMINATE

AUTOMATE
Design: Eliminate
• Over Production
• Waiting Time
• Transport
• Processing
• Inventory
• Defects/Failures
• Duplication
• Reformatting
• Inspection
• Reconciling
Design: Simplify

• Forms
• Procedures
• Communication
• Technology
• Problem Areas
• Flows
• Processes
Design: Integrate

• Jobs
• Teams
• Customers
• Suppliers
Design: Automate

• Dirty
• Difficult
• Dangerous
• Boring
• Data Capture
• Data Transfer
• Data Analysis
 Analysis-Design Interface

Gain a high level understanding of the existing processes

Benchmarking, brainstorming, fantasizing

Issues
Encountered
Designing the improved business process

Validate with the process owners and management

 Implementation Cubic

LONG TERM PROGRAM

MEDIUM TERM PROGRAM
SHORT TERM PROGRAM
ORGANIZATION PROCESS AND
STRUCTURE PROCEDURES

BPR
IMPLEMENTATION
PLAN

PEOPLE AND INFORMATION

CULTURE TECHNOLOGY
Implementation Strategy

Please refer to

Change
Management
SUMMARY AND CONCLUSION
 Summary and Conclusion
• Before = functions and hierarchy, Now = process based approach, need a change on
management mind set
• BPR is a radical change, need a radical out-of-the box thinking (should not be
trapped with the current/existing environment)
• Main components that should be considered in BPR program: people, process, and
technology
• The measurements should exist, as a comparison base of the old and new systems
• BPR should be followed by continuous improvement
• Remember, the ones that will implement the BPR are PEOPLE, everything will
depend on the people in many respects (not on technology, infrastructure, system,
or even processes itself): commitment, positive thinking, willingness to change, new
mind set, eagerness to improve, sense of ownership, critical awareness, and ready
to act.
Discussion and Q&A

Watch Out !!!

According to Survey:

70%
of BPR Projects
Successfully Fails...