Categories: Business Process

Business Process Reengineering

What Is Business Process Re-engineering?

Quite often it is necessary for an organization to revise and re-examine it’s decisions, goals, targets etc., in order to improve the performance in many ways and this activity of re-engineering is called as Business Process Re-engineering which is also known as Business Process Re-design or Business Process Improvement.

Analyzing present business process diagrams, process flow diagrams (work flow diagrams) and data flow diagrams may lead to success in business process re-engineering since these diagrams are very powerful in visualizing the activities, processes and data flow of an organization.

Business Process Re-engineering Examples:

The entire organization’s business processes or an individual department’s business processes can be re-engineered according to the needs of an organization.

For example, a bank may have many activities associated with it like investing, credit cards, loans, etc., and they may be involved in cross selling (e.g. insurance) with other preferred vendors in the market. If the credit card department is not functioning in an efficient manner as the way the bank expected, it might re-engineer the “credit card” business process.

In this situation, bank may think about decreasing the interest rate, offering promotion, redemption, balance transfers etc., to the customers in order to facilitate the performance. This would lead to re-engineer or re-design the current bank’s credit card process. The net effect is the improvement in performance of credit card division and conversely, if anything goes wrong, major losses are also expected.

Computer system’s infrastructure, competition, financial strength, expenses reduction, customer satisfaction, product quality, better management, employees involvement are some of the areas that an organization is interested to do business process re-engineering and change the existing processes.