Business Process Reengineering

Meaning Of Business Process Reengineering

Business Process Reengineering (BPR) refers to an attempt to improvise the operation of the business on a broad scale. The primary aim of BPR is to cut down process redundancies and enterprise costs. BPR is also known as process innovation as it attempts to remodel processes to eliminate unproductive layers.

After knowing a brief about BPR, let’s have a look at the objectives for the same.

Objectives Of Business Process Reengineering

The following are the objectives for entities to opt for BPR:

  • BPR enable the entity to increase effectiveness and thereby deliver higher quality products to the customer.
  • BPR enables the company to improve efficiency in the production processes involved.
  • Cost saving can be achieved in the long run with the help of BPR.
  • BPR provides more meaningful work to employees.
  • BPR enables a company to be more adaptable and flexible towards changes in the future.
  • BPR enables new business growth and expansion.

BPR can help achieve these objectives if prepared rightly with its tools that follow below.

Tools For Business Process Reengineering

BPR proves to be a highly impactful and beneficial tool. However, companies should carefully consider certain factors for its success.

The following are the tools for BPR:

Customer and Process Focus

The primary focus of BPR is to modify the processes to eventually benefit customers.

Visualisation for End Process and Benchmarking

The benefits of BPR can be achieved if the company is able to visualize and benchmark their expectations. The company should be able to foresee what they would want their end process to be like.Business Process Reengineering

Change Management

The process of BPR requires substantial involvement of the employees and impacts their work. Thus BPR should be undertaken with a consideration on this aspect.

Business Process Mapping

A company should have a detailed understanding of its current business processes. This will enable the entity to reach its desired result.

On gaining knowledge on the tools utilised for BPR, now we’ll see the steps to go ahead with the same.

Steps For Business Process Reengineering

BPR comprises the following steps:

Define Objectives and Framework

The objectives of conducting BPR must be clearly laid out in qualitative and quantitative terms. After the objectives are prepared, the information about the requirement for change should be communicated to the employees. The willingness of the employees to adopt the change determines the success of BPR.

Identify Customer Needs

The needs and reviews of customers should be considered while designing the BPR. The new process should deliver the added value to the customer.

Study the Existing Process

A company must first analyze its existing business process. A clear view of the strengths and weaknesses of the existing process helps in determining the changes required in the new processes. Therefore, the designing of BPR can be done with accuracy.

Formulate a Redesign Business Plan

After an analysis of the prevailing business process, the amendments to be made are chalked down. These amendments form a base for the re-design process. The next step is to note down all the changes and select the best alternative.

Implement the Redesign

The last step is to implement the redesign plan. Management and the designer should make sure that the new process is operational and abided by. Support from all will eventually lead to the success of BPR.

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Conclusion

A well-conducted execution of Business Process Reengineering can prove to be a game-changer for an organization. BPR can revive a failing entity and lead it to the path of profit maximization. However, executing BPR may not be easy as it involves enforcing a change in the entire organization.

To know more about the other methods of capital restructuring visit our article Corporate Restructuring1,2

Sanjay Bulaki Borad

Sanjay Bulaki Borad

Sanjay Borad is the founder & CEO of eFinanceManagement. He is passionate about keeping and making things simple and easy. Running this blog since 2009 and trying to explain "Financial Management Concepts in Layman's Terms".

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