Business Process Re-engineering is "the analysis and design of workflows and processes within and between organizations" (Davenport & Short 1990). Teng et al. (1994) define BPR as "the critical analysis and radical redesign of existing business processes to achieve breakthrough improvements in performance measures."
To reap lasting benefits, companies must be willing to examine how strategy and reengineering complement each other -- by learning to quantify strategy (in terms of cost, milestones, timetables); by accepting ownership of the strategy throughout the organization; by assessing the organizations current capabilities and processes realistically; and by linking strategy to the budgeting process. Otherwise BPR is only a short-term efficiency exercise
Our methodology to implement Business process redesign adheres to the following industry best practice
- Develop the Business Vision and Process Objectives: BPR is driven by a business vision, which implies specific business objectives such as Cost Reduction, Time Reduction, Output Quality improvement, Quality of Work, Life, Learning and Empowerment.
- Identify the Processes to be Redesigned: Focus and identify all the processes within the organization and then prioritize them in order of redesign urgency. On individual cases, we also use High-Impact approach, which focuses on the most important processes or those that conflict most with the business vision.
- Understand and Measure the Existing Processes: For avoiding the repeating of old mistakes and for providing a baseline for future improvements.
- Identify IT Levers: Awareness of IT capabilities can and should influence process design.
- Design and Build a Prototype of the New Process: The actual design should not be viewed as the end of the BPR process. Rather, it should be viewed as a prototype, with successive iterations. The metaphor of prototype aligns the BPR approach with quick delivery of results, and the involvement and satisfaction of customers.
We implement BRP accompanied by strategic planning, which addresses leveraging IT as a competitive tool. We place the customer at the center of the reengineering effort - concentrate on reengineering fragmented processes that lead to delays or other negative impacts on customer service. We believe that BPR must be "owned" throughout the organization, not driven by a group of outside consultants.
Our expert business consulting team has recognized that 70% of the BPR projects fail due to - Lack of sustained management commitment and leadership,
- Unrealistic scope and expectations and
- Resistance to Change.
We strive in our approach to continuously monitor for such common pitfalls. As an extended family of SAP we understand that project implementations provide the most benefit if IT implementation is accompanied by BPR. To efficiently implement BPR, we use various business process modeling tools including ARIS, Solution manager and ASAP.
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