case study business process reengineering

Business process reengineering (BPR) is the radical redesign of core business processes to achieve dramatic improvements in performance, efficiency and effectiveness. BPR examples are not one-time projects, but rather examples of a continuous journey of innovation and change focused on optimizing end-to-end processes and eliminating redundancies. The purpose of BPR is to streamline  workflows , eliminate unnecessary steps and improve resource utilization.

BPR involves business process redesign that challenges norms and methods within an organization. It typically focuses on achieving dramatic, transformative changes to existing processes. It should not be confused with  business process management (BPM) , a more incremental approach to optimizing processes, or business process improvement (BPI), a broader term that encompasses any systematic effort to improve current processes. This blog outlines some BPR examples that benefit from a BPM methodology.

Background of business process reengineering

BPR emerged in the early 1990s as a management approach aimed at radically redesigning business operations to achieve business transformation. The methodology gained prominence with the publication of a 1990 article in the Harvard Business Review, “Reengineering Work: Don’t Automate, Obliterate,” by Michael Hammer, and the 1993 book by Hammer and James Champy, Reengineering the Corporation . An early case study of BPR was Ford Motor Company, which successfully implemented reengineering efforts in the 1990s to streamline its manufacturing processes and improve competitiveness.

Organizations of all sizes and industries implement business process reengineering. Step 1 is to define the goals of BPR, and subsequent steps include assessing the current state, identifying gaps and opportunities, and process mapping.

Successful implementation of BPR requires strong leadership, effective change management and a commitment to continuous improvement. Leaders, senior management, team members and stakeholders must champion the BPR initiative and provide the necessary resources, support and direction to enable new processes and meaningful change.

BPR examples: Use cases

Streamlining supply chain management.

Using BPR for supply chain optimization involves a meticulous reassessment and redesign of every step, including logistics, inventory management and procurement . A comprehensive supply chain overhaul might involve rethinking procurement strategies, implementing just-in-time inventory systems, optimizing production schedules or redesigning transportation and distribution networks. Technologies such as supply chain management software (SCM), enterprise resource planning (ERP) systems, and advanced analytics tools can be used to automate and optimize processes. For example, predictive analytics can be used to forecast demand and optimize inventory levels, while blockchain technology can enhance transparency and traceability in the supply chain.

• Improved efficiency
• Reduced cost
• Enhanced transparency

Customer relationship management (CRM)

BPR is a pivotal strategy for organizations that want to overhaul their customer relationship management (CRM) processes. Steps of business process reengineering for CRM include integrating customer data from disparate sources, using advanced analytics for insights, and optimizing service workflows to provide personalized experiences and shorter wait times.

BPR use cases for CRM might include:

• Implementing integrated CRM software to centralize customer data and enable real-time insights
• Adopting omnichannel communication strategies to provide seamless and consistent experiences across touchpoints
• Empowering frontline staff with training and resources to deliver exceptional service

Using BPR, companies can establish a comprehensive view of each customer, enabling anticipation of their needs, personalization of interactions and prompt issue resolution.

• 360-degree customer view
• Increased sales and retention
• Faster problem resolution

Digitizing administrative processes

Organizations are increasingly turning to BPR to digitize and automate administrative processes to reduce human errors. This transformation entails replacing manual, paper-based workflows with digital systems that use technologies like Robotic Process Automation (RPA) for routine tasks.

This might include streamlining payroll processes, digitizing HR operations or automating invoicing procedures. This can lead to can significant improvements in efficiency, accuracy and scalability and enable the organization to operate more effectively.

• Reduced processing times
• Reduced errors
• Increased adaptability

Improving product development processes

BPR plays a crucial role in optimizing product development processes, from ideation to market launch. This comprehensive overhaul involves evaluating and redesigning workflows, fostering cross-functional collaboration and innovating by using advanced technologies. This can involve implementing cross-functional teams to encourage communication and knowledge sharing, adopting agile methodologies to promote iterative development and rapid prototyping, and by using technology such as product lifecycle management (PLM) software to streamline documentation and version control.

BPR initiatives such as these enable organizations to reduce product development cycle times, respond more quickly to market demands, and deliver innovative products that meet customer needs.

• Faster time-to-market
• Enhanced innovation
• Higher product quality

Updating technology infrastructure

In an era of rapid technological advancement, BPR serves as a vital strategy for organizations that need to update and modernize their technology infrastructure. This transformation involves migrating to cloud-based solutions, adopting emerging technologies like artificial intelligence (AI) and machine learning (ML) , and integrating disparate systems for improved data management and analysis, which enables more informed decision making. Embracing new technologies helps organizations improve performance, cybersecurity and scalability and positioning themselves for long-term success.

• Enhanced performance
• Improved security
• Increased innovation

Reducing staff redundancy

In response to changing market dynamics and organizational needs, many companies turn to BPR to restructure their workforce and reduce redundancy. These strategic initiatives can involve streamlining organizational hierarchies, consolidating departments and outsourcing non-core functions. Optimizing workforce allocation and eliminating redundant roles allows organizations to reduce costs, enhance operational efficiency and focus resources on key priorities.

