11/30/12 BPR : Business Process Reengineering | Rajesh Timane www.rajeshtimane.com/222/academics/bpr-business-process-reengineering.html Rajesh Timane Home About Resume 10 June 2010 ~ 27 Comments BPR : Business Process Reengineering Academics What is a Business Process? A process is an activity which provides an output by adding value to an input. This process invariably includes any action which would result into a better and value added key performance indicator (KPI). A business process on the other hand is a collection of related activities that produce a specific output for a particular customer within the parlance of a business, company or industry. The first characteristics of ‘Business Process’ is that it must be Specific; i.e. have a definite boundary, input and output.It should have a definite Order i.e. must consist of activities that are sequenced. Next, any business process must have a definite Customer i.e. there has to be a recipient of the outcome of the business process. Further, it should be Integral and Adding Value to the business. By adding value; a transformation must take place within the process which shall of importance to its customer. By being integral; the process doesn’t exist by itself, but is actually embedded in an organisational structure. What is Re-engineering? The term engineering implies the application of technology to modify something; say; a design, process, product, system, etc. Now, after this application, some value should be created out of it. It boils down in giving a re-thought. This process of rethinking out a process to change it to generate value can be called as re-engineering. In general, it focuses more on reinventing the processes rather than making incremental improvements or just revamping the process. Michael Hammer, who coined the term re-engineering , defines it as “the fundamental rethinking and radical redesign of business process to achieve dramatic improvements in the (critical contemporary) measures of performance such as cost, quality, service and speed”. What is Business Process Re-engineering (BPR)?
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11/30/12 BPR : Business Process Reengineering | Rajesh Timane
www.rajeshtimane.com/222/academics/bpr-business-process-reengineering.html
Rajesh Timane
HomeAboutResume10 June 2010 ~ 27 CommentsBPR : Business Process ReengineeringAcademicsWhat is a Business Process?A process is an activity which provides an output by adding value to an input. This process invariably includes anyaction which would result into a better and value added key performance indicator (KPI).
A business process on the other hand is a collection of related activities that produce a specific output for a
particular customer within the parlance of a business, company or industry. The firstcharacteristics of ‘Business Process’ is that it must be Specific; i.e. have a definite boundary, input and output.Itshould have a definite Order i.e. must consist of activities that are sequenced. Next, any business process musthave a definite Customer i.e. there has to be a recipient of the outcome of the business process. Further, it shouldbe Integral and Adding Value to the business. By adding value; a transformation must take place within theprocess which shall of importance to its customer. By being integral; the process doesn’t exist by itself, but isactually embedded in an organisational structure.What is Re-engineering?The term engineering implies the application of technology to modify something; say; a design, process, product,system, etc. Now, after this application, some value should be created out of it. It boils down in giving a re-thought.This process of rethinking out a process to change it to generate value can be called as re-engineering. In general, itfocuses more on reinventing the processes rather than making incremental improvements or just revamping theprocess. Michael Hammer, who coined the term re-engineering, defines it as “the fundamental rethinking and radicalredesign of business process to achieve dramatic improvements in the (critical contemporary) measures ofperformance such as cost, quality, service and speed”.What is Business Process Re-engineering (BPR)?
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BPR is about taking a tough look at why, what, when, how and where the organisation does the things; the way itdoes. It is related to the fundamental rethinking about various processes in a business (organisation) and questioningtheir utility; whether they are required at all or not. This redesigning (re-engineering) of processes should ultimatelyresult into significant enhancements in the critical ‘measures of performance’ of an organisation. Thus, it can bestated that, “BPR redesigns core processes of an organisation by means of customising them to suit theunique business model of that organisation.” Business Process Improvement (BPI), on the other hand, dealswith the incremental improvement in the business processes. Simply put, it is a technique in which an organisationoptimises its processes for better results. It defines the ‘as-is process’ of an organisation and streamlines it to the‘to-be output’. BPI solutions are the results of business process mapping; which is a technique for processexcellence.Need of BPRThe business dynamics today is governed by factors like new technologies, new competitors and again, new rulesof competition. In such an ever-changing business environment, BPR is needed for the following reasons.
