ADVANTAGES OF BPR

BPR or business process reengineering is the central reevaluating and radical

update of business procedures to accomplish various upgrades in primary,
contemporary proportions of execution like cost, quality, administration, and speed.

Improved consumer loyalty is frequently an essential point. There are various pros
and cons of business process reengineering.

Mentioned below are some advantages that

business associations can get from effective use
of business process reengineering (BPR):
 It gives an appropriate focus to business as it revolves around customer
needs.
 BPR helps in building a strategic view of operational procedures by making
radical inquiries about how processes are improved and how things could be
done.
 It eliminates unnecessary activities and thereby helps in reducing
organizational complexity.
 It coordinates and integrates several functions immediately.
 Provides improved viability and adequacy to an organization by eliminating
the delay and unessential phases of operations and management.
 Reduced the number of checks/controls and reconciliation processes.
 It helps overcome short-sighted approaches that usually emerge from
excessive concentration on functional boundaries.
Advantages of BPR
– Opportunity to change – The Business Process Re-engineering process involves
changing the business structure, business procedures, input methods, and resource
methods necessarily. These changes are happening based on the output requirement of
the BPR project. This is a second chance given to the organization to restructure their
tasks in order to drive the organization towards the specified goals.

– Survive in a dynamic business environment – With the increase of globalization and

improving technologies, the modern business environment is changing rapidly. Business
Process Re-engineering (BPR) project is an opportunity for any organization to change
its operating methods to survive in the changing business environment.

– Identify Strengths, Weaknesses, Opportunities, and Threats – when implementing a

Business Process Re-engineering project, any organization would analyze the current
aspects and the capabilities of the business. This is helpful in measuring the output
expectations after the BPR project. This gives the organization to recognize its strengths,
weaknesses, opportunities, and threats and plan accordingly to take advantage of
Strengths and Opportunities and to eliminate or minimize Weaknesses and Threats.

-Cost Reduction – The main goal of the Business Process Re-engineering process is to
obtain a better outcome. This has a major concern in cost-effectiveness. The BPR
process is a point where the organization can identify the possibilities of cost reduction
without harming the business process or the quality of the final outcome. – Change the
organizational culture – Business Process re-engineering is the best opportunity for any
organization to restructure the organizational hierarchy and to create an employee-
friendly organizational structure with an open communication flow. This concept is
popular in the current business world. This is considered more effective in employee
satisfaction as well as the growth of the business in the competitive market.
Disadvantages of BPR
Business Process Re-engineering (BPR) is a project initiated with the aim of achieving a
better future position. However, the process has a few disadvantages that we cannot
ignore.
-Cost – The BPR process requires extra financial and human effort from the starting point
until the end of the process. This effort can be very costly to the organization. Apart from
that, it is consuming a time that can be used for routine production. The financial impact
of this cost can make a huge impact on the organization’s financial statements.

– Risk – Change is always a risky step to take. When implementing a Business Process
Re-engineering project, the organization should consider the risk they are facing by
changing the current procedure. The risk of implementing a new method can make an
adverse impact on the organization. This can be strong enough even to collapse the
organization. The organization should have a proper change management team to
mitigate the risk of the process change and to encourage the organization to survive the
BPR project and achieve expected goals.
When implementing a BPR project, it is necessary for any organization to analyze these
advantages and disadvantages in BPR project prior to initiating the project. This can be
done by analyzing the organizational behavior and available resources. This will lead any
organization to identify its current situation and drive the project accordingly. Identifying
the advantages and disadvantages in BPR will help the organization to drive the BPR
activities to achieve a productive outcome
Business Process Reengineering Advantages and
Disadvantages
Vinish Parikh October 15, 2021

In our childhood, we all have our dreams with regards to our preferred profession like
doctor, engineer, pilot, banker, actor, and so on but as we grow older we have to
amend or change our dreams as well as goals according to situations in the same
way companies also have goals and visions which needs to be reviewed or changed
according to circumstances and that is where business process reengineering come
into play. Business process reengineering in simple words refers to that process by
which a company looks to change its way of doing work or business process to
improve not only the operational efficiency of the company but also improve the
customer service of the company. In order to have a better understanding of this
concept, one should look at the advantages and disadvantages of business process
reengineering –

Advantages of Business Process Reengineering

Improvement in Business Performance

The first and foremost advantage of business process reengineering is that it helps
in improvement in the overall business performance because when something is not
working then no matter how efficiently and effectively employees are working it will
not be visible in the bottom line of the company because of wrong direction and
business process reengineering makes it possible to improve business performance
by giving the right direction to the efforts of employees of the company. In simple
words, if ship crew members are trying hard to sail their boat but against the wind
direction then they will not be able to do anything but if the direction of the boat is
changed then it will sail smoothly which is what business process reengineering
does to the business of the company.

Motivation in Company
Human beings get bored easily and employees are no different and that is the reason why
when the company decides to do business process reengineering all employees of the
company will be motivated and there will be positive vibes within the company resulting in an
increase in efficiency and effectiveness in the working of the company.

