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manufacturing design to production (B) with frequent consultation between A and B. ? Coupling Pattern: Function participate directly in producing the process oute with no mutual information exchange ? Environment: Participating functions are sequentially independent and face low level of uncertainty in I/O requirements. ? Example: Recruiting workers (A) and equipment requisition (B) participate directly in establishing a new plant with no consultation between A and B. ? Coupling Pattern: Function participate directly in producing the process oute with mutual information exchange ? Environment: Participating functions are sequentially independent and face high level of uncertainty in I/O requirements. ? Example: Advertising (A) and production (B) directly participate in launching a new product with frequent consultation between A and B. 4/2/2023 40 Business Process Reengineering Functional Integration ?Reducing Degree of Mediation through IT ? redesigning business process from an indirect pattern to a direct pattern ? permitting two or more functions to proceed independently ? the use of shared puting resources is the key point of reducing the mediation level of a process. ? shared information is not depleted upon usage and may retain its value to additional functions after access by the initial user. 4/2/2023 41 Business Process Reengineering Enhancing Degree of Collaboration through IT ?Collaborations between functions are not always necessary ?IT technologies have great potential for improving collaboration between functions involved in a business process. ? Telemunication ? Inter ? ? groupware ? other OA applications 4/2/2023 42 Business Process Reengineering A B C A B C A B C DB A B C DB Path X Primarily through application of munication technology Path X* Path Y Primarily through application of shared information resources Path Y* Low Degree of Collaboration High Low Degree of Mediation High III II I IV 4/2/2023 43 Business Process Reengineering A B C A B C A B C DB A B C DB Path X Primarily through application of munication technology Path X* Path Y Primarily through application of shared information resources Path Y* Low Degree of Collaboration High Low Degree of Mediation High III II I IV ? Example of HP ? 135 salespersons were trained to use laptop puter to retrieve inventory information from corporate database during customer meetings. ? They also may municate with their peers and superiors to exchange information. ? A high degree of collaboration was achieved between marketing inventory and sales functions. ? Results: ? meeting time decrease 46% ? travel time was cut by 13% ? time with customer increase 27% ? sales increase 10% ? Example of TI ? Product development is conducted at different countries: India, Malaysia, Japan, . ? Global work and advanced puting resources enable design teams in different locations to sustain a high level of collaboration without sequential flow. ? Results: ? Time needed to develop a calculator decrease 20% soon after design drawing began to be sent electronically, and a further decrease of 17% has been achieved since then. 4/2/2023 44 Business Process Reengineering Process Reengineering: Charting a Strategic Path ?A strategic approach to Process Reengineering ? There are many paths for process reengineering and a guideline are needed in selecting a strategic path. ? It is possible to chart the “ right” reengineering path for the “ wrong” process. ? To ensure that the right processes are selected, the first step of the BPR efforts calls for the Identification of those candidate process that are critical to the firm’ s strategic objectives. 4/2/2023 45 Business Process Reengineering Process Reengineering: Charting a Strategic Path ?Identifying the critical process ? Value Chain: tracing from the “ upstream” process associated with inbound logistics to the “ downstream” process of marketing sales and services. ? Critical Success Factors (CSF): each process can be evaluated as to its strategic relevance. 4/2/2023 46 Business Process Reengineering Assessing Reengineering Potential for a process ?Two horizontal paths (X and X*) are suitable for processes with insufficient collaboration and the potential for collaboration enhancement is high ?Two vertical paths (Y and Y*) are suitable for processes with high potential for mediation reduction where many sequential steps can be eliminated. 4/2/