Business Process Engineering

Introduction:

Business process engineering is studying current business processes of the organization in order
to derive and develop new improved methods to increase productivity and efficiency and thereby
reducing operational costs.

Many organizations are using Information Technology sectors to redesign their current processes
and structures. Consistent proven methods and approach enable easy predictability of costs.
Monitoring different KPI’s assists in providing analytical feedback which effectively ensures
continuous alignment of business processes with current demands and needs. Most of the business
process engineering methods are measurable and can be self-monitored. Moreover, these methods
enable continuous loop evaluation, resulting improved results every time.

Following are the major reasons why most of the organizations are using Business Process
Engineering:

 Supports internal iterative development

 Precise automation, assisting in development of new methodologies
 Aligns current business process with long term and short term goals
 Enables better collaboration and coordination
 Provides a framework for business process projects
 Identifies and monitors unique aspects of every process
 Establish defined roles for employees

A simplified business process engineering lifecycle consist 4 stages. These are:

 ANALYSIS
 DESIGN
 IMPLEMENTATION
 MONITORING
Why did Business Process Engineering take off in a major way?

Following could be the reasons why organizations are adopting business process engineering.
These can be classified into 3Cs.

 Customers:
With the advent of technology customers have become more demanding and sophisticated.
In order to fulfill their needs, large range of alternatives are being proposed by the
organization which eventually exerts pressure on the suppliers. The technological
adeptness has enabled suppliers to identify alternatives from consistent business processes
hence, providing customers with their own customized solutions.
 Competition:
The global and local competition have forced organizations to increase efficiency and
productivity and simultaneously reduce the overall operational cost. Companies now a days
are maintaining database at a larger level. Since, the data itself is very difficult to manage,
usually companies approach third party who will observe and analyze data for supply.
 Change:
Continuous innovations and new technology penetrations have enabled organizations to
change their structures. Companies are using various methodologies to align their business
goals in all departments. It has also assisted in developing consistent collaboration among
various business units such as, marketing department, warehouse, manufacturing unit and
head office. It has reduced the geo-political differences among the business units and has
stabilized a constant communication, thereby increasing flexibility to the process.

Organizations are adopting corporate-wide restructuring. Increase in foreign competition, major

innovations in technology and slow economies have raised a need to improve current business
procedures. Many companies have already recognized the need and are on the verge of
administrative restructuring.