Reengineering is the fundamental rethinking and redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed.
(Hammer & Champy, 1993)
· Purpose of reengineering is to ”make all your processes the best-in-class”.
BPR Versus Continuous Improvement
BPR
· Radical Transformation
· Process & Technology Focus
· High Investment
· Rebuild
· Champion Driven
Continuous Improvement
· Incremental Change
· People Focus
· Low Investment
· Improve Existing
· Work Unit Driven
Why Reengineer?
· Customers
- Demanding
- Sophistication
- Changing Needs
Competition
- Local
- Global
Change
- Technology
- Customer Preferences
Why Organizations Don’t Reengineer?
· Complacency
· Political Resistance
· New Developments
· Fear of Unknown and Failure
Performance
· BPR seeks improvements of
o Cost
o Quality
o Service
o Speed
Key Characteristics
· Systems Philosophy
· Global Perspective on Business Processes
· Radical Improvement
· Integrated Change
· Focus on End-Customers
· Process-Based
· People Centred
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