Business Process Reengineering

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Contemporary Issues in Accounting Information Systems

Student name: YUN Shang

Student ID: 12085655g

Total words: 3050

Introduction

Business Process Reengineering (BPR) involves changes in process and structure within the companies, the entire human resources, technological, organization structure may be transformed in BPR. Information Technology plays a crucial role in BPR as it offers office automation and help the business to be managed in remote distance, provides flexibility in service, permits shorter time to deliver and accelerate the paperless transactions. In general, BPR increases the companies working efficiency and reduces the cost in a totally different manner. BPR targets the systematic reanalysis and redesigns the business structures, workflows and processes operated within business environment to facilitate the improvement of production efficiency, customer satisfaction, it can optimize potential business opportunities, enhance the overall competitiveness in global competition. The globalization of economy have formulated a new condition in business market, the demands are not only limited in quantity of products but also price, quality and selection. In order to clear the barriers, many companies have started to mend their business processes and operations in the purpose of facing the global challenges. Business Process Reengineering was initiated by Michael Hammer and James Champy in 1993, they provide the definitions are “Reengineering is 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” and the “Process is a structured, measured set of activities designed to produce a specified output for a particular customer or market.” (Davenport 1993), the example is delivered by Ford, who was successfully deducted the accounts payable staff by three quarters because an output of business process reengineering process. So either the companies in the manufacturing industry or in services areas, BPR can help to cut the unnecessary processes in productivity. All the changes include the needs for organization transformation, where the organization environment and the entire working processes.

Over half of Fortune 500 companies announced that they were actively participated in business process reengineering activities, or at least initialized a rational plan to follow in this particular area, and now, there is no doubt that the business process reengineering becomes increasingly essential for international business operation and the demonstrators ranging from governments, institutions, universities, self-financed organizations, not only just business sectors. The main driven force is the rapidly and international changing business environment.

Business process reengineering is designed to assist an organization to rebuild the business structure fundamentally by reanalyze and focusing on the ground-up design their current business process, especially on the weak, low efficient, costly, and time consuming parts. This technique is redesign and rebuild the process rather than business process improvement and optimization, therefore, the change can be tremendous.

Business Process Reengineering Cycle

Business Process Reengineering means to redesign the business restructure and activities, by simplifying or eliminating unnecessary and non-value added business processes. This process will take a period of time and feasible perspectives and implementation are necessary. Normally, the whole process contains five steps to conduct a successful, effective and reliable output.

1. Current process revision

The whole process normally starts from a revision of currently operation process, which conducted an in-depth review and analysis for all the functions and overall efficiency, discover the...
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