A business process encapsulates the set of intertwined and interlinked tasks and activities that strive towards a common organizational goal. Business Process Re-engineering, on the other hand, is the holistic decomposition and reconstruction of a business process to realize improved customer relations, productivity, cycle time, and enhanced quality of work.
The idea of BPR which gained currency in the 1990s presented a counter-solution to deliver businesses from the excesses of iterative improvement in individual departments. Instead, it aimed at an overall reconfiguration of a business process in its entirety to bring about a paradigm shift in how things are conducted to buttress a company’s goals better.
A Business Process Re-engineering is an extensive procedure of analyzing, scaling, and improving the overall functioning of a business. It involves a fundamental change in how operations take place, the fashion in which resources are utilized, and the ways to satisfy customer demands.
Re-engineering should not be seen as a luxury but a necessity to survive and thrive in an incrementally competitive business ecosystem. The race to stay relevant in an ever-changing contemporary market and its ever-evolving components are what necessitate business process re-engineering.
Now, the question might arise as to why the iterative improvement of sub-processes in business is less desirable than business process re-engineering principles. Even though the former improves the functioning capability of individual departments, it might not always be useful if the overall procedure remains outdated or underperforming.
Therefore, the need for a holistic and all-round redesign is necessary to ensure that all the departments are responsible for the company’s growth rather than isolated enhancement. The latter, hence, recognizes the sub-processes involved in a business process and rethinks and redesigns those in a manner that coalesces the processes to function in a more responsible and unified fashion.
Rethinking a business process aims at cutting the fat from it, eliminating unnecessary layers and elements, thus, reducing operational costs and improving productivity and cycle time. That leads to enhanced customer service and profitability.
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