Business Process Re-Enginering

What is Business Process Re-engineering (BPR) ?
Reengineering is 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.

Why is Business Process Re-engineering ?
Business Process Reengineering involves changes in structures and in processes within the business environment. The entire technological, human, and organizational dimensions may be changed in BPR. Information Technology plays a major role in Business Process Reengineering as it provides office automation, it allows the business to be conducted in different locations, provides flexibility in manufacturing, permits quicker delivery to customers and supports rapid and paperless transactions. In general it allows an efficient and effective change in the manner in which work is performed.

Methodology or Business Process Re-engineering (BPR)
BPR is world-wide applicable technique of business restructuring focusing on business processes, providing vast improvements in a short period of time. The technique implements organizational change based on the close coordination of a methodology for rapid change, employee empowerment and training and support by information technology. In order to implement BPR to an enterprise the followings key actions need to take place:

Step 1: Selection of the strategic (added-value) processes for redesign.
Step 2: Simplify new processes - minimize steps - optimize efficiency -.(modeling).
Step 3: Organize a team of employees for each process and assign a role for process coordinator.
Step 4: Organize the workflow - document transfer and control.
Step 5: Assign responsibilities and roles for each process.
Step 6: Automate processes using IT(Intranets, Extranets, Workflow Management)
Step 7: Train the process team to efficiently manage and operate the new process
Step 8: Introduce the redesigned process into the business organizational structure

Most reengineering methodologies share common elements, but simple differences can have a significant impact on the success or failure of a project. After a project area has been identified, the methodologies for reengineering business processes may be used. In order for a company, aiming to apply BPR, to select the best methodology, sequence processes and implement the appropriate BPR plan, it has to create effective and improved business processes.