Week 11 - Redesign Principles and Tactics (1)

Week 11 - Redesign Principles and Tactics (1)

References:
http://www.slideshare.net/msq2004/bpr-03-process-re-design
http://www.anterron.com/cgi-bin/white_papers/docs/Role_of_IT_in_BPR.pdf


This week we were given an insight into the general principles and tactics of redesigning business processes. However, they are meant to be GENERAL only, because as far as redesigning is concerned, there is really no limit as to number of specific principles that can be developed since the world is always changing. In other words, as long as you are creative enough, you can always invent a new BPR principle!

Before we get into the subject of this post, there are a few assumptions that have to be made:

• We maximise the VALUE ADDING content of a process;
• We carefully manage the NON-VALUE ADDING activities;
• We minimise everything else that is NOT NECESSARY.

Principle 0 - Streamline

This is basically what our assumptions have stated. In a nutshell, this principle re-iterates the importance of eliminating anything that is unnecessary and combine similar activities to reduce complexity. Note that business processes are redesigned by changing their topology of flows, which are either physical products, information or knowledge.

Therefore, it follows that there are three generic ways to redesign business processes:

1. Restructure and reconfigure processes
2. Informate processes by changing information flows around them
3. Mind processes by changing the knowledge management around them

Restructure

There are four principles based on the restructuring of processes:

Principle 1 - Lose Wait

Reduce waiting time in process links to create value.

• Concurrency - redesign time-sequential activities to be executed in parallel, or concurrently
• Closed-Loop - create closed-loop teams for quicker flexible interaction, minimising the need to pass information between different departments
• Not Gating Main Processes - do not allow non-core activities to delay core activities
• Continuous Flow - implement real-time rather than batch processing
• Upstream Relieves Downstream - Modify upstream practices to relieve bottlenecks downstream of the production line

Principle 2 - Orchestrate

Let the swiftest and most able enterprise execute.

• Partnering - Partner a process with another enterprise
• Outsourcing - Outsource a process to another enterprise
• In-Sourcing - In-source a process back into the enterprise
• Routing through an Intermediary - Route the process through an intermediary

Principle 3 - Mass-Customise

Flex the process for any time, any place, any way.

• Flexing Time - Flexible access by expanding the time window for the process
• Flexing Space - Flexible access by creating more options for the physical space in which the process is executed
• Modularity - Create modular process platforms
• Dynamic Customisation - Enable dynamic customisation of products

Principle 4 - Synchronise

Synchronise the physical and virtual parts of the process.

• Match Offerings - Match the offerings on the physical and virtual parts of the channel
• Common Process Platforms - Create common process platforms for physical and electronic processes
• Track Movement - Track the movement of physical products electronically

Informate

There are three principles based on the informating of processes:

Principle 5 - Digitise and Propagate

Capture information digitally at the source and propagate it throughout the process.

• Digitise at Source - Shift data entry to customers and digitise it
• Make the Process Paperless - Make the process as paperless as possible and as early as possible
• Make Information Accessible Upstream and Downstream - Make information easily accessible upstream and downstream to those who need it during the process
• Shrink the Distance between Information and Decision - Processes can be executed much faster by redesigning the information capture and access around a process, so that information needed for decisions is directly accessible

Principle 6 - Vitrify

Provide glass-like visibility through fresher and richer information about process statuses.

• On-Demand Information Tracking - Provide on-demand tracking information for customers of the process
• On-the-Fly Reporting and Analysis - Provide reporting facilities for on-the-fly analysis
• Standard Partner Interface - Design standard partner interface processes for seamless exchange of information

Principle 7 - Sensitise

Fit the process with sensors and feedback loops to prompt actions.

• Process Dysfunction Loops - Build in customer feedback loops to detect process dysfunctions
• Monitor Environmental Changes - Enable software smarts to trigger quick business reflexes, or attach environmental probes to the process to monitor changes