BPR - Business Process Reengineering - is to split open the various processes comprising business of an organization; and perform the act of re-structuring the system, resulting into augmentation of its productivity and profitability. The revamp of business processes is with the vision to achieve the global standards and practices, so that cost competitiveness is achieved under the provisions and constraints of the organization.
Business Process Reengineering creates the possibility that not only makes the organisation efficient and effective, but also enhances its reach. In reengineering, an organization evolves a vision and from here it derives its processes and design. Use of Information Technology as an enabler during the reengineering process offers new possibilities. With the advent of ERP, radical Redesign of Business Processes is a realistic possibility.
|Why Focus on Business Processes?||Business Process Reengineering|
|To achieve a competitive advantage.||"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."|
|Reengineering the Corporation.
By Hammer and Champy
In traditional approach, redesign of systems did not always consider IT as an enabler. IT capabilities improve co-ordination and information access across the organizational units thereby allowing more effective management of task interdependence. The generic IT capabilities and their organizational impacts are :
Certain principles for effective deployment of reengineering programs in the areas of strategic alignment, performance measurement, information technology and BPR methodology :
The Reengineering Methodology is comprised of THREE clear stages:
In this stage the desired outcome is visualized , the existing process rules are understood and the ones to be bypassed / broken / replaced are determined.
In this stage new work processes and information system are built to support the "vision". A new technology "infrastructure" – both hardware and software are constructed. People are provided with opportunity to develop the needful skills to match the demands of the redesigned business.
This is the easiest stage , more often than not gets overlooked. Here, the senior managers ensure that the transformation of beliefs and understandings take place. The process of re-orchestration begins from the onset of the reengineering effort and continue through the process of redesign and retool.