What is Business Process Reengineering[BPR]...? With so many TLA* floating around, its very difficult to keep up with it... However before we understand this we need understand what a business process is... During this session Dr Vijay shed light on the topic... In all the traditional organization , each unit was considered to be a discrete unit with its own functional boundaries, however such a traditional thought does not work well noadays. As customers become more demanding and unpredictable in their needs, its very important that more importance is given to the each process of the business in the development procedures. Each process should involve the inputs of representatives from each of the functional departments. Apart from that each business process should have a clearly defined inputs and outputs and should be carried out with a goal in mind...
Integrating each of the functional departments of the organization, leads to more efficient and effective flow of data among them leading to more efficient busniess process which indirectly adds more "value" to the organization. The best example to support this is the Texas Instruments organization, which changed from a traditonal system to a business process system which helped it to churn out better products quicker and more efficiently... Other examples include Duke Power and IBM who went through the same...
Some examples of Business Process include Bill Recievable or Bills Payable process in an organization...
Further every business process should be assigned a business owner who helps in integrating all the functional divisions of the organization and he is totally responsible for that business process.. Based on the article Business Process Reengineering by Marshall Romney..." changing a business process leads to a improvement of 48 percent in cost, 80 percent in time and 60 percent in defects...."
Inspite of these advantages why do some companies still follow traditional methods and more interesting question is Can "Family- Based " organizations adopt this method and become more successful... ??? Any comments Any one..??
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