Business Process Rengineering
Business Process Rengineering
kinds of management thinking were compared to comments. Development of ideas and then BPR Analysis
carried out the last of the BPR was predicted.
Keywords: BPR; business process reengineering; other management ideas; comparison; Development
1 Introduction
Adam Smith (Adam Smith) 1776 in 'The Wealth of Nations' (The Wealth of Nations) proposed the division of
labor theory, the Henry Ford (Henry Fort) and the Alfred Sloan (Alfred Sloan) has its application in the production
and management activities of the respective outputs of the flow-type production line and management functions.
Until the 20th century, the division of labor theory dominates the traditional enterprise production and
management. The results of the professional division of labor has greatly improved production efficiency and
yield, resulting in economies of scale, in the product in short supply the 'seller's' era of great effect.
However, the beginning of the 20th century, 80 years after the business environment in which fundamental
changes have taken place, customers, competition, changes in '3 C 'forces drive the business into a new era of
fierce competition, the market by a shortage of' seller's market ' turned to an oversupply of 'buyer's market'.
Traditional management models can not meet the enterprises are facing a new environment, require enterprises
to changes in management theory and methods to enable enterprises to adapt to the new 'buyer's market'
environment; coupled with information technology (IT) in the enterprise wide application. That prompted the
'Business Process Reengineering (Business Process Reengineering, abbreviated as BPR)' generation.
Earliest BPR literature appeared in 1990, the United States Michael Hammer (1990) 're: not automatic, but
the complete eradication', and Thomas H. Davenport (1990) 'New Industrial Engineering: Reengineering
and Information technology 'these two articles. 'Recycling' (Reengineering) is the term Hammer in his first
proposed in this article, but Lindsay Davenport, in his article is used in a 're-design' (Redesign) word.
In 1993, Michael Hammer and James Champy in his book 'Reengineering the Corporation: Corporate
Manifesto for Business Revolution' a book for the first time formally proposed the classical Business Process
Reengineering (BPR) Definition: a fundamental business process re - thinking and thoroughness of the re-design
in order to cost, quality, service and speed to measure an important indicator of business performance has made
significant progress.
This definition includes four Key words: basic (Fundamental), complete (Radical), significant (Dramatic),
process (Process). BPR thought has four basic elements: (1) business process reengineering object - process;
(2) business process reengineering of the related objects - support systems, organizations, etc.; (3) business
goal of reorganization - significantly improve business performance ; (4) business process reengineering the way
- than revolutionary. Hammer (1993) proposed by BPR target goal is to shorten the 70% of turnover, cost
reduction 40%, customer satisfaction and business revenue increased 40%, market share growth of 25%.
BPR study indicated that, BPR should be the main technical, social and other two for recycling. Technology,
recycling (or 'hard' and recycling) area include: IT systems, technology, processes, operations, standards,
procedures, systems, control, etc.; social reconstruction (or 'soft' recycling) area include: organizational structure,
management (including management style, managers), employees, corporate values and corporate culture,
ideology, policies, career development, incentives and so on.
BPR is essentially a systematic change in the enterprise and its core areas of business processes, its
fundamental goal is to being the professional division of labor and bureaucracy was fragmented segmentation
process redesign and recycling. BPR emphasizes whole is greater than its parts, and inherited the job
enrichment theory of the division of labor criticism. Therefore, BPR is essentially industrial society, division of
labor and management division of labor integration.
Since 1993, BPR was raised, BPR enterprises rapidly expanded in Europe and the United States, bringing
significant economic benefits, there emerged a large number of success stories. Early in 1994, by CSC Index,
Inc. (strategic management consulting firm) to 621 large companies in North America and Europe, conducted a
questionnaire survey. Results of the survey are: North America 497 69% 124 75% of Europe have been carried
out in one or more BPR projects, the remaining half of the company is also considering such a project. Then from
90 in the late turn of the century, the Asia-Pacific countries are also a large number of BPR in practice.