• Cost savings
• Increased efficiency
• Focus on core competencies

Cutting costs across operations

BPR is a powerful tool to systematically identify inefficiencies, redundancies and waste within business operations. This enables organizations to streamline processes and cut costs.

BPR focuses on redesigning processes to eliminate non-value-added activities, optimize resource allocation, and enhance operational efficiency. This might entail automating repetitive tasks, reorganizing workflows for minimizing bottlenecks, renegotiating contracts with suppliers to secure better terms, or by using technology to improve collaboration and communication. This can enable significant cost savings and improve profitability.

• Lower costs
• Enhanced competitiveness

Improving output quality

BPR can enhance the quality of output across various business processes, from manufacturing to service delivery. BPR initiatives generally boost key performance indicators (KPIs).

Steps for improving output quality involve implementing quality control measures, fostering a culture of continuous improvement, and using customer feedback and other metrics to drive innovation.

Technology can also be used to automate processes. When employees are freed from distracting processes, they can increase their focus on consistently delivering high-quality products and services. This builds customer trust and loyalty and supports the organization’s long-term success.

• Higher customer satisfaction
• Enhanced brand image

Human resource (HR) process optimization

BPR is crucial for optimizing human resources (HR) processes. Initiatives might include automating the onboarding process with easy-to-use portals, streamlining workflows, creating self-service portals and apps, using AI for talent acquisition , and implementing a data-driven approach to performance management.

Fostering employee engagement can also help attract, develop and retain top talent. Aligning HR processes with organizational goals and values can enhance workforce productivity, satisfaction and business performance.

• Faster recruitment cycles
• Improved employee engagement
• Strategic talent allocation

BPR examples: Case studies

The following case study examples demonstrate a mix of BPR methodologies and use cases working together to yield client benefits.

Bouygues becomes the AI standard bearer in French telecom

Bouygues Telecom , a leading French communications service provider, was plagued by legacy systems that struggled to keep up with an enormous volume of support calls. The result? Frustrated customers were left stranded in call lines and Bouygues at risk of being replaced by its competitors. Thankfully, Bouygues had partnered with IBM previously in one of our first pre- IBM watsonx™ AI deployments. This phase 1 engagement laid the groundwork perfectly for AI’s injection into the telecom’s call center during phase 2.

Today, Bouygues greets over 800,000 calls a month with IBM watsonx Assistant™, and IBM watsonx Orchestrate™ helps alleviate the repetitive tasks that agents previously had to handle manually, freeing them for higher-value work. In all, agents’ pre-and-post-call workloads were reduced by 30%. 1 In addition, 8 million customer-agent conversations—which were, in the past, only partially analyzed—have now been summarized with consistent accuracy for the creation of actionable insights.

Taken together, these technologies have made Bouygues a disruptor in the world of customer care, yielding a USD 5 million projected reduction in yearly operational costs and placing them at the forefront of AI technology. 1

Finance of America promotes lifetime loyalty via customer-centric transformation

By co-creating with IBM, mortgage lender Finance of America was able to recenter their operations around their customers, driving value for both them and the prospective home buyers they serve.

To accomplish this goal, FOA iterated quickly on both new strategies and features that would prioritize customer service and retention. From IBM-facilitated design thinking workshops came roadmaps for a consistent brand experience across channels, simplifying the work of their agents and streamlining the application process for their customers.

As a result of this transformation, FOA is projected to double their customer base in just three years. In the same time frame, they aim to increase revenue by over 50% and income by over 80%. Now, Finance of America is primed to deliver enhanced services—such as debt advisory—that will help promote lifetime customer loyalty. 2

BPR examples and IBM

Business process reengineering (BPR) with IBM takes a critical look at core processes to spot and redesign areas that need improvement. By stepping back, strategists can analyze areas like supply chain, customer experience and finance operations. BPR services experts can embed emerging technologies and overhaul existing processes to improve the business holistically. They can help you build new processes with intelligent workflows that drive profitability, weed out redundancies, and prioritize cost saving.

1. IBM Wow Story: Bouygues Becomes the AI Standard-Bearer in French Telecom. Last updated 10 November 2023.

2. IBM Wow Story: Finance of America Promotes Lifetime Loyalty via Customer-Centric Transformation. Last updated 23 February 2024.

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Business Process Reengineering Examples – Understand and Learn from them

Do you know what business process reengineering is?

I t’s the radical reconsideration of a business process to achieve dramatic improvement in cost, quality, service and speed performance. Business process reengineering is the analysis and redesign of company processes. Check out some business process reengineering examples below.

You should observe some points when implementing business process reengineering, such as:

• A change of focus from management to the customer
• Managers must give power to their team’s
• Focus on results
• It’s not positive to score points, but to lead and teach
• Simple and optimized processes are better than complicated and intricate processes
• If a process continually doesn’t work, it’s time to come up with a new one, looking to the future.
• Always identify goals and purposes
• Keep the company mission in mind

Only by following these recommendations will business process reengineering work as expected.

Now that you understand what Business Process Reengineering is, let’s look at some examples and case studies.

Also see: What is process reengineering methodology?

