Implementation of Business Process Reengineering

Based on Workflow Management

Wen Yang11 , Hongjiang Chen2

1
School of Mechanical and Electrical Engineer, Jiangxi Science & Technology Normal
University, Nanchang, Jiangxi 330013, P.R.China
2
School of Mechanical and Electrical Engineer, Jiangxi Science & Technology Normal
University, Nanchang, Jiangxi 330013, P.R.China

{Wen Yang, Hongjiang Chen, hongjiangc}@163.com

Abstract. To achieve better performance of BPR, workflow management is

integrated with BPR based on the core idea and steps of BPR. Main problems
of hotel business process are studied, at the same the characteristics and
advantages of WFM are introduced, which show that WFM is sound. Then BPR
case of a five-star hotel in Guangzhou which adopts the WFM workflow is
proposed. The rent and service charge processes are analyzed; the collaborative
workflow and its new process after reengineering are also given, which achieve
better results.

Keywords: Business Process (BP), Business Process Reengineering (BPR),

Workflow Management (WFM), Workflow Management System (WFMS)

1 Introduction

Customer, competition, change and the theme of external environment make the
service of hotel more flexible and comprehensive, which change management from
occupation-center to process-centric. Business Process Reengineering (BPR), firstly
introduced by Hammer, has become a powerful way to continuously optimize
business process (BP) and improve hotel’s core competitiveness [1]. Now many
organizations have implemented BPR for improving their performances [2]. Yet it is
lack of effective implementation tools, which makes it very difficult to achieve
desired results. Workflow technology can strengthen the control of BP and enhance
BP’s flexibility and applicability through modeling, analysis and improvement, which
can avoid failure effectively in the application of new processes caused by human and
resource factors [3]. Workflow technology is the core technology for integration of
the implementation of BPR, management and technology.

1 Please note that the LNCS Editorial assumes that all authors have used the western
naming convention, with given names preceding surnames. This determines the
structure of the names in the running heads and the author index.
2 BPR of hotel

2.1 main problems of hotel business process

To meet the competition, modern hotel management is required to not only good and
efficient service, but also is expected to achieve maximum profits and more flexibility.
Hotel operating activities is to including forecast, decision-making, control,
responsibility assessment and evaluation of the entire management process and so on.
Though the hotel management developed quiet well in the past years, there are still a
lot of problems to overcome.
According to the statistics, about 70% of activity in an organization is related with
the process activity [4], so BP plays an important role in organization efficiency.
However, BP is divided into a variety of simple tasks in the way of dividing
traditional labor. Each unit is subject to its senior official, but not responsible for
customer directly, which don’t work to solve problems and improve their work. For
example, changing requests of the scheduled banquet is quiet time-consuming and
involves several departments. Therefore, it is urgent to change the organizational
structure from the traditional way to the market-oriented, ie. task-oriented to process-
oriented.
Most hotels have introduced corresponding information systems such as marketing
system, financial system, and so on [5]. But these systems are often only authorized to
the respective department to specific issues and work well in the internal management.
Yet they are not market-oriented and customer-oriented. Secondly, each BP change
may causes significant changes in program structure, because these BP have been
coded with software programs. Furthermore, the resource utilization’s rate is low. In
addition, they are very difficult to modify the process reengineering, because these
systems are developed by different software corporations.
The hotel’s BPR should be customer-oriented, integrating with key BP, reducing
non-value-added chain and complex chain of operational steps.

2.2 BPR based on workflow management

BPR, re-thinking and re-engineering business process [6] delivers a lot of changes to
organizational structure and business processes, which risks a lot at the same. Now
the BPR works not well, which were reported 70% projects fail to achieve the desired
objectives and even flat failure [7]. To build up its practical implementation, it’s
should be further explored and improved.
Workflow management (WFM) is a fast evolving technology, which is used in a
variety of industrial processes. Workflow is concerned with the automation of
procedure, whose documents, information or tasks are passed between participants
according to a defined set of rules to achieve an overall business goal. A Workflow
Management System (WFMS) defines, creates and manages the execution of
workflows based on software, which is able to interpret the process definition, interact
with workflow participants and invoke the use of IT tools and applications where
required [WfMC99a] [8]. The evolution of WFM concentrates on the automation of
business processes where interactions of human and machine-based activities play a
major role. Within workflows, information or tasks are passed among participants in a
way that is governed by rules or procedures.
Workflow is often associated with BPR, which is concerned with the assessment,
analysis, modeling, definition and subsequent operational implementation of the core
BP of an organization (or other business entity) [9]. Although not all BPR activities
result in workflow implementations, workflow technology is often an appropriate
solution as it provides separation of the business procedure logic and its IT
operational support, enabling subsequent changes to be incorporated into the
procedural rules defining the BP. Figure 1 shows the basic characteristics of WFMS
and relationships between these main functions (WfMC95).

