RERE--ENGINEERING PROCESSES AND ENGINEERING PROCESSES AND

PROCEDURES:PROCEDURES:

STARTING HOTEL BUSINESS IN STARTING HOTEL BUSINESS IN

MALAYSIAMALAYSIAMALAYSIAMALAYSIA

�Early steps in transforming the public

service delivery in Malaysia

� to improve business performance, attract

foreign investment and enhance national

competitiveness

��Hotel Business Hotel Business –– one of the subone of the sub--sectors sectors

BACKGROUNDBACKGROUNDBACKGROUNDBACKGROUND

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��Hotel Business Hotel Business –– one of the subone of the sub--sectors sectors

prescribed under the services sector in the prescribed under the services sector in the

Third Industrial Master Plan (IMP3)Third Industrial Master Plan (IMP3)

��Business Process ReBusiness Process Re--engineering (BPR) engineering (BPR)

methodology adopts a holistic approach that methodology adopts a holistic approach that

covers endcovers end--toto--end cycles of the business end cycles of the business

processprocess

�Multi Agency, Cross Sector

� cross sector processes, both vertical and

horizontal

� cooperation to achieve shared vision to

enhance public service delivery

BACKGROUND BACKGROUND (Cont.)(Cont.)BACKGROUND BACKGROUND (Cont.)(Cont.)

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enhance public service delivery

� initial challenges: coordinate cooperation

from agencies

� resolves through understanding the

needs to enhance capacity of all

government agencies – national interest

��Why start with Hotel BusinessWhy start with Hotel Business ??

� estimated tourist receipts (24.6 million

tourists) are set to raise RM59.4 billion

by 2010

�other sub-sectors processes currently

RE-ENGINEERING INITIATIVE FOR

HOTEL INDUSTRY

RE-ENGINEERING INITIATIVE FOR

HOTEL INDUSTRY

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�other sub-sectors processes currently

being studied: construction services,

business and professional services, ,

education and training serviceseducation and training services, ,

integrated logistic servicesintegrated logistic services, , health health

servicesservices, , distributive trade servicesdistributive trade services and and

ICT servicesICT services

��hotelhotel industryindustry businessbusiness processprocess involvedinvolved 55

stagesstages

��total time taken and number of approvalstotal time taken and number of approvals::

� 546 days or approximately one and a half

THE ‘AS-IS’ HOTEL INDUSTRY

BUSINESS PROCESS

THE ‘AS-IS’ HOTEL INDUSTRY

BUSINESS PROCESS

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� 546 days or approximately one and a half

year for complete approvals

�� 72 types of licenses/approvals from a 72 types of licenses/approvals from a

total of 22 agencies at the Ministries/ total of 22 agencies at the Ministries/

Departments at the Federal, State and Departments at the Federal, State and

Local Authorities levelsLocal Authorities levels

BUSINESS PROCESS RE-ENGINEERING (BPR) METHODOLOGY

BUSINESS PROCESS RE-ENGINEERING (BPR) METHODOLOGY

Document Current Business

Processes

Document Current Business

Processes

Evaluate Potential

Improvements

Evaluate Potential

Improvements

Document Recommended Processes

and Data Requirements

Document Recommended Processes

and Data Requirements

4 main4 main

processprocess

stepssteps

�

�

�

A challenge to:

�Reduce cost…

�Increase quality…

�Reduce cycle time…

�Improve customer

service

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and Data Requirementsand Data Requirements

Develop Short- and Long- Term

Recommendations

Develop Short- and Long- Term

Recommendations

Business Process

Recommendations

Business Process

Recommendations

Automation

Recommendations

Automation

Recommendations

Monitor ProgressMonitor Progress

Transition

� Evaluates technological solutions�Implement process improvements

�Document policy changes

�Identify and track performance

measures and targets

�

IMPROVED PROCESS OF HOTEL

INDUSTRY

IMPROVED PROCESS OF HOTEL

INDUSTRY

��DramaticDramatic improvementimprovement inin thethe overalloverall

processprocess::

� total time taken for complete approval has

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� total time taken for complete approval has

been reduced from 546 days to 166

days

�� number of approvals required has been number of approvals required has been

reduced from 72 to only 44reduced from 72 to only 44

IMPROVED PROCESS OF HOTEL

INDUSTRY (cont.)

IMPROVED PROCESS OF HOTEL

INDUSTRY (cont.)

��MadeMade possiblepossible byby::

� streamlining the work processes

�� eliminating noneliminating non--productive work productive work

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�� eliminating noneliminating non--productive work productive work

processprocess

�� integrating similar work processintegrating similar work process

especially those that uses the similar especially those that uses the similar

information in the decision makinginformation in the decision making

HIGHLIGHTS OF HOTEL INDUSTRY BPR

HIGHLIGHTS OF HOTEL INDUSTRY BPR

��FourFour highhigh impactimpact processesprocesses::

� online registration for company set up and

other mandatory employer-employee

registration

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registration

�� composite license formcomposite license form

�� immediate commencement of business immediate commencement of business

upon applicationupon application

�� longer validity of license periodlonger validity of license period

LESSONS LEARNEDLESSONS LEARNED

��resistanceresistance toto changechange byby processprocess ownerowner

��toto dealdeal withwith threethree differentdifferent levelslevels ofof authority,authority,

namelynamely FederalFederal Level,Level, StateState LevelLevel andand thethe

LocalLocal AuthoritiesAuthorities

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LocalLocal AuthoritiesAuthorities

��toto deducededuce thethe correctcorrect scenarioscenario ofof thethe asas--isis

hotelhotel industryindustry businessbusiness processprocess basedbased onon

thethe informationinformation andand feedbacksfeedbacks collectedcollected

CONCLUSIONSCONCLUSIONS

� Malaysian government to embark on the total

transformation of public service delivery system

� ministries and government agencies to further

improve other business processes in all sectors

using the Business Process Re-engineering (BPR),

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using the Business Process Re-engineering (BPR),

Business Process Improvement (BPI) and Business

Process Re-alignment (BPR) approach

� its implementation and effectiveness to be

monitored and reviewed constantly

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