Business process re-engineering
Business process re-engineering (BPR) is a business management strategy originally pioneered in the early 1990s, focusing on the analysis and design of workflows and business processes within an organization. BPR aims to help organizations fundamentally rethink how they do their work in order to improve customer service, cut operational costs, and become world-class competitors.[1]
BPR seeks to help companies radically restructure their organizations by focusing on the ground-up design of their business processes. According to early BPR proponent Thomas H. Davenport (1990), a business process is a set of logically related tasks performed to achieve a defined business outcome. Re-engineering emphasized a holistic focus on business objectives and how processes related to them, encouraging full-scale recreation of processes, rather than iterative optimization of sub-processes.[1] BPR is influenced by technological innovations as industry players replace old methods of business operations with cost-saving innovative technologies such as automation that can radically transform business operations.[2]
Business process re-engineering is also known as business process redesign, business transformation, or business process change management.
Many companies used reengineering as a pretext to downsizing, though this was not the intent of reengineering's proponents; consequently, reengineering earned a reputation for being synonymous with downsizing and layoffs.[44][45]
In many circumstances, reengineering has not always lived up to its expectations. Some prominent reasons include:
Others have claimed that reengineering was a recycled buzzword for commonly-held ideas. Abrahamson (1996) argued that fashionable management terms tend to follow a lifecycle, which for Reengineering peaked between 1993 and 1996 (Ponzi and Koenig 2002). They argue that Reengineering was in fact nothing new (as e.g. when Henry Ford implemented the assembly line in 1908, he was in fact reengineering, radically changing the way of thinking in an organization).
The most frequent critique against BPR concerns the strict focus on efficiency and technology and the disregard of people in the organization that is subjected to a reengineering initiative. Very often, the label BPR was used for major workforce reductions. Thomas Davenport, an early BPR proponent, stated that:
Hammer similarly admitted that: