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Business Process Reengineering
Business Process Reengineering is a concerted initiative to radically change an organization's processes, its information systems and business functions to achieve quantum leaps in efficiency, product or service quality and profitability. Process complexity and variability combine to obscure relationships between cause and effect. Most companies fail to consider overall process performance as they create new policies and procedures designed to meet the shifting needs of their market, industry or strategy. While companies in crisis can use Business Process Reengineering as a mean of recovery, successful ones gain competitive edge with it. For a part of the company - or sometimes for the entire organization - the necessity of implementing BPR can be provoked by a number of factors.
The most usual ones are as follows:
- Introducing a new information system.
- Extending business portfolio with new service / field of operation.
- Improving processes so that they can be completed in a faster, more cost-efficient and more client-oriented way.
Approach for the Business Process Reengineering:
- Develop the business vision and process objectives: The BPR method is driven by a business vision which implies specific business objectives
such as cost reduction, time reduction, output quality improvement. - Identify the business processes to be redesigned: Loop follows '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: for avoiding the repeating of old mistakes and for providing a baseline for future improvements.
- Identify IT levers: awareness of IT capabilities influences BPR.
- Design and build a prototype of the new process: Loop develops the prototype, with successive iterations. The metaphor of prototype aligns the Business Process Reengineering approach with quick delivery of results, and the involvement and satisfaction of customers.