For the first time ever, this presentation on BPR has a wide coverage of so many topics regarding BPR, it includes not only definition + issues affecting BPR + about core processes of business + history about BPR + General Model + Role of IT in BPR + its objectives + Outcomes as well as problems related to BPR in a very simple and fluent manner along with interactive diagrams and figures so as to aid even the naive or first time reader.

1. BUSINESS PROCESS
REENGINEERING
(BPR)
RADICAL
REDESIGN
RETHINKING
COREPROCESS
FORMULATE
STUDY
IMPLEMENT
IDENTIFY
OUTCOME SPEED
ACCURACY
ADAPTABILITY
INTEGRATION
DRAMATIC IMPROVEMENT
Presented By :
ADITI WALIA
CONSUMER
SATISFACTION
RADICAL
CRITICAL
SUCCESS
FACTOR
AUTOMATIC SIMPLER
TIME SAVING
RETOOL
REORCHESTRATE

2. Business Process Reengineering ( BPR ) refers to
the analysis & redesign of
workflows & processes both
within and between the
organizations. The orientation
of BPR is “radical”. It
is a total deconstruction &
a total rethinking of the business process in its
entirety, unconstrained by its present business
structure & pattern. Its objective is to gain
quantum gains in the performance of the
processes in terms of time, cost , output , quality
and responsiveness to the customer.

3. A business process comprise of a combination of number
of much independent & interrelated processes such as :
 Developing new product.
 Customer order processing.
 Bill payment system.
The structural elements that constitute a
process provide a basis for its analysis, appraisal &
redesign for achieving higher levels of efficiency &
effectiveness, economy, speed, quality & output.

4. • Simplify
• Standardize
• Empowering
• Measurements
REDESIGN
• Network
• Intranets
• Extranets
• Workflow
RETOOL
• Processes
• Information Technology
• Human Resources
REORCHESTRATE
THE 3 R OF REENGINEERING

5. ISSUES POINTING
TOWARDS NEED FOR BPR
It is very much possible to achieve a higher level of
process performance by
redesigning the process.
A company resorting to
reengineering of business
processes is able to double
the speed of normal
production, utilise products
several times more
productively & respond
to consumer’s needs and expectations more rapidly.

6. This could be achieved by effecting a total change
in the process
instead of a
piecemeal change.
It is, therefore,
imperative that
for many organizations
on the decline, changing the
process or redesigning the
process may be the
only viable alternative for
turnaround. They must break
themselves free from their
primitive and archaic work processes that drag them
down.

7. Issues that emerge from the forgoing discussions on the
need for change form the underlying premises of BPR.
They may be outlined as follows :
❖ The operational excellence of a company is a major
basis for its competitiveness.
❖ The business strategy of a company should be oriented
towards leveraging its operational excellence into the
marketplace.
❖ Process needs to be managed, not functions.
❖A customer focused organization needs to be realigned
in terms of process orientation.

8. ❖Continuous improvement is a deficient approach when
a company is far behind the industry standards & needs
rapid quantum leaps in performance.
❖ Dramatic improvement in performance is the
prerequisite for overcoming competition.
❖ For considering totally new ways of redesigning
processes, each & every concept, assumption, purpose
and principle needs to be abandoned.

9. IDENTIFYING CORE
PROCESSES
A set of interconnected processes
comprise a business system.
The performance of the
business firm, is thus,
the outcome of the
interrelated operation
of its constituent work
processes. The redesign
of processes, therefore, provides a
powerful basis for improving the process of a business
enterprise.

10. Some processes turn out to
be extremely critical for the
success & survival of the
enterprise. BPR focuses on
such critical business
processes out of the many
processes that go on in any
company. These are the
“core” business processes of
the company.
They are vital for success in the
industry sector within which the company is positioned.
They are crucial for generating competitive advantage for
a firm in the market place.

11. While some core business processes are
easily identifiable while others may not be
immediately apparent.
The following instances serve to
show that “core processes” need to be identified
carefully in terms of their bearing on the firm’s
competitiveness.

12. ▪In a fast moving consumer good industry, marketing
& brand management is a core process.
▪In the Electronics & semi-conductor industry, new
product development is a core process.
▪In the Banking industry, the activities that help
mobilise deposits and generate funds for advances to
customer.
▪ In the Insurance industry, the actual work that
leads to a balance of competitive premium for
customers & profit after claims for the company is a
core process.

