Business process reengineering is a crucial element in the agenda of many large as well as small companies in many industries. It allows organizations to view their business processes from a fresh perspective in order to understand how to redesign them to improve the way they work.
In this guide, we aim to simplify the concept of business process reengineering by explaining what it is and the process steps.
What is Business Process Reengineering
Business process reengineering is an approach used to improve organizational performance by increasing the efficiency and effectiveness of processes that exist across the organization. In addition to the redesigning of business processes, it also involves the redesigning of associated systems and organizational structures.
Usually, reasons like new market opportunities, increasing competition, poor financial performance, and decreasing market share trigger the need for a business process transformation.
BPR involves the analysis and transformation of several major components of a business. These include,
- Strategy
- Organization
- Process
- Technology
- Culture
BPR includes three phases; analysis phase, design phase, and implementation phase. It is also referred to as business process redesign, business process change management, and business transformation.
Benefits of Business Process Reengineering
BPR plays a major role in organizational performance improvement in terms of cost, quality, delivery, employee productivity, etc. It also helps
- Streamline business processes and systems
- Companies easily adapt to changing times and reduce operating expenses
- Improve company profitability and sustain competitive advantage
- Boost employee productivity
- Increase customer satisfaction by improving the quality of products and services