Business Process
Process Design &
Analysis,Modelling &
Definition
Definition Tools

Build Time
Process Definition
Run Time
Process Changes
Process Instantiation
& Control Workflow Enactment Service

Interaction with Application &

User & Application IT Tools
Tools

Fig. 1. Workflow system characteristics

At the highest level, all WFM systems may be characterized as providing support
in three functional areas. The Build-time functions are concerned with defining, and
possibly modeling the workflow process and its constituent activities. The Run-time
control functions are concerned with managing the workflow processes in an
operational environment and sequencing the various activities to be handled as part of
each process. The Run-time interactions are concerned with human users and IT
application tools for processing the various activities [10].

3 An implementation case

3.1 Analysis for information exchange of a hotel business

In this paper, a case for a five-star hotel in Guangzhou sets out the application of BPR
based on WFMS in the hotel industry. Information data exchange and sharing process
of the hotel based on workflow management system is shown in figure 2.
 Food system
Property
Front system Settlement
management system
Reception Banquet
Tenant Information
Reservation Reservation
Charge management
Housekeeping... Business
Statistical analysis
statistics
... ...
...

Information

Information

Information

Information
Information

Information
Sharing

Sharing
Sharing
Financial system
Office system Receivable and accounts
Meeting and payable
document Information Information Financial budget
management Workflow manage system Statements of Operations
Work plan Sharing Sharing Business review
... ... Information Information Procurement Control
Inventory
Information

Information

Information

Information
... ...
Sharing

Sharing
Marketing system
Personnel management
Customer relationship
system
management
Personnel records
Construction and
management
management of sales
Attendance management
channels
Performance appraisal
Price regulation
... ...

Fig. 2. Information data exchange and sharing process of the hotel based on workflow
management system

Process Performance sector

Departments print bills, and hand to the Departm

property department ents

Property
Aggregate rent and other expenses by
departm
tenants
ent

Financial
Finance department issue bills departme
nt

Property
Audit billing departm
ent

Property
Distribute billing to tenants departm
ent

Property
Answer customer questions about billing departm
ent

Property
Follow up tenants paying bills departm
ent

Property ,
financial
Deal with transfer or remittance notice
departmen
t

Fig. 3. Old process of rent and service charge

3.2 Analysis of rent and service charge process

BPR of rent and service charge process in the hotel as an example is to elaborate for
the space limitation. Processes for rent and service charge involve nearly all
departments and consumption points. If they can be effectively improved, hotel can
significantly improve efficiency, enhance customer satisfaction and its image, and
provide data to support marketing.
Figure 3, an old process of rent and service charge, indicates some inadequacy
which are more review and transmission of documents between various departments,
more heavy workload and error-prone, isolation between property management
systems and financial management systems, repeating input of information, low work
efficiency, and delayed analysis of relevant business data, and so on.

3.3 BPR of rent and service charge process

To connect data interface of property management system, consumption point and

financial management system, the workflow system is developed based on WFM.
Without changing the existing application software, the information can be
automatically transmitted to the relevant application software according to the pre-
defined rules. Consumption data can automatically transfer to property and financial
management systems with the WFM, and can be analyzed and gathered in time.
The platform of collaborative workflow and its new process after reengineering are
shown as Fig.4.

Fig. 4. Flow of mechanism and platform for collaborative workflow and its new process after
reengineering
The BPR based on workflow technology can optimize processes of the rents and
service charge, coordinate the work of various departments, and transfer the
information to the related departments. At the same time, all application software and
their business processes, such as property management system and financial
management system, are systematically integrated and implemented automatically,
which greatly Shorten the execution time, eliminate redundancy non-value process.
Financial department, property department and marketing department can jointly
develop marketing programs by real-time tracking consumer information and
consumer trends. Furthermore the BPR can avoid human factors and resource
affecting the implementation of new processes, so that the overall process can achieve
optimal.

4 Conclusions

To optimize the business processes, BPR based on WFMS is simulated in this paper.
The Simulation results show that BPR is more effective and flexible.

Acknowledgments.
The paper is one of the results of project, the Project of BPR and Information
Network System in the Garden Hotel, supported by Guangzhou Garden Hotel.

References

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