Tuesday, September 19, 2006

Star Date....Sept 14 - Business Process ReEngineering

Business Process ReEngineering [BPR] ... What is this ..?? This is one of the revolutionary procedures implemented by certain organizations to reengineer thier Business Processes to improve the performance of the various Business Process... It makes use of technology to bring about these quantum leaps in performance.

BPR mainly focuses on WHY a particular process is carried out rather than HOW it is done... Bcoz it looks into the reason behind carrying out the process, it helps the organization to better under the process and reengineer it... During Reengineering the entire focus is around the obkective or the outcome desired and not on one of the tasks that will help in getting the desired outcome.. The entire reengineering depends on capturing the data at a centralized location so as to reduce the redudancy of data... At the same time to redesign the process its important that the employees are empowered and all the parellel acitivites are integrated.

The main people who should be involved in the BPR process as per the article "Business Process Reengineering" is the internal auditors. They not only advice management and system analyse on reengineering processes but also create new audit plans once the reengineered process is in place....

The various examples of successful implemetation are FORD, Mutual Benefit Life etc, which were able to redesign their BP's to better the perfomance.


BPR basically helps reducing the defects leading to better quality products which leads to cost and time savings. However on the downside... the failure rate is about 50%-70% which is quite high. The reason for this high failure rate is the lack of oversight, Leadership commitment, employee resistance, appropriate staffing etc...

Reengineering can be implemented either using a particular technology or by redesigning the entire process from scratch . Both have thier pros and cons, and the decesion is for the top management to take...

Noadays BPM, Business Process Management is the lastest Buzzword where it tries to bring people, technology and processes together, this includes integrating the BP of the company with the those of the suppliers and partners...

So which one should a company use...??? And how do we decide ..???

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