Business Process Management and Re-engineering: Is BPR Relevant Today?

3 Nov

I previously talked about the important role Business Process Management (BPM) played in the Financial Services industry. Similarly, Business Process Re-engineering (BPR) can be an equally important factor. As my colleagues have mentioned already, BPR can be defined as the “fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance such as cost, quality, service, and speed”.

BPR emerged in 1990 and was labelled as the biggest business idea of the decade (The Economist). However, the emergence of Business Process Management (BPM) has meant the interest and use of BPR has faded in recent times. BPM is considered the successor to BPR. This doesn’t mean that BPR is completely irrelevant or of no value to organisations.

Just last month, Karnataka Bank announced that it aims to double its business in the next three years with the help of Business Process Re-engineering (BPR). Karnataka Bank is a leading financial service institution in India. The Managing Director of the bank said that the BPR initiative will be rolled out across its 510 branches, and is aimed at high quality growth across its assets, liabilities, products and services. Through this BPR, the bank will comprehensively reengineer and reposition its marketing efforts, sector prioritisation, delivery channels, and brand building with optimum utilisation of the resources at its disposal (Businessline, 2012)

In this recent post, cmcoughlan has outlined some good examples of companies that have benefited from the implementation of Business Process Re-engineering. These examples further emphasise, despite its drastic nature in terms of change, that BPR is still adding value to organisations today.

Sources:

http://www.thehindubusinessline.com/industry-and-economy/banking/article3984644.ece

http://www.economist.com/node/13130340

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2 Responses to “Business Process Management and Re-engineering: Is BPR Relevant Today?”

  1. cmcoughlan November 6, 2012 at 10:57 am #

    I suppose another reason for BPM being used more so than BPR nowadays is the huge risk and costs involved in radically redesigning processes. With the current recession and troubling financial times endured by businessed, now is not the time to be taking huge financial risks. Perhaps in the future BPR will become more dominant again but BPM does seem to be most used of the 2 approaches.

    • aplusk22 November 11, 2012 at 1:47 am #

      Thanks for the comment. Most definitely, BPM seems to be more prevalent today. As you said, this is more than likely due to the potential risks associated with BPR and companies simply can’t afford to take a chance.

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