"Business Process Re-Engineering

“Business Process Re-engineering is the fundamental rethinking and radical design
of business processes to achieve dramatic improvements in critical, contemporary

measures of performance such as cost, quality, service and speed.”
Phases of BPR :
According to Peter F. Drucker, ” Re-engineering is new, and it has to be done.” There are 7
different phases for BPR. All the projects for BPR begin with the most critical requirement i.e.
communication throughout the organization.
• Begin organizational change.
• Build the re-engineering organization.
• Identify BPR opportunities.
• Understand the existing process.
• Reengineer the process
• Blueprint the new business system.
• Perform the transformation.
Objectives of BPR :
Following are the objectives of the BPR :

• To dramatically reduce cost.
• To reduce time requirements.
• To improve customer services dramatically.
• To reinvent the basic rules of the business e.g. The airline industry.
• Customer satisfaction.
• Organizational learning.
• Challenges faced by BPR process :
All the BPR processes are not as successful as described. The companies that have start the use
of BPR projects face many of the following challenges :
–Resistance
–Tradition
–Time requirements
–Cost
–Job losses
• Advantages of BPR :
Following are the advantages of BPR :
–BPR offers tight integration among different modules.
–It offers same views for the business i.e. same database, consistent reporting and analysis.
–It offers process orientation facility i.e. streamline processes.
–It offers rich functionality like templates and reference models.
–It is flexible.
–It is scalable.
–It is expandable.
–Disadvantages of BPR :
Following are the Disadvantages of BPR :

–It depends on various factors like size and availability of resources. So, it will not fit for every business.
–It is not capable of providing an immediate resolution.
The concept of BPR
• The concept of BPR was laid out in a 1990
Harvard Business Review article,
"Reengineering Work: Don't Automate,
Obliterate" by the late Michael Hammer, a
management author and professor of
computer science at the Massachusetts
Institute of Technology.
• The term business process redesign refers to a
complete overhaul of a company's key
business process with the objective of
achieving a quantum jump in performance
measures such as return on investment (ROI),
cost reduction, and quality of service. Business
processes that can be redesigned encompass
the complete range of critical processes, from
manufacturing and production to sales
and customer service.
Definition of Business Process Redesign
• A BPR improves efficiency by cutting slack and

excess, reducing costs, and sharpening
management.
• Success is often measured using profitability
metrics.
• BPRs may be costly and time-consuming, and
may also lead to layoffs and the disruption of
workflow.
• BPR began as a private sector technique to
help organizations rethink how they do their
work in order to improve customer service,
cut operational costs, and become world-
class competitors.
• A key stimulus for re-engineering has been the

continuing development and deployment of
information systems and networks.
Evolution of BPR
• BPR is a strategic response to a complex
and dynamic business environment and is
widely recognised in the academic and
business literatures (Davenport and Short,
1990; Hammer, 1990; Davenport, 1993;
Hammer and Champy, 1993; Coulson-
Thomas, 1994; Osterle, 1995).
• The emergence of BPR was the result of
organisations needing to find better ways of
working and improve the use of new
technologies due to dramatic changes in the
business environment.
• However, the phenomenon quickly spread on
a global scale. Edwards and Peppard (1994)
highlight several surveys of the early 1990s
which reported the involvement of
organisations in BPR projects as ranging from
36 per cent to 72 per cent.
• The globalisation of markets had increased
levels of competition and whether an
organisation treated customers as
geographically and culturally heterogeneous
(Ohame, 1989) or homogenous (Levitt, 1983),
they still equally required more attention due
to an increasing array of alternative sources
Definition
• Business Process Reengineering is a process
using which the performance and productivity
of an organization can be improved in order to
increase its profit generation and reduce
costs.
• The meaning of the business process
reengineering is to redesign and rethink the
whole concept of an organization.
• In order to reengineer the business process of
an organization, the assessment of its
business goals, strategic goals, and the needs
of its customers is done.

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“Business Process Re-engineering is the fundamental rethinking and radical design

of business processes to achieve dramatic improvements in critical, contemporary

Following are the objectives of the BPR :

Following are the Disadvantages of BPR :

• A BPR improves efficiency by cutting slack and

• A key stimulus for re-engineering has been the

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