What is Business Process Re-engineering?

2 Nov

If  an  organization  rethinks  and  radically  redesigns  their  business  processes  implementing information systems  they  can  potentially  obtain  very  large  payoffs  from  their  investments  in  information  technology.  One  of  the  most  important  strategic  decisions an  organization  can  make  is  not  deciding  how  to  use  computing  to  improve  business  process  but  rather,  understanding  what  business  process  need  improvement. Ref: michael hammer(harvard business review)

Business  Process  Re-engineering can  be  defined  as  a  powerful  type  of  organizational  change, where by  business  processes  are  analysed,  simplified  and  redesigned.  It  can  also  help  to  reorganize  workflows , reduce  waste  and  repetitive  tasks.  It  can  also  bring about great  improvement  through  redesigning  core  activities  such  as  production  or  sales.  It  also  involves  the  consideration  of  particular  core  business  processes  and  analysing  them  from  start  to  finish.

Existing  structure  such  as  departmental  roles  are  ignored  in  an  attempt  to  identify  the  key  features  of  the  business  process.  For  example,  a  purchase  might  be  followed  from  initial  customer  interest,  through  enquiry,  order  and  delivery.  Many  different  departments  and  personnel  might  be  involved  in  the  entire  business  process.  By  analysing  a  process  like  this,  it  might  be  possible  to  see  why,  for  example,  orders  are  delayed or  delivery  is  made  to  incorrect  locations.  Ref unknown.

A  few  steps  to  implement  a  Business  Process  Re-engineering  project  would  include:

  • Starting  with  mission  statements  that  define  the  purpose  of  the  organization  and  describe  what  sets  it  apart  from  others  in  its  industry.
  • Producing  vision  statements  which  define  where  the  organization  is  going,  provide  a  clear  picture  of  the  desired  future  position.
  • Build  these  into  a  clear  business  strategy,  thereby  deriving  the  project  objectives.
  • Defining  behaviours  that  will  enable  the  organization  to  achieve  its  aims.
  • Producing key performance measures to track progressRef Peter Carter
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3 Responses to “What is Business Process Re-engineering?”

  1. ismisetusa November 8, 2012 at 7:26 pm #

    You commented on how to implement a successful management system but do you have any ideas on bad and inappropriate approaches to process re-engineering

  2. cmcoughlan November 12, 2012 at 5:49 pm #

    Hi jerryp123. I have written a blog on What NOT to do when it comes to re-engineering which may be of interest to you and also answers the question fro ismisetusa. Here is the link:

    https://sopinion8ed.wordpress.com/2012/11/07/re-engineering-what-not-to-do/

  3. jerryp123 November 30, 2012 at 5:07 pm #

    It is said that if you do not know where you are comeing from, it is difficult to know where you are going to. When it comes to process rengineering, firms must keep in mind that they are in competition with other firms. Companies sometimes concentrate alot on rengineering a particular process and fail to keep up with it,s competitoors. I will also like to recommend you look at my last blog and the blog emcoughlan wrote on what not to do when it comes to MPR.

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