Business Process Reengineering (BPR) - Explained
What is Business Process Reengineering?
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Table of ContentsWhat is Business Process Reengineering (BPR)?What are the Elements of business process re-engineering?How to Implement Business Process Redesign?
What is Business Process Reengineering (BPR)?
Business process re-engineering (BPR) is the redesign of fundamental aspects of business processes.
The objective of BPR is to achieve improvements in performance measures, such as cost, quality, service and speed.
Redesign is generally centered around customer processes rather than functional hierarchies.
What are the Elements of business process re-engineering?
- Fundamental Rethinking – reengineering usually refers to the changing of significant business processes
- Radical Redesign – involves a complete rethink about the way the business operates
- Dramatic Improvements – tens or hundreds of percent improvement
- Critical Contemporary Measures of Performance – process measures based on competitive factors of cost, quality, service, and speed.
How to Implement Business Process Redesign?
Steps in the business process redesign process include:
- Identifying and documenting the process activities - This is a data collection exercise using methods such as examination of current documentation, interviews, and observation. Techniques include process mapping and service blueprinting.
- Identifying processes for improvement - Identifying process generally involves a system of scoring process based upon the connection customers and performance against competitors, amount of impact, and the extent of innovation required for performance.
Evaluating process design alternatives - Three approaches which can be used to generate new ideas are:
- Modifying Existing Designs
- Using Benchmarks
BPR generally employs various forms of information technology to effectuate identified changes.