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Unit 7: Basics of Business Process Reengineering

Let us analyze the business process involved in license application as depicted in Figure 7.1.

Figure 7.1: Business Process Related Concepts

The business processes involved in license application are: application processing, application
verification, and validation of date of birth and marital status. License application is a function assigned
to organizational unit. The license application function is executed through a business process termed
as application processing. Business process involves several business activities like issue of application,
application verification, and so on. Finally, the business activity is divided into many tasks like the
validation of birth date, verification of photo, and so on.

A license can be obtained only after processing, verification and validation of the application.
BPR is a major innovation that alters the way firms conduct their business. Alterations are necessary for
survival and profitability. Reengineering comprises changes in organizational structure, processes and
culture. Most of the BPR concepts alter the organizational structure.

Telecommuting, empowerment, mass customization and team based organization
are the organizational structures where BPR concepts bring in change.

Support system in any organization plays a vital role in BPR. Reengineering is done to attain cost
reduction, enhance quality, service, and speed. BPR enables a firm to be more competitive in the
market. Employees function in a team along with the engineers and managers to develop a product.
This results in formation of interdisciplinary teams that work better than functional teams. Hence,
coordination becomes faster and easier and help to achieve results. The overall business process to
develop a product gets a new dimension.

BPR focuses on simplifying and eliminating wasted efforts. The main idea of BPR is that all activities
that do not add value to a service or product should be eliminated.

Moving large batches of task in process from one workstation to the other is a non-
value added activity.

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