VIM PREFACE There are many books and how articles on the'whyand the what' of BPR. However that is not the case with the howof BPR, and especially not in the case of e-business There are also many books and articles about managing the organizational change efforts that are needed to make the implementation of BPR successful. There is, however, notice- ably much less publicly available about the nitty-gritty of the how that is needed to redesign and improve business processes. The how of design appears to be kept within the propri- etary domain of consulting companies and is relatively unarticulated and underdeveloped in the public domain. Existing books provide little hands-on progressive experiential learn- ing. Neither do they provide a business-orien nted BPR software tool and an accompanying step-by-step BPR methodology to enrich the quality of the learning experience. Most im- ortantly, at this time there are no books that address these BPR issues in an e-business context. This book is designed to fill all these gaps This book prepares you to be a full-fledged participant in any process redesign effort an enterprise in this era of e-business. It provides basic understanding of business process redesign concepts, a how-to guide for redesigning business processes, and ac- companying business process modeling software on CD-ROM. The software is a lim- ited version of a leading-edge commercial software package, Workflow BPR Modeler from Holosofx Inc. that runs on any standard Windows-based personal computer. Th book also provides a series of case studies and examples based on real company expe- riences that the engaged reader can work through with the software. In addition, the book provides a supply chain view of business processes that is geared to e-business The book is also augmented with updates and tips accessible through McGraw-Hill's Internet website This book can be used in classroom settings, on the job, and in a self-guided learn- ing mode. It assumes only that the reader/learner has an intelligent understanding of how a business works and that he or she has basic point-and-click computer literacy in order to use the software and navigate through it. For university classroom settings, the book is designed to be used in business process reengineering courses that want to be relevant to current e-business settings; in electronic commerce and e-business hat want to provide concrete process redesign methods for e-business; and for chain management courses geared to e-business. The book is also helpful for ctual field projects during t Whether your passion and interest is business process consulting, e-business, infor- mation systems, electronic commerce, operations, or supply chain management, this book is geared to prepare you to be a full-fledged participant in BPR and e-business ini- ACKNOWLEDGMENTS his book could not have been completed without the help, support, patience, and en ouragement of many people. One"Big Thank You"is to my wife Hana and our chil Iren Nada, Hassan, and Kareem who patiently(and usually lovingly)endured the mak ing of a book that had its starts and stops. The other"Big Thank You" is to my good friend Hassan Khorshid, CEO and president of Holosofx who shared insights and made available the expertise of Holosofx and the software that comes with this book fo
VIM PREFACE There are many books and 'how' articles on the 'why' and the 'what' of BPR. However, that is not the case with the 'how' of BPR, and especially not in the case of e-business. There are also many books and articles about managing the organizational change efforts that are needed to make the implementation of BPR successful. There is, however, noticeably much less publicly available about the nitty-gritty of the how that is needed to redesign and improve business processes. The how of design appears to be kept within the proprietary domain of consulting companies and is relatively unarticulated and underdeveloped in the public domain. Existing books provide little hands-on progressive experiential learning. Neither do they provide a business-oriented BPR software tool and an accompanying step-by-step BPR methodology to enrich the quality of the learning experience. Most importantly, at this time there are no books that address these BPR issues in an e-business context. This book is designed to fill all these gaps. This book prepares you to be a full-fledged participant in any process redesign effort for an enterprise in this era of e-business. It provides basic understanding of business process redesign concepts, a how-to guide for redesigning business processes, and accompanying business process modeling software on CD-ROM. The software is a limited version of a leading-edge commercial software package, Workflow-BPR Modeler from Holosofx Inc. that runs on any standard Windows-based personal computer. This book also provides a series of case studies and examples based on real company experiences that the engaged reader can work through with the software. In addition, the book provides a supply chain view of business processes that is geared to e-business. The book is also augmented with updates and tips accessible through McGraw-Hill's Internet website. This book can be used in classroom settings, on the job, and in a self-guided learning mode. It assumes only that the reader/learner has an intelligent understanding of how a business works and that he or she has basic point-and-click computer literacy in order to use the software and navigate through it. For university classroom settings, the book is designed to be used in business process reengineering courses that want to be relevant to current e-business settings; in electronic commerce and e-business courses that want to provide