Monday, August 13, 2007

Business Process Re-Engineering

Business process re-engineering is the redesign of business processes and the associated systems and organizational structures to achieve a dramatic improvement in business performance. The business reasons for making such changes could include poor financial performance, external competition, erosion of market share or emerging market opportunities. BPR is not - downsizing, restructuring, reorganization, automation, new technology, etc. It is the examination and change of five components of the business:
  • Strategy
  • Processes
  • Technology
  • Organization
  • Culture

Michael Hammer defines business process re-engineering in his book Re-engineering the Corporation as: "Fundamental rethinking and radical redesign of business processes to bring about dramatic improvements in performance."

Hammer focuses on one of the key concepts of BPR, that it is fundamental and radical. The alternative business improvement methodology is Continuous Process Improvement, which emphasizes small and measurable refinements to an organization's current processes and systems. Continuous process improvement has its origins in total quality management (TQM) and Six Sigma,a program that began at Motorola.

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