How Important is Business Process Reengineering?

Business Process Reengineering (BPR) is known as the secret to a successful business. It plays an important role in today’s business world but what exactly can BPR do for you?

BPR means understanding the processes which are involved in your company. BPR is a management approach aimed at improving your business by means of elevating efficiency and effectiveness of the processes that exist within and across organizations. The key to BPR is for organisations 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.

BPR can also be known as Business Process Redesign and Business Process Change Management. BPR has become a viable way of implementing lean structures.

BPR is important to businesses for a number of reasons such as it is the organisational process, which is required to align people, processes and technology with strategies in order to achieve business integration. BPR can also be thought of as taking a business in its current state and forming an organisational and operational blueprint in order to redirect skills policies, information or data, cultural values, organisational skills and processing as well as incentives towards making targeted improvements to the business.

Below are some quotes from the best and most experienced people surrounding BPR:

Hammer and Champy (1993) define Business Process Reengineering as

o “… 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.”

Thomas H. Davenport (1993) is another example of how well-known Business Process Reengineering theorist uses the term process innovation, which he says:

o “encompasses the envisioning of new work strategies, the actual process design activity, and the implementation of the change in all its complex technological, human, and organizational dimensions”.

Additionally, Davenport (ibid.) points out the major difference between Business Process Reengineering and other approaches to organization development (OD), especially the continuous improvement or TQM movement, when he states:

o “Today firms must seek not fractional, but multiplicative levels of improvement – 10x rather than 10%.”

BPR, if implemented properly, can give huge returns. BPR has helped giants like Procter and Gamble Corporation and General Motors Corporation succeed after financial drawbacks due to competition. It has also helped American Airlines to get back on track from the bad debt that was hanging over their company practice. BPR is about the proper method of implementation within a company.

So where is the best place to approach in order to gain full benefits from Business Process Reengineering? I recommend that you talk to a finance business, such as an entrepreneur and investor business who will be able to help you with your BPR.


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