What is Reengineering?
Re-engineering is also called reverse engineering or a process that analyzes, designs, and modifies existing systems in order to improve quality, performance, and maintainability.
What is Business Process Reengineering?
Business Process Reengineering (BPR) is a radical redesign of processes in order to improve productivity, cycle time, quality, and employee and client satisfaction. The first step is to assess what needs to be done in order to provide value to customers. Process mining techniques (the analysis and monitoring of event logs in information systems) can be used to discover, monitor and improve processes. They decide then how the work should be performed, or if it even needs to be done. Rethinking third-party roles or outsourcing is a key component of Business Process Reengineering.
How is Business Process Reengineering implemented?
Business Process Reengineering (BPR) is a major change initiative with seven main steps.
- Refocussing company values on the needs of customers and eliminating low-valued work
- Automating repetitive and complex tasks and simplifying and standardizing work that is too complex
- Modern systems and data enable processes
- Finding work in an efficient and effective environment
- Reorganizing an organization into teams that are cross-functional and have end-to-end accountability for a particular process
- Rethinking basic organizational issues and people issues
- Determining the appropriate role for third parties and outsourcers by focusing on their true value.
What are the common uses of business process reengineering (BPR)?
Businesses use Business Process Reengineering (BPR) to improve key processes that impact customers by:
- Reduce costs and cycle time by eliminating non-productive activities and placing work in an efficient and effective environment.
- Reorganization by teams can reduce the number of management layers required, speed up information flow, and eliminate errors caused by multiple handoffs.
- Improve quality by standardizing work and automating it to reduce errors, and focus employees on more valuable activities. This also reduces fragmentation and establishes clear ownership for processes.