Business Process Reengineering (BPR) refers to the radical redesigning of core business processes in order to achieve improvements in business productivity, cycle times and quality.
Business Process Reengineering involves the radical redesign of core business processes to achieve dramatic improvements in productivity, cycle times and quality.
BPR approach
In Business Process Reengineering, companies start with a blank sheet of paper and rethink existing processes to deliver more value to the customer. A new value system is adapted by companies that place increased emphasis on customer needs. Companies reduce organizational layers and eliminate unproductive activities in two key areas. First, they redesign functional organizations into cross-functional teams. Second, they use technology to improve data dissemination and decision-making.
How does the Business Process Reengineering work:
Business Process Reengineering is a dramatic change in the initiatives containing five basic steps that managers take:
- Focusing on company values and customer needs.
- Redesigning core processes with the help of information technology to enable improvements.
- Reorganize a business into cross-functional teams with end-to-end responsibility for a proces
- Rethink basic organizational and people issues
- Improve business processes across the organization
Companies use Business Process Reengineering to:
Reduce business costs and cycle times. Business Process Reengineering reduces costs and cycle times by eliminating or reducing unproductive activities and the employees who perform them. Reorganization by teams decreases the need for management layers, accelerates information flows and eliminates the errors and rework caused by multiple handoffs.
Business Process Reengineering improves quality by reducing the fragmentation of work and establishing clear ownership of processes. Workers gain responsibility for their output and can measure their performance based on prompt feedback.
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