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SSRN-id1693986

SSRN-id1693986

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Published by: Osama on Jun 29, 2011
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Electronic copy available at: http://ssrn.com/abstract=1693986
 
BUSINESS PROCESS REENGINEERING(BPR); AN INTEGRATED APPROACH
October 19
2010
 
*BBA Student, Department of Accounting & Information systems,Faculty of Business Studies, University of Dhaka, Bangladesh
 
Asif Ahmed*Md. Syful Islam*Md. Khayer Uddin*
 
 
Electronic copy available at: http://ssrn.com/abstract=1693986
Business Process Reengineering (BPR); An Integrated Approach
2
 
 Abstracts:
The objective of preparing this paper is to describe the basic concepts of Business ProcessReengineering (BPR). In this paper discussion is continued with the concepts of BPRfollowed by historical background of BPR, difference of BPR with TQM, methodologyfollowed in reengineering process, way to success in BPR, need of information technology(IT) in BPR, causes of failure in BPR, problems in implementation of BPR along withconclusion and recommendation.
Introduction:
 
Organizations are continuously seeking for innovative ways to operate in order to survivein a competitive business environment. Management approaches such as BusinessProcess Re-engineering (BPR) are adopted by many organizations in order to achieve adramatic increase in performance and cost reduction. As the risks involved and failurerates associated with BPR projects are very high, it is important to investigate the reasonsfor failures in a systematic and multidisciplinary approach
20
.The concept of reengineering traces its origins back to management theories developed asearly as the nineteenth century. The purpose of reengineering is to "make all yourprocesses the best-in-class." Frederick Taylor suggested in the 1880'sthat managers useprocess reengineering methods to discover the best processes for performing work, andthat these processes be reengineered to optimize productivity.BPR echoes the classicalbelief that there is one best way to conduct tasks. In Taylor's time, technology did not allow large companies to design processes in a cross- functional or cross-departmentalmanner. Specialization was the state-of heart method to improve efficiency given thetechnology of the time
23
.Although many organizations undertake Business Process Re-engineering (BPR) projectsin order to improve efficiency and reduce costs. Although this approach can result insignificant improvements and benefits, there are high risks associated with radicalchanges of business processes and the failure rate of BPR projects is reported to be ashigh as 70%
20
.
 
Business Process Reengineering (BPR); An Integrated Approach
3
 
PART
1
 
INTRODUCTION TO BUSINESS PROCESS REENGINEERING (BPR)
Business Process:
 
According to Hammer and Champy, business process is
a set of activities that, takentogether, produces a result of 
value to acustomer’’
1
.In other words A business process or business method is a collection of related,structured activities or tasks that produce a specific service or product (serve a particulargoal) for a particular customer or customers. It often can be visualized with a flowchart asa sequence of activities.There are three types of business processes:1.
 
Management processes, the processes that govern the operation of a system.Typical management processes include "Corporate Governance" and "StrategicManagement".2.
 
Operational processes, processes that constitute the core business and create theprimary value stream. Typical operational processes are Purchasing,Manufacturing, Advertising and Marketing, and Sales.3.
 
Supporting processes, which support the core processes. Examples includeAccounting, Recruitment, Call center, Technical support 
2
.
Business Process Reengineering (BPR):
 
According to Blyth “Business process re
-engineering is an approach where processes arere-structured, re-designed and re-engineered so as to maximize an organization'spotential
” (
Kontio, 2007).
“Business process reengineering is
the fundamental rethinkingand radical redesign of business processes to achieve dramatic improvements in criticalcontemporary measures of performance, such as cost, quality, service, and speed
4
.

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