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Unit 2: ERP and Related Technology

The support processes generate products, services, or information for internal use. Typically, notes
re-engineering efforts focus on core processes because they directly serve the customer and have
the greatest impact on the organization’s success. The goal of re-engineering is to design fast and
accurate core processes which can provide a much wider access to information, breakdown of
traditional organizational barriers and hierarchies, and allow more work steps to be performed
simultaneously, instead of sequentially.

In short, business processes can be viewed as the basic unit of re-engineered organizations. These
organizations are structured around processes rather than functions. Attempts should be made
to reduce the number of functions and departments involved in the execution of the core business
processes. A broad view of business processes comprises information about business process
products, suppliers, customers, component activities and the relation between activities.

Business process products can be split into three categories: goods, services and information.
Of the product flow in manufacturing or service organizations, 70 percent or more is due to
information. Therefore, business process redesign methodologies should embody tools and
guidelines that address the streamlining of the information flow in particular, rather than the
material flow or the flow of activities.

Task “A process is a specific ordering of work activities across time and place with
a beginning and an end and clearly identified inputs and outputs.” Suggest

2.5 Business process redesign: an overview

2.5.1 What is Business process redesign?

Business Process Redesign 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.”

2.5.2 How does Bpr differ from tQm?

Teng et al. (1994) note that in recent years, increased attention to business processes is largely
due to the TQM (Total Quality Movement). They conclude that TQM and BPR share a
cross-functional orientation. Davenport observed that quality specialists tend to focus on
incremental change and gradual improvement of processes, while proponents of re-engineering
often seek radical redesign and drastic improvement of processes.

Davenport (1993) notes that Quality management, often referred to as total quality management
(TQM) or continuous improvement, refers to programs and initiatives that emphasize incremental
improvement in work processes and outputs over an open-ended period of time. In contrast, Re-
engineering, also known as business process redesign or process innovation, refers to discrete

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