Sunday, September 17, 2006

Sept. 14th, 2006 Business Process Reengineering

This week's topic was BPR (Business Process Reengineering). The basic idea behind the process is a thorough analysis and redesign of an exsisting business process, thereby improving its efficiency, and quality of service. The underlying factor behind BPR is the focus on "how" things are done, and not "why" things are done.

Suprisingly the failure rate of BPR is 50%-70%. Biggest contributor to this is the resistance to adapt to a new system, by the employees. Other factors are; Inappropiate staffing, Inadequate tools, Mismatch of startegy, lack of oversight, etc. The biggest disadvantage of BPR is the thought of "layoff" amongst the employees, when the company implements BPR. Companies undergo a BPR because they percieve the changing market and want to stay ahead of its competitors.

Business process Improvement on the other hand is the continous improvement of a business process for a period of time. After a time period when improvments do not bring a significant change in the process, it is then when BPR is implemented.

There are seven BPR principles by Michael Hammer are interesting to know, learn and implement.


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