Business process reenginering and information technology in pakistan

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Since 1990s, companies are moving towards more flexible and customer centric. Organizations are changing their business models to increase their profitability; they are radically re-engineering their business models to compete each other. Many researcher claims that the managers should eliminate those activities which are not adding value rather than automating them through technology (Michael Hammer; Thomas H. Davenport; and J. Short in 1990). Many scholars tried to find out the indicators for re-engineering on their success and failure factors (Neda Abdolvand, Amir Albadvi and Zahra Ferdowsi, 2008; Hartini Ahmed, Arthur Francis and Mohamed Zairi, 2007). Moving toward re-engineering, there are few post-BPR environments which are necessary to monitor for successful implementation of BPR (Siew Kien Sia and Booon Siog Neo, 2008). A flexible business process modeling, stimulation and re-engineering (BPMSR) was also laid down for the easy implementation, testing and feedback of BPR (Razvi Doomun and Navin Vunka Jungum, 2008). Top ten practices were also benchmarked as best practices for business process redesigning (S. Limam Mansar and H.A. Reijers, 2007). Organizations are more focused towards customer and cost-effective care through Business Process Redesign (S.G. Elkhuizen, M. Limburg, P.J.M. Bakker and N.S. Klazinga, 2006). Successful implementation of Enterprise Resource Planning (ERP) found to have a positive relationship with the Business Process Improvement (BPI) (Chuck C.H. Law and Eric W.T. Ngai, 2007).

Pakistan is more backward in technological advancement, people are more rigid to change, and not easily accepting the change or does not even supports the change at all. There are various examples all over the world which has provided evidences that the successful implementation of information technology and radical redesigning or reengineering of the business models has drastic positive impact on company's overall performance. In Pakistan, pharmaceutical sector has gone through different phases of transformations; this paper will examine the impact of those transformations over company's performance.

LITERATURE REVIEW

S.G. Elkhuizen, M. Limburg, P.J.M. Bakker and N.S. Klazinga (2006) study's the use of BPR in implementing transformation of organization towards customer focused and cost reduction. Literature review methodology was adopted, 86 studies were review and it was concluded that quality of studies were not up-to mark and many of the studies shows no consistencies between their objective and outcomes. The paper explores a new idea for the researchers to do the work on Medical Subject Heading and produce a quality work.

The study of Cristina Gimenez (2006) shares an idea of integration process followed by the firms during their implementation phase of supply chain management. The research was conducted with the sample size of 172 Swedish companies for the time frame of spring-summer, 2001. Survey model methodology was select and data were collect through questionnaires. Statistical test; Pearson correlation, K-means cluster analysis and discriminant analysis, were applied to extract the results, and it was concluded that there are three integration phases; phase I, companies are not integrated. Phase II, companies are high-medium level of integration; low level of integration in logistics-production, and external integration is leveled to medium. And phase III, companies are highly integrated in their internal boundaries and some their supply chain relation. The study provides support to managers in the integration process. Before going towards any external integration, firm must integrate their internal functions.

S. Limam Mansar and H.A. Reijers (2007) investigated the best BPR practices and academics with insight into the most popular investigations to originate improved process designed. An online survey was conducted for the time frame of 2003-2004 in UK and Dutch, questionnaires were emailed. Top ten best practices were selected and tested against two case studies in which ten best practices were discussed (Limam Mansar and Reijers, 2005). The paper helps to identify the best ten practices applied extensively by the practitioners in BPR. The rules have been accumulated together to provides ideas about different implementation opportunities for new process. This study can be used to gain success in BPR phase.

Hartini Ahmad, Arthur Francis and Mohamed Zairi (2007) inspected the key success factors of BPR in Higher Education. Case study quantitative analysis was conducted, three case studies were considered for the study. The outcomes of the case studies were then compared with the best practices of BPR benchmarked by University of Wisconsin-Stout. In the end 7 factors were found critical for successful implication of BPR, which were teamwork and quality culture, effective change management, quality management and adequate reward system, democratic and participative, effective project management, information system and sufficient financial resources. The future implication of the study implies that all the factors driven through the study should be considered during BPR transformation.

