Business process reengineering
Business Process Reengineering is a method consisting of a thorough transformation of company's processes aimed to improve its functioning. Often it is accompanied by introducing new information technologies in company that replaces the traditional processes and allow reduction in efforts and the effective use of resources. It requires organizational changes and human factor concerns. People reluctance is often cause of the failure of the BPR implementation. Reengineering aims to improve the efficiency in a short time through the rapid and radical redesign of main processes in the organization. It is recommended to redesign one of the main processes rather than all at once. Following process selection criteria can be used: cost, timeliness, scale, difficulty, problems, etc.
- Focus on key processes of the company,
- Processes must aim at customer requirement or need
- Companies needs to focus on its core business,
- The use of modern IT systems is recommended
- Rejection of the ballast of the past,
- Think different,
- Consider existing restrictions.
Benefits of BPR
- Shortening of production cycle
- Cost reduction
- Improvement in product quality and customer satisfaction,
- Grow of profitability
- Extending market share
Stages of BPR implementation
- Step 1 - Identify requirements of clients
- Step 2 - Assessment of present situation
- Step 3 - Analysis and modification of the existing system
- Step 5 - Design of a new process
- Stage 6 - Implementation of improved process
- Incorrect interpretation of the idea of BPR,
- Improper identification of processes
- Unrealistic expectations,
- Prolonged implementation
- Lack of adequate resources
- Too low management commitment, including the lack of conviction to BPR.
- Grover, V., Jeong, S. R., Kettinger, W. J., & Teng, J. T. (1995). The implementation of business process reengineering. Journal of Management Information Systems, 12(1), 109-144.