Business Process Reengineering In Financial Service Sector Commerce Essay

Business Process Reengineering In Financial Service Sector Commerce Essay Business Process Reengineering is a management practice that aims to improve the efficiency of the business process. The key to BPR is for organizations to look at their business processes from a â€Å"clean slate† perspective and determine how they can best construct these processes to improve how they conduct business. Reengineering is a fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, speed, and service. BPR combines a strategy of promoting business innovation with a strategy of making major improvements to business processes so that a company can become a much stronger and more successful competitor in the marketplace. Re-engineering is the basis for many recent developments in management. Also, many recent management information systems developments aim to integrate a wide number of business functions. Enterprise resource planning, supply chain management, knowledge management systems, groupware and coll aborative systems, Human Resource Management Systems and customer relationship management systems all owe a debt to re-engineering theory. Business Process Reengineering is also known as Business Process Redesign, Business Transformation, or Business Process Change Management. DEFINITION â€Å"The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance, such as cost, quality, service, and speed.† OVERVIEW OLD WINE IN NEW BOTTLES Business process reengineering (BPR) began as a private sector technique to help organizations fundamentally rethink how they do their work in order to dramatically improve customer service, cut operational costs, and become world-class competitors. A key stimulus for reengineering has been the continuing development and deployment of sophisticated information systems and networks. Leading organizations are becoming bolder in using this technology to support in novative business processes, rather than refining current ways of doing work. Business process reengineering is one approach for redesigning the way work is done to better support the organization’s mission and reduce costs. Reengineering starts with a high-level assessment of the organization’s mission, strategic goals, and customer needs. Basic questions are asked, such as â€Å"Does our mission need to be redefined? Are our strategic goals aligned with our mission? Who are our customers?† An organization may find that it is operating on questionable assumptions, particularly in terms of the wants and needs of its customers. Only after the organization rethinks what it should be doing, does it go on to decide how best to do it. Within the framework of this basic assessment of mission and goals, reengineering focuses on the organization’s business processes-the steps and procedures that govern how resources are used to create products and services that m eet the needs of particular customers or markets. Reengineering focuses on redesigning the process as a whole in order to achieve the greatest possible benefits to the organization and their customers. This drive for realizing dramatic improvements by fundamentally rethinking how the organization’s work should be done distinguishes reengineering from process improvement efforts that focus on functional or incremental improvement Business process reengineering is the main way in which organizations become more efficient and modernize. Business process reengineering transforms an organization in ways that directly affect performance.