A short presentation on Business Process Re-engineering Based Models. It consists of Strategic, Project Management, Information Technology, Top Management and Cultural Factors. There are various models/frameworks and indicators like- Porters 5 Forces Model, 4 CSFs for BPR Implementation, From-to analysis, Financial Indicators.

1. Submitted By
Group-A4
Jasmin Nayak-UM19100
Aditya Sahoo-UM19xxx
Sambita Ghadai-UM19xxx
Akshit Saxena-UM19133
Abinash Sahoo-UM19xxx
Biswadeep Ghosh Hazra-UM19xxx
Ritisna Mall-UM19175
Padmavel R-UM19xxx
FRAMEWORK FOR
SUPPORTING “BUSINESS
PROCESS REENGINEERING “-
BASED BUSINESS MODELS

2. INTRODUCTION
• Organizations tend to evolve using
BPR
• BPR  Tools for survival & growth
of an organization  cost, quality &
service.
• External competitive pressures,
reduction in internal cost & to
improve productivity.
• Only few have been successful in
implementing BPR
• Most of then FAILED  70% of the
companies that went into re-
engineering.
• High risk process
• Fail to identify factors affecting the
measurement of organization readiness
for process r-engineering.
• Increase in cost and time
• Proper identification of factors affecting
the success and failure of BPR
• Develop a framework for measuring the
organization readiness for BPR
• Inherent risk investigation of certain
critical factors  relates to readiness
critical towards management of risk.
• BPR Large scale radical redesign 
dramatic improvements
• Should not try BPR before meticulous
examination of all phases and stages
of the project.
• An appropriate model is the need of the
hour.
3 threads of management thought have been used to form a
readiness framework
• The strategic positioning of a firm
• BPR
• Organizational capabilities

3. FACTORS INVOLVED
STRATEGIC
• Most important factors
• Lack of correlation
between organization &
organization’s strategic
objectives
• Strategy &Customer
orientation.
• Vision, mission, Goals
• KMO>0 (0.6) (FACTOR
ANALYSIS)
acceptable.
• Top Down approach
major change should
start from top.
• Identification of
stakeholders
competitive
environment determines
the direction of the
market.
• Market analysis &
identifying stakeholders
and prioritizing
stakeholders
expectations
PROJECT MANAGEMENT
• Based on the readiness
of the organization, BPR
project can be initiated
or delayed
• Collaboration between
departments (Resource,
expertise etc.)
• BPR requires planning
and time scheduling,
enough budget, and
accurate control as
every projects need.
• BPR projects should be
based on primal time
schedule to prevent any
time delay in BPR
implementation
• Efficient planning,
adequate resources in
executive stage, and
proper utilization of
project management
techniques are
important BPR
• Learning, careful
redesign of processes
• Determination of
performance key goals
INFORMATION
TECHNOLOGY
• IT is the most effective
factor in BPR success
and failure
• Having right IT
infrastructure is a vital
factor in the successful
implementation of BPR
• Opens up the
communication
channels
• Alignment of technology
with business to
improve the
performance manifolds.
• IT has its role in all
phases of redesign
process. Role of IT is
very important in three
stages:
before BPR
implementation,
implementation stage,
after BPR
implementation.
• IT knowledge and
resources
• IT infrastructure
TOP MANAGEMENT
• Essential for
effective cultural
change and
elimination of
obstacles.
• Successful leaders
of BPR projects
use leadership
styles that have
better fitness w ith
vital factors.
• Balanced
leadership duties
leads to successful
BPR Projects.
• Primary Task -
Sufficient
knowledge about IT
projects, realistic
expectation of the
project &
communication
• Secondary Task –
Understanding,
acceptance & education
CULTURAL FACTORS
•Infl uential factor s of
BPR pr oject
per for m ance.
•Ignor ance can lead to
or ganization failur es.
•Developing countr ies
such as Ir an ar e m or e
r elated to
or ganizational and
m anager ial cultur e
and not to technical
or w or k capabilities.
•Task-or iented and
ver ti cally str uctur ed.
•No attention to long-
ter m needs of
custom er s, and
flexibility is
m inim ized.
•The role of culture - Helps
or ganization to be
consi stent w ith
external envir onm ent.
Foster ing unity and
good com m unication
m echanism r esul ting
in better cooper ation
and high pr oductivity

