You may think that, in a company or business, it’s similar to a “set and forget” sort of scenario with the products and services they offer. However, it’s not as simple as this. There are instances where businesses should take a moment to reflect and analyze its surroundings, change the way they conduct their core business to run in a more efficient way, enhance quality of services or products and increase profits while reducing the waste of any resource.
This entire reorganization of the primary functions of an business or organization is known as business process Reengineering (or BPR in short. If it is done correctly it is possible to see the BPR procedure can make a huge difference for businesses, however when there’s a mistakes made in the process for instance, if the company hinders the supply chain that is already in good shape or supply chain, it could cause a lot of damage in terms of loss. You are able to see that there are both positives and downsides of this BPR process, which is exactly why we’re posting a blog post concerning Business Process Reengineering Benefits and Drawbacks to help you understand what the process is, and what you should be aware of. Okay, let’s get started and then.
Advantages of Business Process Reengineering
1. Better Efficiency and Productivity
Business Process Reengineering can transform the way in which your business operates. What this means is that BPR eliminates processes that are not needed; everything becomes faster and more easy. This has improved the method by which work was previously completed, and each step is more clear and logical It’s like, what? It’s like working through a long day for your team in a matter of minutes. This can make your business more efficient than before, and thus more efficient in the way it operates.
2. Improved Customer Service
The central aspect of BPR in BPR is changing the business focus of your processes to focus on satisfaction of your customers. Your offerings will be more efficient and attractive to customers by changing just some of the ways of working. It will become more oriented towards customers. A human touch can be as easy as allowing customers to reach your business or reducing the time it takes to deliver services. A better customer experience makes your current customers feel more appreciated and are more likely to stay with you for longer, and also attracts prospective customers after they have learned about your outstanding service.
3. Lower Costs
Implementing BPR efficiently results in substantial savings in expenses. How? The reductions are a result of BPR attempts to eliminate unnecessary, non-value-adding steps that are essential to your process. This means less money is wasted on unnecessary activities, and lower operational costs. Additionally, BPR allows organizations to make use of their resources efficiently without wasting them and puts them where they can provide the most benefit.
4. Greater Flexibility
The world of today’s business is constantly changing and a flexible approach is essential for staying ahead of the curve, isn’t? BPR helps your business adjust to the pressures and changes from outside. This allows your business to respond quicker to market demands and customer changes, which could very likely keep you ahead of the competition and could be a huge advantage in the end. The flexibility you have allows to not to just deal with the present problems, but also to make the most of opportunities as they come up.
5. Strategic Advantage
Additionally, BPR offers your organization an advantage strategically through a total overhaul of the way your company operates. It’s not about tuning the process here and there, no it’s about stepping back, rethinking and fundamentally rethinking, completely from scratch, your business procedures. This kind of change will create innovation, separating your business from competitors and providing it with the ability to be an industry leader in a specific sector, don’t you think?
Disadvantages of Business Process Reengineering
1. High Costs at the Start
It is not a surprise that BPR is a capital-intensive process. It is a huge amount of money must be invested in the latest technology as well as training. This requires a significant amount of capital. This can effectively prevent small-sized businesses from launching BPR therefore it has to be considered whether the anticipated benefits justify the initial costs that’s the question.
2. Opposition to Change
Change is often a struggle for people which is why BPR is no exception. Many workers are afraid of change, particularly in the context of losing jobs or other jobs that could reduce the impact of BPR. However, these fears should be overcome through transparent communication and participation of everyone in the process of change.
3. Possibility of Failure
Let’s get it out of the way: BPR is not a assurance of the success. It can be a failure due to inadequate planning, or lack of support from management, or the sheer complex nature of the process which is being overhauled. This is why companies perform thorough early assessments and make realistic plans prior to commencing the BPR project.
4. Job Cuts
BPR is designed to increase efficiency, usually through automation of tasks that people previously did. In this way, cuts have to occur, and not only those affected by the cuts, however, if they are implemented in the workplace the entire BPR process can dampen the enthusiasm within the organization. The focus should be on the human element and ensuring that all the necessary procedures are in place to train and move workers into new positions whenever their job may be affected.
5. Disruption to Everyday Work
The process of putting BPR in action could seriously affect daily activities. Since it is based on simple changes in processes and systems, temporary problems will surely arise. They can cause upset to employees and customers, which could affect the quality of services and productivity for a while.
6. Takes Time to See Benefits
The BPR benefits don’t come in a vacuum This is something which needs to be thought of for a lengthy period, and at times it can take quite a while to display the results. The process of implementing it isn’t easy and difficult, particularly for companies who are searching for quick solutions or are in financial straits. This is why it’s important for the business, organization or even the company to continue their efforts and perseverance so that over time the benefits associated from BPR are evident.
Conclusion
This is pretty much it. Businesses Process Reengineering should be a process which shouldn’t be taken lightly If it is it could end up causing damage to the image of a company’s revenues, and sales. To the point that recovery would take far too long, and could be a step back in a competitive market.
