Business Process Reengineering
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Business process reengineering (BPR) aims to improve organizational efficiency and effectiveness by rethinking business processes from a clean slate perspective to determine how processes can be redesigned to better achieve goals. BPR involves fundamentally rethinking and radically redesigning processes to achieve dramatic improvements in critical measures like cost, quality, service, and speed. Information technologies like shared databases, expert systems, and wireless communication can play an important role in enabling redesigned processes. The methodology for BPR involves envisioning new processes, initiating change, diagnosing existing processes, redesigning processes, reconstructing with a new IT solution, monitoring performance, and looping back to further diagnosis.
Business Process Reengineering
- 1. BUSINESS PROCESS REENGINEERING BPR Business Process Redesign or, Business Transformation Or, Business Process Change Management PPT By :- Chandan Kumar Mehta
- 2. Definition of BPR Business process reengineering (BPR) is a management approach aiming at improvements by means of elevating efficiency and effectiveness of the processes that exist within and across organizations. The key to BPR is for organizations to look at their business processes from a " clean slate " perspective and determine how they can best construct these processes to improve how they conduct business.
- 3. Hammer and Champy (1993) define BPR as:- BPR :=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."
- 4. THE ROLE OF INFORMATION TECHNOLOGY IN THE REENGINEERING CONCEPT 1. Shared databases, making information available at many places 2. Expert systems, allowing generalists to perform specialist tasks 3. Telecommunication networks, allowing organizations to be centralized and decentralized at the same time 4. Decision-support tools, allowing decision-making to be a part of everybody's job.
- 5. THE ROLE OF INFORMATION TECHNOLOGY IN THE REENGINEERING CONCEPT 5. Wireless data communication and portable computers , allowing field personnel to work office independent 6. Interactive videodisk , to get in immediate contact with potential buyers 7. Automatic identification and tracking , allowing things to tell where they are, instead of requiring to be found 8. High performance computing , allowing on-the-fly planning and revisioning.
- 6. Methodology Based on the PRLC (Process Reengineering Life Cycle) approach developed by Guha et.al. 1. Envision new processes Secure management support Identify reengineering opportunities Identify enabling technologies Align with corporate strategy
- 7. Methodology- Continue… 2. Initiating change Set up reengineering team Outline performance goals 3. Process diagnosis Describe existing processes Uncover pathologies in existing processes
- 8. Methodology- Continue… 4. Process redesign Develop alternative process scenarios Develop new process design Design HR architecture Select IT platform Develop overall blueprint and gather feedback
- 9. Methodology- Continue… 5. Reconstruction Develop/install IT solution Establish process changes 6. Process monitoring Performance measurement, including time, quality, cost, IT performance Link to continuous improvement 7. -> Loop-back to diagnosis .
- 10. Strict focus on efficiency and technology and the disregard of people in the organization that is subjected to a reengineering initiative. Very often, the label BPR was used for major workforce reductions lack of management support for the initiative and thus poor acceptance in the organization. exaggerated expectations regarding the potential benefits from a BPR initiative and consequently failure to achieve the expected results. Critique against the BPR concept
- 11. Critique against the BPR concept Underestimation of the resistance to change within the organization. Implementation of generic so-called best-practice processes that do not fit specific company needs. Overtrust in technology solutions . Performing BPR as a one-off project with limited strategy alignment and long-term perspective. Poor project management.