Professional Documents
Culture Documents
Process Reengineering
Authors:
ASHU GUPTA
Senior Lecturer in Computer Applications
Apeejay Institute of Management
Rama Mandi-Hoshiarpur Road
Jalandhar-144023
Mob: 98158-91562
e-mail: guptashu1@rediffmail.com
processes and structures after the implementation of new information technologies into
take full advantage of the technologies. This paper will attempt to demystify the myths of
BPR. It will examine the advantages and disadvantages of BPR in organizations. The
paper will also explore the various phases of the BPR process and the relationship
viewed as more than an automating tool but rather a fundamental way to reshape the way
business is done. The examination of IT will reveal the use of IT tools within the BPR
process which typically results in faster, better and cheaper solutions at each phase of the
BPR process. The primary methodology of the research will be through literature.
IT Tools, Transformation
1. Introduction
process redesign’, ‘new industrial engineering’ or ‘working smarter’. All of them imply
the same concept that focuses on integrating both business process redesign and
paper will attempt to introduce some of the more important aspects of BPR and the
significance and role of information technology in BPR. In addition, the paper will
explore two questions: where does BPR comes from and what is involved in BPR in
2. What is BPR?
Business process reengineering ideas are based on the premise that every
organization needs a sense of direction. Without that direction in the form of strategic
plans and business plans, the organization has no foundation upon which to build process
improvements. BPR is a method of improving the operation and therefore the outputs of
organizations. Generally the topic of BPR involves discovering how business processes
currently operate, how to redesign these processes to eliminate the wasted or redundant
effort, improve efficiency, and how to implement the process changes in order to gain
competitiveness. The purpose of BPR is to find new ways to organize tasks, organize
people and use information technology so that the processes support the organization’s
goals. It means analyzing and altering the business processes of the organization as a
whole. For a thorough and effective reengineering project, organizations should first meet
certain conditions before starting such a project. Initially, the management should
abandon all the rules and procedures that have been used upto that time. In addition they
should abandon other inadequate organizational and production principles. At this point,
speed”.
• organizational restructuring
Objectives of 5% or 10% improvement in all business processes each year must give way
to efforts to achieve 50%, 100%, or even higher improvement levels in a few key
processes. Radical change is the only means of obtaining the order of magnitude
requisite interdependence.
Many current business processes with their functional structures were designed to
enable efficient management by separating processes into small tasks that could be
performed by less skilled workers with little responsibility. Under this structure, the
higher skilled and more trusted managers made the important decisions. Traditional
First, a business strategy is proposed, then the business structures and processes are
planned, and finally they are implemented with IT. In comparison, BPR is regarded as
between management and employers into the interactive processes between them. BPR
attempts to radically break the existing process structures and replace them with
innovative solutions.
Process redesign, often called BPR, takes a ‘clean sheet’ approach to the process,
which is usually either broken, or so slow that it is no longer competitive in delivering the
company’s value to its customer. Inputs and outputs are defined, and checked to ensure
they align with customers’ present, and future, requirements. New technology, methods
and data flows are considered in relation to the process. A new process is designed from
scratch using the above. The change is planned and implemented to achieve minimum
disruption. Where a fundamental redesign of the entire process is not required, process
improvement can take different forms like analysis and improvement, continuous
process, which is key to achieving the business objectives, and create a systematic
analysis to determine the most important areas for improvement. These are then
primarily consists of people within the process controls the analysis and improvement.
Continuous improvement is the ongoing management of the process after it has been
redesigned and streamlined. This is part of an overall culture change that needs to be
clearly thought through and well directed from the top of the organization.
Davenport & Short (1990) define business process as "a set of logically related tasks
Processes are generally identified in terms of beginning and end points, interfaces, and
include developing a new product, ordering goods from a supplier, creating a marketing
plan or processing and paying an insurance claim. According to Davenport & Short
or informational.
c) Activities: Processes could involve two types of activities: managerial and operational.