Business process reengineering examples: BPR that works

There’s nothing better than tried and true BPR examples to really understand the subject. With this in mind, we’ve separated some business process reengineering examples that have been successful.

Business process reengineering examples : Fast food company

An example of business process reengineering that we can cite is that of a fast food company.

Completely redesigning the delivery of products can give you unexpected results. In this type of restaurant, the process goes like all others, the customer orders, the order goes to the kitchen, which prepares the meal and then delivers to the consumer.

Business process analysts realized that it would be more advantageous if the meal portions were previously prepared in a separate center, and delivered to the restaurants daily.

When the customer orders, staff place everything together and deliver it. This is a complete change in the process, resulting in greater control, fewer accidents, greater employee satisfaction, and increased ability to focus on customer needs, all without losing quality.

CURIOSITY : The next time you go to a hamburger fastfood restaurant, note that your cup is always placed in the center of the tray, reducing the risk of it falling over.

To relax before you check out the next Business Process Reengineering case study, watch this fun video:

Business process reengineering examples : company selling commemorative cards

In a company that offers products such as Christmas, anniversary, commemorative cards, etc., renewing the stock and changing the design of the cards is constantly fundamental.

On average, it takes three months for new items to reach the shelves. Across market research , it’s possible to realize that there would ideally be new products every month.

At first glance, it’s easy to say that the delay was at the production stage. When analyzing and mapping the process, it’s verified that the creation stage was the most time consuming.

Oftentimes the creative team receives the concept and several employees begin to perform the same task (duplicate actions), or an idea takes days to get off the paper. With this information, we can redesign the process completely, defining a cross-functional team from concept and creation, with incredible results in speed, costs and effectiveness.

This is an example of business process reengineering that shows the importance of studying the process and then modifying it.

Also see: Process mapping examples.

Process reengineering is about finding new solutions to old processes, check out this video because, often, we’re unable to see obvious process change solutions:

Business process reengineering examples : Creation, application and proofreading

One of the most distressing tasks for teachers and students, whether in universities or schools, is test creation, their use by students and subsequent marking.

One of the great problems teachers face is the student’s writing, which is often unintelligible, brought on by the students’ weariness to write by hand.

The solution? The application of evidence through electronic forms in notebooks where students can type, as well as having access to other tools that assist in their answers, such as spreadsheets.

To prevent students from querying improperly, these devices don’t have a wi-fi or internet enabled connection. They’re simple (and low-cost) devices in which the students upload the tests via pen-drive and then the teacher collects them. The teacher then connects the data to a system that helps them correct the tests (without needing to interpret the writing), share comments with students, access performance statistics, and access a database of questions that helps to develop the tests.    

See this infographic that summarizes the steps of Business Process Reengineering in a schematic way:

Business process reengineering examples : Creative Quartets

The process of creation in advertising agencies is divided, in brief, into 6 stages:

• The customer service team interviews the customer and passes the information to the planning team
• The planning team makes the necessary studies. Then develops strategy and delivers the request for the creation of pieces for the creative pair (editor and designer)
• After developing the requested pieces the creative pair alongside the planning and customer service teams carry out a presentation meeting. Eventual adjustments are then made to the campaign
• Customer service presents the campaign to the customer, often in conjunction with the creative pairing and planning team. Then receives customer feedback
• The process resumes, if the client requests adjustments or disapproves of the campaign

You should’ve noticed that these processes have four agents: the creative pair, a customer service professional, and a planning agent.

Conflicts between creation, planning and customer service are very common. Customer service complain of deadlines and not understanding the scope as much as the others. Creatives and planning, defend their points of view and claim that they’re doing the correct work and that customer service must convince clients of this.

To end this conflict in teamwork , an agency has developed creative quartets in which the 4 professionals work in their area of expertise, but divide a table and everyone are jointly abreast of all steps from the process, from the initial briefing to receiving customer feedback.

With this closeness, it became easier for each one to understand the difficulties of the others, generating a synergy that made this process much more productive and agile, becoming an example of successful process reengineering.

Know more: Definition of process management

Check out this schematic chart with important information on Business Process Reengineering:

Business process reengineering examples : Cereal products

The process of transforming food into cereal products begins on the farm with the harvest. This is followed by primary processing, packing and transportation to the processing plants (depending on the grain).

This large company analyzed its process and discovered a serious logistical problem. It lost almost 20% of the grains harvested during transportation from farms to the factories, located near the biggest consumption centers, due to the precariousness of the roads.

After a study, this Business Process Reengineering case came to the conclusion that it would be more profitable to move the factories nearer to the farms. Afterwards, they transport final products to large centers with much fewer losses.

The old factory sheds were transformed into distribution centers, helping to reduce the impact of the initial investment, they already had docks and other ready-made logistics infrastructure.

Know more: Watch this video with more in-depth details on what is Business Process Reengineering, take advantage of it now:

Business process reengineering examples : Non-integrated system

It might also be that your company has a disconnected system. This forces each team member or customer to go through several departments and people to solve a problem.

People lose information, they constantly repeat data, which frustrates everyone. You can solve this by a general change in the company’s system. Integrate systems with effective software that makes all information clear and available.