4. Methodological Factors
01 Methodological factors focus on attempts to change,
support, set goals, measurement, modeling, customer
orientation, BPR team and its performance. Methodology
is a combination of organized methods, techniques and
tools to direct reengineering project towards success by
helping to solve problems
Definition
03
Human resources play a vital role in improving
organizational processes. Since business processes
should be run by human resources, considering this
factor is among most important elements in changing
processes because employees resistance against changes
will cause project failure
Factors related to changes in Management Systems
05 A questionnaire was used for data collection. The
questionnaire contained 80 questions for the seven
categories of factors that affect the measurement of
organization’s readiness to implement the BRR. It was
designed for exploratory factor analysis
Data Collection
02
56% of the total changes are presented by two new
factors. Eigenvalue of first factor in the rotated matrix
is 3.682 and for second factor are 3.028
Factor Analysis
04
This study is a survey research upon which sampling
was performed. Exploratory factor analysis was used to
classify and name each factors related to each category.
The purpose of the factor analysis is to reduce the
volume of data and determine the most effective
variables in shaping phenomenon
Method

5. Building up on the PORTER’s 5 FORCES MODEL
SUBSTITUTES
Identifying substitutes is seeking for products
or services that can fulfil the same
purpose as products of the industry of the
considered industry
RIVALS
Price discounting,
introducing new products, advertising
campaigns and service improvements
BUYERS
Competitiveness – many buyers and
suppliers, mutual dependence – few
buyers and suppliers, and monopoly power –
few suppliers and many buyers
ENTRANTS
Can disrupt established
players in a particular market, and directly
affect the competitive advantages
SUPPLIERS
Can have a detrimental effect on profitability
in an industry. manipulated by the number
of suppliers, the size of the supplier, and the
availability of substitute customers
COMPLEMENTORS
Consists of the government & public &
other stakeholders.
Industry stakeholder Analysis &
Stakeholder Agenda Analysis.

6. • Concept of strategic agendas.
• Strategic agendas  broken down across different levels
 for differing impact & ease of analysis (industry
agendas, competitive agendas, business agendas,
organizational agendas.
• A more distinct picture of the industry emerges
• Position of each stakeholders changes with the changes
in the response to emerging situations
• Turn on /attractors and turn off/repellers.
• Grasp the complexity of the industry and predict the
trends
• Analysis of each of the five forces by means of
stakeholder agenda analysis provides us with
cumulative effect of each of the agendas on the
industry dynamics. The list of interdependencies
• Provides a dynamic snapshot of the industry
and it’s constituents.
• Building block for the readiness framework
• Depends a lot on the concept of “industry”

7. Parameters From To Because of
Bargaining power of
buyers
Medium High Buyers more discerning,
experienced and price-sensitive
Rivalry Medium Very High Companies desperate to find
health club capacity –
producing discounting, etc
Substitutes ( Threat
of new entrants)
Medium Medium/High Buyers can find alternatives –
thus saving money
Entry barriers Low/Medium Medium Sites now so expensive – hard
to enter – but could change
again
Suppliers Low – Staff
Medium – Sites
Low – Staff
Medium – Sites
Variable
From – To Analysis of the porter’s five forces

8. The drivers of BPR
EXTERNAL FACTORS
– Macroenvironment,
stakeholders &
dyanmics
INTERNAL FACTORS
– consisting of
internal pressures in
the organization
DEVELOPING A FRAMEWORK
The framework developed enables an organization to be aware of the scenario surrounding it. Helps
to identify, track and manage risks associated with the dynamic business environments.
4 CSFs for BPR Implementation
• Management commitment
• Customer focus
• Use of IT
• Communication of change

9. SAMPLE FRAMEWORKS

10. FINANCIAL INDICATORS
01
Liquidity and Liability
indicators
02 Profitability indicators

11. Liquidity and Liability Ratios
Liquidity and Liability Ratios
• Current ratio = Current assets/Current liabilities
• Working capital ratio = Net working capital/Total assets
• Financial autonomy ratio = Equity/Total assets.
• Current ratio = Current assets/Current liabilities
• Working capital ratio = Net working capital/Total assets
• Financial autonomy ratio = Equity/Total assets.
Profitability Ratios
• Cash profit as percentage of income
• Return on assets = Profit after tax/Total assets
• Return on equity= Return on net worth.
• Cash profit as percentage of income
• Return on assets = Profit after tax/Total assets
• Return on equity= Return on net worth.

