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Unit 3: Business Process Re-engineering

for realizing dramatic improvements by fundamentally rethinking how the organization’s work notes
should be done distinguishes re-engineering from process improvement efforts that focus on
functional or incremental improvement.
Successful organizations are envisioned to be networked across functional boundaries and
business processes rather than functional hierarchies. However, simply using the latest technology
on existing processes, respectively procedures, is no valid solution to the problem. The solution is
found in taking a step further, rethink and question the business activities being a fundament for
business processes. Effective redesign of business processes by removing unnecessary activities
and replacing archaic, functional processes with cross-functional activities, in combination with
using information technology as an enabler for this type of change will, according to the advocates
of BPR lead to significant gains in speed, productivity, service, quality and innovation. Business
re-engineering normally includes a fundamental analysis of the organization and a redesign of:
1. Organizational structure
2. Job definitions

3. Reward structures
4. Business work flows
5. Control processes and, in some cases
6. Reevaluation of the organizational culture and philosophy.

3.4 requirement of Bpr

Business Process Re-engineering (BPR) calls for a radical redesign and systematic overhauling
of strategic systems and processes in an organization. In the technology-centric business
environment of today, more and more organizations are using Information Technology (IT) tools
in their mainstream organizational processes. Hence, for BPR, it is required that the functionalities
of these IT systems are modified.

The goal of business process re-engineering is to redesign and change the existing business practices
or process to achieve dramatic improvement in organizational performance. Organizational
development is a continuous process but the pace of change has increased in manifolds. In
volatile global world organizations enhance competitive advantage through Business Process
Re-engineering (BPR) by radically redesigning selected processes.

The business process re-engineering implies transformed processes that together form a component
of a larger system aimed at enabling organization to empower themselves with contemporary
technologies business solution and innovations. Organizational effective performance has
become a watchword in modern business; as a result there is inexorable pressure for Business
Process Re-engineering.
The rampant and rapid expansion of competition across markets and geographic raises
important questions such as “how should work be redesigned”, “who does it”? and “where
do they do it”? “how to get it performed”? These questions necessitate venturing of Business
Process Re-engineering into the overall strategy for sustained competition advantage, check
costs, and differentiate products and effective price management with greater intensity and then
flawless execution. At this juncture, it is pertinent to ask what is “Business Process” and as well
as “Business Process Re-engineering”.

According to Stoddard and Jarvenpea (1995) Business Process are simply a set of activities that
transformed a set of inputs into a set of outputs (goods or services) for another person or process
using people and equipments. Business process entails set of logically related tasks performed to
achieve a defined business output or outcome.

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