Business process re-engineering (BPR) is a business management strategy, originally pioneered in the early 1990s, focusing on the analysis and design of workflows and business processes within an organization. BPR is aimed to help organizations fundamentally rethink how they do their work in order to dramatically improve customer service, cut operational costs, and become world-class competitors. In the mid-1990s, as many as 60% of the Fortune 500 companies claimed to either have initiated reengineering efforts or to have plans to do so.
BPR seeks to help companies radically restructure their organizations by focusing on the ground-up design of their business processes. A business process is a set of logically related tasks performed to achieve a defined business outcome. re-engineering emphasizes a holistic focus on business objectives and how processes related to them, encouraging full-scale recreation of processes rather than iterative optimization of sub-processes.
At this stage, it is worth looking at the differences between a BPM and a BPR.
|Business Process Management||Business Process Reengineering|
|Automates and reuses the existing processes||Recreates processes from the scratch|
|Risk is low||Risk is high|
|Change is continuous||One big and radical change is done|
|Time taken for implementation is comparatively less||It takes a lot of time to be implemented|
|Business and IT collaboration is must||Business and IT collaboration is optional|
|BPMS/BRE are the technology used||Based on workflow and EAI|
|One or more process can be simultaneously taken and worked upon||One major process is taken and worked upon at a time|
|BPM leads to asset optimization||Sometime BPR leads to layoffs|
|Does not have any effect on the culture of the organization||During implementation cultural issues become a major concern|
|The outcome is continuous and incremental||Outcome is drastic|
|Less expensive||More expensive|