Business Process Reengineering
HISTORY
Introduced in the late Micheal Hammer’s 1990
Harvard Business Review article.
Promoted by Hammer and James Champy
published book Reengineering the corporation.
By the mid-1990s, BPR became popular as a
justification for downsizing.
The next new methodology, after BPR is
Enterprise Resource Planning.
MEANING
Business process reengineering
(BPR) is the analysis and redesign of workflows
within and between enterprises in order to
optimize end-to-end processes and automate non-
value-added tasks.
BUSINESS PROCESS
REENGINEERING(BPR)
Business Process: “A business process is a
collection of activities which together produces
some value to the customer”.
Reengineering: Reengineering is fundamental
rethinking and radical redesign.
OBJECTIVE/PURPOSE OF BPR
BPR focuses on processes and not on tasks, jobs
or people BPR advocates that enterprises re-
examines from basics aims at total re-invention
not small improvements.
Example: “Hewlett Packard’s assembly time for
server computers reduces to low-4 minutes”
SEVEN REENGINEERING PRINCIPLES
1. Organize around outcomes, not tasks.
2. Identify all the processes in an organization and prioritize
them in order of redesign urgency.
3. Integrate information processing work into the real work that
produces the information.
4. Treat geographically dispersed resources as though they were
centralized.
5. Link parallel activities in the workflow instead of just
integrating their results.
6. Put the decision point where the work is performed, and build
control into the process.
7. Capture information once and at the source.
BUSINESS PROCESS REENGINEERING
PROCESS
Define Objectives and Framework:
First of all, the objective of re-engineering
must be defined in the quantitative and qualitative terms. The
objectives are the end results that the management desires after
the reengineering. Once the objectives are defined, the need for
change should be well communicated to the employees
because, the success of BPR depends on the readiness of the
employees to accept the change.
Identify Customer Needs:
While, redesigning the business process the
needs of the customers must be taken into prior consideration.
The process shall be redesigned in such a way that it clearly
provides the added value to the customer.
One must take the following parameters into the consideration:
Type of Customer and customer groups.
Customer’s expected utilities in product and services
Customer requirements, buying habits and consuming
tendencies.
Customer problems and expectations about the product or
service.
Study the Existing Process: Before deciding on the
changes to be made in the existing business process,
one must analyze it carefully. The existing process
provides a base for the new process and hence “what”
and “why” of the new process can be well designed
by studying the right and wrongs of the existing
business plan.
Formulate a Redesign Business Plan: Once the
existing business process is studied thoroughly, the
required changes are written down on a piece of paper
and is converted into an ideal re-design process. Here,
all the changes are chalked down, and the best among
all the alternatives is selected.
Implement the Redesign: Finally, the changes are
implemented into the redesign plan to achieve the dramatic
improvements. It is the responsibility of both the management
and the designer to operationalise the new process and gain the
support of all.
Thus, the business process reengineering is collection of
interrelated tasks or activities designed to accomplish the
specified outcome.
BENEFITS OF REENGINEERING
Eliminates waste, and obsolete or inefficiency
process.
Significant reduction in cost and time.
Revolutionary improvements in many business
processes as measured by quality and customer
service.
Increasing the competency of both top and low
level companies