Effects Of Business Product Reengineering On An Organization

4295 words - 17 pages

Effects of Business Product Reengineering on an Organization


This paper deals with the effects of BPR into an organization. The
paper defines the meaning of BPR and states the basic objectives that
BPR has. It also refers to the strong relationship between BPR and IT
and the most popular BPR methodologies that are used by the
organizations. The paper also deals with the restructuring that BPR
causes to the organization and the way that BPR affects the employees
of the organization. Moreover, the paper investigates the alignment of
BPR with the strategic dimension of the organization and explores the
possible effects that BPR will cause to the future plans of the
organization. Due to the fact that BPR is based in the reduction of
costs, in the paper there is an extended reference on possible ways of
reducing the costs into the organization. Finally the paper describes
the future recommendations for BPR and compares BPR with another
approved management technique - TQM.

1) Introduction

Information Technology (IT) plays nowadays a very important role in
our lives. Whether we discuss about our private or professional lives,
IT has changed permanently the way we live. IT is one of most common
tools that used for the better performance of the organizations.
Business Process Reengineering (B.P.R.) is a subset technology of IT
that is based on the redesign of workflows and processes within and
between organizations, according to Davenport and Short [1], who were
the persons that published first the basic concepts of BPR. Since then
a great number of publications have explored the fields of BPR and the
benefits that BPR offers to the organizations

BPR has become quite popular during the last decade. The fundamental
concept of BPR is the introduction of IT into an organization,
followed by the re-optimisation of the organizational processes and
structures into the organization. There is not a standard methodology
about the application of BPR into an organization. Davenport and Short
[1], propose a five phases approach to BPR:

Ø 1st Phase: Develop the Business Vision and the Process Objectives.
The basic purpose of BPR is to focus on various organizational
objectives like restructuring, cost cutting, redundancy, quality
improvement and Empowerment.

Ø 2nd Phase: Identify the Processes that should be Re-designed.
The organization should identify the processes that conflict with the
business vision and then sort these processes according to their
importance in the business.

Ø 3rd Phase: Understand and Measure the Existing Processes.
The organization should identify the basic processes that are required
for the better performance of the organization and try to eliminate
the old mistakes, in order to develop a solid foundation for...

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