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Business process re-engineering

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Business process re-engineering

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 aims to help organizations fundamentally rethink how they do their work in order to improve customer service, cut operational costs, and become world-class competitors.

BPR seeks to help companies radically restructure their organizations by focusing on the ground-up design of their business processes. According to early BPR proponent Thomas H. Davenport (1990), a business process is a set of logically related tasks performed to achieve a defined business outcome. Re-engineering emphasized 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. BPR is influenced by technological innovations as industry players replace old methods of business operations with cost-saving innovative technologies such as automation that can radically transform business operations.

Business process re-engineering is also known as business process redesign, business transformation, or business process change management.

Organizational research suggests that participation in intensive BPR mapping projects can have ambivalent effects on the employees involved: while detailed visualization of "as-is" processes often empowers team members by revealing actionable improvement opportunities, it may simultaneously alienate them from their pre-existing line roles once the magnitude of systemic inefficiencies becomes visible. A longitudinal multi-company study by Huising (2019) documents how experienced managers, after building wall-sized process maps, voluntarily transitioned into peripheral change-management positions in order to drive reforms from outside the traditional hierarchy.

Business process re-engineering (BPR) is a comprehensive approach to redesigning and optimizing organizational processes to improve efficiency, effectiveness, and adaptability. This approach involves analyzing and restructuring key business aspects—such as workflow, communication, and decision-making—to achieve significant performance improvements, including increased productivity, cost reduction, and enhanced customer satisfaction.. BPR is a powerful tool that can be applied to various industries and organizations of all sizes, and it can be achieved through various methodologies and techniques, such as process mapping, process simulation, and process automation. Organizations re-engineer two key areas of their businesses. First, they use modern technology to enhance data dissemination and decision-making processes. Then, they alter functional organizations to form functional teams.[citation needed] Re-engineering starts with a high-level assessment of the organization's mission, strategic goals, and customer needs.

Basic questions are asked, such as "Does our mission need to be redefined? Are our strategic goals aligned with our mission? Who are our customers?" An organization may find that it is operating on questionable assumptions, particularly in terms of the wants and needs of its customers. Only after the organization rethinks what it should be doing, does it go on to decide how to best do it.

Within the framework of this basic assessment of mission and goals, re-engineering focuses on the organization's business processes—the steps and procedures that govern how resources are used to create products and services that meet the needs of particular customers or markets. As a structured ordering of work steps across time and place, a business process can be decomposed into specific activities, measured, modeled, and improved. It can also be completely redesigned or eliminated altogether. Re-engineering identifies, analyzes, and re-designs an organization's core business processes with the aim of achieving improvements in critical performance measures, such as cost, quality, service, and speed.

Re-engineering recognizes that an organization's business processes are usually fragmented into sub-processes and tasks that are carried out by several specialized functional areas within the organization. Often, no one is responsible for the overall performance of the entire process. Re-engineering maintains that optimizing the performance of sub-processes can result in some benefits but cannot yield improvements if the process itself is fundamentally inefficient and outmoded. For that reason, re-engineering focuses on re-designing the process as a whole in order to achieve the greatest possible benefits to the organization and their customers. This drive for realizing improvements by fundamentally re-thinking how the organization's work should be done distinguishes the re-engineering from process improvement efforts that focus on functional or incremental improvement.

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