Business Process Redesign (BPR)
A systematic, disciplined improvement approach that critically examines, rethinks, redesigns, and implements the redesigned processes of an organisation. BPR’s goal is to achieve dramatic improvements in performance in areas important to customers and other stakeholders.
BPR is also referred to by such terms as business process improvement (BPI) or business process development, and business process redesign. While the term can be applied to incremental process improvement efforts, it is more commonly and increasingly associated with dramatic or radical overhauls of existing business processes. BPR typically relies on information technology to achieve breakthrough results.
Therefore, we can understand that if any business does not run as it has been planed earlier, there should be a problem in terms of the way it runs at present. As a result, we have to modify the present process of the business along with its procedures.
At this juncture, the BPR concept helps us to identify our present situation of the business that we engaged with and it will provide the necessary solutions to overcome the identified issues/limitation with regard to the business process.
Definition for Business Process Reengineering/Redesign
According to Hummer and Champy, Business Process Reengineering (BPR) is the fundamental rethinking and radical redesign of business process to achieve dramatic improvements in critical and contemporary measures of performance, such as cost, quality, services and speed.
There are four key components:
1.Fundamental rethinking
2.Radical redesign
3.Dramatic improvement
4.Critical and contemporary measures of performance
Scope of BPR
The impact of Business Process Reengineering (BPR) generally depends upon proper coverage of business process in terms of breadth (scope of the business) and depth (linkage with other aspects) according to western experience.
Ex: European Commercial Bank’s reengineering effort as described by Hall, Rosenthal and Wade in 1993. The Bank has failed since, it had overlooked many other back office process in planning the redesign.
Successful redesign of a process with high depth involved a complete restructuring of all the key drivers of behaviour so that the actual results measures up to the plan.
Methodology
