In today’s environment, most of concern demands an attending to supply more effectual and effectiveness service to client. One of the solutions is Business Process Re-engineering ( BPR ) where it has been having attending from all industries every bit good as the academic community. It’s clip to alter direction pattern and working procedures in administrations in today’s scenario and hereafter to better our concern organisation and to accomplish concern aim for maximise the net income.
WHAT IS BUSINESS PROCESS RE-ENGINEERING?
Many research worker and academician have defined the significance of the Business Process Re-engineering. Business process re-engineering can be defined as a concern direction scheme, which focuses on the concern analysis and design of business’s work flow and procedures within an organisation. BPR helped organisations to better their client service, cut operational costs, and go first rivals. Wikipedia ( 2014 )
Sometimes BPR is known as ‘core procedure redesign’ , ‘new industrial engineering’ or ‘working smarter’ . Whatever the BPR called, all the footings give the same significance and construct which is concentrating on the concern procedure redesign and deploying IT to back up the reengineering work. ( Chen 2001 )
Hammer and Champy ( 1990 ) , define Business Process Reengineering ( BPR ) as an analysis and redesign of work flow within and between endeavors. Crowe, Fong and Zayas-Casto, 2002 stated that BPR as a entire transmutation of a concern, engineerings and direction systems, every bit good as organisational construction and values, to accomplish quantum leaps in public presentation throughout the concern. ( Mlay, Zlotnikova et Al. 2013 )
In 1776, Adam Smith is the first individual who uses the dividing work countries to increase productiveness. In twelvemonth 1820, American Railway creates modern concern bureaucratism ( control-command processs ) to do the concern more efficient. Frederick Taylor ( 1880 ) came with the observation and analysis through clip survey to put the optimum production rate. In other words, to develop a scientific discipline for each man’s undertaking a One Best Manner.
The undertaking have significantly selected for the best adult male occupation and it is the best processs he is expected everyone to follow. In this undertaking, he set uping a construct that give a rate system based on the incentive footing and non harmonizing to the place of work described. Cooperation is of import between directors and workers, so that director have duty for planning and readying of work instead than the single workers.
1954, Tawney belief that adult male being wholly rational, and made him ignore the important issue of human behavior and the fact that money is deficient as the individual beginning of motive. Drucker ( 1972 ) , reference that scientific direction was non concerned with engineering. It took tools and engineering as presumptions. ( F, S et Al. 2013 )
Michael Hammer ( 1990 ) , have published the article “ Reengineering Work: Do n’t Automate, Obliterate ” which he claimed that the major challenge for directors is to kill signifiers of work that do non add value, instead than utilizing engineering for automatizing it. This statement implicitly accused organisations have been altering from clip to clip due to alterations in engineering and customers’ demands. ( Sungau, Ndunguru et Al. 2013 )
Today’s, as a aggressive concern in the universe, BPR have seen as one of the of import methods and tools to the organisation. However, how fast the method is turning, the critic besides were fast to claim that BPR was a manner to dehumanise the work topographic point, increase managerial control, and to warrant downsizing for an illustration in major decreases of the work force and a metempsychosis of Taylorism under a different label.
Regardless of this review, BPR have shown that it have a challenge and impact to an organisation. In time-to-time many research worker had protected their BPR in footings of fight, time-to-market and productiveness.
Development after 1995
When the times change, the engineerings besides change. So organisation has major issues in the concern system development, which might hold an impact on the ultimate success or failure of an organisation concern itself. From the reviews feedback of the early BPR proponents the concern procedure systems began to decline. Since so, concern procedure started improved clip to clip and re-engineering the procedure of the organisation.
More late, the construct of Business Process Management ( BPM ) has gained major attending in the corporate universe and can be considered as a replacement to the BPR moving ridge of the 1990s, as it is equally driven by a nisus for procedure efficiency supported by information engineering. Equivalently to the review brought frontward against BPR, BPM is now accused of concentrating on engineering and ignoring the people facets of alteration. ( Mlay, Zlotnikova et Al. 2013 )
In develop and pull off a system, organisation demands to split a undertaking and duty among people, IT development system and to execute better to carry through the organization’s aim and ends. Many factors are built-in in successful of BPR. To heighten the effectivity of the BPR, the organisation needs to cognize foremost their concern activities by analyzing, planning, redesigning the procedure for its betterment and benefit.