12. Liquidity and Liability Ratios
Liquidity ratios are an important class of financial metrics used to determine a debtor's ability to pay off
current debt obligations without raising external capital
Liquidity ratios are an important class of financial metrics used to determine a debtor's ability to pay off
current debt obligations without raising external capital
0
1
2
3
4
5
6
7
8
2017 2018 2019
Current Ratio
Cognizant Ratio IT Software - Industry Ratio
0.00
1.00
2.00
3.00
4.00
5.00
6.00
2017 2018 2019
Working Capital
Ratio
Cognizant Ratio IT Software - Industry Ratio
0.89
0.90
0.91
0.92
0.93
0.94
0.95
0.96
0.97
2017 2018 2019
Financial Autonomy Ratio
Cognizant Ratio IT Software - Industry Ratio

13. Profitability Ratios
Profitability ratios are metrics that assess a company's ability to generate income relative to its revenue,
operating costs, balance sheet assets, or shareholders' equity.
Profitability ratios are metrics that assess a company's ability to generate income relative to its revenue,
operating costs, balance sheet assets, or shareholders' equity.
0
5
10
15
20
25
30
35
2017 2018 2019
Profit Margin
Cognizant Ratio IT Software - Industry Ratio
0
5
10
15
20
25
2017 2018 2019
Return on Assets
Cognizant Ratios IT Software - Industry Ratio
0
5
10
15
20
25
30
2017 2018 2019
Return on Equity
Cognizant Ratios IT Software - Industry Ratio

14. Validating the framework on L&T
Industry : the infrastructure/construction industry in India
Company : Larsen & Toubro Limited.
Porter’s five force Analysis
PESTEL analysis
Stakeholder Agenda Analysis
Methodology
Basic Characteristic of industry
Macro trends and
the stakeholders involved
Map the competitive climate
From – To Analysis
Provided a trigger for changing the strategic
positioning as well as initiating BPR projects.
Factor Analysis
Absorptive Capacity

15. Political analysis
• elections at central and state levels
• clarity on policy making: policy deadlock
• strong democratic setup
• improved relations with Europe and North
America
• constant tension with neighbours
Economic analysis
• falling GDP growth rate
• second largest working age population pool in the
world
• highly favoured FDI destination
• high unemployment
• energy constraints and overdependence on oil
imports
• agricultural output fluctuates with monsoons
• high inflation
• expanding domestic market
• poor infrastructure
Social analysis
• A large young population between (15–64)
in India
• Rapid urbanization with urban areas
generating over two thirds of the country’s
GDP
• Number of social welfare initiatives in
force in India at present
• Social and communal tensions
Technological analysis
• Lower expenditure on
research and
development
• Dependence on foreign
expertise
Environmental analysis
• Land availability remains
a concern
• Environmental clearance
and environmental
impact assessment
remain grey areas
• Regulatory norm lag
behind developing
countries
Legal analysis
• India’s legal structure is conducive for investments
and doing business, but
judicial delays make legal recourse largely ineffective
• the expansion of tax base has increased revenues for
the central and state
governments
• the current overhaul in simplifying the VAT
registration system by authorities
• weak implementation of intellectual property laws
PESTEL analysis (L&T)

16. ‘From-to’ analysis of L&T
Competitive force From To Because
Bargaining power of
buyers
Bargaining power of
suppliers
Rivalry
Threat of substitutes
Entry barriers
Medium
Medium
High
Medium
Medium High
High High
Low Low
Re-structuring of PPP process,
Regulatory changes
Entry of foreign players
Infrastructure/construction cannot be
substituted
Capital requirements to remain high

17. • L&T has been performing better than industry standards in some
of the indictors.
• Cash profit (% ) has shown a declining trend.
• The working capital ratio has been steadily rising and crossed the
industry average.
• This indicates the need for re-look and BPR at the way the working
capital is managed.
FINANCIAL
RATIO

18. DASHBOARD
A dashboard is a type of graphical user
interface which often provides at-a-glance
views of key performance indicators (KPIs)
relevant to a particular objective or
business process.
KPIs
Advantages
• All in one detail
• Customizable
• Better decision making
• Enhanced Visibility
Sample Dashboard of the Manufacturing department

20. BPR
CONCLUSION
• High failure rate of BPR is due to
failure in through assessment and
analyzation
• Assessment can address weak points
and risks involved
• Readiness guarantees the success of
BPR
• Apart from the mentioned framework,
human factor must be deeply analyzed
• This should not apprehend the firm
from implementing the BPR as BPR
can be a source of competitive
advantage

21. THANK YOU