One, the rapid change in everything itself warrantsproduct development in lesser time, faster product life cycles and hands-on environmental scanning. Secondly, thecustomer is well informed today and further; the organisations need to delight the customer rather than justsatisfying. Lastly, today’s intense competition demands the business processes at par with the ‘best practices’prevalent in the industry.Also, the business models have to be focused on individual market segment theorganisation is targeting. The need for BPR thus can be assigned to three C’s viz.; Change, Customer andCompetition.BPR in USA, Europe and IndiaUSA & some countries in Europe are termed as ‘developed economy’ today while India is a ‘developingeconomy’ along with other emerging economies like China, Brazil, Russia, Mexico, Turkey and Indonesia.Historically, as we have seen earlier, Michael Hammer from USA promoted the cause of BPR, being one of theearliest advocates of this theory. American companies were enjoying monopoly in the days of mass productionfactories with their huge assembly lines. Japanese threatened this monopoly with their superior quality products
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offered at cheaper prices. This led to a re-thinking process in US which ultimately resulted in the development of
BPR methodology.The European industry on the other hand is supposed to quality conscious from the beginning. The stringent normsin Europe made it possible for their manufacturing industry to be ahead of their counterparts in US. This has beenapparent with Automobile Industry in Europe following stringent Euro-II Norms.Off late, the Indian Automobile Industry also caught-up with them by adopting the Euro-II Compliance. India’squality movement is dominated by adoption of ISO 9000 and TQM by large number of business houses. The opencompetition with other global companies has brought in a lot of innovation in the business model of Indiancompanies. Lately, we have seen the acquisition of British companies like Land Rover and Jaguar along withAnglo-Dutch Corus by TATA from India. Other Indian stories include Tata Tea taking over Tetley, Infosysacquiring Axon, Mittal Steel merging with Arcelor etc. What all this suggests is there has been always a changedynamics; unpredictable to follow. The businesses today are more competitive, face stiffer global competition, thenagain face a very thoroughly informed customer; justifying the need of BPR.Reverse Innovation (Business Model Re-engineering)It has been introduced in the Harvard business review article by Mr. Vijay Govindrajan along with Jeff Immelt ofGeneral Electric and Chris Trimble. Therein the traditional Glocalisation Model is given as innovating high-endproducts in developed countries and bringing in their stripped-down version into the developing countries. This hasbeen the practice so far with the western world. Glocalisation thus being coined as: the localisation of globallysuccessful technologies.This model now needs to be changed to a new one, coined as reverse innovation (RI). Reverse Innovation hasbeen stated as “Developing value products in Developing Markets (Indian / Chinese) and sell them or their modifiedversions to Developed Markets (US / Europe)”.Now, the whole discussion about Reverse Innovation seems futile if we look at the BPR Model. Tata Motors andMahindra & Mahindra are following a ‘Reverse Innovation’ Model so to say, rather, their ‘quest for excellence’and desire to give the Indian customer a ‘quality product’ might have resulted in their surge against theircounterparts in US and Europe. This satisfaction of producing world-class product at competitive price wasapparent on the faces of Tata Motors Engineers when they were called on stage by Ratan Tata on the launching of‘NANO’. So, is it not radical thinking and redesign on the part of Tata’s and Mahindra’s applied to theirrespective Business Models rather than to say, processes? To conclude, the so called ‘Reverse Innovation’ can becoined as ‘Business Model Reengineering’ (BMR).
