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What is business process engineering?

Business process re-engineering (BPR) is the process of restructuring organisational workflows and processes in order to achieve significant improvements in quality, efficiency, and cost-cutting. It is a corporate management strategy that was developed and popularised in the 1990s. In 1990, Michael Hammer, a professor at the Massachusetts Institute of Technology (MIT), published an article in the Harvard Business Review titled 'Reengineering Work: Don't Automate, Obliterate,' in which he claimed that most work done adds no value to customers and should be eliminated rather than accelerated through automation. Companies should instead rethink their incapacity to satisfy customers and wasteful cost structure.

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BPR entails analysing existing processes to discover areas for improvement. Flow charts are used to represent business processes in this investigation.

Why someone would do it?

Companies utilise business process reengineering to cut costs, improve cycle time, and improve customer experience in order to obtain a competitive advantage over new entrants and overseas competitors.

BPR has been found to minimise costs, cycle time, and errors by eliminating non-productive jobs and processes. Employees can focus on offering a better client experience by implementing lean processes. The removal of inefficient processes enables businesses to respond to customer requests and produce goods more quickly.

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What are the steps to implement BPR?

    The key steps to successfully implement Business Process Re-engineering as follows:
  • 1.) Define the objective and framework: This step involves the identification of the goals and objective of implementing BPR. Once the objective has been identified, the company must layout the framework and build the foundation by creating a BPR team.
  • 2.) Process analysis: Map out the current processes and tasks to identify bottlenecks or steps that do not add value.
  • 3.) Redesign: Identify the opportunities for improvement for the processes that were identified as unproductive.
  • 4.) Implementation: For BPR to be successful, it is necessary for the company to involve its employees in the process by constantly validating hypothesis and gathering feedback.

    • 4 Reasons To Reengineer Business Processes Before Implementing ERP

    Business Process Reengineering is an important method that redesigns existing business process to improve productivity, quality, and cycle time. This revamping process allows the management in any organization to rethink their existing process before moving to a more advanced level to streamline and automate their enterprise processes via an ERP implementation. Let’s look at few other reasons why this is important.

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    1. Maintain, or gain, competitive advantage

    Your current business system may be dealing with a complicated process of managing tons of manual work, spreadsheets, and other transactions on paper. However this existing business process has been giving you a competitive edge from competitors for a long time. If you directly go for an ERP implementation, it may not work the best way. Therefore, business process reengineering before ERP implementation will support you to keep the existing unique selling propositions (USP).

    2. Lean Six Sigma is important

    Best practices are set of processes that worked for many companies and may work for you as well or may not! It is a blanket set of processes which should be followed but a few unique players should also look beyond what has been pre-decided through best practices. Lean six sigma is a branch of tools that can be used to explain own set of best practices in any organization. It also reflects organization’s efficiencies along with competitive advantages.

    Five phases of six sigma are:

    • → Outline the problem
    • → Measure the problem
    • → Recognise the cause of the problem
    • → Implement and verify the solution
    • → Maintain the solution

    Thus, lean six sigma helps in identifying the root cause challenges and providing world-class solutions but it needs out-of-box thinking. Lean six sigma is an important part of business process reengineering and it can provide best possible help to understand the situations before ERP is implemented.

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    3. Comprehensive understanding of business processes

    It is crucial to slowly familiarize employees with the new platform long before the ERP implementation process begins. While a new ERP system can automate the entire business process, many of the tools and features can be rolled out independently. When it comes to change management, studies have showed it’s best if employees have a clear understanding about the business process improvement before automating the system.

    4. The 'paving the cowpath' escape technique

    Prior to implementing ERP, it is important to define business process improvement. Companies that fail to redefine their existing business processes choose to automate them through ERP installation. They frequently wind up customising the software to accommodate their dysfunctional processes. As a result, the entire process becomes pricey, including costly technical consultation sessions.Organisations that undertake targeted business process reengineering prior to ERP adoption, on the other hand, can save a significant amount of money and resources. They should also give their technical team time to focus on optimal setup practises in order to fulfil industry standards.

    To sum up

    Business process reengineering provides a realistic insight of the existing process and assists organisations in achieving a successful ERP installation by reducing additional costs while also pacing the process. After the process reengineering is completed, employees will be able to readily adopt the new ERP system.