BPR seeks to help companies radically restructure their organizations by focusing on the ground-up design business process analysis and data design pdf their business processes. Reengineering guidance and relationship of mission and work processes to information technology.
Basic questions are asked, such as “Does our mission need to be redefined? Are our strategic goals aligned with our mission? An organization may find that it is operating on questionable assumptions, particularly in terms of the wants and needs of its customers. Only after the organization rethinks what it should be doing, does it go on to decide how best to do it.
As a structured ordering of work steps across time and place, a business process can be decomposed into specific activities, measured, modeled, and improved. It can also be completely redesigned or eliminated altogether. Re-engineering identifies, analyzes, and re-designs an organization’s core business processes with the aim of achieving dramatic improvements in critical performance measures, such as cost, quality, service, and speed. Often, no one is responsible for the overall performance of the entire process. Reengineering maintains that optimizing the performance of sub-processes can result in some benefits, but cannot yield dramatic improvements if the process itself is fundamentally inefficient and outmoded. For that reason, re-engineering focuses on re-designing the process as a whole in order to achieve the greatest possible benefits to the organization and their customers. This drive for realizing dramatic improvements by fundamentally re-thinking how the organization’s work should be done distinguishes the re-engineering from process improvement efforts that focus on functional or incremental improvement.
Leading organizations are becoming bolder in using this technology to support innovative business processes, rather than refining current ways of doing work. This statement implicitly accused managers of having focused on the wrong issues, namely that technology in general, and more specifically information technology, has been used primarily for automating existing processes rather than using it as an enabler for making non-value adding work obsolete. Hammer’s claim was simple: Most of the work being done does not add any value for customers, and this work should be removed, not accelerated through automation. During the following years, a fast-growing number of publications, books as well as journal articles, were dedicated to BPR, and many consulting firms embarked on this trend and developed BPR methods. Since then, considering business processes as a starting point for business analysis and redesign has become a widely accepted approach and is a standard part of the change methodology portfolio, but is typically performed in a less radical way than originally proposed. BPR wave of the 1990s, as it is evenly driven by a striving for process efficiency supported by information technology.
TQM movement, by virtue of its aim for fundamental and radical change rather than iterative improvement. In order to achieve the major improvements BPR is seeking for, the change of structural organizational variables, and other ways of managing and performing work is often considered insufficient. While IT traditionally has been used for supporting the existing business functions, i. Business strategy is the primary driver of BPR initiatives and the other dimensions are governed by strategy’s encompassing role. In BPR, information technology is generally considered to act as enabler of new forms of organizing and collaborating, rather than supporting existing business functions. These processes are characterized by a number of attributes: Process ownership, customer focus, value adding, and cross-functionality.
In the mid-1990s, especially workflow management systems were considered a significant contributor to improved process efficiency. Although the labels and steps differ slightly, the early methodologies that were rooted in IT-centric BPR solutions share many of the same basic principles and elements. Benefiting from lessons learned from the early adopters, some BPR practitioners advocated a change in emphasis to a customer-centric, as opposed to an IT-centric, methodology. Roberts also stressed the use of change management tools to proactively address resistance to change—a factor linked to the demise of many reengineering initiatives that looked good on the drawing board.
Some items to use on a process analysis checklist are: Reduce handoffs, Centralize data, Reduce delays, Free resources faster, Combine similar activities. Also within the management consulting industry, a significant number of methodological approaches have been developed. An easy to follow seven step INSPIRE framework is developed by Bhudeb Chakravarti which can be followed by any Process Analyst to perform BPR. The aspects of a BPM effort that are modified include organizational structures, management systems, employee responsibilities and performance measurements, incentive systems, skills development, and the use of IT. BPR can potentially affect every aspect of how business is conducted today. Wholesale changes can cause results ranging from enviable success to complete failure.
If successful, a BPM initiative can result in improved quality, customer service, and competitiveness, as well as reductions in cost or cycle time. Many unsuccessful BPR attempts may have been due to the confusion surrounding BPR, and how it should be performed. Organizations were well aware that changes needed to be made, but did not know which areas to change or how to change them. As a result, process reengineering is a management concept that has been formed by trial and error or, in other words, practical experience.
As more and more businesses reengineer their processes, knowledge of what caused the successes or failures is becoming apparent. To reap lasting benefits, companies must be willing to examine how strategy and reengineering complement each other by learning to quantify strategy in terms of cost, milestones, and timetables, by accepting ownership of the strategy throughout the organization, by assessing the organization’s current capabilities and process realistically, and by linking strategy to the budgeting process. Otherwise, BPR is only a short-term efficiency exercise. Major changes to business processes have a direct effect on processes, technology, job roles, and workplace culture.