Feasibility of Implementing Business Process Reengineering in Saudi Arabias Small and Medium Enterprises - Research Proposal Example

PhD Research Proposal “Feasibility of Implementing Business Process Reengineering (BPR) in Saudi Arabia’s Small and Medium Enterprises (SMEs)” Submitted By: Suaa7Fafa7 (E-mail add.: nutmega@gmail.com) Table of Contents I. Title of the Proposed Research …………………………………………. 3 II. A Brief Introduction ……………………………………………………….. 3 III. Importance of Business Process Reengineering (BPR) in SMEs ….. 4 IV. Justifying the Importance of the Selected Research Topic …………. 4 V. Aim and Objectives of the Proposed Research Topic ……..………… 5 a. Aim of the Proposed Research Topic ……………………… 5 b. Objectives of the Proposed Research Topic ……………… 6 VI. Key Academic Ideas (Theories & Concepts) and Supporting References …………………………………………………… 7 VII. Proposed Research Approach and Methodology …………………….. 8 VIII. Reasons for Intending the Use of Selected Research Approach and Methods ……………………………………………………………………... 9 IX. Justifying the Proposed Methods Used in Obtaining Necessary Data …………………………………………………………… 10 X. Setting or Context of the Proposed Research ………………………… 12 XI. Gaining Access to Needed Data ………………………………………… 13 XII. Interpretation and Analysis of Gathered Data …………………………. 14 XIII. Three-Year Time Schedule for the Proposed Research Study ……….. 14 Figure 1 – Relative Significance of Each Sets of Constraints on SMEs ……... 16 Table I – Gannt Chart on Three-Year Time Schedule for the Proposed Research Study ………………………………………… 17 - 19 References ……………………………………………………………………… 21 - 29 Title of the Proposed Research “Feasibility of Implementing Business Process Reengineering (BPR) in Saudi Arabia’s Small and Medium Enterprises (SMEs)” A Brief Introduction As part of globalization, Saudi Arabia is facing difficult challenges with regards to the trading of products and services worldwide. Aside from the after effects of globalization, SMEs in Saudi Arabia are also facing economic challenges as a result of the Kingdom’s accession to the WTO. Overcoming such challenges may require creation of a specialized agency dedicated to supporting the development of SMEs. (Saudi Arabias Five-Year Development Plans, 2005) Despite the business challenges that emerged from globalization, SMEs should be considered as a major factor will affect Saudi Arabia’s economic development. SMEs do not only provide the local people with employment opportunities; these small enterprises also play an important role in business diversification. By strengthening the use of information and communication technology (ICT), Saudi Arabia’s small and medium enterprises (SMEs) will have the competitive edge to compete in the global market. It is possible to strengthen the ICT platform in Saudi Arabia. However, the survey research findings on Saudi Arabia’s SMEs (presented at the Business Forum at the Riyadh Chamber of Commerce and Industry back in October 2003) reveal that the most important constraints in the development of ICT platform include: (1) a long time requirement to implement procedures; (2) possible causes of delay; (3) difficulty in obtaining funds from reputable financial institutions; and (4) technical and administrative constraints such as lack of skilled labour and competent management including low-quality operations and failure to keep up with modern work techniques. (See Figure 1 – The Relative Significance of Each Set of Constraints on page 16) Importance of Business Process Reengineering (BPR) in SMEs To enable SMEs to achieve major operational improvements in terms of quality, performance, and productivity, the implementation of BPR can be used to positively transform the organizational processes through the optimal use of information technologies (IT). Basically, the use of BPR is well-known in providing SMEs with positive business results by reducing a huge operation loss due to errors and unnecessary operational down-time. It can also increase the customer satisfaction through on-time delivery and production efficiency; as well as enabling the organization to have a better operational efficiency and effectiveness. (Ulrich, 2001; Dodaro & Crowley, 1997) In line with this matter, a survey by Deloitte & Touche reveals that almost 75 percent of 400 large North American companies were planning to increase the number of BPR projects back in 1995 and 1996. (Raymond, Bergeron, & Rivard, 1998) Justifying the Importance of the Selected Research Topic Failure to implement BPR limits Saudi Arabia’s SMEs’ overall business performance and its competitiveness in the global market. On the other hand, implementing BRP could increase Saudi Arabia’s SMEs’ ability to make a positive contribution to the society and the entire economic development of the country. By increasing the production output of Saudi Arabia’s SMEs, the government