Telecommunications Theory And Implementation Of Business Process Reengineering

Business process redesign (BPR) is the popular term for reoptimization of organizational processes and structures following the introduction of new information technologies into an organization. In fall 2001, China Telecom initiated a business process redesign (BPR) project. The main purpose of the project is to resolve a number of structural and process issues facing China Telecom on the road to transform itself into a worldclass company . The project was divided into three phases, diagnosis, design,&planning, and implementation.Management processes should effectively support business processes BPR is fundamentally to improve the integrity of the processes, increase efficiency, reinforce market orientation, highlight economics goals and drive Group's requirement on "five unified management practices" and "five mechanism innovations"During diagnosis we found china telecom have following problem: Responds slowly to the market, not sensitive to competition, multiple and conflicting customer interface, lossing business to the competitors Lack of accountability among departments; processes are ineffective No sufficient compensation differentiation between poor and good performance; lossing talents Local loop positioning and overall role not clarified Lack of information tranparency; lack of correct and timely data for decision makers; data fragmented and inconsistent ROIC lags behind world leading telcosBased on a thorough diagnosis performce, China Telecom decided to focuse on a few key processes with the highest impact and feasibility. The processes included key account, network resources, and Capex pefermance management.Organization was restructured to become more customer-centric and to increase sales effectiveness. Key account department and the processes were redesigned to better serve large corporate accounts. A new commercial customer department was created. For the 1st four months existence, commercial customer department has achieved impressive performance.Another major introduction of the BPR project is a whole new capex process, which during the pilot achieved great Capex reduction without affecting revenue growth.This is an important restructuring, reflecting China's Telecom transitioning from a planned economy system to a market driven system, and from user growth driven to profit and return focused.