Case Study: Business Process Re-engineering This week\'s chapter discusses the t

Question

Case Study: Business Process Re-engineering

This week's chapter discusses the term Business Process Re-eningeering. In your own words explain what BPR is and ways in which a company can have a successful BPR implementation as well as ways in which the company can fail. In your response, answer the following:

Choose an organization within the last 10 years that went through a successful BPR, what does the company offer and what exactly was the problems or inefficiencies that forced the firm to go through a BPR in the first place.

what were some of the ways in which they implemented a successful, new and improved strategy.

Choose another organization within the last 10 years that failed at implementing a BPR

Why did it fail?

What was some of the issues or inefficiencies the company had?

In your opinion, how would you have made the BPR process better for the firm?

In your response, any references used must be cited using either MLA or APA format and include a Reference page.

Explanation / Answer

Business Process Reengineering (BPR)

BPR is 'fundamental rethinking' and 'radical redesign' of a 'business process' to achieve 'dramatic improvements' in outcome of the process. The outcome can be anything like profits, costs, customer satisfaction, lead time, quality etc.

BPR is a management strategy got attention of the business world in the early 1990s. A strategy focuses on a business process for its improvement in such a way that it will turn around the outcome of the process so drastically that it might become a paradigm shift in an industry.

BPR is not about, continuous improvements in the current process getting incremental results or tinkering with the existing process without changing it fundamentally. Besides, BPR is not another name for downsizing or restructuring.

Example 1: ICICI Bank

Challenge: In the highly competitive banking sector it is hard to keep customer to loyal to the bank when he/she has got many options. Then ICICI bank decided to go for a fundamental recheck of its business processes.

Existing process: In the existing process all the systems were branch centric, such that each branch was operating like a separate company/business unit with hardly any coordination among them. This was applicable to all the banks operating in the banking industry at that point of time.

Problem: Customers cannot operate their account with one branch if they visit another branch of the same bank unless they had gone through the bureaocracy approval of the banking system. Above all, this branch centric system was adding up to the operating cost of the bank for unnecessary repeated data entries and exchanges to maintain books.

Solution: ICICI bank then realized the power of Information Technology (IT) when implemented for banking system. The bank then teamed up with leading IT company of the country and implemented centralized system such that all branches will operate centrally from the centralized data server.

Result: The bank grown drastically in the coming period and become the no. 1 bank in the industry with all other banks now following it. In the first time of the history of banking sector a public sector bank was merged with ICICI bank, which was a commendable achievement. Besides, no. of transactions handled in a day increased from 40000 to 2.1 million with same no. of employees.

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