Business Process Re-Engineering
About the service
It’s the radical reconsideration of a business process to achieve dramatic improvement incost, quality, service and speed performance. Business process reengineering is the analysis and redesign of company processes. To put in much simpler words BPR is to rethink and break down existing business processes. This allows a company to reduce costs and improve productivity through newer, more efficient processes”. The goal is to analyze company workflows to discover processes that aren’t efficient and then optimize those processes to eliminate tasks that do not offer any value. Business Process Re-engineering is not an easy task and can be costly, time-consuming and risky. The Six pillars of BPR are:
- Reduce Costs
- Improve Productivity
Organisations which want to improve the below key factors may go for a Business Process reengineering
- Customer Focus
- Cut Costs
- Improve Innovation
- Improve efficiency and Productivity
- Identify the needs of the Customers
- Assess and evaluate the existing systems
- Develop a new design plan
- Link the new design to the organisation’s business strategy
- Control, Measure and Iterate
Frequently Asked Question
There are many advantages of Business Process Re-Engineering. Few of them are increased revenue, improved customer service, reduced cost, higher employee retention, faster processing time, reducing complexity and bringing in simplicity in the processes.
Business process reengineering often allows the reduction of headcount in certain areas. However, if done correctly, Business process reengineering increases the ability of employees to add value, making it rewarding for the organization to use the displaced people in other areas of work. If it isn’t done right, downsizing can kill the organization by asking fewer people to do the same work, resulting in overtime costs, stress, increased health care costs, low morale and low quality.
Reducing cost, is only one of many benefits of Business process reengineering. If your one and only aim is to reduce costs, then Business process reengineering is not what you have to do.
Few circumstances, when an organisation can go for a Business process reengineering:
- When technology has majorly disrupted your industry
- When the competitors are over pacing your organisation in all the quarters of operations and you are not able to match their speed
- When you feel that all attempts to enhance growth has failed.
- When you want to rapidly improve processes
- When you want to eliminate costs and redundancies
- When you need to be the disruption in your industry
What is the role of Technology in Business process reengineering? Will everything be automated thereby reducing human dependency?
Business Process Re-engineering is not about automation, but innovation – doing new things in new ways, not automating existing processes. It is about exploiting the latest capabilities of technology – recognising the new unfamiliar capabilities instead of its familiar ones.
There have been some challenges revolving around the usage of Business process reengineering. They are:
- In some cases, the efficiency of one department was improved at the expense of the overall process.
- Business process reengineering approach does not provide an immediate resolution. It concentrates significantly upon long haul income collaborations of a business which not only takes some effort to take shape but are hard to gauge as well
- It might require a substantial investment in IT along with proper planning, fantastic teamwork, and exceptional implementation.
- BPR might fail if the leadership lacks clarity