could lessen the country’s dependency on the importation of basic goods and commodities. There are a lot of expected positive outcomes as a result of going through the selected research topic. This includes: Enabling the researcher to know the extent of BPR’s contribution in terms of increasing the businesses’ production output. Enabling the researcher to understand the business situation of SMSs in Saudi Arabia. Enabling the researcher to define Saudi Arabia’s SMEs’ strength, weaknesses, opportunities, and threats. Enabling the researcher to determine the limitations of BPR in terms of increasing the business performance of SMEs. Providing the researcher the opportunity to go through intensive research on how BPR can be designed to satisfy the individual needs of Saudi Arabia’s SMEs. Increasing the awareness of SME owners in Saudi Arabia with regards to how they could benefit with the use of BPR in terms of increasing the business operations’ efficiency, profitability, and production output. Thus, enabling them to improve the overall economic performance of Saudi Arabia. Aim and Objectives of the Proposed Research Topic Aim of the Proposed Research Topic Using BPR, the aim of the study is to design a new working model suitable for the business environment of Saudi Arabia’s SMEs Objectives of the Proposed Research Topic The main objective of the research study is to complete the following requirements: Literature Review – gather some peer reviewed journals and other documents related to technical issues behind BPR including the contribution and limitation of BPR in SMEs. Benchmarking – quantify and compare the operational and business performance of Saudi Arabia’s two similar SMEs that has implemented the use of BPR. i.e. expected operational output; and projected sales. Gather information on: (1) the technical concept behind BPR; (2) two (2) Saudi Arabia’s SMEs particularly on medium-scale restaurants and coffees located in Jeddah; and (3) the country’s entire economy in relation to the use of BPR. Research on how BPR could enhance SMEs’: a. corporate and business process strategies (i.e. integration of business processes); b. customers’ expectations and perception; c. value-added services; d. shortcomings or inefficiencies of current business processes; and e. organizational restructuring and process management (i.e. positioning and empowering employees in the implementation of BPR). Further research on the following: a. What could happen if customers’ expectations are met by eliminating its operational inefficiencies; b. The role of human resources in the implementation of BPR; c. the role of information technology in strengthening the use of BPR; d. alternative way of implementing BPR. Key Academic Ideas (Theories & Concepts) and Supporting References Identified below are some of the theories and concepts that are relevant to the proposed topic: The most recent theories and practices of information processing related to BPR. E-government and e-commerce in terms of understanding the challenges being faced by Saudi Arabia’s SMEs as well as knowing the legal procedures and requirement upon implementing change. Economic development behind the history of IT and software programs. Method, techniques, and tools (MTTs) related to BPR. Basically, MTTs will help in the development of: (1) reengineering strategies; (2) human resource management; (3) basic structure and technological dimensions of business processes. A BPR planning approach for customizing the MTT framework will be based on unique characteristics of each business project. Software programs related to BPR applicable to SMEs. Theory behind financial analysis and basic accounting to measure improvements in business performance. Concept behind resistance to change; basic management; project management; and importance of good leadership skills. Proposed Research Approach and Methodology The proposed research method for the study includes the following: Qualitative and quantitative method based on research survey. Statistics and data analysis. Financial analysis. Illustration of business process reengineering (BPR) methods will be included to enable the readers to clearly understand BPR methods, techniques, and tools (MTTs). The illustration will also include how the MTTs will be used in the study. As part of the illustration purposes, a comprehensive diagram of BPR and MTTs will be presented to show how the system can be used in enhancing the business operation of SMEs. A customized BPR planning approach based on the business characteristics of selected SMEs will be used to enable the researcher select the most suitable way of implementing BPR. The flexible framework and comprehensive survey of commonly used BPR techniques and tools serves as added information on how SMEs in Saudi Arabia can improve the traditional business process. It