"An empowered organization is one in which individuals have the knowledge, skill, desire, and opportunity to personally succeed in a way that leads to collective organizational success. "
---- Stephen Covey
In today global economy, companies are continuously seeking ways to improve their business. In response to this, companies have started following the principles of Business Process Re-engineering (BPR) and Total Quality Management (TQM).
As per industry experts, about 65% of the Fortune 500 companies initiated re-engineering process by the year 1993. The approach was believed to have a direct impact in increasing 22% of the company growth and revenues, by focusing on improving customer experience and bringing value to them.
What is Business Process Re-engineering?
BPR is a management strategy that aims at improving business process of a company by analyzing and redesigning their workflows. The process increases a firm efficiency by augmenting customer service, reducing operational costs, and providing a competitive edge over the competitors. BPR is generally applied when designing Government-to-Citizen (G2C), Government-to-Business (G2B) and Government-to-Government (G2G) e-services.
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Re-engineering implies fundamental rethinking and radical redesigning of the business processes in order to achieve considerable improvements in its critical performance measures such as quality, cost, speed, and service. Process is a set of structured activities designed to deliver the required output for a particular market or customer. It emphasizes functioning of an organization.
The process comprises of steps that use information, people, and various other resources. There are three elements of business process outsourcing transformation:
1. Inputs: This includes data like handling customer queries
2. Processing : This is managing data, which undergoes multiple stages
3. Outcome : This is delivery of expected results.
Business process transformation mainly focuses on the processing aspect. It re-engineers the process so it becomes less time and money consuming.
How Companies Benefit from BPR?
Business process improvement has considerable benefits as the company management is able to monitor various business activities in a better way. Some of the benefits include:
1. Reduces Cost: By the effective management of business processes, improved efficiency as well as quick product delivery; the overall cost of the product is reduced. As a result, companies are able to save costs in the long run.
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2. Improves Employee Efficiency: As re-engineering improves company processes, reduces time, and strengthens organizational structure; employees are driven to perform better. Employees get motivated to deliver quality service to the clients.
3. Improves Organizational Approach: With the implementation of BPR, companies have become more flexible and adaptable to changes in the business environment. This has created a better working environment for the employees, leading to employee satisfaction.
4. Augments Customer Satisfaction: By reducing costs, the technique eliminates processes which do not add value. Thus, companies can focus their efforts on delivering high quality services to the customers.
5. Fosters Business Growth: The process helps in increasing a firm growth by facilitating the development of new processes within the same company.
In summary, process transformation is a continuous improvement model. It has increasingly become an essential requirement for organizations to improve their operational inefficiencies and increase competitiveness across the globe.