The concept of BPR is widely misunderstood and has been equated to downsizing,
client/server computing and several other management techniques of the past several
concepts, introduces new concepts that are combined in a new format. These key
The Myth of the Clean Slate: Regardless of Hammer's (1990) sentiment: "Don't
automate, obliterate!" clean slate change is rarely found in practice. Or, as Davenport and
Stoddard (1994) state: A "blank sheet of paper" used in design usually requires a "blank
check" for implementation. Therefore, a more affordable approach for most companies is
to use Clean Slate Design, which involves a detailed vision for a process without concern
for the existing environment. However, the implementation is done over several phased
projects. Some opponents of BPR say that despite the delivery of radical design, it does
process might not be feasible given the risk and cost of revolutionary tactics.
are being redesigned. The distinction between IT and IS begins with the idea that IT
offers strategic relevance. Moreover, IT has an impact on BPR projects that can improve
belief system and necessarily involves reframing, which is a discontinuous change in the
There are both soft and hard factors that cause success and failure of BPR efforts. The
factors listed below are based on various articles and empirical research on BPR
• change management
• management competency and support
• organizational structure
1. Adequate job
R 1. Ineffective BPR Teams
integration Approach E 2. Problems related to
2. Effective BPR Teams E Organizational
integration mechanism,
3. Appropriate Jobs, Organizational job definition and
Definitions & Structure Factors N Structure Factors responsibility allocation
Responsibilities G
Allocation
I
N
E
1. Problems related to
1. Alignment of BPR E planning & project mgt.
Strategy with R 2. Problems related to
Corporate Strategy
2. Effective Planning &
I goals & measure
3. Inadequate focus &
use of Project Mgt. N Objectives
Techniques. G 4. Ineffective process
3. Adequate Resources BPR Project redesign
4. External Orientation & BPR Project Mgt. Mgt. Factors 5. Problems related to
Learning Factors Factors
5. Effective use of
I BPR resources
6. Ineffective use of
Consultants M consultants
6. Adequate P 7. Unrealistic expectations
identification of BPR
values L
EM
E
N 1. Problems related to IT
investment
1. Proper IS Integration
T 2. Improper IS integration
2. Efective A 3. Inadequate IS
Reengineering of
IT infrastructure T IT infrastructure
development
Legacy IS 4. Ineffective
3. Effective use of Factors I Factors reengineering of Legacy
Software Tools O IS
N
Figure 1: Summary of Key Success/ Failure Factors in BPR (Al-Mashari &Zairi,
1999)
Factors relating to change management systems and culture are important to the
success of BPR initiatives. Change management, which involves all human- and social
processes and structures into working practice and to deal effectively with resistance, is
Communication is needed throughout the change process at all levels and for all
audiences, even with those not involved directly in the reengineering project. Effective
market a BPR program and to ensure patience and understanding of the structural and
Communication should be open, honest, and clear, especially when discussing sensitive
issues related to change such as personnel reductions. As BPR results in decisions being
pushed down to lower levels, empowerment of both individuals and teams becomes a
critical factor for successful BPR efforts. Since it establishes a culture in which staff at all
levels feel more responsible and accountable and it promotes self-management and a
collaborative teamwork culture. Empowerment means that staff is given the chance to
participate in redesign processes. When empowered, employees are able set their goals
and monitor their own performance as well as identify and solve problems that affect
Sound management processes ensure that BPR efforts will be implemented in the
most effective manner. The most noticeable managerial practices that directly influence
the success of BPR implementation are top management support and commitment,
leadership in the upper echelons of management are often cited as the most important
thinking and understanding (Hammer and Champy, 1993) in order to provide a clear
vision of the future. This vision must be clearly communicated to a wide range of
employees who then become involved and motivated rather than directly guided.
Commitment to and support for the change must constantly be reinforced from senior
management throughout a BPR project. Sufficient authority and knowledge, and proper
communication with all parts in the change process, are important in dealing with
Barriers such as political, economic, and organizational risks are all associated with BPR-
related change. And champions of the change play a major role in overcoming these
barriers and increasing the chance of successful BPR implementation. The champions
must be able to persuade top management of the need to change and to continually push
the change efforts throughout the organization. BPR implementation involves radical
personnel, and loss of earnings (Towers, 1994; Clemons, 1995) are some examples of the
many risks that an organization may take when implementing BPR. Therefore,
continuous risk assessment is needed throughout the implementation process to deal with
any risk at its initial stage and to ensure the success of the reengineering efforts.
