What can Process Management and Rengineering achieve for their adoptors?

27 Nov

Today’s business enterprises must deal with global competition, reduce the cost of doing business, and rapidly develop new services and product. To address these requirements, enterprises must constantly reconsider and optimize the way they do business and change their information system and applications to support evolving business processes.

BPM has certainly raised the visibility of process improvement for many firms. It enables organisations to align internal business functions with customer needs, monitors and measure company resources.When properly implemented, it can significantly reduce costs, enhance efficiency and productivity and minimize errors and risk thereby protecting and optimizing corporate resources.Ref:  Business process management journal,emerald article

Other key objectives and achievements BPM can bring to an organisation may include:

  • Reliability improvement, an effective business process management can improve the reliability of information and it’s dissemination in a timely manner. This  help senior management to receive accurate information when needed in order to make important and time sensitive business decisions.
  • Avoid waste, Due to the fact that BPM involves assigning and tracking corporate resources, there is generally far less waste than in companies that do not actively monitor those resources.Firms can dramatically reduce waste, enhance efficiency and boost productivity.

Increase accountability. A primary goals of instituting a business process management system is to provide greater accountability for departmental functions, from tracking and monitoring expenditures to ensuring deliverables are met.By documenting all business processes and working to optimize each one, a company can achieve a system of checks and balances,thereby minimizing the potential for fraud and errors.Ref:usanfranonline.com

Many problems businesses encounter relates to environmental changes. With a global decline in manufacturing and an increase in the size of the service sector,the nature of work has changed dramatically.Society has become more information intensive and technology is been frequently utilised as a tool for increasing productivity, customer service, quality, speed and responsiveness within industry.

Through BPR, organisations utilises IT as a tool to transform organisations by restructuring existing processes and flattening existing structures.The IBM corporation utilised IT to reengineer their credit approvals process and achieved a 90% reduction in processing time, increased turnover a hundred times and moderately reduced the number of personal required to process their credit applications(hammer 1993).

The utilisation of IT reengineering initiatives can improve work practices by dramatically reducing turn around times within an organisation and increasing customer service levels,which can indirectly increase the organisations competitiveness within the industry.

Advocates of BPR claim reengineering frees employees from the outdated

And constraining practices that have been associated with traditional organisations(willimott&wraybliss1995).Re engineering often abolishes lower level tasks such as data entry by repackaging these tasks into integrated positions(Greenbaum 1995) which enables many employees to perform a wider range of activities thereby reducing the repetitive nature of the task.

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