concrete process redesign methods for e-business; and for supply chain management courses geared to e-business. The book is also helpful for courses in these topics that include actual field projects during the course of the semester. Whether your passion and interest is business process consulting, e-business, information systems, electronic commerce, operations, or supply chain management, this book is geared to prepare you to be a full-fledged participant in BPR and e-business initiatives. Go conquer! ACKNOWLEDGMENTS This book could not have been completed without the help, support, patience, and en couragement of many people. One "Big Thank You" is to my wife Hana and our chil dren Nada, Hassan, and Kareem who patiently (and usually lovingly) endured the mak ing of a book that had its starts and stops. The other "Big Thank You" is to my gooc friend Hassan Khorshid, CEO and president of Holosofx who shared insights and made available the expertise of Holosofx and the software that comes with this book fo
PREFACE WX educational purposes. He is the vision and key architect behind the Workflow BPR soft- ware and has deeper intellectual insight into business processes and process management than anyone I have ever met There are also a number of colleagues, friends, graduate students, and institutions whom I would like to especially thank. The Zyco insurance example in Chapter 6 is adapted from field work and modeling by les Sunohara of Holosofx who also provided detailed commentary at short notice. Il Im, Ph D. candidate at the USC Marshall School of Business, painstakingly smoothed rough spots in the flow and exposition of the ex- amples in Chapters 5 and 6. Chapter 7 draws on joint work between the RosettaNet Consortium. Holosofx. and the uSc marshall School of Business. Thanks are due to the pioneering efforts of Fadi Chehade, RosettaNet CEO, for creating such an exciting and forward-looking context for e-business, with whom I really enjoyed working over the last two years. The examples in Chapter 7 are adapted from modeling by Eric Olson and Jasmine Basrai of Holosofx. Dale Miller, a vice president in the banking industry provided very helpful input to Chapter 4. Gamal Shohaiep of Holosofx provided the de sign of the example in Chapter 5. Mike Laube helped configure and test the CD-ROm and Steve White and Jeff Reed all of Holosofx also provided much help on several oc- Christoph Bussler of Netfish Technologies kindly read Chapte A number of colleagues around the world used the book-in-progress in teaching their BPR and e-business mBa classes and provided very helpful feedback: Tom Housel of the USC Marshall School of Business, Timo Kakola of the University of Jyvaskyla in Finland, Sven Carlsson of Lund University in Sweden, and Guillermo Asper of the Uni versity of Brasilia in Brazil. Several of my teaching assistants and Ph. D. candidates made suggestions and acted as good-humored intellectual sounding boards over the course of writing this book: Sanjay Gosain now at the University of Mary land; Zoonky Lee now at the University of Nebraska; Arvind Malhotra now at the University of North Carolina at Chapel Hill; and Arjan Raven now at Georgia State University; and our USC isitor Carl-Johan Westin of CEPRO and the University of Linkoping, Sweden. Arvind and Sanjay were also my collaborators and soulmates on the RosettaNet research proj ect and completed their doctoral dissertations in that field context. I learned much from hem through our collaboration adjoint work. USC faculty colleagues Alexander Hars, Ravi Kumar, and Ann Majchrzak provided encouragement as did Inger Eriksson of the University of Turku, Finland. Paul Gray of Claremont Graduate University and Peter G.w. Keen provided inspiration for writing this book. The MBA students in my IOM 539 course endured early versions of some chapters. Thanks to all those wonderful col- leagues and to the usc marshall School of Business I would also like to thank the anonymous reviewers who provided useful suggestions that made this a better book. I would like to thank the McGraw-Hill project team headed by Mary Conzachi. Finally, a very warm thanks is due to Rick Williamson, my senior spon- soring editor at McGraw-Hill, who patiently provided creative guidance in bringing this project to completion. Omar A. El Sawy Manhattan Beach California
PREFACE iX educational purposes. He is the vision and key architect behind the WorkflowBPR software and has deeper intellectual insight into business processes and process management than anyone I have ever met. There are also a number of colleagues, friends, graduate students, and institutions whom I would like to especially thank. The Zyco insurance example in Chapter 6 is adapted from field work and modeling by Les Sunohara of Holosofx who also provided detailed commentary at short notice. II Im, Ph.D. candidate at the USC Marshall School of Business, painstakingly smoothed rough spots in the flow and exposition of the examples in Chapters 5 and 6. Chapter 7 draws on joint work between the RosettaNet Consortium, Holosofx, and the USC Marshall School of Business. Thanks are due to the pioneering efforts of Fadi Chehade, RosettaNet CEO, for creating such an exciting and forward-looking context for e-business, with whom I really enjoyed working over the last two years. The examples in Chapter 7 are adapted from modeling by Eric Olson and Jasmine Basrai of Holosofx. Dale Miller, a vice president in the banking industry, provided very helpful input to Chapter 4. Gamal Shohaiep of Holosofx provided the design of the example in Chapter 5. Mike Laube helped configure and test the CD-ROM, and Steve White and Jeff Reed all of Holosofx also provided much help on several occasions. Christoph Bussler of Netfish