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Wednesday 14 September 2016

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                                                                        ITM343

              Change Management & Business Process Re-engineering

(For CNM Cases)
                                                                   Assignment - I
Assignment Code: 2016ITM343A1                            Last Date of Submission: 30th April 2016
                                                                                       Maximum Marks: 100
Attempt all the questions. All the questions are compulsory and carry equal marks.
                                                                         Section-A
1          What are the three streams of 21st century organization? How would you foresee the       interplay of these  streams in future organizations.
2          (a)       Enterprise resource planning (ERP), provides integrated business software modules                     to support the functional areas of any company.
            (b)       List out well known names of ERP companies in the world and describe how the                                       software modules are implemented in any manufacturing company.
3          Hammer & Stanton have said that “BPR brings about dramatic changes in management”.            Search out the definition of BPR and explain each phrase of this definition.
4          How BPR is implemented in any company of   the corporate world
Section-B
CASE STUDY

Are Indian companies ready for Business process Management?
During the re-engineering wave, many companies invested  heavily in it. In  many such cases, what was supposed to be a 90 day  initiative took more than two years to complete. Many of these initiative made the companies that took them up, anemic.
At that time, many successful re-engineering efforts improved the concerned business to a better state.  In many cases with late adapters of re-engineering the change in requirements came even before the re-engineering process was through. However. more than 80 percent of BPR efforts failed.
As business requirements changed faster than ever, companies needed to adapt and change before they realised their return on investment (ROI). These changes were triggered by factors such as shrinking business cycles, commoditisation of products and services, cost pressures. knowledge-based services, e-business, globalisation, consolidation, extended value-chains, extended enterprises and external stakeholders.
To cope with these challenges. businesses kept trying every means to optimise processes, implement automation and run radical management theories, as increasing costs put businesses at risk. This led to a tidal wave of change that saw down-sizing, right-sizing, outsourcing and restructuring.

The need to move on
Inability to meet these changes can constrain a business. Businesses often miss out on new opportunities because changing business processes are often time-consuming and expensive.
New strategic drivers are difficult to consolidate with existing business processes. Often, small changes required for continuous process improvement which can be incorporated at ease, in an agile enterprise, are deferred because of the dreaded impact on existing processes. Thus, changes are compounded. resulting in a monstrous change effort.
Organisations often face a crisis where entities and business processes are not all aligned with the company's goals. In many cases it becomes difficult to minimize time-to-market, because of the absence of agile processes.
With lessons learnt, ERP and a lot of other IT systems catering to more or less standardised business, needs with little customisation are being implemented. (For example: SCM, SRM Web-enabled services, e-procurernent, and CRM. Moreover, many business-specific custom IT solutions were developed from scratch and implemented.
The automation trend was mostly driven by business-function owners with an IT requirement going ahead and implementing an IT solution aligned specifically to the process. This led to many disparate systems existing in an organisation under one umbrella. These systems were tightly coupled and in most cases, people were trained and business processes were aligned as per the existing system.
System owners have been data-centric as opposed to process-centric. So when the requirement of process change or collaboration came about, most legacy and modern systems failed to deliver. A gap between process and systems surfaced. The traditional approach of system implementation will definitely give a short-term solution with tightly coupled integration, but the perennial problem of change still persists

This fuelled a shift from a functional mindset to process-oriented thinking. A business process, by nature, is cross-functional, constantly changing, integrated, and interacts with systems and people. This is  where BPM comes in .              

Advent of BPM

BPM encompasses the entire organisation. integrating critical processes within and outside an organisation. It is often desired that the whole organization behave as a system. Earlier, there were technical limitations in achieving this. However, powered by a strong mathematical foundation, BPM now promises to deliver a single window, from where strategies can be translated into action across business processes.
BPM is not another form of automation or a revolutionary new philosophy. It helps discover. what we do and then manages the lifecycle of improvement and optimisation in a way that directly translates into operations.

What BPM brings to the table
·         Flexible process collaboration and configuration. Earlier, systems were integrated using EDI tools which have been very system-specific. Now processes can communicate with each other using process semantics.
·        Agile course correction. Organisations will be able to adapt to changing business
environments and change course accordingly,
·         Re-usability of existing systems. Businesses do not need to scrap existing IT systems for new applications, thus reducing the cost of migration. With advances in Service Oriented Architecture and XML-based messaging systems, existing systems can be re-used.
·         Re-usability of business processes. Till now system functionality was re-used, but from the process perspective we can re-use the business process module depending on the granularity. We can re-use IT systems as well as non-IT processes.     
·        Integrates the organisation in real-time. With all the business processes integrated, the organisation behaves like a system in real-time.
·        Simplifies deployment. Eradicates the point-to-point integration and tight coupling
which adds to inflexibility
·         Plug and play different technology providers. With services now communicating in open standards, different technology components can plug into the service model.
·         Powering newer strategies. With BPM, business processes will now be able to provide data in real time: it can be fed into business analytics. This will provide a platform for real-time decision-support system. thus speeding up strategic analysis. The organisation will then be able to align itself to new strategic initiatives at ease.

Case Questions:
1.         Fuelled  by the shift from a functional mindset to process-oriented thinking,  a business process, by nature, is cross functional, constantly changing, integrated and  interacts with system and people. In light  of this statement explain Business Process Management.
2.         In your own words, describe  some of the benefits of Business Process Management.


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