These are just a few business process reengineering examples, and how BPR can help companies with problems. Business Process Reengineering case studies, like these, are key to being inspired and provoking thoughts of innovative solutions for your business.

It’s important to remember that you shouldn’t make changes before mapping and modeling processes. For this, HEFLO is the best tool in the market, which allows you to understand exactly what your company needs.

Now that you’ve read about Business Process Reengineering examples, also check out examples of how to reduce costs in your company and get onto it now!

3 Comments . Leave new

Nice article. Well explained these terms and infographics really help me to understand this concept.

Thank you very much.

Good article. How can this be applied in small (tiny) organizations, mainly in trading businesses?

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How AI Is Helping Companies Redesign Processes

• Thomas H. Davenport,
• Matthias Holweg,
• Dan Jeavons

Companies like Shell and DBS Bank are using it to change how their work gets done.

The idea of business process reengineering is making a comeback, this time driven by artificial intelligence (AI). In the 1990s, the implementation of enterprise resource planning systems and the internet allowed companies to make changes to broad business processes, but the expectations of the radical changes hoped for were often unfulfilled. However, AI enables better, faster and more automated decisions, allowing companies to improve efficiency and produce better outcomes. Companies — from banks to industrial firms — are already using AI to transform their processes.

In the 1990s, business process reengineering was all the rage: Companies used budding technologies such as enterprise resource planning (ERP) systems and the internet to enact radical changes to broad, end-to-end business processes. Buoyed by reengineering’s academic and consulting proponents, companies anticipated transformative changes to broad processes like order-to-cash and conception to commercialization of new products.

• Thomas H. Davenport is the President’s Distinguished Professor of Information Technology and Management at Babson College, a visiting scholar at the MIT Initiative on the Digital Economy, and a senior adviser to Deloitte’s AI practice. He is a coauthor of All-in on AI: How Smart Companies Win Big with Artificial Intelligence (Harvard Business Review Press, 2023).
• Matthias Holweg is the American Standard Companies Professor of Operations Management at Saïd Business School at the University of Oxford and a visiting professor at the Huntsman School of Business at Utah State University.
• Dan Jeavons is the Vice President for Computational Science and Digital Innovation at Shell. He has played a key role in scaling digital and data science technology across Shell’s businesses, and has led the multi award-winning Data Science Centre of Excellence since its inception in 2013. He is based in Bangalore.

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What is Business Process Reengineering (BPR)?

Business process reengineering is a crucial element in the agenda of many large as well as small companies in many industries, with manufacturing and banking/ finance being the leading sectors. It allows organizations to view their business processes from a fresh perspective in order to understand how to redesign them to improve the way they work.

In this guide, we aim to simplify the concept of business process reengineering by explaining what it is and the process steps. We have also provided business process templates that you can use right away to kickstart your own BPR project.

What is Business Process Reengineering

• Steps in Business Process Reengineering

Benefits of Business Process Reengineering

Principles of business process reengineering, bpr implementation | business process reengineering steps, bpr methodologies, business process reengineering case studies.

Business Process Reengineering (BPR) is a strategic management approach that overhauls and redesigns existing business processes to enhance efficiency and effectiveness. It involves analyzing workflows, identifying bottlenecks, and deploying innovative solutions. BPR optimizes operations, cuts costs, and boosts productivity, fostering organizational growth and competitiveness.

In addition to the redesigning of business processes, it also involves the redesigning of associated systems and organizational structures.

Usually, reasons like new market opportunities, increasing competition, poor financial performance, and decreasing market share trigger the need for a business process transformation.

BPR involves the analysis and transformation of several major components of a business. These include,

• Organization

BPR includes three phases; analysis phase, design phase, and implementation phase. It is also referred to as business process redesign, business process change management, and business transformation.

Steps in Business Process Reengineering:

• Identify the scope and goals of the reengineering initiative.
• Map and analyze the current processes, identifying inefficiencies, bottlenecks, and areas for improvement.
• Redesign the processes, focusing on eliminating non-value-added activities, optimizing workflows, and leveraging technology.
• Develop a detailed implementation plan, considering resource allocation, timelines, and change management strategies.
• Implement the redesigned processes, involving training, communication, and stakeholder engagement.
• Monitor and evaluate the outcomes and performance of the reengineered processes, making adjustments as necessary.

Refer to the diagram below for further reference,

BPR plays a major role in organizational performance improvement in terms of cost, quality, delivery, employee productivity, etc. It also helps

Improved efficiency : BPR focuses on eliminating non-value-added activities, simplifying processes, and reducing waste. This leads to improved efficiency and productivity, as resources are better utilized and workflows are streamlined.

Cost reduction : By eliminating redundancies, optimizing workflows, and leveraging technology, BPR helps organizations reduce costs associated with labor, materials, and operational inefficiencies.

Enhanced customer satisfaction : By reengineering processes to deliver products or services faster, with higher quality and improved customer experiences, organizations can enhance customer satisfaction and loyalty.

Increased agility and flexibility : BPR encourages organizations to adopt more agile and flexible processes. This enables them to respond quickly to market changes, customer demands, and competitive pressures.