Technologies kindly read Chapter 8. A number of colleagues around the world used the book-in-progress in teaching their BPR and e-business MBA classes and provided very helpful feedback: Tom House! of the USC Marshall School of Business, Timo Kakola of the University of Jyvaskyla in Finland, Sven Carlsson of Lund University in Sweden, and Guillermo Asper of the University of Brasilia in Brazil. Several of my teaching assistants and Ph.D. candidates made suggestions and acted as good-humored intellectual sounding boards over the course of writing this book: Sanjay Gosain now at the University of Maryland; Zoonky Lee now at the University of Nebraska; Arvind Malhotra now at the University of North Carolina at Chapel Hill; and Arjan Raven now at Georgia State University; and our USC visitor Carl-Johan Westin of CEPRO and the University of Linkoping, Sweden. Arvind and Sanjay were also my collaborators and soulmates on the RosettaNet research project and completed their doctoral dissertations in that field context. I learned much from them through our collaboration and joint work. USC faculty colleagues Alexander Hars, Ravi Kumar, and Ann Majchrzak provided encouragement as did Inger Eriksson of the University of Turku, Finland. Paul Gray of Claremont Graduate University and Peter G.W. Keen provided inspiration for writing this book. The MBA students in my IOM 539 course endured early versions of some chapters. Thanks to all those wonderful colleagues and to the USC Marshall School of Business. I would also like to thank the anonymous reviewers who provided useful suggestions that made this a better book. I would like to thank the McGraw-Hill project team headed by Mary Conzachi. Finally, a very warm thanks is due to Rick Williamson, my senior sponsoring editor at McGraw-Hill, who patiently provided creative guidance in bringing this project to completion. Omar A. El Sawy Manhattan Beach, California
NAVIGATION GUIDE TO USING THIS BOOK The book is divided into two parts Part A: Understanding BPR for e-Business Part a provides a general under- standing of the concepts and issues of business process redesign(BPR)in the context of e-business Part B: How to Redesign Enterprise Processes with BPR Software Part provides a step-by-step progression of how to redesign enterprise processes and supply chain processes with BPR software through examples. Part B takes advantage of the Holosofx Workflow- BPR software on CD-ROM that comes with the book Part A consists of three chapters Chapter 1: Introduction to BPR for e-business Chapter I provides an introduction to BPR and e-business and their relationship to how business enterprises go through organizational change. It provides an overview of how BPR projects work and also provides a general orientation and introduction to the book hapter 2: Key Issues around BPR and the Evolution of BPR for e-Business Chapter 2 provides a general survey of the concepts and perspectives around the evolu- tion of BPR for e-business. The first part of the chapter presents the key issues around BPR by examining what we learned from the first wave of BPr in the early to mid 1990s. The second part of the chapter presents the issues around the evolution of BPR in its second wave in the late 1990s in order to better understand the direction of evolution of BPR for e-business. The structure of the chapter is in a question-and-answer mode to allow the reader to flexibly navigate through it and also to refer back for reference Chapter 3: Principles and Tactics of Process Redesign for e-Business Chapter 3 provides three different sets of principles and tactics for redesigning enter- prise processes in e-business situations: principles and tactics for restructuring and re- configuring a business process(restructuring it), principles and tactics for changing the information flows around a business process (informating it), and principles and tactics heuristics for changing knowledge management around a business process(minding it) The principles and tactics are illustrated through many current examples Part B consists of five chapters that progressively go through the phases of business process redesign for enterprise processes and supply chain processes in the context of e-business Chapter 4: Scoping an Enterprise Process Chapter 4 explains through a detailed real case study what needs to happen at the end of enterprise process redesign(the scoping phase). It provides steps, methods
X PREFACE NAVIGATION GUIDE TO USING THIS BOOK The book is divided into two parts: • Part A: Understanding BPR for e-Business Part A provides a general understanding of the concepts and issues of business process redesign (BPR) in the context of e-business. • Part B: How to Redesign Enterprise Processes with BPR Software Part B provides a step-by-step progression of how to redesign enterprise processes and supply chain processes with BPR software through examples. Part B takes advantage of the Holosofx WorkflowBPR software on CD-ROM that comes with the book. Part A consists of three chapters. Chapter 1: Introduction to BPR for e-business Chapter 1 provides an introduction to BPR and e-business and their relationship to how business enterprises go through organizational change. It provides an overview of how BPR projects work and also provides a general orientation and introduction to the book. Chapter 2: Key Issues around BPR and the Evolution of BPR for e-Business Chapter 2 provides a general survey of the concepts and perspectives around the evolution of BPR for e-business. The first part of the chapter presents the key issues around BPR by examining what we learned from the first wave of BPR in the early to mid- 1990s. The second part of the chapter presents the issues around the evolution of BPR