13. Development &
Delivery Processes
of product or
service
• Include research,
design, engineering,
manufacturing &
logistics.
Interface with
customer
processes
• Include marketing,
advertising, order
fulfillment & service.
Process involving
Management
Activities
• Include strategy
formulation, planning &
budgeting, performance
measurement &
reporting.
Generic
Business
Processes

14. APPLICATION HISTORY
Many Public & Private sector organizations & SMEs
worldwide had gone under major reengineering efforts.
The technique was first applied to multinational
corporations, such as :
▪ IBM
▪ AT&T
▪ SONY
▪ GENERAL ELECTRIC
▪ WALL MART
▪ HEWLETT PACKARD
▪ DEC

15. ▪ KRAFT FOODS
Having as a result major downsizing in
their organizational structures.
Later, the BANKING sector
began to reengineer with a great
degree of success such as CITIBANK,
NORTHWESTERN BANK, BANK OF
AMERICA and others.
Major utility
companies used reengineering as a
technique to improve service like
OTE, ELTA.

16. First, the government cabinet
of Egypt reengineered many
of its processes along with
many municipals in Europe.
The public health sector has
undergone a major
re-engineering in Europe
using the CORBA methodology.
As the technique was becoming well known to
the business sectors, smaller enterprises were using the
technique for “organizational upgrade”.
BPR is also being used to change
the organizational structure of the public services.

17. ORDER
INPUT
OUTPUT
STANDARDISE
PARTICIPATION
ACTIVITIES
BPR
DIAGRAM

18. GENERAL “MODEL” STAGES
Most reengineering methodologies share common
elements but simple differences can have a significant
impact on the success or failure of a project.
After a project area has been
identified, the methodologies for reengineering business
processes may be used. In order of a company, aiming to
apply BPR, to select the best methodology, sequence
processes and implement the appropriate BPR plan, it
has to create effective and actionable visions.
All methodologies could be
divided in the following “general” stages.

19. Envision Stage
Initiation Stage
Diagnosis
Stage
Redesign Stage
Reconstruction
Stage
Evaluation
Stage
BPR Stages

20. STAGE 1 : ENVISION STAGE
The company reviews the
existing strategy &
business processes and
based on that review
business processes for
improvement are
targeted & IT
opportunities are
identified.

21. STAGE 2 : INITIATION
STAGE
In this stage, project
teams are assigned.
The performance goals
along with project
planning and
employee notification
are set.

22. STAGE 3 : DIAGNOSIS
STAGE
Here, the
documentation and sub-
documentation takes
place in terms of
physical attributes
( activities, resources,
communications, roles,
IT and costs ).

23. STAGE 4 : REDESIGN
STAGE
In this stage, new
process design is
developed by
devising process
design alternatives
and through
brainstorming and
creativity
techniques.

24. STAGE 5 :
RECONSTRUCTION STAGE
Here, management
technique changes
occur to ensure
smooth migration to
the new process
responsibilities and
human resource
roles.

25. STAGE 6 : EVALUATION
STAGE
The new process
is monitored to
determine if
goals are met
and examine
total quality
programs.

26. ROLE OF INFORMATION
TECHNOLOGY(IT) IN BPR
A re-engineered business
process characterised by
IT-assisted speed, accuracy,
adaptability and integration
of data and service points,
is focused on meeting the
needs & expectations of
the consumer quickly and
adequately thereby
enhancing his/her satisfaction level.

27. With the help of tools of IT, organizations can modify
their processes to make them automatic, simpler and
time saving.
Various studies have conclusively established the role of
IT in transformation of business processes.

28. IT initiatives, thus, provide business values in their
distinct areas :-
▪ Efficiency – by way of increased productivity.
▪ Effectiveness – by way of better management.
▪ Innovation- by way of improved products and services.
All these can bring about a radical change in the products
and services, thereby improving competitiveness and
customer satisfaction. It is a critical factor in the success
of bringing this change.

29. When applying the BPR management technique to a
business organization the implementation team effort is
focused on the following objectives :
❖ CUSTOMER FOCUS : Customer
service oriented processes
aiming to eliminate
customer complaints.
OBJECTIVES OF BPR

30. ❖ SPEED : Dramatic compression of
time it takes to complete a task for
key business processes. For
instance, if process before BPR had
an average cycle time of 5 hours and
after BPR it came down to just 1
hour.
❖ FLEXIBILITY: Adaptive processes and
Structures to changing conditions
& competition. Being closer
To customer the company
develops the awareness
Mechanism to rapidly spot
The weak points & adapt
To new requirements of the market.

31. ❖ Quality : Obsession with the
superior service and value to the
customer. The level of same quality
is always controlled & monitored
by the processes and does not
depend mainly on the person who
is serving the customer.
❖ Innovation : Leadership
through imaginative
change providing to
organization a competitive
advantage over others.

32. ❖ Compression : Cutting major
tasks of cost and capital,
throughout the value chain.
Organizing the processes the
company develops transparency
throughout the operational level
reducing cost.
❖ Productivity : Improve drastically
effectiveness and efficiency.

