BPR was pioneered in the early1990. It focuses on the analysis and design of workflows and processes within an organization. It aimed to help organizations to rethink how they do their work in order to improve customer service, to cut operational costs, and to become world-class competitors. In the mid-1990s, as many as 60% of the Fortune 500 companies claimed to either have initiated reengineering efforts, or to have plans to do so. Business Process Reengineering (BPR) is an approach which aims at improvements through elevating efficiency and effectiveness of the business process, which exists within the organizations. Components of B P R Life Cycle:
The major components of a Business Process Reengineering Life Cycle include the following: * Identification of current business processes
* Review, update and analysis of “As-Is” processes
* Design of “To-Be” processes
* Test and implementation of “To-Be” processes
It represents a closed-loop learning system for the organization to promote continuous improvement and organizational learning.
* The process begins with the analysis of current situation. It focuses on the existing way of working which causes to a particular problem. * Objectives can be set by which the success of improvements can be measured. * Once the diagnosis has made, redesign process starts.
* Redesign process is followed by reconstruction phase. During this phase, a new system of process definitions, IT systems and also the organization structure is created to support the process previously identified. * It is followed by the operational phase. During this, performance of the process is measured and assessed using pre-defined criteria and potential bottle necks can be quickly identified. * Each stage of development ends with delivery of a new version of system.