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  More About BPR


 
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More About BPR

Business Process Re-engineering (BPR) is a methodology that was developed during the 1990s to address the problems that businesses had in adapting to change, and in particular, in utilising Information Technology to embrace that change.

In Michael Hammer's book "Re-engineering the Corporation" he argues that sometimes need to radically reorganise their structures to enable them to benefit from technological change. In the traditional business, the organisation will have developed according to the business functions required to deliver a product, for instance 'design,' 'procurement', 'manufacturing', 'sales' and 'distribution.' These functions will have developed as the organisation has grown, and traditionally, new technologies would be adopted that replicated the existing structures of the organisation. (e.g. a stock control system.)

BPR provides a method for cutting across functional boundaries by looking at business processes.

Hammer suggests these seven principles of reengineering:

  1. Organize around outcomes, not tasks.
  2. Identify all the processes in an organization and prioritize them in order of redesign urgency.
  3. Integrate information processing work into the real work that produces the information.
  4. Treat geographically dispersed resources as though they were centralized.
  5. Link parallel activities in the workflow instead of just integrating their results.
  6. Put the decision point where the work is performed, and build control into the process.
  7. Capture information once and at the source.

Because BPR may lead to large-scale organisational change, it requires 'buy in' at the highest level within an organisation.

 

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