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Unit 3: Business Process Re-engineering

Agenda, they argue that far too much time is wasted passing-on tasks from one department to notes
another. They claim that it is far more efficient to appoint a team who are responsible for all the
tasks in the process. In The Agenda they extend the argument to include suppliers, distributors,
and other business partners.
Re-engineering is the basis for many recent developments in management. The cross-functional
team, for example, has become popular because of the desire to reengineer separate functional
tasks into complete cross-functional processes. Also, many recent management information
systems developments aim to integrate a wide number of business functions. Enterprise
resource planning, supply chain management, knowledge management systems, groupware
and collaborative systems, Human Resource Management Systems and customer relationship
management systems all owe a debt to re-engineering theory.
Hammer and Champy (1994) define BPR as “fundamental revision and radical redesign of
processes to reach spectacular improvements in critical and contemporary measurements of
efficiency, such as costs, quality, service and quickness.” Keywords in this BPR definition are:
1. Fundamental: What is the company’s basic style of working?
2. Radical: All existing procedures and structures must be forgotten and new styles of
working must be discovered. Superficial changes are not useful. Changes must be made at
the very root.
3. Spectacular: Spectacular changes must be discovered, not marginal improvements.
4. Processes: Redesign must be fixed on the processes not on the tasks, jobs, people, or
structures.
Consequently, a firm must start over, leaving their old procedures behind, testing the work without
prejudices, and forgetting systems used up to now. In other words, redesigning is changing.
Re-engineering is centered in the processes. Davenport and Short (1990) define a process as a set of
logically related tasks performed to achieve a defined business outcome. Furthermore, a process is
a sequence of activities which, when jointly taken, produce a valuable result for the customer.
Other methodologies are also centered in the processes, such as continuous improvement or total
quality management, and they reorient ate the basic tasks of the company to satisfy customers’
needs. However, they can be quite comfortable with their existing processes and they may not
want to introduce new ones.
figure 3.3: Bpr system

Develop Vision
and Objectives
Ongoing
Continuous
Improvement 1 Understand Existing
8 Processes
2

Evaluate the 7 BUSINESS Identify Process
New Process PROCESS for Re-design
RE-ENGINEERING 3

6
4
Make New 5 Identify Change
Process Levers
Operational
Implement the
p New Process

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