Business Process Reengineering

[attachment=16082]

Objectives

Explain what business process reengineering is and why it is important

Present different options that organizations can use to reengineer processes within their organizations

Why Reengineer?
Historical ‘reality’ for organizations:
High level of demand: organizations are order takers
Management (and IT!) focus – efficiency and control of operations

Modern ‘reality’ since 1990s:
Hyper-competiveness
Globalization
Very demanding customers
Management and IT focus: Innovation, responsiveness/speed, quality and service.
What is Reengineering?

Business Process Reengineering (BPR) is a management approach aiming at improvements by means of elevating efficiency and effectiveness of the processes that exist within and across organizations. It is a fundamental and radical approach by either modifying or eliminating non-value adding activities. (Wikipedia)

Reengineering can be accomplished through the implementation of ERP systems…..but is this the best approach?

Business Process Reengineering Definition

Fundamental
Need to understand why an organization does what it does – question all of the rules and assumptions that exist

Radical
Radical redesign means disregarding all existing structures and procedures, and inventing completely new ways of accomplishing work. Reengineering is about business reinvention, begins with no assumptions and takes nothing for granted.

Dramatic
Not looking for marginal or incremental improvements or modification
Goal is dramatic improvements in performance.

Processes
Focus on the way the organization adds value – through cross-functional business processes
Move away from function view; task based thinking