33. DIFFERENCES
BETWEEN BUSINESS
PROCESS
REGINEERING (BPR)
AND OTHER
CONVENTIONAL
METHODS OR
PROCESSES

34. TQM BPR
Case For
Action
Assumed to be necessary. Compelling.
Goals Small scale improvements in
many places having cumulative
effects.
Outrageous.
Scope and
Focus
Attention to tasks, steps,
processes across the board.
Select but broad business
processes.
Degree Of
Change
Incremental and Continual. Order of magnitude and
periodic.
Senior Mgt.
Involvement
Important up front. Intensive throughout.
Role Of IT Incidental Cornerstone.
BASIS

35. BUSINESS UNDER
CONVENTIONAL WORK
BUSINESS UNDER BPR
Functional departments Process teams
Simple tasks( division of
labour)
Empowered employees
Controlled people ( by
management )
Multidimensional work
Training of employees Education of employees
Compensation for time & skill
spent
Compensation for results
Pay raises on the base of
promotions & seniority
Low pay plus high performance
related bonuses
Advancement based on ability Advancement based on
performance

36. Protective organizational
culture
Productive organizational
structure
Managers supervise and control Managers coach and advise
Hierarchical organizational
structure
Horizontal ( flat ) structure
Executives as scorekeepers Executives as leaders
Separation of duties & function Cross-functional teams
Linear & sequential process Parallel process
Mass production Mass customization

37. Process
Innovation
Incremental
Improvement
Change Abrupt, volatile Gradual, constant
Effects Immediate, dramatic Long-term, more
subtle
Involvement A few champions From few to
everybody
Investment High initially, less later Low initially, high to
sustain
Orientation Technology People
Focus Profits Processes
Basis

38. STEPS IN BPR
In a crude sense, companies began business process
improvement with a continuous
improvement model. This model
attempts to understand &
measure the current
processes & make
performance improvements.
However, some companies make
reengineering efforts under the assumption that current
processes are wrong & irrelevant. Under such
perspective, designers of business processes disassociate
themselves from existing processes. This helps in looking
at the problem with a clean mind, free of any biases.

39. Determine Objectives &
Framework
Identify The Customers
& Define Their Needs
Study The Existing
Process
Formulate A
Redesign Process
Implement The
Redesign

40. STEP 1 : Determine Objectives &
Framework
Objectives are the desired end
results of the redesign process
which the management &
organization attempt to realise.
This will provide the required
focus, direction, motivation for
the redesign process. It helps in
building a comprehensive
foundation of the redesigning
process.

41. STEP 2 : Identify The Customers & Define
Their Needs
The designers have to understand the customers – their
profile, their steps in
acquiring, using and
disposing a product.
The purpose is to
redesign business
process that clearly
provides added value to
the customer.

42. STEP 3 : Study The Existing Process
The existing process will
provide an important base for
the redesigners. The purpose is
to gain an understanding of
“what” and “why” of the
targeted process. However, as
discussed earlier, some
companies go through the
reengineering process with a
clean perspective without
laying emphasis on the past
processes.

43. STEP 4 : Formulate A Redesign Process
The information gained through
the earlier steps is translated
into an ideal redesign process.
Formulation of redesign
plan is the main crux of the
reengineering efforts.
Customer focused redesigned
processes are identified and
formulated. In this crucial step,
alternative processes are
considered and the most optimum
is selected.

44. STEP 5 : Implement The Redesign
It is easier to formulate a new
process than to implement it.
Implementation of the
redesigned process and the
application of other knowledge
gained from the previous steps is
the key to achieve dramatic
improvement. It is the joint
responsibility of the designers
and the management to
operationalise the new process.

45. OUTCOMES OF BPR
➢ Several jobs combined into one. Decision Making
becomes part of the job of the employees ( Employee
Empowerment ).
➢Processes have multiple versions. This enables the
economies of scale that result from mass production, yet
allows customization of products or services.

46. ➢Steps in the processes are performed in the natural
order and several jobs get done simultaneously. Work is
performed where it makes the most sense.
➢Controls & Checks and other non-value-added works
are minimized.
➢ Reconciliation is minimized by cutting back the number
of external contact points and by creating business
alliance.
➢ A single point of contact is provided to the customer.
➢ A hybrid centralized or decentralized operation is used.

47. PROBLEMS IN
IMPLEMENTING BPR
 Only a limited number of companies are able to have
enough courage of having
business processes redesigned
because of the challenges posed.
 It disturbs established hierarchies
and functional strategies that
creates serious repercussions and involves resistance
among the workforce.

48.  Reengineering takes time & expenditure, atleast in
the short run, that’s why many companies are reluctant
to go through the exercise.
 Even there can be a
loss of revenue during
the transition period.
 Setting of targets is tricky & difficult. If the targets are
not properly set or the whole transformation not carried
out properly carried out, reengineering efforts may turn
out as a big failure.

49. CONCLUSION
In view of the massive organizational changes involved
in reengineering, it is imperative that a reengineering
drive is supported by the vision and commitment of the
organization’s top leadership to see through its
successful completion.
Also faster & efficient reengineered business
process provide a firm with many more opportunities
for trying, testing, modifying and learning.