Teguh I Santoso, Teguh I Santoso, MBAMBA

RETHINKING BUSINESS PROCESSRETHINKING BUSINESS PROCESS

Chapter 2Chapter 2

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BPR Four key wordsBPR Four key words

1. Fundamentalmeans business people have to ask themselves with a fundamental question, such as why, what and how we do the business.

2. Radicalmeans, ‘if it did not exist today, how would we create it’ and then destroying the old system to create the new one

3. Dramaticmeans improvement in business result, not of 5%, not of 15% nor 20%, but in term of quantum leaps of 100%, 300%, 500% better result

4. Processmeans a group of distinct tasks that together create a product or service desired by one or more stakeholders

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ProcessProcess

ProcessA specific ordering of work activities across time and space, with a beginning, an end, and clearly identified inputs and outputs: a structure for action(Davenport, 1993)

Business ProcessA collection of activities that takes one or more kinds of inputs and creates an output that is of value to the customer

Examples of processes include: - developing a new product; - ordering goods from a supplier; - creating a marketing plan; - processing and paying an insurance claim; etc

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Process CharacteristicsProcess Characteristics

Processes have two important characteristics:

1. They have customers (internal or external)

2. They cross organizational boundaries

One technique for identifying business processes in an organization is the Value Chain method proposed by Porter and Millar (1985)

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Flow of ProcessFlow of Process

CEO

OPR ACC.MKT

CustomerRequest

OrderFulfillment

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Process DimensionsProcess Dimensions

Processes may be defined based on three dimensions1. Entities

Processes take place between organizational entities. They could be Interorganizational (e.g. EDI),Interfunctional or Interpersonal.

2. Objects Processes result in manipulation of objects. These objects could be Physical or Informational.

3. ActivitiesProcesses could involve two types of activities: Managerial (e.g. develop a budget) and Operational (e.g. fill a customer order)

(Davenport & Short 1990)

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InovasiInovasi

“ Peluncuran sesuatu yang baru dengan tujuan untuk menimbulkan perubahan besar yang radikal “

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Process InnovationProcess Innovation

Involves stepping back from a process to inquire into its overall business objective, and then effecting creative and radical change to realize order-of-magnitude improvements in the way that objective is accomplished.”

“Re-engineering is only part of what is necessary in the radical change of processes; it refers specifically to the design of the new process.”

“The term process innovation encompasses the envisioning of new work strategies, the actual process design activity, and the implementation of the change in all its complex technological, human, and organizational dimensions.”

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Improvement vs. InnovationImprovement vs. Innovation

Dimension Improvement Innovation (BPR)

Level of Change Incremental Radical

Starting Point Existing Process Clean Slate

Frequency of Change One-time/Continuous One-Time

Time Required Short Long

Participation Bottom-Up Top-Down

Typical Scope Narrow, within function Broad, cross-functional

Risk Moderate High

Primary Enabler Statistical Control Information Technology

Type of Change Cultural Cultural/Structural

Source: Davenport, 1993

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Kerangka Inovasi ProsesKerangka Inovasi Proses

Mengidentifikasi Proses untuk Inovasi

Mengidentifikasi Pemungkin Perubahan

Mengembangkan Visi Proses

Memahami Proses-proses yang ada

Merancang & Membuat Prototype Proses Baru

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Thank You