will also be used as a basis for future BPR research studies. Step 1 – Develop a clear statement of SMEs goals and strategies. Step 2 – Consider satisfying the customer as the driving force behind these strategies and goals. Step 3 – Identify business processes more than its functions; align process with corporate goals. Step 4 – Identify value-added and support processes that will contribute to the expected added value. Step 5 – Appropriately use of management techniques and tools to ensure the quality of both information used and BPR deliverables. Step 6 – Conduct analysis of current business operations; identify the processes that are not value-added. Step 7 – Identify solutions that could maximize employee efficiency as well as the use of existing technology. (This will be the basis for implementing the change.) Step 8 – Develop an action plan specifying business operational changes, tasks, resources, and timing of events, following approval. Reasons for Intending the Use of Selected Research Approach and Methods Traditional SMEs are usually organized based on organizational functions and/or types of products the company sells or manufactures. In most cases, the company’s resources, adopted business procedures, operational systems, business practices, and financial management approach are structured departmentally. For this reason, it becomes more difficult for employees to identify and understand the entire business process. The application of BPR will be used in simplifying SMEs’ business process. The application of BPR will enable SMEs’ business operation automated. The new system will give SMEs the opportunity to reorganize the entire workforce. Even though the application of BPR is commonly used in improving the customers’ satisfaction, it will also improve the overall quality of business operations. Justifying the Proposed Methods Used in Obtaining Necessary Data Literature Review – enables the researcher to have an up-to-date knowledge with regards to the use of BPR. The use of quantitative and qualitative methods combined with financial analysis will enable the researcher to measure the positive impact of implementing BPR. Customizing the business process reengineering (BPR) methodology will enable the selected medium-scale restaurants and coffees to reach the business goals in terms of improving the business process and quality service. To enable the researcher to complete the proposed research study, the following steps will be used as a guideline: 1. Research Preparation 1.1 Recognize need; 1.2 Understands the situations; and 1.3 Identifies the situations. 2. Identification of the Following 2.1 Target customers; 2.2 Define and measure performance; 2.3 Define entities; 2.4 Business processes; 2.5 Identify business activities; 2.6 Extend process model; 2.7 Map organizational chart; and 2.8 Prioritize processes. 3. Vision 3.1 Understand process structure; 3.2 Understand the process flow; 3.3 Identify Value-adding activities; 3.4 Benchmark performance; 3.5 Determine performance drivers; 3.6 Estimate opportunity; 3.7 Envision the ideal business process (external); 3.8 Envision the ideal business process (internal); and 3.9 integrate visions. 3.1 Define sub-visions 4. Solution 4.1 Technical design; 4.2 Social design. Setting or Context of the Proposed Research The proposed research will be applied to SMEs in Saudi Arabia particularly in medium-size restaurants and coffees in Jeddah. First chapter will include the following: Describe the world economy vs. Saudi Arabia’s economy. Discuss Jeddah’s economy focusing on medium-scale restaurant. Discuss expected future business opportunities of medium-scale restaurants and coffees in Jeddah. Second chapter will include the following: Gather related studies on: (1) Saudi Arabia’s economy; (2) SMEs in Jeddah; and (3) BPR in SMEs. Analyze the findings and explain the similarities and differences between the studies and the proposed research study. Third chapter will include the following: Discuss the process of implementing the proposed research methodology. Discuss the business operations of a medium-scale restaurant. Analyze the findings of research survey. i.e. research survey, interviews, observation, and/or equestrians. Fourth chapter will include the following: Design a proposed business operational model for medium-scale restaurants and coffees in Jeddah. Compare and contrast the differences between the old and new technical and social design. Summarize the results and recommended solutions. Gaining Access to Needed Data: To gain access to related books and journals, the researcher will utilize the resources available at the school and national libraries including the online resources. In order to complete the paper requirements, the researcher intends to visit the following libraries: 1. King Fahad National Library; 2. King Abdualaziz