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Strategic Management » Strategic Implementation and Control » Business process re-engineering (BPR)

Strategic Implementation and Control

Business process re-engineering (BPR)

Business process re-engineering (BPR) –

  • It means rethinking& redesigning of business process with objective of improving product output, quality, and cost reduction.
  • Re-engineering should not about making changes but ensuring improvement in performance.

Objectives of Business Process Reengineering

(a) Primary objectives of BPR -

  • Eliminate redundancies or futile layers in the whole process.
  • Eliminate enterprise costs

(b) Other Objectives of BPR –

  • Cost reduction.
  • Increase effectiveness of business.
  • Improve quality of products.
  • Ensure growth of business.
  • Improve efficiency of business.

Typology of BPR process –

(i) Management Processes: It is a process by firms plan, control, organize the resources.

(ii) Business Network Processes: It is related to activities which is beyond the boundaries of the origination. Eg. Customers, suppliers.

(iii) Support Process: It is a back office process which supports core process. It is related to internal customers.

(iv) Core Process: Core process is related to central functions of business organization. It is directly related to external customers.

Steps of BPR –

(i) Define objective and framework of BPR.

(ii) Identifying customers need.

(iii) Analyze existing process.

(iv) Implement re-designed plan.

Factors for successful implementation of BPR –

Al-Mashari and Zairi (1999) have identified five factors for a successful implementation of BPR

  • Change in management.
  • Management competencies.
  • Organizational structure.
  • BPR project management.
  • IT sub-structures.

Reasons for failure of BPR –

  • Employees’ resistance against change.
  • Communication breakdown.
  • Personnel interest during transition.

Tools of BPR Process –

  • Customer and process focus.
  • Visualization for end process and benchmarking.
  • Change in management.
  • Business process mapping.
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