Proper execution of Business Process Reengineering can bring transformation to any business. If properly handled, business process reengineering can perform miracles on a failing or stagnating company, increasing the profits, improvements in productivity, cycle times and driving growth.
Companies adopt a new value system that places increased emphasis on customer needs. Companies reduce organizational layers and eliminate unproductive activities. First, they redesign functional organizations into cross-functional teams. Second, they use technology to improve data dissemination and decision making.
Entire value chain is studied – Value chain refers to the functional activities of a business that add value to its customers. It consists of primary activities and support activities, all of which add value to the products or services offered by the business.
The final objective of BPR value chain is to radically redesigning business processes across the organization while focussing on value drivers which can give instant result. BPR values chain can be done for following modules.
Difference between Process Improvement & Reengineering
Business process reengineering involves completely changing the process for an overall different result, which is the opposite of incremental business process improvement. BPR aims at radically changing the way a process works while BPI is tweaking an existing process to optimize it. Continuous process improvement and business process reengineering are both forms of process improvement that differ only in their focus, both are models and prescriptions for improvement initiatives