City for Science and Technology; 3. King Saud University Library; 4. Saudi Chamber and Industry Commerce Library; 5. Ministry of planning library; and 6. Brunail University Library. The researcher will also use the Annual reports for SAMA including the development planning. As the president of restaurants and coffees committee in Jeddah chamber of commerce and industry, the researcher will personally distribute questionnaires to selected customers within and outside the restaurant. With regards to SMEs’ business operations, the researcher will use observational method and Interview method with qualified leaders of the same industry. For the application of benchmarking, the researcher will visit SMEs benchmarking in KSA to support building a new benchmark model. Interpretation and Analysis of Gathered Data As soon as data has been obtained, the researcher will define the operations AS/IS in accordance with the business process and tasks. After developing the flow chart of each operation, the researcher will discuss the operations’ strength and weaknesses. Eventually, the researcher will identify the core and sub-process of the business. Using the proposed chart of each business process, the researcher will decide whether the operations need to implement BPR or not. In case the business operation needs to implement BPR, the researcher will discuss how BPR should be incorporated within the business operations. Three-Year Time Schedule for the Proposed Research Study The researcher will first decide on the research topic during the first month. As the researcher goes through the process of writing the thesis paper, gathering necessary research materials will continue until the instructor officially accepts the final paper. Between the 2nd and 3rd month, the researcher aims to complete the proposed research paper followed by seeking the instructor’s approval. On the 5th month onwards, the researcher will start to conduct a literature review to enable the writer to gather up-to-date information with regards to the importance of BPR as well as the technical issues behind the said technology. Between the 7th and 8th month, the researcher will seek to define the business AS/IS based on selected business’ operational process. The findings of the business’ AS/IS will enable the researcher to design a more comprehensive flow chart. Between the 12th to 15th month, the researcher will start identifying the operation’s strength and weaknesses as well as the core and sub-processes of the business. For the research survey, the researcher will first develop a relevant survey questionnaires based on the information that needs to be obtained from the customers. Upon distributing a set of 100 questionnaires to selected customers, the researcher will start analyzing the survey results. The process of seeking KSA’s support for the development of a new benchmark model for SMEs may require a longer time to complete since the researcher will still have to deal with a group of professionals to be able to complete the benchmark model. Therefore, the researcher will start working on the formal thesis while waiting for the approval of a new benchmark model design for SMEs. Roughly between 33rd to 35th month, the researcher will submit a copy of thesis draft to the instructor and make necessary changes to formalize the thesis paper. (See Table I – Gannt Chart on Three-Year Time Schedule for the Proposed Research Study on page 17 – 19) *** End *** Figure 1 – Relative Significance of Each Sets of Constraints on SMEs Table I – Gannt Chart on Three-Year Time Schedule for the Proposed Research Study Marketing / Business Activities Month Finalize Research Topic Gather Research Materials Complete Research Proposal Seek Instructor’s Approval Conduct Literature Review Define the Operations AS/IS based on Business Process Design a Flow Chart Define Operations’ Strength & Weaknesses Identify the Core & Sub-process of the Business 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Marketing / Business Activities Month Gather Research Materials Develop Survey Questionnaires Distribute Survey Questionnaires Analyze Research Survey Result Seek KSA’s Support in Developing a New Benchmark Model for SMEs Continue Writing the Formal Thesis 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Marketing / Business Activities Month Continue Writing the Formal Thesis Submit A Draft Copy of Thesis Paper to Instructor Make Necessary Revisions Submit Revised Paper to Instructor 31 32 33 34 35 36 References: Dodaro, Gene L. and Brian P. 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Business Process Change: Reengineering Concepts, Methods and Technologies. 1 June 2008 . Internet Websites: 1. CSC : http://www.csc.com/ 2. Reengineering Forum : http://www.reengineer.org/ 3. BPR Online Learning Centre : http://www.prosci.com/xbpr_ah1.htm Read More