Quality improvement : BPR emphasizes the identification and elimination of defects and errors in processes. By redesigning processes with quality in mind, organizations can improve product or service quality, reduce rework, and enhance overall process reliability.

Enhanced innovation : BPR encourages organizations to think critically about their existing processes and challenge traditional assumptions. This mindset fosters a culture of innovation, where new ideas and approaches are welcomed.

Improved employee engagement : By engaging employees in process improvement efforts, organizations can tap into their knowledge, expertise, and creativity, leading to higher employee engagement and satisfaction.

Better alignment with business goals : BPR ensures that processes are closely aligned with the organization’s strategic goals and objectives.

Competitive advantage : By optimizing processes, reducing costs, enhancing customer satisfaction, and fostering innovation, BPR can give organizations a competitive advantage in the market.

The 7 rules of Business Process Reengineering (BPR) were originally proposed by Michael Hammer and James Champy in their book “Reengineering the Corporation.” These rules provide guidance for organizations undertaking BPR initiatives. Here are the 7 rules of BPR:

Organize around outcomes, not tasks : BPR emphasizes structuring processes based on desired outcomes or results, rather than individual tasks or functional departments. This ensures a focus on delivering value to customers and stakeholders.

Identify and eliminate non-value-added steps : BPR aims to eliminate non-value-added activities that do not contribute to the desired outcomes. It encourages organizations to streamline processes, reduce waste, and eliminate unnecessary tasks or bottlenecks.

Combine steps : BPR advocates for combining multiple steps or activities into integrated and streamlined processes. This helps to simplify and accelerate process flows, reducing handoffs and delays.

Empower workers : BPR emphasizes empowering employees who perform the processes. It encourages organizations to delegate decision-making authority and provide employees with the necessary skills and resources to take ownership of their work.

Capture information once and at the source : BPR promotes capturing and storing information at the point of origin to avoid redundant data entry and improve accuracy. It advocates for leveraging technology to automate data collection and integration across systems.

Link parallel activities : BPR suggests connecting parallel activities to enable simultaneous or parallel processing. This reduces wait times and accelerates the overall process timeline.

Put decision making where the work is performed : BPR encourages organizations to decentralize decision-making authority and push decision-making to the lowest level possible. This enables faster and more efficient decision-making, as individuals performing the work have the necessary knowledge and context.

To learn about these principles in more detail, refer to this resource .

Reengineering a process focuses on redesigning a process as a whole which includes fundamentally rethinking how the organizational work should be done in order to achieve dramatic improvement. That’s what differentiates BPR from process improvement which only focuses on functional or incremental improvement.

Reengineering might not be appropriate in all situations, especially if your processes only require optimization and if your organization is not looking to undergo dramatic change. In such a case, you can opt for a process improvement technique .

Step 1: Set the vision and business goals

This is where the senior management needs to identify the business situation; customer expectations, competition, opportunities, etc.

This will make it easier to understand the need for change and create a clear vision of where the company needs to be in the future. Then clarify the objectives in both qualitative and quantitative terms.

Step 2: Establish a competent team

The team you select needs to be cross-functional because expertise and perceptions from all levels of the organization are necessary to minimize the chances of failure.

It should be the responsibility of the top management to have a clear vision of the activities that need to be carried out and provide strategic direction. You also need to have an operational manager who knows the ins and outs of the processes. It is equally important to have the right engineers with different expertise from various fields to make the team complete.

At this stage, it is important to have the goals and strategies outlined properly. You can also carry out surveys and benchmarking activities to identify customer needs and analyze the competition.

In this step, it’s also necessary to communicate the business case for change and the objectives of the project to the rest of the employees. This will encourage their feedback as well and help them get ready for what’s to come.  

Step 3: Understand the current process

In this step, you need to select the process(es) that you will be redesigning. Such processes that are broken, cross-functional, value-adding, have bottlenecks or have high-impact on the organization, etc. can be prioritized.

Once you select them, map them out using flowcharts or process maps to analyze them thoroughly to identify the gaps, inefficiencies, blockers, etc.

Then define the right KPIs for the processes in order to monitor that the process has gained the desired effect once you implement them.

Step 4: Redesign the process

Keeping your vision in mind, redesign a new process that effectively overcomes the inefficiencies of the previous process. Here you will create a future-state map that highlights the solutions you have identified for the issues of the current state process.

Step 5: Implement the reengineered process

Once the process has been redesigned, you can run a small test to see how it works by monitoring with the KPIs you defined earlier. This will allow you to make necessary adjustments to the process before implementing it company-wide. If the new process works better than the current one, you can implement it on a larger scale.

There are several business process reengineering methodologies out there, and we have listed some of them below, along with the steps. They highlight more ways of reengineering business processes in addition to what we have discussed above.

• Hammer/ Champy methodology
• The Davenport methodology
• Manganelli/ Klein methodology
• Kodak methodology

Hammer/Champy Methodology

The methodology introduced by Hammer and Champy popularized business process reengineering. It involves six steps.

Step 1: The CEO who initiates the reengineering process should introduce it to the employees by explaining the current situation of the company and his/her future vision for the company.

