What is business process reengineering?
Restructuring the business process is really an essential part of the plan of many large-to-small enterprises in many industries, with industry and banking / finance as the main sectors. It allows companies to review their business processes and to realise exactly how they can innovate in order to improve the way they work.
In this guide we try to streamline the idea of restructuring economic processes by describing what it really is, as well as the process steps. We also have business process theme
Industrial re-engineering is absolutely the fundamental review and radical redesign of economic methods to achieve dramatic improvements in critical contemporary KPIs
Business process restructuring is an approach used to improve business performance by improving the effectiveness and usefulness of processes that exist throughout the organisation.
Usually, reasons such as new market opportunities, increasing competition, poor monetary performance and reduced market share necessitated a change in business processes.
BPR requires the analysis and modification of a number of key elements of the company.
BPR consists of three phases: analysis phase, design phase and implementation phase. It is also described as business process Design, business process change management and business transformation.
BPR plays an important role in improving business performance in terms of cost, quality, delivery, productivity of employees, etc. It also helps.
The re-design of a procedure is aimed at redesigning a procedure in general, essentially reconsidering how business work should be done in order to achieve dramatic improvement. This is what distinguishes BPR from Process Improvement, which is aimed only at functional and incremental improvement.
It is possible that Reengineering is not suitable in all situations, especially if your operations require only optimization and your company will not try to withstand major changes. In such cases, you can choose any process improvement technique.
This is exactly where senior management asks to recognise the business situation; consumer expectations, competition, opportunities, etc.
This makes it easier to meet the requirement for change and create a specific perspective of exactly what the company wants in the future. Then make the goals clear in both quantitative and qualitative terms.
The team you choose asks to become multi-functional simply because experience and perceptions of all levels of the organization are essential to reduce the risk of failure.
It must be the responsibility of top management to have a clear vision of the activities to be carried out and to provide tactical leadership. In addition, you need to come up with an operational supervisor who knows the internal functioning of the processes. It is really just as important to bring the best engineers with different experience from different disciplines to complete them.
At this stage, it is important to coordinate both the objectives and the methods. You can even carry out surveys and benchmarking activities to locate consumer demand and examine competition.
In this step, it is also essential to tell the benefits of change for the company and the project objectives for the rest of the employees. This may also encourage their suggestions that help them to expect what is to come.
In this step you have to choose the process (S) you are going to redesign. Such processes that are broken, multifunctional, added value, have bottlenecks and have a major impact on the organisation, etc. Could be a priority.
Once you have chosen them, map them using power cards and process cards to fully evaluate them to the gaps, inefficiencies, blockades, etc.track it down.
Define the best KPIs
Keep in mind how well you see it, redesign an entirely new procedure that successfully solves the problems of the previous process. Here you can create a future status card that illustrates the solutions you have found for your problems in the current status process.
Once the procedure has been redesigned, you can run a small test to find out exactly how it works by monitoring using the KPI.
There are a number of methodologies for restructuring business processes, so we listed some of them below along with the steps. They point to alternative ideas for restructuring business processes that go beyond what we discussed above.
The methodology developed by Hammer and Champy made corporate restructuring popular. It’s six steps.
Step 1: the CEO who initiates the re-engineering process must introduce the employees by explaining the current situation of the company and his / her vision of the future for your company.
Step 2: identify business processes in relation to exactly how they communicate within the company and in relation to the outside world. Here process cards can be used to display the processes.
Step 3: Select processes that have the ability to add value to the company once they can be redesigned and easily redesigned.
Step 4: analyse the current performance of the processes compared to what is predicted on their website in the future.
Step 5: redesigning the chosen business process with the help of creativity, lateral thinking and imagination.
Step 6: redesign.
The Davenport model consists of six steps.
Step 1: developing a business vision and process objectives.
Step 2: Identify the business methods to be developed again. Davenport advises not to select more than 15 processes at the same time.
Step 3: understanding the operation and satisfaction of the selected processes. And set performance standards for your redesign.
Step 4: examine exactly how the tools and applications of information technology can be applied to the newly designed business processes.
Step 5: design a work model based on the new customer process. Have them analyze the model and identify areas for improvement.
Step 6: implement this proven model throughout the organisation.
Manganelli and Klein claim to focus only on business processes that are essential to the company’s tactical goals and consumer demands.
Step 1: ask all involved to define goals and take care of your business re-engineering project.
Step 2: Select the main business processes for redesign
Step 3: examine the current performance of the selected processes and determine the long-term performance you want to achieve.
Step 4: developing the design of information technology to support new processes. And design new work environments for your people.
Step 5: implement the redesign and new work environments within the organization.