Anticipating and planning for risk handling is important for dealing effectively with any
As BPR creates new processes that define jobs and responsibilities across the
existing organizational functions (Davenport and Short, 1990), there is a clear need to
create a new organizational structure which determines how BPR teams are going to
look, how human resources are integrated, and how the new jobs and responsibilities are
perform a series of tasks efficiently, product quality, processing time, and cost are all
going to improve. However, the move to integrate human resources necessitates a careful
inside and outside the organization (Hammer and Champy, 1993). The determinants of an
effective BPR team are as follows: competency of team members, their credibility within
the organization and their creativity, team empowerment, motivation, effective team
leadership, proper organization of the team, complementary skills among team members
and adequate size. As BPR results in a major structural change in the form of new jobs
and clear descriptions of all jobs and responsibilities that the new designed processes
Program management, which includes strategic alignment, effective planning and project
techniques. Proper planning for the BPR project with an adequate time frame are key
management techniques and managing people-related issues have also a crucial role in
smoothing the flow of the process redesign stages. Measurement of project progress
infrastructure and BPR are interdependent in the sense that deciding the information
requirements for the new business processes determines the IT infrastructure. In addition,
process, and the sequencing and reliance on other organizational processes. An effective
strategy and passing through designs of data, systems and computer architecture.
Linkages between the IT infrastructure components are important for ensuring integrity
and consistency among the IT infrastructure components. IT standards also have a major
their responsibilities and their expertise, are both vital to the process of the IT
infrastructure composition.
7. Selecting an IT Application
One main objective of BPR is to use IT to support radical change. Some authors
view IT as the central implementation vehicle of BPR. However BPR has not really
worked as its proponents expected. Davenport and Short (1990) attribute this problem to
a lack of understanding of the deeper issues of IT. They claim that IT has traditionally
been used to increase the speed of work but not to transform it and BPR is about using IT
successful BPR if it is simply used to speed up the process rather than reengineer it. As
Vendor User
Driven Driven
Vendor Developed Application Customized
BPR
Strategic Business Strategic Business Strategic
customized
BPR
Broad Focus
Figure 2: BPR Strategies (Light, 2000)
IT can continuously reflect and reinforce bureaucratic and functional structures or IT can
help to create a leaner, flatter and more responsive organization. For example, IT tools
that are designed for functional hierarchies are primarily designed to support incremental
While information systems provide fast processing and response, they often fail to
provide the flexibility for human communication, which can lead to serious
automating the existing processes. However, it could also have a positive impact if it is
challenge the assumptions inherent in the work processes that have existed since before
the advent of modern computer and communications technology. He argues that at the
way to recognize and break away from the outdated rules and fundamental assumptions
that underlie operations. Usually, these rules are based on assumptions about technology,
people, and organizational goals that no longer exist. Hammer (1990) suggests the
• Have those who use the output of the process perform the process
• Interleave information processing work into the real work that produces the
information
• Treat geographically dispersed resources as though they were centralized
• Put the decision point where the work is performed, and build control into the
process
Davenport & Short (1990) argue that BPR requires taking a broader view of both IT and
business activity, and of the relationships between them. IT should be viewed as more
the way business is done. Many researchers and practitioners have increasingly
IS, increasing IT function competency, and effective use of software tools are a few of
the most important factors that contribute to the success of BPR projects. This alignment
of IT infrastructure and BPR strategy are needed to ensure the success of the BPR
initiative.
(McDonald, 1993). The business strategy should be clear and detailed. Top management
should act as a strategy formulator who provides commitment for the whole process of
redesign, while the IS manager should be responsible for designing and implementing the
BPR strategy and the IT infrastructure strategy is indicated by including the identification
of information resource needs in the BPR strategy, deriving the IT infrastructure strategy
from the business strategy, examining the IT infrastructure strategy against the BPR
formulating the two strategies. The following figure shows the multidimensional nature
of BPR.