BPR construct can be determine by procedure of alterations and challenges to better public presentation. Teng et al 1994, Talwar 1993, stated that BPR as a scheme for integrating critical inputs from both corporate and IT planning. But Craig and Yetton 1997, reference that BPR will alter the firm’s competencies, it is more likely to be successful if it is developing, profiting from organisational civilization. ( Chang, Levy et Al. 2014 )
BPR PROCESS / FRAMEWORK
Different organisation has adopted and develops different procedure / model. The procedure is to assist the organisation to accomplish their end and aims. Framework encourages the concern to cut down deficiency between the procedures. Below model is an illustration BPR that have been design for the SME’s by Chang and Powel, 1998. The model shows that the concern should concentrate on procedure of the organisation. ( Chang, Levy et Al. 2014 )
Figure 2: BPR Framework for SMEs
HOW TO DEVELOP BPR?
BPR is of import in organisation. To develop BPR, organisation must hold method or stairss to do certain the BPR is follow successfully. BPR is driven by a concern vision which implies specific concern aims such as Cost Reduction, Time Reduction, Output Quality Improvement, Quality of Work life ( QWL ) /Learning/Empowerment. Figure 3 illustrations the stairss on developing the BPR. ( Habib and Shah 2013 )
Figure 3: BPR stairss
Phase 1: Understanding
In this stage, the responsibilities and duties of the top direction is really importance. They need to cognize what and why they want? The top direction should demo their complete committedness towards the creativeness.
Phase 2: Initiating
Organization need a vision that will do all the energy to run in the right way therefore, the top direction have to supply a suited vision and aims to the remainder of the employees so that their ends can be achieve.
Phase 3: Scheduling
Benchmarking is the current procedure and activities that will measure in this stage to happen out the zones of existent concern and make the baseline for the BPR undertaking.
Phase 4: Transforming
In this stage, a set of pilot survey will be topographic point and the work is assessed to cipher the range of fluctuation and the resources desired for this transmutation.
Phase 5: Implementing
When the pilot survey in stage 4 is successfully, so the execution of stage 5 will make. This stage is really important and important due to requirement of back uping from the top direction and committedness from in-between directors to educate employees, provide leading, placement the construction, execution of IT and alteration of wage system so that the integrating is completed as a successful BPR.
Phase 6: Evaluating
The last stage is about detecting and rating of the whole procedure of BPR where the success of the undertaking is monitored often every bit good as the countries that needs alteration ( uninterrupted betterment ) are recognized.
BUSINESS PROCESS RE-ENGINEERING IMPACT AND CHALLENGES
In article“Why Re-engineering Failed: The Fad that Forgot People”by Davenport, 1995, in which he identified that concern people in the United States, re-engineering has become a word that stands for reform, lay-offs, and excessively frequently, failed revolution platforms… companies that embraced [ re-engineering ] as the silver slug are now watching for ways to re-build the organisation’s lacerate cloth. ( Davenport 1995 )
There is many ground and challenges that can be influence BPR as we know that BPR is depending on the state itself. Many reviews and statement is thrown by old research worker. The challenge can be identified based on the feedback and successful of the BPR system that already develops and adopted by an organisation. There is still a spread between the challenges and the capablenesss of BPR. Below is an illustration of the challenges that might be influence BPR.
a. Change in Management System and Culture
Problem and challenges occurs in the direction system and civilization really depends on state. BPR failed to execute when an organisation change their work system. It besides can make jobs in communicating when the direction is reasoning each other due to miss of organisational preparedness for alteration ( Mlay, Zlotnikova et Al. 2013 ) .
B. Human Factor’s
Many research workers have highlighted the human factors as a challenge in BPR. Corrigan ( 1996 ) , found that the deficiency of reactivity given by [ BPR ] to the human proportions of organizing, foregrounding “how employees, non merely patterns must be re-engineered or debugged if they are to run efficaciously in systems” . Davenport ( 1993 ) stresses that the accomplishment of re-engineering programmes is reliant on and synchronized with effectual organizational and human resource alteration. ( Dumay 2004 )
IT substructure is of import presents. Without it, can be a important enabler of, or barrier to, the applied options available to be aftering and altering procedures for BPR Business Process Re-engineering largely use IT and technology-driven, with the function of IT altering from bring forthing informations to blending new engineerings and support people as independent information aggregators.
Because of the environment is disruptive, rivals are turning faster and stronger due to globalisation. In add-on, consumers presents are more demanding based on their demands and demands. This favours mass customization over mass production.
Business Procedure Re-engineering ( BPR ) tried to enforce end-to-end procedures across whole organisations. The challenges of BPR did non ever back up the system, and had the disadvantage of restricting legerity, both at organisational degree and within single concern units and maps. Due to this many of the organisation have do some invention in implement the BPR.
THROWBACK OF BUSINESS PROCESS RE-ENGINEERING
Systems that generate throughout engineerings have advantages and besides disadvantages. However, when the clip running so fast, it appeal with the systems function that might be to be consider as a important non merely for the systems development but progressively for cost efficiency, it is hard to happen the manner for that cost decrease in a short-run hole. Hence, for most executions concentrating is less on the client and more on procedure efficiency and cost nest eggs with a attendant deficiency of edifice in mapping client response and over trust on client satisfaction steps.
