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By redesigning key business processes, business process reengineering (BPR) greatly enhances performance, speed, and effectiveness. Continuous innovation and change that improves processes from start to finish and gets rid of waste are examples of BPR. By removing steps and streamlining processes, BPR makes the best use of resources.

BPR challenges organizational conventions and procedures by redesigning business processes. It usually seeks radical process transformation. It should not be confused with business process management (BPM), a more incremental approach to optimizing processes, or business process improvement (BPI), which comprises any systematic effort to enhance processes. This blog shows BPR cases that benefit from BPM.

What is business process reengineering

BPR was a management method developed in the early 1990s to alter business operations by drastically restructuring processes. The 1990 Harvard Business Review article “Reengineering Work: Don’t Automate, Obliterate,” by Michael Hammer, and the 1993 book Reengineering the Corporation by Hammer and James Champy popularised the concept. Ford Motor Company, a 1990s BPR pioneer, streamlined its manufacturing processes and increased competitiveness.

Organizations of all sizes and industries reengineer business processes. First, determine BPR goals, then review the existing condition, identify gaps and opportunities, and process map.

Business Process Reengineering BPR definition

Effective leadership, change management, and continuous improvement are needed to implement business process reengineering. To enable new procedures and significant change, leaders, senior management, team members, and stakeholders must advocate the BPR project and give resources, support, and direction.

Examples of BPR in Companies

Streamlining supply chain management

BPR for supply chain optimisation requires rigorous review and redesign of logistics, inventory management, and procurement. Rethinking procurement, introducing just-in-time inventory, optimising production schedules, and restructuring transportation and distribution networks are all possible supply chain overhauls. To automate and improve things, you can use SCM, ERP, and advanced analytics tools. Predictive analytics helps figure out what people will want and how much to stock, and blockchain technology can make the supply chain more open and easy to track.

Benefits:

Improved efficiency

Reduced cost

Increased transparency

BPR is a crucial technique for organisations seeking to revamp their CRM operations. Business process reengineering for CRM involves integrating customer data from several sources, employing advanced analytics for insights, and optimising service workflows for personalised experiences and lower wait times.

CRM BPR uses may include:

Integrating CRM software to centralise customer data and enable real-time analytics Using multichannel communication to give consistent experiences across touchpoints Equipping frontline staff with training and resources to provide excellent service BPR helps firms anticipate consumer demands, personalise interactions, and resolve issues quickly.

Benefits:

360-degree consumer view

Enhanced sales and retention

Faster problem resolution

Digitising administrative processes

To eliminate human errors, organisations are digitising and automating administrative operations with BPR. This transition involves replacing manual, paper-based procedures with digital systems that use RPA for everyday tasks.

This could involve automated invoicing, payroll, or HR. This can boost efficiency, accuracy, and scalability, helping the company run better.

Benefits:

Shorter processing

Fewer mistakes

Increased adaptability

Process improvement for product development

BPR optimizes product development from inspiration to launch. This revamp evaluates and redesigns workflows, promotes cross-functional collaboration, and innovates employing new technology. This can include cross-functional teams to promote communication and knowledge sharing, agile methodologies to promote iterative development and rapid prototyping, and PLM software to streamline documentation and version control. These BPR activities help companies cut product development cycle times, respond faster to market demands, and offer creative, customer-focused goods.

Benefits:

Faster market entry

Increased innovation

Superior product quality

Technology infrastructure update In this age of rapid technological innovation, BPR is essential for companies updating their technology infrastructure. Migration to cloud-based solutions, adoption of AI and ML, and integration of heterogeneous systems improves data management and analysis, enabling more informed decision-making. New technologies boost performance, cybersecurity, and scalability, setting companies for long-term success.

Benefits:

Improved performance

Enhanced security

Increased innovation

Reduce staff redundancies

Many companies use BPR to reorganize and decrease redundancies in response to changing market dynamics and organizational needs. Strategic initiatives can streamline hierarchies, consolidate divisions, and outsource non-core services. By optimising labour allocation and eliminating duplicate tasks, organisations can cut costs, boost efficiency, and prioritise resources.

Benefits:

Cost-saving

Increased efficiency

Core competencies first

Operational cost reduction

Businesses may efficiently detect inefficiencies, redundancies, and waste via BPR. Organizations can streamline and cut costs.

BPR redesigns processes to optimize resource allocation, decrease non-value-added work, and increase efficiency. Automating tedious operations, reorganising workflows to decrease bottlenecks, renegotiating supplier contracts for better terms, or using technology to improve collaboration and communication may be needed.

Benefits:

Improved efficiency

Lower costs

Increased competitiveness

Improving output quality

From production to service delivery, BPR improves output quality. BPR usually improves KPIs.

Implementing quality control, promoting continuous improvement, and leveraging customer feedback and other metrics to drive innovation can increase output quality.

Technology can automate operations. Eliminating distractions helps staff focus on providing high-quality products and services. It promotes client trust and loyalty and helps the company succeed.

Benefits:

Better client satisfaction

Fewer mistakes

Better brand image

Optimizing HR processes

BPR is essential for HR optimisation. Automating onboarding with simple portals, optimising workflows, establishing self-service portals and applications, employing AI for talent acquisition, and data-driven performance management are examples.

Engaging employees helps attract, develop, and retain outstanding talent. HR methods aligned with company values can boost employee productivity, satisfaction, and business performance.

Benefits:

Recruiting faster

Enhanced employee engagement

Allocating talent strategically

Examples of BPR: Case studies

BPR methodology and use cases work together to assist clients in the following case studies.

Bouygues leads French telecom AI

Bouygues Telecom, a major French communications provider, suffered with ageing systems that couldn’t handle many support calls. The result? Bouygues risked being displaced by competition as frustrated consumers waited in call lines. Bouygues’ pre-IBM Watsonx AI implementation with IBM was a blessing. Phase 1 preparations were ideal for phase 2’s AI integration into the telecom call centre.

Bouygues receives over 800,000 calls a month using IBM watsonx Assistant, and IBM watsonx Orchestrate frees agents from monotonous duties to focus on higher-value jobs. Pre- and post-call workloads dropped 30% for agents. In addition, 8 million customer-agent exchanges, previously partially analysed, have been accurately summarised for actionable insights.

These innovations have made Bouygues a customer care disruptor, reducing operational expenses by USD 5 million and putting them at the forefront of AI technology.

Customer-centric transformation at Finance of America fosters lifetime loyalty. Finance of America co-created with IBM to tailor their operations to consumers, delivering value for them and prospective homebuyers.

FOA expects to increase their customer base in three years after this transition. Revenue and income should rise by 50% and 80%, respectively, in the same timeframe. Finance of America is ready to offer debt advisory and other services that will build customer loyalty.

Business Process Reengineering

IBM business process reengineering analyses fundamental processes to identify and redesign areas for improvement. By stepping back, strategists can examine supply chain, customer experience, and finance. BPR services specialists can integrate new technologies and rework procedures to improve the business. They can help you create intelligent workflows that boost profits, eliminate redundancies, and cut costs.