However, BPR also a high rate of failure. B * J * Bashein (1994) pointed out that about 70% of the BPR
project failure. The Holland and Kumar (1995) also pointed out that 60% ~ 80% of the BPR (Business Process
Reengineering) ended in failure.
BPR thinking carried forward and developed many other management thinking, is it with modern information
and communication technology to conduct a comprehensive integration. This paper on research, the BPR 10
kinds of other management ideas and thinking of the following comparison.
1. BPR and ERP. Marc J * Schniederjans and Gyu C * Kim (2003) view that, to the successful
implementation of ERP (enterprise resource planning) must be implemented in BPR, BPR is the prerequisite and
basis for ERP.
Domestically, Gui-liang cars, Heng-Xin Xue (2004), etc. that, BPR is the basis and prerequisite for ERP; the
same time, ERP is the successful implementation of BPR tools and techniques of management, ERP is an
important supplement to enterprises to implement BPR. BPR focuses on management thinking, their attention to
the overall enterprise business processes optimization problem; while ERP focus on management techniques,
concern is reasonable based on the business processes of the enterprise-wide resource management,
optimization and utilization. Therefore, only in a reasonable, optimize business processes based on the
implementation of the ERP can be achieved on the entire supply chain (in fact, is the internal supply chain) and
effective management. BPR emphasizes process-oriented process reengineering, involved in specific matters,
such as the organizational structure of the level of compression, removal of non-value added links, redundant
links removed, the information channel dredging, as well as functional departments, staff exchanges and so can
not be separated information systems support.
In short, the majority of the research literature that, BPR is the successful implementation of ERP based;
ERP is a management tool for the successful implementation of BPR, the two interact, complement each other
and jointly improve the overall performance.
2. BPR and SCM. SCM (Supply Chain Management, translated as 'supply chain management') focus on
resolving the inter-firm coordination and integration of external resources, the objective is to achieve internal and
external business throughout the supply chain management. SCM is based on the needs of the manufacturing
industry developed, and its main contents are: supplier management, purchasing management, product design,
production planning, materials management, logistics management, order management, inventory management,
transportation management, warehouse management and customer service and other functions.
BPR typically include SCM content. Especially in manufacturing BPR typically include its supply chain
process reengineering and supply chain management, inter-enterprise supply chain process reengineering BPR
is the direction of development of the manufacturing sector.
In short, BPR is a SCM based, BPR includes SCM, SCM is just a part of BPR. BPR is a management
philosophy, theory, and the SCM is the management tools, technical means.
3. BPR and TQM. Some literature indicates that BPR and TQM (Total Quality Management) and some
overlap (Peppard and Rowland, 1995); but some literature that the TQM techniques to achieve a breakthrough in
performance for the growth is not enough. Fazel and Salegna (1996) proposed a comprehensive reengineering
and total quality management model, stressed the need to focus organizational strategic goals and cultural ties.
Lee (1997) Reengineering and total quality management that the two have in common, in the never-ending
quality improvement philosophy, the integration of the two is possible. Valentine (1998) Reengineering and TQM
is that there are similarities, incremental process improvement is more suited to the organization to improve
quality and performance goals. Hill (2000) through the survey found that recycling and total quality management
are complementary rather than mutually exclusive.
The main difference between BPR and TQM are: (1) BPR seeking radical breakthroughs in the design
process from scratch again, so that cost, quality and other indicators significantly increased; while TQM focus on
continuous improvement of existing processes in pursuit of stability, incremental continuous improvement. (2)
TQM emphasizes full from the bottom-up proposals, participation, employees are the main actors; while BPR
tend to top-down decision-making, promotion, leadership were mainly policy makers, implementers. (3) TQM
emphasis on the process of attention to detail in order to achieve continuous improvement of processes; BPR is
attempting to identify the issues affecting key elements of effective processes in order to create a significant
performance improvement. (4) TQM can be a long-term use, BPR can only be carried out at the appropriate
moment. (5) The implementation of TQM needs of low-cost, less uncertainty; the implementation of BPR needs
of high cost, relatively high risk.