Mark Wallace, CEO of Texas Children Hospital stated that “ Peoples are non basically opposed to alter… but they don?t like dazes. It is a lead ‘s answerability to allow people cognize what the issues are. ” ( Kiefer 2004 )
1. High Operational Cost
To keep good system of BPR, organisation has to do certain that their system is up-to-date in line with the system development. To hold this full demand, organisation will confront with the high operational cost that might be influence their concern net income. ( Zigiaris 2000 )
2. Low Quality of System Development
Organization has a authority to confront the low quality of system development due to cut cost in developing the good system. This will quickly impact their concern visual aspect and public presentation.
3. Poor Performance of Middle Level Management
BPR is a system that has a immense of duty to pull off it. Middle Level direction without an accomplishment and preparation will hold a debatable in managing the system. To do BRP successful, organisation must hold talented top direction to command the organisation.
4. Higher Demands to the Workers
Hiring new workers has been to see to an organisation. It is complicated to happen the right people for one specific occupation. The worker must hold multitasked attitude that can make different types of occupations segregation. It has to convert the organisation to use them. It’s difficult to ticket good worker presents due to their accomplishments and demanding on the wage. ( Kiefer 2004 )
There are many failure and atavist of BPR system. In 1997, Choi and Chan put assumptive some of the effects of BPR failure as ( 1 ) failure of the employees and the direction to acknowledge the advantage of BPR in their organisation, ( 2 ) overreliance on Information Technology to let BPR, ( 3 ) depending deeply on foreigners to consequence BPR and disregarding the employees, ( 4 ) deficiency of ordinary methodological analysis, and ( 5 ) deficiency of an sympathetic BPR among others. ( Mlay, Zlotnikova et Al. 2013 )
Business Process Re-engineering, some of research worker and faculty members people make good and bad opinion based on their research. In my sentiment, BPR brings legion benefits to organisations in which it is applied. Some of the common benefits of BPR are:
Throughout BPR, all procedures are wholly monitored under the house control of the direction. With this employees will present high quality merchandises to their clients.
The clip slowdown between different procedures will be cut downing with proper direction and control of all concern processes. This will do the organisation to better their organisation efficiency.
For the long clip concern tally, BPR will assist the organisation that have proper direction of procedures, better efficiency and overall will cut down the merchandise cost salvaging for the organisation.
Improvement in Organizational Approach
BPR formulated rigorous regulations for employees of the organisation. BPR helped to increase in flexibleness and conformity for alteration. This has formed better state of affairs for people to work, therefore taking to employee fulfillment.
Growth of Business
The organisations will growing quickly throughout the execution of BPR. Although BPR is really effectual in commanding cost and bettering efficiency, its application is a difficult fan to check. Employees are really strong to this sort of alteration therefore, it is of import to hold extended attention from the top direction.
Chang, L.-J. , et Al. ( 2014 ) . “ Process Re-Engineering Success In Small And Medium Sized Enterprises. ”
Chen, Y.-C. ( 2001 ) . Empirical Modeling for Participative Business Process Reengineering. The University of Warwick.
Davenport, T. H. ( 1995 ) . “ The Fad That Forgot People. ” Fast Company magazine.
Dumay, M. ( 2004 ) . “ Business Procedures: The Theoretical Impact of Process Thinking on Information Systems Development “ Department of Information Systems & A ; Software Engineering.
F, L. , et Al. ( 2013 ) . “ BPR Lifecycle. ” Decision Support Systems Laboratory, NTUA.
Habib, M. N. and D. A. Shah ( 2013 ) . Business Process Reengineering: Literature Review of Approaches and Applications. Proceedings of 3rd Asia-Pacific Business Research Conference. Kuala Lumpur, Malaysia.
Kiefer, T. ( 2004 ) . Advantages and Disadvantages of Business Process Reengineering.
Mlay, S. V. , et Al. ( 2013 ) . “ A Quantitative Analysis of Business Process Reengineering and Organizational Resistance: The Case of Uganda. ” The African Journal of Information Systems 5 ( 1 ) .
Sungau, J. , et Al. ( 2013 ) . “ Business Procedure Re-Engineering: The Technique To Better Delivering Speed Of Service Industry In Tanzania. ” Independent Journal Of Management & A ; Production ( IJM & A ; P ) .
Wikipedia ( 2014 ) . “ Business procedure reengineering. ” 2014, from hypertext transfer protocol: //en.wikipedia.org/wiki/Business_process_reengineering.
Zigiaris, S. ( 2000 ) . INNOREGIO: airing of invention and knowledge direction techniques, EC funded undertaking.