Question

In: Economics

Describe process reengineering and it’s affect on efficiency.

Describe process reengineering and it’s affect on efficiency.

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Expert Solution

Business process reengineering ( BPR) helps organizations to re-imagine their existing processes and take extreme redesign measures to deliver remarkable results. BPR is different from other BPM initiatives, because it completely revamps a process rather than repeatedly improving it. Successfully implementing BPR will result in more drastic cost-saving benefits, speeding up processes and improving product / service quality.

BPR 's benefits are countless increased revenue, improved customer service, lower cost, increased retention of employees, faster processing time. Almost any business benefit can be gained from reengineering business processes.

Functionally reengineering calls for a company's goals to be rediscovered, illness diagnosed and new paths to goals discovered, a process designed, and then its implementation. This is intended to change not just what is done but how it is done, thereby transforming the culture of the business. Bloated, messy, sluggish, unresponsive, costly, distracted enterprises can become lean, quick, efficient, responsive, productive, agile and centered. It came to be called Business Process Reengineering and abbreviated BPR, because it could be applied to corporations as a whole or to specific processes within the business (purchasing, marketing , production, etc.).

Reengineering has a clear change dimension and initially represented the reaction of a new generation of managers coming of age and confronting what may have looked like the fading past in the enthusiastic language it employed. The campaign coincided approximately with the baby boom generation maturing into managerial positions. Reengineering has therefore served and continues to serve as an impetus for some businesses to achieve significant changes in critical contemporary performance measures such as cost, quality , service and speed.


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