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Hi Emmanueland thanks to you for this invitation
I myself worked for company that traded with equipment for metallurgy, oil/gas exploration industries, mining.
It was big company with big checks but the competition there increased and top management company has taken decision-enter at market of IT-outsourcing services and mobile apps segment, to elaborate its own mobile apps and sell it in oil based states Texas etc. and in Canada, so it was classical example of BPR. I had to launch this new division. I have met next barriers the lack of flexibility, patience and skills.
The lack of flexibility- The markets of IT-outsourcing services and mobile apps are more flexible than the company’s current markets (mining, metallurgy etc.) were and this fact makes big problems for operational management.
The lack of patience-My division was only born and of course couldn’t generate profits having not marketing and advertising assist. The top-management of that company is used to countnet profits and was not encouraged refinance it in new division.
The lack of skills-That company’s top management was high skilled in metallurgy/mining etc. but had not skills in IT-outsourcing/mobile apps segments. There at meetings I was similar to a lecturer from BS speaking to a workers not to university graduates.
Resistance to change
Redtape or opposition to simplification citing risk in the process
Fear among employees that they will lose job
Lack of trust/awareness with employees that it will benefit
Hard and Soft Barriers
Hard barriers
IT problems
Resource Problems
Legal Issues
Risks associated with BPR projects Process reengineering initiatives are undertaken with a view to achieving drastic improvements in the business process results. Cost reduction, time optimization, better service efficiency and increases in productivity are some of the major gains reported. However, there are serious risks in implementing business process re-engineering (BPR) projects.
These risks are discussed below. 1) Financial risks BBR projects are undertaken with a view to getting high returns on investment. However, the efforts do not necessarily yield the desired results as the returns on investment are often intangible and not quantifiable. 2) Technical risks BPR projects are based on the use of Information Technology. However, it may so happen that the IT solutions oriented for process re-engineering are either not available or do not work to satisfaction. 3) General project risks
The organization taking up process re-engineering projects may not have the competence to implement the solution it is seeking or the BPR team which is entrusted with the project may not perform to the desired level.
4)
Functional risks Process re-engineering may need a reorganizational plan which may not be applicable to the kind of business in which the organization is engaged.
Political risks Very often, the BPR initiative loses the support and commitment of the top management either due to change in leadership or due to change in perception. The process re-engineering projects lose the budgetary or personnel support and are finally given up. There is also the dimension of acceptability by the end user and operational staff who may resist the change. Barriers to process re-engineering Every organisation that undertakes process reengineering experiences barriers at each stage of process reengineering The BPR projects normally progress in three phases as under:
Focus Parameter Phase I Improving efficiency of internal operations Improving productivity, quality, speed and customer service as well as better business precision. Phase
II Providing value added services & enhancements Improved customer service Improved business precision Enhancement & extension Phase
III Getting into new competencies Developing new business units
Conceptional barriers
Unsound financial justification
Organisation's resistance
Outsourcing
Customer acceptance
Legal & regulatory barriers
Technical barriers
Environmental barriers
Poor planning
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