Syndicated news on research, the majority of literature that, TQM is a process based on the existing
incremental improvement and BPR is the complete reconstruction of the existing processes.
4. BPR and Industrial Engineering. IET (Industrial Engineering Techniques - Industrial Engineering) is
concerned that the optimum efficiency of individual tasks, while BPR is more concerned about the entire process
of optimization, the whole process more efficient. However, the industrial engineering some of the methods such
as concurrent engineering, BPR is also one of the methods used. Gray A * Maddux, stressed Concurrent
Engineering (CE) in the BPR application. Cavaleri (1994) also emphasized the parallel method in the application
of BPR.
Comprehensive literature, some of the ways industrial engineering BPR is process optimization and
efficiency in the specific methods. BPR thought has inherited and developed some ideas of industrial
engineering.
5. BPR and benchmarking. Benchmarking is the most competitive of the enterprise or industry leading
companies as a benchmark, will conduct the enterprise with these benchmarking and comparative evaluation of
quantitative analysis of the underlying reasons, on this basis, select the optimal strategy for improvement. Paul
Adam (1995) and so on Benchmarking (Benchmarking) in the application of BPR should pay attention to the
issue studied. At the same time, a number of foreign research literature shows that benchmarking is a continuous
process of repeated transformation techniques can be applied to the implementation of BPR.
In short, most literature that benchmarking is an incremental process improvement techniques, while BPR is
a radical type of process reengineering, benchmarking can be a BPR implementation of a technology.
6. BPR and knowledge management. Knowledge Management (Knowledge Management, referred to as
KM) is to adapt to a new era of knowledge economy management model. The focus of knowledge management
knowledge identification, acquisition, development, decomposition, storage and sharing, and through effective
means and mechanisms to build and use the collective knowledge and improve enterprise's contingency and
innovation.
Knowledge management, two of the most essential driving factors are: (1) The transformation of corporate
culture; (2) integration of business process reengineering. Successful knowledge management depends above
all on an incentive for information and knowledge sharing culture. Second, knowledge management must be
closely integrated with business processes, or bound to fail. Of knowledge creation, the proliferation of business
processes with business combination was able to achieve knowledge sharing and reuse in order to improve the
efficiency of overall business level and generate substantial savings for the enterprises to create great value.
Most comprehensive documentation, knowledge management to integrate into enterprise business
processes and management processes, BPR is the proliferation of enterprise knowledge management and
knowledge, value-added premise and conditions.
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7. BPR and corporate restructuring, corporate restructuring. BPR, Corporate Restructuring, corporate
restructuring, etc. A small part of the connotation of all three the same, but there are three significant differences,
the main five points: (1) at different targets. Corporate Restructuring is targeted at corporate organizational
structure and corporate governance. Corporate Restructuring, also known as enterprise restructuring, mainly
including business reconstruction, organizational restructuring, financial reconstruction of the other three parts
(MAO Yun-shi, 2000). Corporate restructuring of the target company's existing resources, multi-asset
restructuring, debt restructuring and personnel restructuring. BPR is targeted at business process. (2) The
coverage is different. Corporate Restructuring range typically contain organizational structure, corporate
restructuring does not involve the scope of the general organizational structure. BPR through the realignment of
resources, organizational structure, the re-establishment and transformation of corporate culture to achieve, BPR
is much greater in scope than the first two, covering the reconstruction and reorganization of the part. (3) at
different rates. Generally speaking, the corporate restructuring is more gentle, corporate restructuring is more
rapid and intense, the most onrush of the BPR. (4) To observe the different perspectives. Corporate restructuring
and corporate restructuring are all on the observation of the enterprise business problems, based on reality. The
BPR focus on the future, standing outside the enterprise to examine the existing business process problems. (5)
different purpose. Corporate Restructuring the enterprise to adapt to the changing external environment within
the enterprise to enhance the flexibility, ability to incremental change; corporate restructuring is the main purpose
of realignment of internal resources to achieve the optimum allocation of resources and utilization. The
fundamental purpose of BPR is to break the traditional division of labor theory of shape by the enterprise in order
to function-centered to process-centric approach to managing change, it is corporate restructuring and corporate
restructuring are incapable of yielding.