Step 2: Identify business processes in terms of how they interact within the company and in relation to the outside world. Here process maps can be used to visualize the processes.

Step 3: Select the processes that have the potential to bring value to the company once reengineered and those that are easy to be re-engineered.

Step 4: Analyze the current performance of the processes as opposed to what is expected from them in the future.

Step 5: Redesign the selected business process using creativity, lateral thinking and imagination.

Step 6: Implement the redesigned processes.

The Davenport Methodology

Davenport puts information technology at the heart of business reengineering. The Davenport model covers six steps.

Step 1: Develop business vision and process objectives.

Step 2: Identify the business processes that should be reengineered. Davenport advises selecting not more than 15 processes at a time.

Step 3: Understand the functioning and performance of the selected processes. And set up performance benchmarks for the re-engineered processes.

Step 4: Study how information technology tools and applications can be applied to the newly designed business processes.

Step 5: Design a functioning prototype of the new business process. Allow the team to study the prototype and identify areas for improvement.

Step 6: Implement the tested prototype across the organization.

Manganelli/ Klein Methodology

Manganelli and Klein state only to focus on those business processes that are crucial to the strategic goals of the company and customer requirements.

Step 1: Ask everyone involved to define goals and prepare for the business reengineering project.

Step 2: Select the key business processes for redesign.

Step 3: Study the current performance of the selected processes and determine the future performance that you want to achieve.

Step 4: Develop information technology design to support new processes. And design new work environments for the people.

Step 5: Implement the redesigned processes and the new work environments within the organization.

Kodak Methodology

Developed by the international Kodak organization, the Kodak methodology is applied across all Kodak facilities worldwide.

Step 1: Plan the process of the reengineering project and define all project administration rules and procedures.

Step 2: Bring together your project team,  assign project managers, and design a comprehensive process model for the organization.

Step 3: Redesign the selected processes. This step should conclude with a plan of a Pilot Implementation of the redesigned processes.

Step 4: Implement the newly designed processes across the organization. Adjust the organization’s infrastructure to the requirements of the new processes.

Step 5: The last step is performed parallel to the other steps. Here the project team should find ways to deal with the obstacles that may occur during the reengineering project.

Here are two detailed case studies that highlight specific challenges, solutions, and outcomes of Business Process Reengineering (BPR) projects in different industries:

General Electric (GE) Aircraft Engines

Challenge :

GE Aircraft Engines faced challenges in reducing engine development time, improving quality, and achieving cost savings.

• GE implemented BPR to streamline its engine development process. They adopted a concurrent engineering approach, bringing together cross-functional teams at the early stages of design.
• They implemented computer-aided design (CAD) tools and simulation software to accelerate the design and testing phases.
• GE also focused on standardizing and modularizing engine components to simplify manufacturing and reduce costs.
• They collaborated with suppliers to improve the supply chain, optimize inventory levels, and reduce lead times.
• The BPR initiative resulted in a significant reduction in engine development time, from 60 months to 18 months.
• Quality improved, with a 50% reduction in defects, resulting in fewer post-production modifications.
• The streamlined processes and supplier collaborations led to cost savings of over $1 billion.
• GE Aircraft Engines gained a competitive advantage by delivering high-quality engines faster and at lower costs.

Amazon.com faced challenges in improving order fulfillment processes and enhancing customer satisfaction.

• Amazon.com implemented BPR to optimize its order fulfillment process. They introduced advanced warehouse automation technologies, such as robots and conveyor systems, to improve efficiency and speed.
• They redesigned the warehouse layout and implemented intelligent inventory management systems to minimize travel time and enable accurate order picking.
• Amazon.com invested in data analytics and forecasting tools to predict customer demand and optimize inventory levels.
• They implemented customer-centric processes, such as one-click ordering and personalized recommendations, to enhance the overall customer experience.
• The BPR initiatives enabled Amazon.com to significantly improve order fulfillment speed, reducing delivery times and increasing customer satisfaction.
• Warehouse efficiency and accuracy improved, resulting in faster and more reliable order processing.
• The advanced inventory management systems reduced stockouts and improved inventory turnover.
• Amazon.com became a leader in e-commerce, renowned for its efficient operations and excellent customer service.

What are Your Ideas on BPR?

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FAQs about Business Process Reengineering

Resistance to change : Employees may resist changes to their roles, responsibilities, and ways of working. Overcoming resistance requires effective change management strategies and clear communication.

Lack of leadership and sponsorship : BPR initiatives require strong leadership support and sponsorship to drive the transformation and overcome organizational hurdles.

Limited resources and budget : Reengineering efforts may require significant resources, both in terms of finances and human capital. Limited resources can pose challenges in implementing the changes effectively.

Technological constraints : Implementing new technologies or systems to support reengineered processes may face technical challenges, integration issues, or compatibility problems.

Incomplete understanding of processes : Inaccurate or incomplete process understanding can lead to ineffective redesign efforts. It’s crucial to thoroughly analyze and comprehend the current processes before attempting to reengineer them.

