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Business Process Reengineering

Business Process Reengineering (BPR) involves fundamentally rethinking and radically redesigning business processes to achieve significant improvements in performance. Key features include a focus on dramatic improvements, the identification of key business processes, and the need for top management support. Successful BPR requires clarity of purpose, a suitable choice of processes, and a conducive environment for change.

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Geon Antony
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3 views

Business Process Reengineering

Business Process Reengineering (BPR) involves fundamentally rethinking and radically redesigning business processes to achieve significant improvements in performance. Key features include a focus on dramatic improvements, the identification of key business processes, and the need for top management support. Successful BPR requires clarity of purpose, a suitable choice of processes, and a conducive environment for change.

Uploaded by

Geon Antony
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Module - 5

BUSINESS PROCESS
REENGINEERING (BPR)
By:
Angel Joy
Jovita Josephine
Ananya Shiji
Amreena
Sereena Santhosh
BUSINESS PROCESS REENGINEERING (BPR)
Business Process Reengineering is the rethinking and redesigning of
the core business processes to gain radical improvements in
performance. Michael Hammer and James Champy introduced
the technique of BPR in mid 1980's in their book "Reengineering
the Corporation" They have defined BPR as "the fundamental
rethinking and radical redesign of business processes to achieve
dramatic improvements in critical, contemporary measures of
performance, such as cost, quality, service and speed" According
to the Reengineering theory, complete processes from materials
acquisition, to production, marketing and distribution should be
looked at.
IMPORTANT FEATURES OF BPR

1. Fundamental Rethinking:

Reengineering first determines what an organisation must do, then how to do it. It takes nothing
for granted. It ignores what is and concentrates on what should be. In BPR, the outdated rules
and fundamental assumptions that underlie the current business operations are identified and
discarded.

2. Radical Redesign:
It involves disregarding all existing structures and procedures and inventing completely new
means of work. It means getting to the root of things. Reengineering is about reinvention of
business, not improvement, modification or enhancement. Organisations and their employees
should make organisation structures more innovative, flexible, and customer-centred.
3. Dramatic Improvement:

BPR aims at dramatic improvements in performance rather than marginal improvements The old
ways of doing business should be replaced by new ways in order to meet the demands of
customers, changing environment and growing competition) Organisations that are in deep
trouble, those organisations which foresee trouble ahead and the ambitious organisations that are
in peak condition undertake reengineering.

4. Key Business Processes:

Reengineering focuses on business processes. A business process is a collection of


activities that takes one or more inputs and creates a customer focused output.
Developing goals and strategy, emphasising the commitment of top management,
creating a sense of urgency among members, recreating the organisation and
optimising perspectives are the important aspects of BPR Process. Thus, reengineering
involves breakthroughs by discarding the existing process.
OBJECTIVES

1. To redesign the key business processes, in order to improve quality and reduce cost.

2. To apply a holistic approach to principles and process of businesses.

3. To flatten the organisation and to encourage team work.

4 To train and develop human resources.

5. To improve information technology.

6. To develop competitive strength with a clear view on the goals to be achieved.

7. To encourage constant learning.


PRINCIPLES

1. To organise the new jobs around outcome so as to improve speed productivity and customer
responsiveness.

2. To plan the work in such a way that it is closest to those who use the output of the process.

3. To make the person collecting the information responsible for processing it so as to reduce the errors.

4. To maintain the individual flexibility and responsiveness to customers of separate units of an


organisation.

5. To link and co-ordinate parallel activities that will come together during the process.

6. To make decision-making part of the process.

7. To collect and capture information in the organisation only once at the source.
PHASES
The phases of reengineering process are the following:

1. Preparing for change Everybody in the organisation should understand the need for change. The
employees should be informed of their roles in the upcoming process of change and be prepared for a
cultural shift.

2. Planning for Changes In a constantly changing economic environment, the management has to
foresee the future changes and make an active plan for achieving the desired results in future.

3. Designing Changes It involves identifying current business process, assessing the process, creating the
ideal process, testing the new process and implementing it.

4. Evaluating Changes It includes evaluating past activities and developing objectives and priorities for
the coming year. In this evaluation, feedback from all the reengineering activities along with a review of
organisational performance are used. Periodical evaluation should be done to assess whether
reengineered process is consistent with the operational plan and is on the right track.
REQUIREMENTS FOR SUCCESS IN BPR
1. Clarity of Purpose:

The purpose should be clearly defined in the reengineering process. It means that the process should be
well-defined and well-designed. Process provides the structure into which practice fits. Reengineering in
fact focuses on optimising efforts and getting rid of non-value added activities.

2. Top Management Support:

BPR must begin from the top The leader must develop a core team of competent people from different
departments to plan and implement the programme.

3. Choice of right processes:

Suitable business processes should be chosen for reengineering. should be based on three criteria
a) most troublesome processes.
b) Processes having the maximum impact on customers, and
c) Processes most receptive to successful redesign
4. Customer's angle Things should be seen from customer's angle Staff can be convinced of
the need for reengineering by explaining the impact on customer satisfaction.

5. Sense of Urgency A time frame should be developed for achieving results through
reengineering.

6. Proper Climate Environment suitable for change must be created Involvement and
participation of people are helpful in overcoming resistance to change.

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