Week 5 – Basics of BPR(1)

Source/ Reference:

1. H. Davenport, L. Prusak, H. James, "Reengineering revisited" (2003) 

2. V. Grover, K. Malhotra, "Business process reginnering: A tutorial on the concept, evoluation, method, technology and application" (1997)

3. Success Factors of Business Process Reengineering

http://www.ehow.com/list_6775695_success-factors-business-process-reengineering.html

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This lecture further our understanding on the concept of Business Process Engineering (BPR) which has been mentioned briefly in the previous lecture.

Component of BPR

1. Business: 

- Define the process via the eyes of the customer (outside-in perspective) 

2. Process:
- Cross functional sequence of activities involving input, output and sub-processes

- Deliver outcome to customer (recipient of the process outcome rather that simply the consumer of product / service ) 

3. Reengineering:

- Quantum improvement with the use of IT and value adding maximization

Classical characteristic of BPR

1. Radical redesign and improvement

2. Emphasis on business process rather than cross functional BP

3. Dramatic performance achievement

4. IT as an enabler

Here is an video demonstrating the definition of BPR. 

It raises the main point that BPR is not simply the redesign of process but the concurrent examination & redesign of information technologies & organization supporting these process.

Business Process - organization structure transformation

The organization has been changed from Bureaucracy towards Customer-Centric (Horizontal organization) which possess the following characteristic:

1. Process/ Customer focus - increase consumer responsiveness via putting people in charge

2. Empowerment - replacing the top down approach and get employee involved in the decision making process

3. Interaction - integration across different functional unit with management and joint responsibility

I believe that this change can possibly attribute to the improved business performance. Especially for some large company which composed of many different department, every decision take times and common agreement will be hard to achieve. The command is often get vague or distorted when it reached to the implementation level. Customers should the the key to business. Meanwhile, the front line workers should be the one who can understand customers' need the most given their direct access to the customer. Adopting this organizational structure can certainly increase the flexibility as well as the market responsiveness, thereby increasing the operational efficiency and profit.   

Why would Reengineering fail?

As mentioned in the Davenport's paper, there are several problem regarding process reengineering. First, some people criticize BPR as neglecting human aspect. Managers often have a misunderstanding towards BPR as downsizing and process automation. According to the paper I read [Reference 2], the author give us a clear comparison between downsizing, automation and reengineering which is shown as below:

Apart from neglecting the human dimension, the greatest shortcoming as Hammer mentioned is the failure to acknowledge the difficulty of reengineering. In reality, most BPR does involve huge cost and time towards success. This leads to the wrong expectation of rapid success of BPR but this kind of project often fail when several difficulties are encountered and deadline is approaching.

In addition, over focus on process and under focus on practice is another reason that ideas are usually exaggerated and repacked rather than practical. Although dramatic and radical change is required from BRP. However, if that change is merely occurred theoretically and ideally, it means nothing.


Moreover, Some companies may have heavy reliance on enterprise software package where competitive advantages, which is a expected result from BPR, cannot be yielded with standardized system. 

Taking too many change at once and resisting to change may be some other factors leading to the failure of the project.

Critical Success Factors of BPR


To facilitate the success of the BPR, here are some better-to-have but not guarantee factors which the company should take into consideration.

1. Sufficient executive support

2. Clear vision

3. Comprehensive and practical project plan

4. Effective communication

5. Appropriate reward/ motivation system

6. Empowerment to low level employees

7. Adequate resources

8. Adapt to organizational change