Human beings get bored easily and employees are no different and that is the
reason why when the company decides to do business process reengineering all
employees of the company will be motivated and there will be positive vibes within
the company resulting in an increase in efficiency and effectiveness in the working of
the company.
Eliminates Inefficiency
Business process reengineering helps in identification as well as the elimination of various
inefficiency which were hampering the working of departments as well as the company
because there are many examples where inefficiency working style and workers keep doing
the same thing for years and company do not have any knowledge but due to business
process reengineering since whole systems and process goes for a change it automatically
leads to elimination of inefficiency.
Disadvantages of Business Process Reengineering

No Guarantee of Success
The biggest disadvantage of implementing business process reengineering is that it
is not a sure shot success formula because it is not necessary that even after doing
business process reengineering company will be successful as there are many other
factors at play apart from business process reengineering which impacts the overall
performance of the company.

Expensive
It is an expensive way of doing things because business process reengineering
involves making drastic changes both at the strategic level as well as the operational
level in the company. In simple words, not all companies can afford to do business
process reengineering due to expenses being involved in business process
reengineering.

Long Term Process

Another drawback of business process reengineering is that the result of the whole
process are not visible overnight rather it a long term process and it takes time which
again not many companies can afford as not all companies have patience and deep
pockets to endure the long time which it takes to show improvement in the business
and overall performance of the company.
The Business Process Reengineering can be defined as the process of
recreating a core business process with the aim of improving the product/service
output, quality and reducing wastage and cost incurred.
What exactly it involves is the analysis of company workflows, finding processes
that are not meeting the requirements or inefficient which you are attempting out
ways to get rid of them or change them.
With pandemic hitting every business hard, organizations of all sizes and types
are faced with intense competition. To stay afloat in this competitive
environment, these organizations look for the way out to increase efficiency and
improve their bottom line by turning to process improvement through Business
Process Reengineering.
Business Process Reengineering can be as simple as shaping unclear processes
and continually looking for areas of improvement and making critical changes
which can be as complicated as reengineering ventures.
Let us dig into some of the benefits of Business Process Reengineering
implementation:

Flexibility
The only thing that is permanent is change and even organizations fall in this
criteria and are regularly faced with the need for change. Changes may become
essential because of many reasons like new regulations, technological
innovations, market demands or the advent of new ways of working.
One of the key features of Business Process Reengineering is that it promotes
the design of processes with minimum costs. Most of the related processes can
be easily customized to suit the requirements of your organization.

Enhancement of Productivity
Business Process reengineering focuses on the automation of a lot of repetitive
elements within regular business workflow. The business process improvements
basically include removal of process bottlenecks, initiation of parallel processing,
and complete elimination of redundant steps. All these improvements can be
easily achieved with Business Process Reengineering, which will thereby allow
employees to spend more time on important activities. Since the support
functions have been handled, it can result in increased productivity and reduced
waste.

Reduced Risks
The visibility of business processes in the business process reengineering allows
for concentration on inefficiencies. It gives organizations the opportunity to work
more efficiently whereby they can save their resources. Business Process
Reengineering is also responsible for the creation of better- designed, executed
and monitored processes which tends to reduce the operational risks like fraud.

Transparency
There are certain industry regulations which the organizations need to comply
with. Business process reengineering ensures that the organizations remain
transparent and implement the regulatory requirements at ease through which
delays in compliance and any associated fines and penalties can be prevented.
When you integrate compliance into the process life cycle, you automatically
make the organizational processes transparent and visible to all your employees.

Employee Contentment
Business process reengineering removes a lot of red tape in the organizations,
thereby allowing employees to focus 100% on their work. This process
automation eliminates a lot of repetitive work which again makes access to
information easier and results in increased productivity and a happier workforce.

Improved Customer’s Attention

With simplified processes and increased productivity, employees get enough
time to focus better on the customer. The employees will be in a better position
to respond to customer’s proposals instantly, build solutions faster and customize
their requirements. Business process reengineering is responsible for bringing
people and technology together that again in a way, increases customer
satisfaction. Also, employees are able to deliver the right results for customers
and related stakeholders.

Consistency
With Business Process Reengineering, every task can be executed exactly the
way it was planned and designed. There will be no requirement to reinvent the
wheel as similar problems can be addressed in the same way even if the roles
get changed. Also, exceptional situations and responses are noted down to
ensure that they are handled appropriately.

Durability
With the change in the organizational conditions, the business processes require
to adapt to those changes and deliver the expected results. Business Process
Reengineering helps in smooth adaptation while maintaining control and
managerial oversight as well.
Evaluation
Processes, when measured and evaluated end-to-end and compared to the
expected results, can help in managing people well. Business Process
Reengineering provides reporting and analytical tools which can help in making
executive decisions. It also helps in streamlining and quantifying processes that
can help the organization to optimize its workflows.

Integration of Technology
Business Process Reengineering bridges the gap between users and IT by using
various standards of business process management. The focus should always be
on processes and not on applications that support them.