Business Process Re-engineering Vs Business Process Improvement
In today’s competitive business environment, the companies must enhance their existing business process to stay in the grid and excel to achieve their business goal. Two critical factors that are highly important for a business’s success are Business Process Re-engineering (BPR) and Business process Improvisation (BPI), the objective is to implement these enhancing factors for business productivity and increasing business success rate. BPR is highly tech-oriented re-engineering with the high risk involved whereas BPI is an improvisation method with low risk involved.
In this article, we’re going to learn about the major difference between these two-implementation processes which will help you implement the best-used case to enhance your business success rate.
As being a former consultant and now working with 100+ businesses across the world I’m going to share with you some of the important feed to help you out choosing best business practices to maximize your business success rate, so let’s learn both the processes one by one and finally, we will compare the best case for your business.
Business Process Re-engineering
The term was introduced back in 1990 at the dawn of information edge, the name was the result of numerous articles coined from best-selling books by Dr. Michael Hammer, in which one caught the attention of major corporate leaders entitled “Re-engineering the corporation”. The fundamental idea behind business process re-engineering was to radically redesign the existing business process to achieve breakthrough business performance and to dramatically enhance products and service quality, cost reduction of production, and time-saving. In the real business case scenario, CIO and management have affirmed that it helped them reduce paper works, drastically improvised transparency, reduce human error using Artificial intelligence and machine learning, it also helped business maximize their profitability with fast service and product deployment.
The business process re-engineering can be achieved by the process of clean Slate re-engineering and Tech-enabled reengineering.
Clean slate re-engineering: It involved starting from scratch and ending with redesigning the process completely. It tends to foster innovation and creativity within a business and reduce sluggish existing paperwork and longer business pipelines. The process includes the hiring and firing method in which the leader selects the best employee and fosters innovation ability within a business. Here the current business process is analyzed as “As is process” and the new business plan is designed as “To be process” it is where the company wants to be for its business productivity, performance, and profitability.
Tech Enabled Re-engineering: Instead of starting from scratch company are now implementing technology strategies to efficiently manage customers and employees to boost business productivity and performance, tech-enabled process has a proven successful history. The tech-enabled re-engineering is done by using digital transformation methods in which ERP, CRM, and other software play a major role. There are certain advantages and disadvantages related to these two-business process re-engineering. Disadvantages often come, from employees as they fear losing their job, and avoid re-learning processes of new technologies, this can be solved by assuring employees of security and providing them with adequate tech training. It also required full commitment to implementing technology which may take over 6 months to 5 years depending on company sizes and its existing business process.
Business Process Improvement:
The business process improvement or BPI is a process of gradual improvement over time, whereas BPR is a revolutionary and agile way to boost business performance; however, the goal of BPI is similar to BPR which is to enhance employee productivity, performance, and profitability by cutting unnecessary cost on production and services.
The BPI is critically dependent on the company management leaders and CIOs, it leans towards the six sigma of leadership (such as Recognize, Define, Measure, Analyze, Improve and Control), lean thinking, and total quality management. Regardless of its implementation strategy, it may be unsuccessful as it relies on management’s history and current leaders if the existing business’s current process is broken the chances are methodology is likely to fail. In such a scenario the process needs radical changes with an organization which can be achieved by implementing BPR.
Let see how the BPI model works through outlined the improvement model.
Seven Takeaway Conclusion
- In BPR, change is fast, radical and revolutionary, whereas in BPI changes is slow and conventional.
- BPR relies heavily on technology, whereas as BPI rely on Human resources.
- BPR empowers workers with advance technologies, whereas BPI doesn’t empower worker with technologies.
- BPR uses ERP system and industries best practice whereas BPI uses conventional business improvement methodology.
- In BPR the business process can be fully transparent, whereas in BPI process cannot be fully transparent.
- BPR bring innovation in existing business process, whereas BPI doesn’t bring any innovation in the process.
- In BPR organization success rate are high, whereas in BPI organization success rate are low.
If you find the article useful, do let us know in the comment below. You can also write me an email with your suggestion if you feel so.
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