Week 5 – Basics of BPR (1)

Source / Reference:

1) “Reengineering the Corporation: A Manifesto for Business Revolution”, M. Hammer , J. Champy , 1993

2) GroverMalhotra-BPRTutorial-JOM-1997

3) Davenport-BPRCritics-ComputerWorld-2003

4) "Business Process Reengineering At Ford Motor Company, India." 123HelpMe.com. 07 Feb 2012    http://www.123HelpMe.com/view.asp?id=158438

Subject: 

Why is Business Process Reengineering (BPR) important to a company?

Response:

According to M.Hammer and J.Champy, Business Process Reengineering (BPR) is the fundamental re-thinking and radical re-design of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed. 

An organization where application of BPR is being done is process -oriented, where all processes are identified and given specific names. Each individual is aware of the particular process in which he or she is involved and complete process measurement such as monitoring and control is performed. BPR brings numerous benefits to organizations and companies in which it is implemented. Some of the common benefits of BPR are:

1) Increase Effectiveness.

2) Reduces cost.

3) Meaningful job for employees.

4) Improvement in organizational approach.

5) Growth of business

There is a successful case of organization implementing BPR, which is Ford Motor Company, India, which can be represented in diagrams below: 

In the above real case, it suggest the BPR implementation can induce significance increase of effectiveness and efficiency of business process.

In my opinion, the successful BPR can contribute to numerous and important benefits to the company, ensuring that the company and survive and competitive in the industry.  At this moment, there is European Financial Crisis, leading to the continuous drop in market demand. Therefore, it is a crucial period for the company to implement BPR to maintain competitive edges, and reduce operating and administrative cost.