Business Process Reengineering (BPR) – is it worth completely redesigning your company’s processes?

There seem to be countless ways to “tame” processes using modern technology. However, the trouble begins when a complete overhaul is needed, which is a common pain point for various types of manufacturers. Business Process Reengineering, while having many advantages, is not a procedure without its drawbacks.    

What is Business Process Reengineering (BPR)?

Business Process Reengineering is the radical redesign of business processes to achieve improvements in critical aspects of company performance, such as quality, output, and efficiency. BPR also aims to reduce corporate costs and eliminate unfavorable redundancies.

Reengineering + business + process: the differences between BPR and BPI

At first glance, BPR resembles Business Process Improvement (BPI). However, there are fundamental differences between the two approaches. While BPI may involve simply tweaking a few rules here and there, business process reengineering usually involves fundamental changes within previously defined boundaries. Furthermore, Business Process Improvement generally identifies bottlenecks and recommends fixes for specific, existing functionalities. The framework of the process usually remains unchanged. The perspective of BPR, however, is much broader. This approach often discards existing rules, choosing an unconventional path and taking into account insights from high-level management. The final result is often a completely new entity, significantly different from the starting point. Using an automotive analogy, BPI would be like upgrading a car’s exhaust system, while business process reengineering would involve redesigning the entire emission system.    

What are the benefits of introducing new processes to a company? BPR and business

BPR is such a massive undertaking that many people interested in this method rightly wonder if it is worth the effort. Here are five benefits you can count on when redesigning business processes:

• Clear goals

Most organizations are unable to describe and document their processes from start to finish unless they are related to compliance. Therefore, you must start by understanding their current state, which should be the first element of any successful BPR implementation. The Business Process Discovery method is very helpful here. Thanks to it, you know which areas are worth testing for automation by conducting a Proof of Concept, thereby reducing the risk of costly mistakes in the future.

• Streamlined and simplified operations

BPR implementation should eliminate unnecessary processes (or elements thereof) that previously slowed down business operations. This allows the company to focus its efforts on organizational goals, sets clear paths of action for employees, and makes customers much more satisfied with the services provided.

• Increased efficiency

Eliminating redundancies in operations and fine-tuning processes significantly speeds up workflows.

• Better results and more refined products

Greater efficiency and clarified goals allow for more time and energy to be spent on building customer relationships using streamlined, digitized processes. Moreover, by building better communication lines between cross-functional teams, information is transferred faster, and the company is more resilient to market changes.

• Maximized return on automation investment

All the above benefits allow you not only to choose the right automation strategy (e.g., Shift Left, if artificial intelligence is involved) but also to achieve the highest possible ROI.   

What are the biggest problems associated with BPR implementation?

The main problem with BPR implementation is that the larger the organization, the more expensive and difficult it is. And most often, it is large companies that need process redesign to catch up with the competition and adapt to unexpected market changes. Furthermore, because changes are generally difficult to manage, employee productivity also drops during BPR implementation. It is also worth knowing that, as a rule, Business Process Reengineering will not succeed if:

• several processes are taken on at once,
• the company does not set long-term goals,
• the proposed changes turn out to be only minor modifications,
• the entire procedure is repeated too often (e.g., once a year),
• the emphasis is placed on automation rather than the process redesign itself.

   

In what cases is it worth performing BPR in an enterprise?

The need for BPR is closely related not only to the industry but, above all, to the goals of a given organization. If a company is forced to break patterns to achieve ambitious goals, another form of process management may yield the same results as rearranging deck chairs on the Titanic. In the case of BPR implementation, proper timing is also key. It is worth thinking about process redesign when:

• technology has revolutionized the industry in which the company operates,
• the competition is able to do much more at a lower cost,
• it is your organization that must make a breakthrough in trends,
• small improvements will be of no use.

   

Real-life BPR examples

Many well-known companies, such as Ford Motors, GTE, and Bell Atlantic, implemented BPR in the 1990s to shake up their operations. The reengineering process they adopted made a significant difference, radically reducing their expenses and improving their effectiveness in fighting growing competition.   An interesting example is also what happened in one American telecommunications company. It had several departments dealing with various types of problems. In the case of complaints, etc., the customer was forced to call the right place. This company spent millions of dollars to ensure customer satisfaction, yet smaller companies with minimal resources were still threatening their business. The telecommunications giant analyzed the situation and concluded that it needed simplification in the form of a single, comprehensive solution for various customer inquiries. It was decided to merge the existing departments into one. The company also equipped the team with new software that allowed support to access the database and handle almost all requests. At the moment, if a customer calls with a billing inquiry, they can also report, for example, a service need without having to connect to another number.