Business process re-engineering (BPR) focuses on redesigning existing business processes to improve performance, while process innovation (PI) attempts to implement new processes. BPR streamlines current processes, following stages like developing objectives and measuring baselines. PI takes a clean slate approach, identifying areas for change and developing new process designs without constraints of current processes. The article uses an example of car manufacturing to illustrate the difference, showing how BPR may automate existing assembly steps while PI could design a new process like team-based assembly.
Business process re-engineering (BPR) focuses on redesigning existing business processes to improve performance, while process innovation (PI) attempts to implement new processes. BPR streamlines current processes, following stages like developing objectives and measuring baselines. PI takes a clean slate approach, identifying areas for change and developing new process designs without constraints of current processes. The article uses an example of car manufacturing to illustrate the difference, showing how BPR may automate existing assembly steps while PI could design a new process like team-based assembly.
Business process re-engineering (BPR) focuses on redesigning existing business processes to improve performance, while process innovation (PI) attempts to implement new processes. BPR streamlines current processes, following stages like developing objectives and measuring baselines. PI takes a clean slate approach, identifying areas for change and developing new process designs without constraints of current processes. The article uses an example of car manufacturing to illustrate the difference, showing how BPR may automate existing assembly steps while PI could design a new process like team-based assembly.
The value of PI The examiner for final level Information Strategy A significant number of candidates in the May 2002 FLIS examination were unsure
of the difference between business process re-engineering and process innovation
usiness process re-engineering and
B process innovation were the subjects
of an examination question in May 2002. Judging from the answers, there appeared to be some confusion among the candidates between the two terms. This article attempts to provide a basic explana- tion of the terms to help future candidates if this area is examined again. Business process re-engineering (BPR) is, according to Michael Hammer and James Champy, the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance, such as cost, quality, service and speed. In other words, BPR focuses on amending existing processes, while process innovation (PI) attempts to implement new processes into an organisation. In many ways, PI is processes, perhaps making it less radical to each one in a predetermined order to more radical than BPR, because it is chang- than its name suggests. arrive at the finished product. This process ing the overall structure of an organisation, In contrast, PI starts by looking for can be improved in terms of efficiency by whereas BPR is streamlining processes that business areas where change can be applied. making robots do some of the repetitive and are already in place. A closer look at the The five stages of PI outlined by Thomas less skilled operations. In this way the process stages of both BPR and PI will help to make Davenport are: is being redesigned to include an enhanced this distinction. l Identify business areas or processes that IT element to make it more efficient and less Five stages are normally recognised in any are suitable for innovation. prone to errors. In other words, BPR is being BPR project: l Identify tools that can be used to innovate used to improve the existing process. l Develop the business vision and process – that is, the “change levers”, which may But the process itself could be redesigned objectives. State which improvements include IT. from scratch. For example, the car could be are expected from processes based on l Develop statements of purpose for the manufactured by giving all the parts to a some overall business vision of total qual- process – that is, state what the process team of people and asking them to work ity management. will do, but not yet how that objective will together to make it. This will mean creating l Identify the processes to be redesigned. be achieved. completely new processes, which may or Most firms tend to focus on the more l Understand existing processes and pre- may not be more efficient than those of the important processes, although significant pare for new systems and processes. If old system. But the “process vision” of pro- improvements may still be obtained by existing processes are to be replaced, then viding greater employee satisfaction from redesigning inefficient processes in any these must be understood to ensure that the production process itself may override part of the organisation. no critical functionality is lost. the efficiency issues. In this example, PI l Understand and measure the existing l Design and prototype new processes as in results in entirely new process to build the processes so that a baseline against which BPR to ensure that those processes work car, even if we haven’t defined them – it’s up to measure improvement is set. and to get the users involved. to the workers to decide. l Identify “IT levers” that can be used to PI attempts to start from a clean sheet, or Both BPR and PI have a sequence of steps apply change. zero base in budgeting terms, to allow more to follow and both try to make business l Design and build a prototype to show appropriate processes to be implemented if processes more efficient. The difference is which changes are possible, and involve they are required. that BPR works on existing processes, while customers before implementing any To illustrate the difference between the PI attempts to implement completely new revised system. two approaches, consider a car manufactur- processes. This is the most important dis- The main point is that BPR is focusing on ing process. Cars are assembled by passing tinction to make when the two systems are what’s already there and changing those them along a conveyor belt and adding parts being compared. n