Chuck C.H. Law and Eric W.T Ngai (2007) investigated the relationship between organizational factors, business process improvement, and ERP success using 96 firms operating in Hong Kong. The data were collect through emailing the questionnaires to 1000 firms, 106 companies responded out of which 96 were those whose questionnaires was full completed. On those sample size Non-parametric statistic method were used (Mann- Whitney test and correlation analysis) and it was concluded that Business Process Improvement (BPI) has a positive relationship with the success of Enterprise Resource Planning (ERP), senior management support of BPI, and senior management support of Information Technology (IT). It was also discovered that the distance between CIO (Chief Information Officer) and IT function to CEO (Chief Executive Officer); CEO-IT distance, has a negative relation with the extent of BPI. The finding suggests that the scholars and researchers of ERP must pay attention on variables of the studies for the firms belonging to different geographic origin.

Emad M.Kamhawi (2008) researched on the factor that influences intension of managers toward embracing BPR in third world country. A survey methodology was adopted to collect data, questionnaires were send to 14 companies and sample size of 106 proper filled questionnaires were collect. Statistic Regression analysis was applied to data and it was concluded that "effective project management experiences" and "the ability to build an environment supporting need for change" are important provisions to gain positive views toward BPR. The study also suggests that manager's cognitive style and educational level has an impact on their intentions to adopt BPR. The study supports the firm to identify the level of knowledge, skill, and experience required by the managers to adopt the BPR.

Neda Abdolvand, Amir Albadvi and Zahra Ferdowsi (2008) studied how to minimize the risk of employing Business Process Reengineering by measuring readiness of two Iranian companies; Company A and Company B with the sample size of 169 and 156 respectively. Questionnaires were prepared through critical review of past researches and through mailing service they were posted to respective companies. First Factor Analysis test, and then Correlation Analysis were applied. This research concluded with the six indicators which are the positive readiness indicators of Business Process Reengineering (BPR) − that are democratic leadership, cooperative working environment, top management obligation, compassionate management, and the use of IT. Resistance to change is been the only negative indicator for BPR readiness. It was suggested that at each organizational level BPR need to change the culture and behavior of human. Managers play a vital role in the success of BPR. New team works and project environment based on BPR should be engaged so to enhance the readiness indicators. Companies going through readiness to change should emphasize on ICT (information and communication technology), effective channel of communication.

Siew Kien Sia and Boon Siong Neo (2008) examined working impact of BPR through Panopticon lens concept; specially the level of empowerment and work monitoring. An intensive case study was conducted at Internal Revenue Service, Singapore, which goes through successful BPR. Sample sizes of 99 were tested and it was concluded the high work monitoring during post-BPR environment. During redesigning phase, close work monitoring has an impact on real empowerment, leaving little scope of empowerment. The future implication of the study is that implementers can affect the discipline of visibility to arrange control creatively in a reengineered environment. Indications of post-BPR workplace can help manager to tackle the change management issues.

Razvi Doomun and Nevin Vunka Jungum (2008) examine the flexible framework through BPR can me module, stimulated and reengineered in the cost effective manner. The methodology adopted for this study is based on literate review and it was resulted that modeling starts with the definition of modeling structure and limitations. This study contributes to implement the successful BPR in call center.

Rashmi Jain, Angappa Gunasekaran and Anithashree Chandrasekaran (2009) examined the need and expectation from newly hired engineering fresh employee involving BPR. Survey research method was adopted for the study, 12 companies of different sector were selected as a sample size and were received a survey questionnaires containing 33 questions. Standard deviation and average were computed to find out the importance of each 19 BPR topics and the research clearly shows a developed role of BPR. Employer views BPR as more of operational nature rather than of strategic nature. For the future implications, this study can be used as a guide line for the entry-level applicant to prepare themselves for the industry and it also provides a guidance to firm about the level of knowledge, skill and training required for the BPR to be engaged.

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