Business Process Reengineering Overview

Study Notes

Business Process Reengineering

Involves radical changes rather than incremental improvements to eliminate outdated processes and implement new ones swiftly.
Capable of achieving significant productivity gains while potentially increasing resistance to change within organizations.

Tate & Lyle Case Study

Aims to expand specialty food segment and compete against major global players.
Challenges include reconciling financial accounting systems across four regions and thirty facilities.
Solution implemented: SAP’s ERP for account reconciliation and task management, reflecting the need for businesses to adapt strategies over time.

Porter's Competitive Forces Model

Defines five forces that influence a firm's success in the market.
Traditional competitors continuously innovate with new products and efficiencies.
New market entrants in industries with low barriers can disrupt established firms.
Substitute products pose a threat by providing alternatives to consumers.
Customers can easily switch to competitors, intensifying price competition.
Supplier leverage increases with fewer suppliers, giving them more control over terms.

Value Chain Model

Administration and Management: Utilizes electronic scheduling and messaging systems.
Human Resources: Incorporates workforce planning systems for efficient staffing.
Technology: Implemented computer-aided design systems to enhance product development.
Procurement: Computerized purchasing systems streamline acquisition processes.
Primary Activities: Automated systems improve processes in logistics, operations, sales and marketing, service, and shipping.

Synergies, Core Competencies, and Network-Based Strategies

Large corporations benefit from synergistic relationships between business units, leading to improved financial returns.
Information systems facilitate communication, synergies, and the development of core competencies within organizations.
Synergies exist when outputs from one unit serve as inputs for another, fostering efficiency and cost reduction.

Disruptive Technologies

Disruptive technologies can render existing business models obsolete, such as personal computers and internet services.
First movers may miss market opportunities, allowing fast followers to capitalize on the innovations effectively.

Global Business and System Strategies

Domestic Exporters: Centralize corporate activities at home.
Multinationals: Centralize financial management while decentralizing operations.
Franchisers: Combine home country development with local production and marketing.
Transnationals: Operate with regional headquarters and optimize resources across borders.

Global System Configuration

Centralized Systems: All operations and development occur at the home base.
Duplicated Systems: Development happens at home, but operations are managed independently abroad.
Decentralized Systems: Each foreign unit creates its solutions independently.
Networked Systems: Integrated development and operation across all units ensure coordination.

Business Process Management (BPM)

Relies not just on technology but necessitates organizational changes and process redesign.
Aims to promote continuous improvement through understanding and optimizing existing processes.

Information System Strategies for Competitive Forces

Align IT initiatives with business objectives by breaking strategic goals into actionable activities.
Ensure performance metrics measure actual progress towards achieving business goals.

Core Competency

Defined by activities where a firm leads globally, based on accumulated experience and knowledge.
Information systems that encourage knowledge sharing enhance overall competency.

Market Niche Strategy

Focusing on specific market segments through tailored information systems increases competitive advantage.
Example: Hilton's OnQ System personalizes guest experiences by analyzing preferences.

Strengthening Customer and Supplier Relationships

Strong ties with customers and suppliers increase loyalty and switching costs.
Companies like Toyota and Amazon utilize information systems to enhance supplier access and customer engagement.

Description

This quiz covers the fundamental concepts of Business Process Reengineering. It explains how this approach can lead to radical changes within organizations and highlight the benefits and challenges it presents. Test your understanding of this transformative process in the context of organizational behavior and productivity improvement.