Why engage in BPM or Re-engineering?

1 Nov

In her blog, ismisetusa  mentions some of the reasons a company may engage in Business Process Management (BPM) and Business Process Re-engineering (BPR) for example:

  • To gain a competitive edge
  • To weed out any errors or behavioural problems within a system
  • To maintain an edge in ever changing customer base, and
  • To expand into new markets and/or other industries.

In another blog aplusk22 mentions how Barclaycard Germany was able to cut the processing time from three days to just 18 minutes by engaging in BPR.

In a 2001 article by Ranganathan and Dhaliwal addressing the topic of BPR, the authors identify some other cases where Re-engineering has been undertaken and has had a positive impact on the organisation.

When Motorola was faced with higher product defect percentages and longer cycle times, it redesigned its product parts and processes, while simultaneously upgrading its manufacturing equipment. As a result of BPR, Motorola experienced a decrease in the total production cost by $1 billion per year and cut its cycle time by half.

By adopting a BPR approach, Bell Atlantic reduced the time to install new telecommunications circuits from 15 to 3 days and cut labour costs from $88 to 6 million.

Hallmark decreased its product introduction time on new cards by over 75% by replacing its sequential product development with cross-functional teams while Ford Motors reduced its accounts payable staff by 75%.

(These examples are all taken from the 2001 article by Ranganathan and Dhaliwal)

It is clear that BPM and Reengineering can have very positive results for a company wishing to change one or more of its current processes.

Advertisements

One Response to “Why engage in BPM or Re-engineering?”

Trackbacks/Pingbacks

  1. Business Process Management and Re-engineering: Is BPR Relevant Today? « So Opinionated … - November 3, 2012

    […] this recent post, cmcoughlan has outlined some good examples of companies that have benefited from the […]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: