(note: Steve Skidmore dislikes the practice of BPR as opposed to re-designing process, so please remember to criticise the tool's risk - radical and risk of spectacular failure if system(s) is unacceptable to market.)
BPR RECOMMENDATION 1:
- customer-focused outcome : faster supplies for JY instead of weeks to deliver for rare books, less costly to customers and provide rich content information enable customers to better self-select books wanted.
- Customers can be made to ‘process’ the information where they perform a review of certain books. This promotes more perspective on books review to complement the existing critiques.
- Information gathering and information processing are the same process so that there is no distinction between the both category. Allows higher accuracy in information management.
- Centralized all information despite JY has to source from many suppliers. JY can increase its bargaining powers by concentrating orders as a single entity. Have a record on how many books it buys from a specific supplier over a time period. Greater bulk discount given if volume is large. - Warehouse can be eliminated. Use e-business tools to link directly between suppliers and customers.
- Offer greater autonomy for website managers to control quality content instead of allowing freelancers the powers (not allow them to direct the information content on website).
- Information should be captured at source.
CASE STUDY ON BOOKS SALE (10 marks)
ANSWER (a)
Business Process Reengineering is a change to organization which is
‘fundamental’, ‘radical’, ‘processes are new’ and ‘dramatic’. JY can change its main processes replaced by new processes.
BPR principles and applications to JY business:
‘fundamental’, ‘radical’, ‘processes are new’ and ‘dramatic’. JY can change its main processes replaced by new processes.
BPR principles and applications to JY business:
BPR RECOMMENDATION 1:
- customer-focused outcome : faster supplies for JY instead of weeks to deliver for rare books, less costly to customers and provide rich content information enable customers to better self-select books wanted.
- Customers can be made to ‘process’ the information where they perform a review of certain books. This promotes more perspective on books review to complement the existing critiques.
- Information gathering and information processing are the same process so that there is no distinction between the both category. Allows higher accuracy in information management.
- Centralized all information despite JY has to source from many suppliers. JY can increase its bargaining powers by concentrating orders as a single entity. Have a record on how many books it buys from a specific supplier over a time period. Greater bulk discount given if volume is large. - Warehouse can be eliminated. Use e-business tools to link directly between suppliers and customers.
- Offer greater autonomy for website managers to control quality content instead of allowing freelancers the powers (not allow them to direct the information content on website).
- Information should be captured at source.
BPR RECOMMENDATION 2:
- closures of warehouse
- ceased shipments of books
- ceased courier distribution of books
- convert classic books to e-books format. That way, its virtual delivery of instant download where customers pay per page or per chapter.
- compile books under copyright and negotiate to pay royalties to printers for every sale of e-books. Recommend 65-35 profit share arrange in favour of printers/authors.
- conduct a CRM program to research on popularity of different types of books to prioritise the types of book for conversion to e-books format in view that JY has 3 million titles.
Step 1: develop a vision. JY to have 0 stocks through direct link to suppliers.
Step 2: processes redesigned are:
- all web news contributors be based in JY’s office. This encourage interchange of information and innovation, safe costs on relocation of hardware between freelancers, in event that one quits and another joints.
- Direct link to suppliers so that orders placed are treated as ‘triggers’ to supply
- Manage haulage networks to have efficient distribution.
Step 3: measure existing processes:
- delivery time for rare books
- number of web visitors per day
- sales conversion rate per period
step 4: identify change levers: invest in IT hardware and software handle greater volume. Empower IT committee to effect change.
Step 5: design / build prototype or outsource the software engineering program.
RISKS:
- BPR is not a cost cutting initiatives but seek to add value and fulfilling customers expectations.
- BPR mistaken as a mere ‘scientific management’ approach where it improves or simplify exiistins system taken as a ‘hollowing out’ process
- BPR has tendency of top-down approach resulting in forcing employees to adopt approaches recommended and same time restricting their innovation cabability.
- BPR risk unwittingly destroy core competencies that top strategic apex is unaware of as this is a “causal ambiguity’
3 comments:
Dear all candidates,
Concentrate on the answer's Critical FActors. I mean the written answer, NOT the man. :)
lol.. cant move my eyes away from d man.. :p
The guy sounds like a retard when he talks, what do the ladies see in him?
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