8. BPR and BPI. Integrated the literature, BPR and BPI (Business Process Improvement, referred to as BPI,
namely: business process improvement) Common features are: (1) the emphasis on client satisfaction; (2) to
transform the values of the enterprise; (3) to reduce the decision-making in organizations hierarchy; (4) the
involvement of senior management; (5) the use of performance measurement to improve the means; (6) focus on
business processes; (7) emphasized the teamwork.
BPR and BPI significant difference is that: (1) BPR focus of a substantial and fundamental, comprehensive
business process; (2) BPR can not be from the organization's bottom or the middle the beginning, it shall be
promoting the organization's senior managers.
As can be seen, BPR is discontinuous, while the BPI can be continuity. BPI can be used as post-BPR
business process of continuous improvement, improved methods, BPI can be seen as BPR follow-up.
9. BPR and value engineering. Value Engineering (Value Engineering, referred to as VE) produced in the
20th century, 40 years, refers to the 'through collaboration in related fields, to study the function of the system
analysis and cost, innovative, aimed at increasing the value of the study of thinking and management techniques'
(GB8223-87). 'Functional' refers to all the needs of our customers 'cost' means the process to meet customer
needs to pay any cost.
BPR and value engineering the same point: (1) will improve customer satisfaction as its ultimate target; (2)
stressed that to break the system, the original structure of the system completely change and innovation; (3)
request from the current system, from zero began to establish new systems to achieve system efficiency (or
value) of the mutation; (4) The use of the project team or group work; (5) advocates a people-oriented
organizations to play a spirit of collaboration; (6) requires the establishment of intensive information systems to to
ensure that change, innovation and achieve significant results.
BPR projects and value different points: (1) BPR focuses on change management, value engineering to
enhance the value of focusing on the system. (2) BPR is usually top-down leadership by enterprises to promote
the value of works are usually carried out by a bottom-up grass-roots workers. (3) BPR, if successful, will
produce huge benefits; the other hand, losses are greater. Value engineering is usually a combination of the
various systems in the face of workplace innovation, and success or failure of the benefits or loss of less than
recycling. (4) recycling is usually costly, only at lower frequencies. Value engineering is usually relatively small
cost can be used as a regular business activities.
Summarizing the above analysis, BPR and value engineering by a number of similarities, there are a lot of
difference. Value engineering can be used as the means and tools division of BPR. Value Engineering and BPR
integration with certain foundation.
From the 20th century, the early 90s, Ha Moti out of the concept of BPR has been through the management
theory and practice of workers, extensive research and a bold attempt, in the continuation and development of
other management based on the ideas, BPR ideas are fully developed, but also With the progress of BPR
practice, which continued to develop. BPR ideas from the 20th century, 90's to the early 21st century, and its
development mainly in the following seven areas:
(1) from department to department within a single BPR multiple BPR. BPR thinking of, the business practice
of the first in a multi-sector of a single business process for recycling. With a single process reengineering
practice, the department's success, and gradually extended to the sector number of process reengineering.
(2) from the department BPR to the inter-BPR. BPR both for the general inter-departmental inter-
departmental BPR, more of a cross-functional BPR. Cross-functional BPR, often cut across functional
boundaries, through recycling activities, sequence, control and resources, in the process of the key indicators of
performance, such as time, cost and quality improvements to achieve a breakthrough.
(3) from the Business Process Reengineering to the organizational structure of recycling. Customer-centric
in order to create customer value as the goal of business process reengineering necessary requirement for
enterprises to re-organizational structure, processes, organizational structure of the decision; while the old
management model is no longer under the organizational structure of the decision process.