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27 Responses to “BPR : Business Process Reengineering”
Sheetal 7 July 2010 at 12:23 Permalinkplease write some more on bpr in europe, us and india. we have this question for 16 marks.Reply
Rajesh 7 July 2010 at 15:58 Permalink@ SheetalThe content on the post is sufficient for a short question. You can elaborate the same by writing detailed account of:1) Perspectives on concerned-persons like Hammer, Deming, Ford, Tata’s etc2) Detaililng of Techniques / Standards like Mass Production, Euro-II Standards, ISO 9000, TQM, ReverseInnovation etcYou can eaisily find the most of it on Wikipedia.Reply
Sheetal 8 July 2010 at 14:53 PermalinkThank You Sir!!Reply
megha 3 March 2011 at 23:39 Permalinkneed for BPR is insufficient…….rest is well presented and documented….Reply
Alok Kapadia 19 March 2011 at 23:47 PermalinkSir,Can you elaborate on Reverse Innovation and its relation to BPR?Reply
Rajesh 20 March 2011 at 00:45 Permalink@ Megha,Need for BPR can be found in lot of your texts or even online resources.Reply
Greg 30 April 2011 at 22:59 PermalinkI think you must include a video to the write-up so as to make it a lot more fascinating.Reply
Rajesh 19 May 2011 at 11:49 PermalinkSir,
11/30/12 BPR : Business Process Reengineering | Rajesh Timane
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I too want some details on Reverse Innovation in Indian Context.Reply
Anant 20 May 2011 at 15:52 PermalinkSomething on reverse innovation… there is a paper compitition on 2nd june.Reply
Rajesh 25 May 2011 at 19:53 Permalink@ Alok, Rajesh & Anant,Added few thoughts inside this post on ‘Reverse Innovation’.Reply
Vippi Vertailu 29 May 2011 at 00:24 PermalinkBasically superb energy right now there maintain it on their way!Reply
Horton Nathan Jersey 29 May 2011 at 17:19 PermalinkThanks buddy !Reply
Rajesh 3 June 2011 at 20:24 Permalink@ Vippi & Horton,Thanks!Reply
Reid 5 June 2011 at 21:52 PermalinkWould you update your blog with more information? It should be extremely helpful for me.Reply
Adam 13 June 2011 at 14:04 Permalinkthanks buddy.Reply
Charlie 28 June 2011 at 02:24 Permalinkvery nice blog and a good article too.Reply
Darren 1 July 2011 at 10:30 PermalinkTerrific submit thanks.
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Reply
Dr. Sepich 17 July 2011 at 17:34 PermalinkRajesh, can you elaborate on few queries of mine.1) What is the scene with BPR in India?2) Few Scholars / Researchers or names of few Companies presently engaged in the area of BPR in ManufacturingIndustry.3) Your take on Reverse Innovation vis-a-vis BPR/BPI.Reply
Sherley Steinler 24 July 2011 at 15:53 PermalinkExcellent read, I just passed this onto a friend who was doing some research on that. And he actually bought melunch as I found it for him. Thank you for lunch!Reply
Pawan Sangani 21 September 2011 at 14:00 Permalinksir its excellent……Reply
vinay 31 January 2012 at 18:32 Permalinkhello siri m vinay from DBM college looking for notes on following units of BPRUnit II: Process Analysis -Identify business process to be redesigned, Measure the existing process; Customer, Competition, Cost andTechnology as Drivers.Unit III: IT and Learning in Organizations -Information- A source of knowledge, Integration of knowledge & information.Unit IV: Cultural Factors in Managing Process Improvement – Understanding LPG, Managing people with multi-cultures and ethnic groups in process improvement.Unit V: Redesigning Business Processes – Identifying key issues, breakpoints, Selecting the leader and team,technology, designing the process.regardsvinayReply
Rajesh 8 February 2012 at 18:58 Permalink@ Reid, Adam, Charlie, Darren, Sherley, pawan,Thank You ALL !@ Dr. Sepich,Please refer to link in here: http://www.rajeshtimane.com/222/academics/bpr-business-process-reengineering.html@ Vinay,Will write few next posts as per your requirement.Reply
rohan 22 February 2012 at 15:23 Permalink
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Sir wanted to know What is LPG in BPR unit4.Reply
Rajesh 24 February 2012 at 13:02 Permalink@ Rohan,liberalisation, privatisation and globalisation.Reply
Jimmy Tatel 13 March 2012 at 21:53 PermalinkThank you for this wonderful source of information.Reply
ajay 6 April 2012 at 20:15 Permalinkthankkkkkkkkkkkkkkkkkkkkkkkkk uuuuuuuuuuuu sirReply
Michael Turner 10 April 2012 at 18:16 PermalinkI just added this site to my feed reader, excellent stuff.Reply
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