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What is BPR?
BPR is fundamental rethinking and radical redesign of business processes to achieve dramatic improvements critical contemporary measures of performance such as cost, quality, service and speed.
Dr Michael Hammer.
Introduction
BPR is analysis and design of workflows and processes within an organization. It is basically rethinking and re-design made to organizations existing resources.
Phases of BPR
1. 2. 3. 4. 5. 6. 7. Begin organizational change. Building the reengineering organization Identifying BPR opportunities. Understanding the existing process. Reengineering the process. Blueprint the new business system. Perform the transformation.
Phase 4 contd
Evaluate pre-existing business strategies. Consult with customers to know their desires. Determine customers actual needs. Formulate new process performance objectives. Establish key process characteristics. Identify potential barriers to implementation.
Phase 7 contd
Assess current skills and capabilities of workforce. Map new tasks and skill requirements to staff Re-allocate workforce. Develop a training curriculum. Educate the staff about the new process. Educate the staff about the new technology used.
Phase 7 contd
Educate the management on facilitation skills. Decide how the new technologies will be introduced. Transition to the new technologies. Incorporate process improvement mechanisms
Advantages of BPR
Performance improvement Increase in profits Increase in productivity Better business practices Enormous cost reduction Speed up business processes
Advantages of BPR
Improvement in employee satisfaction Improvement in quality Improvement in customer service Profitability
Disadvantages of BPR
BPR has bad reputation for major layoffs. It never change management thinking. Lack of management support for the initiative and thus poor acceptance in organization. Exaggerated expectations regarding the benefits of BPR
Disadvantages of BPR
Underestimation of resistance to change within organization. Implementation of generic best practices that do not fit specific company needs. Over-trust in technology solutions.