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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