Failure of Business Process Reengineering at Vicro Communications

Pages: 8 (4892 words) Published: November 1, 2014
IS5743 – Semester A 2014/2015
IT Based Organization Transformation

The Vicro Case: Instructions
• General Instructions
The main purpose of this case study is to enable you to realize the importance of a holistic methodology for BPR/BPM projects and the proper role of IT in conducting BPR/BPM projects. The case involves several critical factors for BPR/BPM success/failure. We will discuss the case in the classes of week 5. The discussion will be conducted in a team-based form.

Before session 6’s class, each student will submit a 2~3 pages summary of the case study (Soft copy to the Blackboard before class starts, hard copy to your instructor in class) to briefly address the following issues:

1. What did you learn from the case? Please identify the key factors leading to the BPR failure at the Vicro Communications. (Consider you were a BPM consultant)
2. How would you start a BPR project for Vicro? What would you do? (Consider you were the top management of Vicro)
3. What did you think of the IT decision made at Vicro? What is the role of IT at Vicro and should HPT be involved in the BPR project? How would you choose an IT solution for Vicro? (Consider you were an IT consultant) * You may write your answers in a bullet format. Please use the “IS5743-6643 1314B Case Vicro - Report Template.docx” as the template for your report. * Late submission will not be accepted.

IS5743 – Semester B 2013/2014
IT Based Organization Transformation

Vicro Communications: A Failed BPR Case1
Vicro Communications (a pseudonym is used in order to mask the identity of the organization) sought to reengineer its basic business processes with the aid of data-centric enterprise software. Vicro management wanted to rely on the software to improve the performance of its business processes. It was hoped that the software would increase information sharing, process efficiency, standardization of IT platforms, and data mining/warehousing capabilities. Unfortunately for Vicro, the reengineering effort failed miserably even after investing hundreds of millions of dollars (US$) in software implementation. As a result, performance was not improved and the software is currently being phased out.

BACKGROUND
Vicro Communications is an international provider of products and services that help companies communicate through print and digital technologies. As a leading supplier of document formatted information, print outsourcing and data based marketing, Vicro designs, manufactures and delivers business communication products, services and solutions to customers. Vicro operates in complementary marketplaces: Forms, Print Management and Related Products which includes Label Systems and Integrated Business Solutions including personalized direct marketing, statement printing and database management. With more than a century of service, Vicro owns and operates over 100 manufacturing and distribution/ warehousing facilities worldwide. With approximately 14,000 employees serving 47 countries, it provides leading edge, high-tech solutions that enable companies to adapt to the dynamics of change. Vicro is a large company with approximately USD 2.45 billion in 1999 and USD 2.26 billion in 2000 revenue. Vicro provides consulting, project management, reengineering and distribution of high volume, customized communications to its clients. It delivers personalized, easy-to-read documents intended to facilitate a positive impression on an organization's customers. As understood by the top management, its reengineering and redesign services intend to ensure that an organization's business communications have high quality and clarity. Equipped with the latest print and digital technologies, Vicro has become a market leader in managing critical business communications.

SETTING THE STAGE
Vicro is a conservative organization in that (it purports that) it doesn't embrace "bleeding edge" technology to obtain a competitive advantage. It has been in existence...
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