Measurement and evaluation : Measuring the success and impact of BPR initiatives can be challenging. Identifying appropriate metrics and establishing a baseline for comparison is essential to evaluate the effectiveness of the reengineering efforts.

Business Process Reengineering (BPR) typically involves the participation of various stakeholders within an organization.

• Executives and senior leaders provide the vision, strategic direction, and support for BPR initiatives.
• Process owners are responsible for the management and performance of specific business processes.
• Business analysts contribute to BPR efforts by conducting detailed process analysis, gathering requirements, identifying gaps and inefficiencies, and recommending solutions.
• IT professionals are involved in BPR projects to assess technology requirements, evaluate existing systems, and develop or implement new technology solutions.
• Change management specialists who support the BPR initiatives by designing and implementing strategies to manage and mitigate resistance to change.
• Frontline employees are directly involved in the processes being reengineered.
• Customers/Stakeholders whose feedback and involvement provide valuable insights into areas that need improvement and ensure that the redesigned processes deliver enhanced value.

Business Process Reengineering (BPR) can be applied across various industries to improve efficiency, streamline operations, and enhance customer satisfaction. Here are examples from different sectors showcasing the diverse applications of BPR:

Manufacturing Industry :

• Automating and optimizing production processes to reduce lead times and improve quality.
• Redesigning supply chain processes to achieve seamless coordination and minimize inventory levels.
• Implementing lean manufacturing principles to eliminate waste and enhance productivity.

Healthcare Industry :

• Redesigning patient intake and registration processes to reduce waiting times and improve patient flow.
• Streamlining billing and claims processes to minimize errors and accelerate reimbursement.
• Implementing electronic health records (EHR) systems to improve information sharing and enhance patient care coordination.

Hospitality Industry :

• Redesigning hotel reservation and check-in processes to streamline guest experiences.
• Optimizing housekeeping processes to improve efficiency and reduce turnaround times.
• Implementing mobile technologies for guest services, such as mobile check-in or keyless entry systems.

Transportation and Logistics Industry :

• Redesigning logistics and distribution processes to enhance supply chain visibility and reduce delivery lead times.
• Optimizing route planning and scheduling processes to improve efficiency and reduce fuel costs.
• Implementing real-time tracking systems for shipments and vehicles to improve tracking and delivery accuracy.

Customer Service Industry :

• Redesigning call center processes to enhance first-call resolution rates and reduce customer wait times.
• Implementing self-service portals and chatbot systems to improve customer support efficiency.
• Streamlining complaint resolution processes to improve customer satisfaction and loyalty.

More Related Articles

Amanda Athuraliya is the communication specialist/content writer at Creately, online diagramming and collaboration tool. She is an avid reader, a budding writer and a passionate researcher who loves to write about all kinds of topics.

The Business Process Reengineering Project: A Successful Case Study

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• Edi Snaidero &
• Andrea Tramontano  

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It is rather difficult to relate a successful case study after months spent in the fore front, initially nurturing an idea then a project and eventually developing a new way of doing and being in business . One of the risks here is to boast or, even worse, to give a detailed account of what should have been achieved and yet remained in paper.

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Snaidero, E., Tramontano, A. (2004). The Business Process Reengineering Project: A Successful Case Study. In: Process Management for the Extended Enterprise. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-17051-5_5

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Please note you do not have access to teaching notes, business process re‐engineering in healthcare management: a case study.

Business Process Management Journal

ISSN : 1463-7154

Article publication date: 8 February 2011

The purpose of this paper is to carry out the business process re‐engineering (BPR) of a surgical ward in a hospital in order to improve the efficiency of the ward.

Design/methodology/approach

This work was developed using a case study on a surgical ward. In this type of ward, in which scheduled and unscheduled operations often have to coexist and be managed, ways to minimise patient inconvenience need to be studied. A framework based on event‐driven process chains (EPCs) methodology, the entity‐relationship model and discrete event simulation is presented to define and analyse the current state of a surgical ward and design a future system. The modelling of the processes, activities and sub‐activities, which took up a great amount of ward resources, allowed a what‐if analysis to be developed which simulates various scenarios and assesses their performance.

Using Delphi methodology, it was possible to identify a number of areas for improvement: number of operating sessions, preparation of the operating rooms for each operation, availability of specific surgical instruments. Moreover, the discrete event simulation approach led to an understanding of the most efficient management choices.

Originality/value

The decision to use Delphi methodology for the information collection stage before starting the BPR process is not found in other studies in the literature. Moreover, the use of models based on EPCs methodology allowed the panel of experts to develop models to examine and understand the resource requirements of medical assessment units and to provide a framework or develop standards that hospital developers and clinical managers can consult.

