What is Business Process Re-engineering? What are the Key steps in BPR?
Businesses always look for ways to increase outputs and cut costs. The adoption of technology within companies has become the foremost need to survive in times where there is a rapid progression of technology. There is a more dynamic and broader approach to enhancing the business processes, called business process re-engineering. In today’s era of technology, this will also include technology. Apart from just using technology, business process re-engineering helps businesses to meet their goal i.e. cut costs and increase outputs. Before anything else, let’s see what exactly business process re-engineering is.
What is Business Process Re-Engineering?
Business process re-engineering is a business management strategy to help organizations to decrease costs and maximize outputs. The strategy was developed in the 1990s and also known as business process change management, business transformation, or business process redesign.
Business process re-engineering happens at a high level, where management evaluates the current systems and focuses on the primary outlook. The changes happen at the fundamental level and affect the organization at a full-scale. Hence it is necessary to get the steps right.
Business process re-engineering includes the following steps.
Define objectives and framework
The objective of business process re-engineering must be defined in quantitative and qualitative terms. Those objectives are the end desired results after the re-engineering. Once the objectives are defined, the need for change must be well communicated and delivered to the team as the success of BPR is totally dependent on the willingness of the employees to accept the change.
Identify customer needs
While transforming the business processes, the needs of the customers must be taken into prior consideration. The business process must be redesigned in a way that provides the added value to the customers. While redesigning the business process, one must understand the type of customer and customer groups. The customer’s expected utilities in product and services must be known. One must consider the customer requirements, buying habits, consuming tendencies, problems, and expectations about the product or service.
Study the existing process
It is very important to analyze the existing business process before deciding to make changes to it. By studying the rights and wrongs in existing business processes, one can easily design the ‘what’ and ‘why’ of the new process.
Formulate a redesign business plan
Once the existing process is studied thoroughly, the required changes are written down on a piece of paper thus converting it into a desired re-designed process. Hence, all the changes are listed down and the best ones are selected.
Implement the redesign
The last step in business process re-engineering is to implement the changes into the redesign plan. The purpose of this implementation is to achieve dramatic improvements. It is the responsibility of both the designer and the management to implement and operationalize the new process and gain the support of all.
At some point in a business’s lifecycle, business owners need to implement business process re-engineering and/or business process improvement. Knowing which strategy is necessary for your current state and using accurate data analytics helps to assess the gap between ‘as is’ processes and ‘to be’ processes.
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