Functional organizational structure of information hindered the smooth flow within the enterprise,
organizational structure, this is an inevitable post-BPR. The information age, the rapid transmission of
information required to develop horizontally, the organizational structure in order to reduce management layers
and improve the message transmit messages and horizontal transmission speed and accuracy of the information
to minimize the possibility of distortion, which also provides for the organizational structure of re - a very good
condition.
(4) From business process reengineering the organization re-thinking. Enterprise business process
reengineering, due process require human implementation. Therefore, the enterprise's values, people's thinking
is not only related to business process reengineering can put in place, but also the effects related to the process
execution, execution and so on. Therefore, the organization re-thinking is the basis for the success of business
process reengineering and protection.
(5) from the Business Process Reengineering to the management process reengineering. Enterprise
management process is to support and service business processes, mainly including human resource
management, financial management, corporate performance evaluation, internal control processes. Management
process is efficient, a direct impact on business process re-post it for business and create more value to
customers and reduce internal transaction costs. Therefore, when the business process reengineering BPR also
need to be managed. Fayol proposed by the planning, organizing, directing, coordinating, controlling five major
management activities as simple as possible, through the management of IT systems to shorten the chain and
improve efficiency; scientific decision-making, reduce errors in planning and decision-making; change after
controlling for ex ante control.
(6) from the Business Process Reengineering to the enterprise culture of recycling. Business Process
Reengineering (including business process reengineering and management of process reengineering), the
enterprise has the value system, that is reshaping corporate culture and transformation must be conducted.
Processes and corporate culture are closely linked, different corporate values and the theoretical structure will
affect the flow quality and quantity. Reengineering is only achieved a process reengineering, management, and
corporate culture of recycling and recycling in order to generate a sustainable competitive advantage. Thus,
corporate culture re-evaluation of BPR is being considered as an important indicator of performance.
(7) from the enterprise process reengineering to the inter-enterprise process reengineering. In 2002, the
enterprise on the basis of BPR, James Ciampi out through the extensive application of information technology,
re-planning of business processes across organizational boundaries, the business practices between enterprises
and enterprise customers organically linked with the idea . Ciampi believed that between enterprises and
enterprise connectivity between consumers and businesses will become re-core, competitive pressures, the low
internal efficiency, and get rid of retention in the enterprises and between enterprises and customers redundancy
at work, in is the main driver of reengineering.
At present, inter-enterprise process reengineering practice, mainly in the manufacturing supply chain
between process reengineering; followed by the manufacturing process between the sales and channels for
recycling.
Service between the complexity and importance of the process far less manufacturing, so the service
industry the practice of inter-process reengineering still relatively small.
5, BPR Prospect
Since 1993, the official presentation of BPR concepts and ideas, the 20th century, 90 years United States,
Europe and Asia-Pacific countries such as vigorous in carrying out BPR in practice, due to BPR as high as about
70% of the failure rate, to the late 20th century, 90 being caught in BPR in practice trough.
BPR and the learning organization known as the 21st century, one of the two management trends. Into the
21st century, BPR thinking constantly absorbing the essence of other management thinking, based on the
continuous development, but also continue to develop more mature; the same time, communications and
information technology, particularly the Internet, the rapid development of technology and its applications for the
successful implementation of BPR provide an effective technical means. The 21st century, a growing number of
enterprises, especially service-oriented companies have joined to mature, sensible BPR practice, BPR success
stories after another. With the continued success of BPR in practice, BPR will be a large number of enterprises in
the 21st century to create or enhance the core competitiveness of the effective management of ideas, theories
and methods.
References:
1. Michael Hammer. Reengineering work: don't automate, obliterate. Harvard Business Review, July-
August, 1990, (8) :104-112.
2. Marc J. Schniederjans and Gyu C. Kim. Implementing enterprise resource planning systems with total
quality control and business process reenginnering Survey results. International Journal of Operations