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Business Process Engineering

 

Description
Business Process Reengineering involves the redesign of business processes to achieve dramatic improvements in
productivity, cycle times and quality. Business processes are divided into core, support, and management processes. In
Business Process Reengineering, companies review existing processes and modify them to deliver more value to the
customer. They typically adopt a new value system that places increased emphasis on customer needs and strategic goals. Companies reduce organizational layers and eliminate unproductive activities. They redesign functional organizations into crossfunctional teams. They also improve data dissemination and ensure data based decision making.

 

Methodology
Business Process Reengineering involves the following steps:
• Defining organizational strategy.
• Mapping existing processes.
• Identifying missing processes and gaps in existing processes. Also identifying processes not aligned with
organizational strategy.
• Redesigning processes using information technology to enable improvements.
• Reorganizing a business into cross-functional teams with end-to-end responsibility for a process.
• Monitoring and improving business processes across the organization.

 


Usage
Companies use Business Process Reengineering to improve performance, improve decision making, and establish controls. Business Process Reengineering can:
• Reduce costs and cycle time – Business Process Engineering reduces costs and cycle times by eliminating
unproductive activities and the employees who perform them.
• Establish controls – Business Process Engineering establishes controls by ensuring reconciliation of data wherever required.
• Improve decision making – Business Process Engineering improves decision making by proving decision makers the
relevant data to them at the required frequency.

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