Business Legacy
IT Legacy Strategic Vision
BPR Strategy:
-Unit of Analysis
Strategic Choice -Scope
-Scale
-Pace
Business pressures
IT Strategy
and BPR have recursive relationships. IT capabilities should support business processes
and business processes should be implemented in terms of the capabilities IT can provide.
Davenport & Short (1990) refer to this broadened, recursive view of IT and BPR as the
across an organization. IT's promise is to be the most powerful tool for reducing the costs
of coordination (Davenport & Short 1990). The way related functions participate in a
process can be differentiated along two dimensions: degree of mediation and degree of
collaboration. They define the Degree of Mediation of the process as the extent of
sequential flow of input and output among participating functions. They define the
Degree of Collaboration of the process is the extent of information exchange and mutual
adjustment among functions when participating in the same process. In this framework,
information technology is critical in reducing the Degree of Mediation and enhancing the
Degree of Collaboration. Also, innovative uses of IT would inevitably lead many firms to
develop new structures, enabling them to coordinate their activities in ways that were not
possible before. Such structures may raise the organization's capabilities and
Although, BPR has its roots in IT management, it is primarily a business initiative that
has broad consequences in terms of satisfying the needs of customers and the firm's other
constituents (Davenport & Stoddard 1994). The IS group may need to play a behind-the-
scenes advocacy role, convincing senior management of the power offered by IT and
process redesign. It would also need to incorporate the skills of process measurement,
Develop the Business Vision and Process Objectives: BPR is driven by a business
vision, which implies specific business objectives such as Cost Reduction, Time
Identify the Processes to be Redesigned: Most firms use an approach, which focuses on
the most important processes, or those that conflict most with the business vision. A
fewer number of firms use the exhaustive approach that attempts to identify all the
processes within an organization and then prioritize them in order of redesign urgency.
Understand and Measure the Existing Processes: Important to avoid the repetition of
design.
Design and Build a Prototype of the New Process: The actual design should not be
viewed as the end of the BPR process. In contrast, it should be viewed as a prototype,
with successive iterations. The metaphor of prototype aligns the BPR approach with
According to Malhotra (1998), 70% of the BPR projects fail. He states the biggest
preconditions for BPR success as: Senior Management Commitment and Sponsorship;
People Participating Full-Time and Sufficient Budget. They also identify negative
preconditions related to BPR as: The Wrong Sponsor; A "Do It to Me" Attitude; Cost-
Cutting Focus; and Narrow Technical Focus. The negative preconditions relating to the
Organization include: Unsound Financial Condition; Too Many Projects Under Way;
Fear and Lack of Optimism; and, Animosity Toward and By IS and HR Specialists. To
turn around negative conditions, organizations should: Do Something Smaller First (pilot
Involved.
King (1994) views the primary reason for BPR failure as overemphasis on the tactical
aspects and the strategic dimensions being compromised. He notes that most failures of
reengineering are attributable to the process being viewed and applied at a tactical, rather
than strategic, levels. He discusses that there are important strategic dimensions to BPR,
notably, Developing and Prioritizing Objectives; Defining the Process Structure and
Resources Strategy. He concludes that the ultimate success of BPR depends on the people
who do it and on how well they can be motivated to be creative and to apply their
detailed knowledge to the redesign of business processes (Davenport & Stoddard 1994,
management, employee empowerment, adoption of new IT's, and a shared vision. Earl et
al. (1995) have proposed a "process alignment model" that consists of four emphases:
process, strategy, IS, and change management and control and used it to develop more
BPR strategies. Malhotra (1998) has developed the key emphasis on these issues based
control, strategy, and IS. King (1994) believes that although the current interest in BPR
Conclusion
Dramatic changes in the business environment throughout the nineteen eighties forced
organizations to examine outdated modes of work and develop new focused strategies
based on new business models. Many business management concepts emerged but BPR
has probably been the most influential. BPR emerged as a concept geared towards a clean
slate, radial approach. However, the original ideas did not take into account the situations
in organizations where factors such as the evolution of the ways of work, organizational
variety of methodologies, tools and techniques for BPR projects have developed out of
implementation failures. As a result, the concept of BPR has survived and has been