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IT PROCESS RE ENGINEERING

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Transcript of IT PROCESS RE ENGINEERING

IT PROCESS RE-ENGINEERING
RAKESH SHASHIDHARA

PROCESS
RE-ENGINEERING
BPR
Critical
Analysis
of existing business processes
Radical
Redesign of
Shortened Cycle time
Reduced Defect Rate
Higher Customer Satisfaction
How is this
related to Project Management
ACCORDING TO PMBOK
Project management is a discipline of
resources to achieve specific goals

Planning
Organizing
Motivating
Controlling
PROJECT CATEGORIES
Derivative
-
Incremental Improvements in process.

Breakthrough
-
Development of New generation O/P.

Platform
-
Development of platform for new O/P.

R&D
-
Develop new knowledge.

IT-LED PROCESS RE-ENGINEERING:
HOW SLOAN VALVE REDESIGNED ITS NEW PRODUCT DEVELOPMENT PROCESS .
Balaji Sankaranarayanan, Chandrasekaran Ranganathan, and Tom Coleman.
MIS Quarterly Executive (2011)
Customer Satisfaction
CHALLENGES FACED BY THE COMPANY
Hence the processes had to be customized to fit the ERP best practices instead.

The various activities across departments also had to be integrated with a common IT platform.


CHALLENGING THE CHALLENGES
World’s leading manufacturer of
water-efficient solutions
WHAT IS THE PAPER ALL ABOUT
DELAY IN TIME TO MARKET
During New Product Development (NPD) process
Various departments and business units such as:
manufacturing, engineering
marketing, sales and distribution
design departments, finance
purchasing, and project management
The coordination issues
among various departments
Delay in time
to market.
Delays can drastically affect the competitiveness
of the company
IDEA MANAGEMENT/ PROTOTYPING
Major bottleneck for NPD are:
Choosing the right
group
Capturing and Managing
various ideas
Tracking the statuses
This is due to the communication gap, which results in
ACCOUNTABILITY
NPD process is cross-
functional in nature
But, There is no single department which is held accountable for all issues, as each dept.
Vertical Thinking
Concerned only about
their activities
Horizontal Thinking
Instead of End to
End process
Resulting in confusion about process ownership
Sloan Valve had implemented ERP with the SAP system, but without significant benefits.
The SAP implementation was done with some customization,
to fit the ERP to the existing business process.
Even got rid of many legacy applications.
But the ERP wasn’t able to provide the best results, as the best practices weren’t followed.
to overcome the challenges.
RESISTANCE WITHIN THE ORGANIZATION

This helped develop a process-oriented
mindset in the organization.

A cross-functional team known as Tiger Team was created.
This significant reduction in time is very important as it’s a very competitive environment and the products will be outdated soon.
Initially, they used to make huge investments in modeling the ideas.

In case, the ideas were not good they had to drop the ideas,

which would result in wastage of resources as well as money.
TREMENDOUS IMPROVEMENT IN SPECIFIC AREAS SUCH AS
New CIO was appointed to prepare the organization for process changes
Role of the
new CIO
Through out the paper, the emphasis is on the
Process
redesign efforts
Employees couldn't foresee the importance of BPR
Some of them left the company
Few senior employees remained reluctant about the plans.
Few executives openly resisted the reengineering effort
Team consisted of people with mixed skill sets and functional roles.
This helped gather different perspectives on a product idea.

ACTION TAKEN BY CIO TO PREPARE THE ORGANIZATION
FOR PROCESS EFFICIENCY.

After THE BPR training all the employees, management & owners were convinced about the potential of BPR.
He encouraged senior managers to attend
formal BPR training courses.

To map the current process, the team used a process visualization tool

This tool visually depicted the processes and the process flows among
the 16 business functions involved in the old NPD process.

By adapting techniques from multiple re engineering
frameworks, to suit Sloan Valve’s context.

At the first stage of their efforts itself the process redesign
team accomplished a lot,

Identify bottlenecks and document interdependencies.
Proposing a new end-to-end NPD process became easier.

PROCESS ACCOUNTABILITY
The process accountability had definitely been improved.
TIME TO MARKET
PROTOTYPING
Now there is more emphasis given to the idea generation stage and

There are people from various departments
whose skills will me utilized for idea generation

Which saves a lot of time, money and
results in efficient prototyping.
SYSTEMS & METHODOLOGY
The old NPD process follows the continuous improvement method.
The re engineering approach focuses on end to end approach
Breakthrough Improvements in Performance
How a project management enterprise accomplished a successful
process
re-engineering
initiative.
Illustrates the critical role of IT organizations in re-engineering efforts, to achieve:
Shows how an IT-led initiative successfully re-engineered the NPD process of
Sloan Valve Company
.
Faster cycle time
Emphasis on
"Process"
while redesigning new product development (
NPD
).
Dropping of good ideas
Wasting of resources on unwanted products.
Unexpected Delays
HOW DID SLOAN VALVE END UP WITH
SO MANY PROBLEMS
Provided common database
Eliminated communication challenges
REASONS
Others moved to Different functions.

They developed a home-grown method for
process reengineering

They came up with a new method called
DMADV (Define, Measure, Analyze, Design, Verify).

They could assess the current process,
sub-processes and associated activities.

Old NPD Process
No clear accountability as a number of departments were involved
It was difficult to recognize and sort out the problems.

Re engineered Process
There is an established ownership
Every individual is assigned a particular responsibility
It is easier to track any problem.
Time to market
Reduced from
24 months
to
< 12 months
REFERENCES
Balaji, S. S., Ranganathan, C. C., & Coleman, T. (2011).
IT-LED PROCESS REENGINEERING:
HOW SLOAN VALVE REDESIGNED ITS NEW PRODUCT DEVELOPMENT PROCESS.
MIS Quarterly Executive, 10(2), 81-92.

ADOPTION OF A WHOLE NEW METHOD IN BPR EFFORT
Full transcript