Business Process Reengineering (BPR)
Core ConceptsDefinition
A strategic approach focusing on analyzing and redesigning workflows and processes within an organization to optimize performance and efficiency.
Detailed Description
Business Process Reengineering (BPR) involves the radical redesign of core business processes to achieve dramatic improvements in productivity, cycle times, and quality. In BPR, companies start from a clean slate and rethink existing processes to deliver more value to the customer. This can often involve leveraging technology to facilitate process change, removing redundant activities, and streamlining workflows.
Key Features
- Cross-functional teams
- Focus on customer needs
- Fundamental rethinking of business processes
- Radical change from previous processes
- Use of technology to enable change
Popular Implementations
Case Study: Ford Motor Company's Accounts Payable
Ford Motor Company implemented BPR to restructure their accounts payable process, reducing the number of steps involved and cutting costs by enabling electronic data interchange with suppliers.
Example: IBM Credit's BPR Initiative
IBM Credit opted for BPR to streamline credit approval processes, significantly reducing the turnaround time from several days to a few hours.