• Business process re‐engineering
• Case studies

Bertolini, M. , Bevilacqua, M. , Ciarapica, F.E. and Giacchetta, G. (2011), "Business process re‐engineering in healthcare management: a case study", Business Process Management Journal , Vol. 17 No. 1, pp. 42-66. https://doi.org/10.1108/14637151111105571

Emerald Group Publishing Limited

Copyright © 2011, Emerald Group Publishing Limited

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BUSINESS PROCESS RE-ENGINEERING: A CASE STUDY AT TURKU UNIVERSITY OF APPLIED SCIENCES

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Surapaneni Mohana Murali Krishna

This research project aims at assessing the implementation and challenges of Business Process Reengineering (BPR) in Hawassa University. In order to address persistent problems of inefficiency, ineffectiveness and non-responsiveness in delivering organizational services, BPR proposes a fundamental and radical shift in organizational logics from task-based to process-based thinking (Hammers and Champy, 1993). Survey research design qualitative and quantitative approaches were used. From 1261 administrative staffs sample of 228 respondents were calculated using Calmorin's sample size formula 99% CI. Both probability (simple random) and non-probability (judgmental) sampling techniques were used to acquire the required information from respondent using structured questioner and interview. To identify equitable sample size from each stratum (support and core process) stratified sampling method were used. The researcher used pilot-test (Cronbach alpha) reliability value of 0.94. SPSS 15.0 were used to analyze data. Moreover cross-tabulation X²(Chi-squire) using CI=95% to test the relation among dependent and independent variables. Using thus methods, the survey finding confirmed, extent of BPR implementation did not exceed average value of (65 percent) which recommendations of BPR are not successfully accomplished which needs further effort in the future. Less attention for empowerment, improper application of management system, lack of change management accomplishment and insufficient management support critical challenges implementation of BPR in Hawassa University. While, information technology infrastructure, information technology usage, educating employees and comfort on the redesign process were critical success factors of BPR in Hawassa University. Therefore, for successful BPR implementation the university shall be strong and committed to support employees in different issues. In addition, it is important to adopt new compensation, motivation system, allocating adequate budge for BPR execution, and changing organizational structure and values in the implementation are task of the University to implement and benefit from the project as expected.

Kahirol Mohd Salleh

Business Process Management Journal

Hind Al Sadi

Dr. yehia elzont

Sindhura Kannappan

Presently, competition is becoming more intense, and with the development of new rivals from diverse business organisations with varied objectives, the firm is seeking new forms of competitive advantages that are unusual, difficult to copy, and can be utilized indefinitely. The purpose of the above research is to look atthe impact of Human Resource Management as well as Information Technology in the deployment of methods of Business Process Re-engineering targeted at enhancing the performance of business organisations. The study employs a method of reviewing the literature, with a synopsis of the hypothesis, findings, as well as other research information obtained from relevant sources in order to sustain as the cornerstone for research activities. A number of assertions about human resource management are taken from the literature as well as tested by conducting interviews with key executives in organisations whose business process re-engineering initiatives either have been finished or are currently ongoing. According to the study's findings, business process reengineering techniques mix Human Resource Management as well as Information Technology to create as well as improve firm efficiency. A sample of 153 respondents was collected from a "standard questionnaire," created on a five-point interval scale.

Personnel Review

Hugh Willmott

Introduction There is a new-look menu over at the Consultants' Cafe. Good old soupe du TQM and change management paté are off. Perhaps you would care to try some business process re-engineering instead?[1] During the 1980s, executives were invited to sample and ...

Asian journal of management sciences & education

mohammad abazid

The re-engineering of business processes is critical for institutions across sectors worldwide to achieve performance improvement and competitive advantage. Competition within higher education forces higher education institutions, towards management, approaches such as business process re-engineering to improve effectiveness and efficiency. It is imperative that higher education institutions should priorities the strategic alignment and re-engineering of business processes that provide stakeholder satisfaction to create competitive advantage and survival. Considering higher education institutions operate as an open system, the proposed framework is based on the systems approach to management. Given the dynamic nature of the higher education sector, the proposed framework promotes a business process re-engineering methodology. The aim of this paper is to pinpoint the latest researches, focusing the factors that form the points of BPR implementation in the practical ground of higher education.

Nigussie Daba Heyi

In Ethiopia, Addis Ababa City Administration is implementing business process reengineering in order to improve the performance of its public institutions. During the period June to October 2008, experts drawn from different sectors participated in the redesigning and organizing of business processes through shifting from functional /departmental structure to process-centered organizing practices. This study is part of the initial evaluative studies to assess the effect of business process reengineering on the management of human resources in Addis Ababa City Administration. It is based on a sample of 480 employees drawn from various city departments. Focus group discussions, key informant interviews and personal observations were used to collect data for the study. The study results show that the number of employees in the city increased after reengineering. This was due to new posts created during the reengineering process through the decentralization of some processes to the local levels (sub-city and kebele levels) of the city. Study results further show that even though process selection was adequately done in many departments, some activities were not properly regrouped after processes were redesigned which resulted in multiple approvals and delays in decision making. Employee participation during reengineering was weak. The front line employees did not get sufficient information and proper performance evaluation was not undertaken. Managers were not involved in the designing, coaching and advocacy roles, and are still engaged in operational and routine activities. Employee satisfaction was found to be low because there is no incentive system. However, employees‟ efforts to achieve the set standards and improve service delivery and their initiation for change improved despite the fact that the system as whole is not automated. Further, accountability and responsibility of management also improved as a result of the BPR. Key words: Business process reengineering, decentralization, reengineering process, communication, human resource development, managerial competence, incentive schemes.

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