MIS

as an instrument for the organizational change

e-BUSINESS
e BUSINESS / e-COMMERCE
e OR
COMMERCE
B. P. R.
BY
JYOTINDRA ZAVERI

ERP CONSULTANT

www.dnserp.com Organizational Change 1

 Change fast
When change g within a
business is slower than that
without, the organization
may be in trouble
trouble. You
cannot predict the future but
we can learn to react a lot
faster than our competition.
Mr. Jack Welch, former CEO,
G
General l El
Electric
ti

www.dnserp.com Organizational Change 2

 CHANGE IS A MUST
• Managers can
unleash the real
‘power’ and
immense
capabilities of
computers
t by
b
challenging
‘centuries–old’
centuries–old
notions about work

www.dnserp.com Organizational Change 3

 ESSENCE OF
CHANGE MANAGEMENT

• One must use computers to help redesign

– not just automate – existing business
processes, but first one needs to have a
re-look
re look at one’s
one s existing business functions
and practices, identify ‘Gaps and
Opportunity For Improvements (OFI)’,
align them to modern
modern-day
day ‘BEST
BEST
PRACTICES’
• Then computerize all the Business
f
functions
ti under
d an ERP (E (Enterprise
t i
Resource Planning) Software package

www.dnserp.com Organizational Change 4

 BPR CYCLE

www.dnserp.com Organizational Change 5

 CASE STUDY - FORD
• Ford Motor Company was wondering why
they need 400 clerks to handle accounts
payable,
p y , when competitor
p had jjust five.
• That is when Ford did some BPR. The
BPR work needs to be properly
p p y
documented in the form of an S.O.P
[Standard Operating Procedures] Manual,
which
hi h would
ld fform th
the ‘F
‘Foundation’
d ti ’ off th
the
‘New Business’.

www.dnserp.com Organizational Change 6

It is time to ‘stop paving the cow-paths’.

• Instead of embedding outdated processes

in ERP software, we should get rid of them
and start over.’
• ‘Out-of-The Box’ thinking and innovation will
give quick ‘pay-back’ results, by
standardization and simplification
standardization, simplification, and by
preventing redundancy, duplication of effort
and person-dependent processes.

www.dnserp.com Organizational Change 7

 Achieve dramatic improvements in
performance

• For instance, think how we can use 'RFID'

RFID for
better Inventory Control.
• Conventionally, the legacy system that
organizations use today
today, captures only
transactional data like 'what is bought', at
what price and when. The RFID technology
enables capturing the event data through
wireless sensor (reader) on each item and
communicates to the ERP server on 'Real-
Time'
e bas
basis.
s
• We should "reengineer" our businesses; Use
the power of I. T. to radically redesign our
business processes
www.dnserp.com Organizational Change 8
 THINK BIG
• Reengineering while implementing ERP
triggers changes of many kinds, not just of
the business process itself. Job profile,
organizational structures
structures, management
systems, and most importantly ‘Attitude
changes’ – anything associated with the
process – must be refashioned in an
integrated way
• In other words, reengineering is a
t
tremendous
d effort
ff t that
th t mandates
d t change
h
in many areas of the organization .

www.dnserp.com Organizational Change 9

 BALANCING ACT
• On one extreme,
extreme we change the
software to suit current business
processes – known as
customization
t i ti
• On the other extreme, user is
ready to change the current
business processes and does
BPR. The sensible way is to
strike a balance somewhere in-
between

www.dnserp.com Organizational Change 10

HOW TO MANAGE CHANGE
• There is a golden rule named as
“ 20-60-20” which says:
– Once there is a change, 20%
agree that
h and d accept iit without
ih
difficulty.
– 60% depending
p g on the approach
pp
will be positive or negative to
changes.
– The last 20% oppose to the
changes. (unfortunately, top
Managers mainly fall in this group)

www.dnserp.com Organizational Change 11

 METHOD
• ERP projects involve ALL levels
in organization, we should have
a method to pay attention to all
off them
th
– Awareness of the need for change
– Desire to participate in the change
– Knowledge about how to change
– Ability to implement the change
– Reinforcement to sustain the
change.

www.dnserp.com Organizational Change 12

 Concept
• The concept of reengineering
is concerned about outdated
rules
• BPR challenges a large number
of fundamental assumptions and
also many of the presently
accepted business rules in order
to replace them with radically
new ideas.
ideas
www.dnserp.com Organizational Change 13
WHAT IS A BUSINESS PROCESS?

A BUSINESS PROCESS can well be

considered as a set of activities
that taken together produce a
result which of value to the end
customer
E.G. IN PURCHASE
– PREPARING A PURCHASE ORDER IS A
BUSINESS PROCESS IN THE PURCHASE
DEPARTMENT

www.dnserp.com Organizational Change 14

Customer order execution is
a process
• When a customer order is being
executed, it involves several
g across different
activities cutting
functions within organization
– SALES
– STORES (MATERIALS MANGER)
– SHIPPING / LOGISTIC
– ACCOUNT

www.dnserp.com Organizational Change 15

 ERP and BPR
• ERP and BPR is
linked with each
other
Define
D fi • Try
T to t do
d BPR att
each and every the CONFERENCE
ROOM PILOT (CRP)
process
stage (in the
beginning)
• BPR after the roll-
roll
out stage is very
difficult

www.dnserp.com Organizational Change 16

 Changing the rule
• Old rule
– Information is available within the organization, but
scattered
tt d across different
diff t locations,
l ti departments
d t t or
section. One has to search and collect the required
information. Time and effort need to be spent to
achieve this.
this
• New rule
– Information is made available at any location,
irrespective of physical location at which the
information is generated.
– ON THE SERVER COMPUTER.
– Information is available without significant efforts or
time being spent. This is done through ENTERPRISE
DATABASE system implemented in a computer
network.
www.dnserp.com Organizational Change 17
 BENEFITS OF BPR
• Companies using these techniques
have reported significant bottom-line
results,
results
• Better customer relations
• Reductions
R d ti iin cycle
l titime tto market
k t
• Increased productivity
• Fewer defects / errors
• Increased profitability
profitability.
www.dnserp.com Organizational Change 18
ROI ON BPR IS GUARANTEED
• BPR uses recognized techniques for
improving business results and
questions the effectiveness of the
traditional organisational structure.
• Defining,
Defining measuring
measuring, analysing and
re-engineering work processes to
improve customer satisfaction pays
off in many different ways.

www.dnserp.com Organizational Change 19

 Action plan
• Find out the old rules and
replace them with new rules
• Incorporate the new
business rule in ERP
SOFTWARE
• BPR AND ERP
IMPLEMENTATION GOES
TOGETHER
www.dnserp.com Organizational Change 20
 COMMANDER OF SHIP
“CHANGE THE COURSE”

www.dnserp.com Organizational Change 21

STORY OF THE COMMANDER OF SHIP

YOU HAVE TO
CHANGE .
...(THE COURSE)

www.dnserp.com Organizational Change 22

YOU MAY USE A GOOD VEHICLE

SOME PEOPLE USE

TOYOTA

www.dnserp.com Organizational Change 23

DO NOT CONNECT BULLOCKS TO TOYOTA:
CHANGE.
CHANGE

www.dnserp.com Organizational Change 24

 NAMASTE

PRESENTATION BY
JYOTINDRA ZAVERI
ERP Consultant

email j.zaveri@dnserp.com
www.dnserp.com

www.dnserp.com Organizational Change 25