in its second wave in the late 1990s in order to better understand the direction of evolution of BPR for e-business.The structure of the chapter is in a question-and-answer mode to allow the reader to flexibly navigate through it and also to refer back for reference. Chapter 3: Principles and Tactics of Process Redesign for e-Business Chapter 3 provides three different sets of principles and tactics for redesigning enterprise processes in e-business situations: principles and tactics for restructuring and reconfiguring a business process (restructuring it), principles and tactics for changing the information flows around a business process (informating it), and principles and tactics heuristics for changing knowledge management around a business process (minding it). The principles and tactics are illustrated through many current examples. Part B consists of five chapters that progressively go through the phases of business process redesign for enterprise processes and supply chain processes in the context of e-business. Chapter 4: Scoping an Enterprise Process Chapter 4 explains through a detailed real case study what needs to happen at the front end of enterprise process redesign (the scoping phase). It provides steps, methods, and templates
PREFACE XI Chapter 5: Fou of busir and analysis with BPR Software Chapter 5 is the process modeling chapter. It provides the foundations of business process modeling and analysis with BPR software. It explains what BPR software is ind provides a hands-on initial familiarization with the Holosofx Workflow BPR soft rare that comes with the book. This is done by working through a case example using the software. Finally, it provides guidance for readers who want to further ramp up their modeling skills Chapter 6: Analysis and Redesign of an Enterprise Chapter 6 explains through a detailed case example the different methods of process analy- sis and redesign for enterprise processes while taking advantage of the Workflow BPR software capabilities. It explains the steps in the modeling, analysis, and redesign phase. It shows how to compare"as-is"and"to-be"process designs through weighted average analysis and what-if simulation scenarios. Chapter 7: Designing Collaborative Supply Chain Processes for e-Business Chapter 7 takes the business process redesign methodology beyond the enterprise level to the supply chain level. Through a real case example, it shows how to redesign sup- ply chain processes for e-business when there are multiple partners doing business with hapter 8: IT Integration Options for e-Business Chapter 8 briefly describes the different types ofIT software platforms that can be used to integrate new or redesigned e-business processes into enterprise architectures so they can be executed. The examination and consideration of these alternatives is the final step before launching organizational implementation. The chapter also reiterates how the focus of Part B of the book fits into the broader perspective of organizational trans formation for e-business
PREFACE XI Chapter 5: Foundations of Business Process Modeling and Analysis with BPR Software Chapter 5 is the process modeling chapter. It provides the foundations of business process modeling and analysis with BPR software. It explains what BPR software is and provides a hands-on initial familiarization with the Holosofx Workflow-BPR software that comes with the book. This is done by working through a case example using the software. Finally, it provides guidance for readers who want to further ramp up their modeling skills. Chapter 6: Analysis and Redesign of an Enterprise Process Chapter 6 explains through a detailed case example the different methods of process analysis and redesign for enterprise processes while taking advantage of the Workflow-BPR software capabilities. It explains the steps in the modeling, analysis, and redesign phase. It shows how to compare "as-is" and "to-be" process designs through weighted average analysis and what-if simulation scenarios. Chapter 7: Designing Collaborative Supply Chain Processes for e-Business Chapter 7 takes the business process redesign methodology beyond the enterprise level to the supply chain level. Through a real case example, it shows how to redesign supply chain processes for e-business when there are multiple partners doing business with each other. Chapter 8: IT Integration Options for e-Business Processes Chapter 8 briefly describes the different types of IT software platforms that can be used to integrate new or redesigned e-business processes into enterprise architectures so they can be executed. The examination and consideration of these alternatives is the final step before launching organizational implementation. The chapter also reiterates how the focus of Part B of the book fits into the broader perspective of organizational transformation for e-business
PART A UNDERSTANDING BPR FOR e-BUSINESS Part a of the book provides a general understanding of the concepts and issues of busi- ess process redesign(BPR)in the context of e-business. It provides an introduction to BPR and e-business, as well as a general survey of the concepts and perspectives around the evolution of BPR for e-business. It also provides principles and tactics for re- designing enterprise processes in e-business situations
PARTA UNDERSTANDING BPR FOR e-BUSINESS Part A of the book provides a general understanding of the concepts and issues of business process redesign (BPR) in the context of e-business. It provides an introduction to BPR and e-business, as well as a general survey of the concepts and perspectives around the evolution of BPR for e-business. It also provides principles and tactics for redesigning enterprise processes in e-business situations