Business Process Re-engineering (BPR): ERP is a result of a modern Enterprise‘s concept of how the Information System is to be configured to the challenging environments of new business opportunities. However, merely putting in place an information system is not enough. Every
company that intends to implement ERP has to re-engineer its processes in one form or the other. This process is known as Business Process Re-engineering (BPR). BPR is the fundamental rethinking and radical redesign of processes to achieve dramatic improvement in critical, contemporary measure of performance such as cost, quality, service and speed.
Radical Redesign means BPR is reinventing and not enhancing or improving. According to BPR philosophy, whatever was being done in past, it was all wrong, so one has to reassemble the new system to redesign it afresh. There is no point in simplifying or automating a business process, which does not add any value to the customer; such business processes should be eliminated altogether.
BPR aims at major transformation of the business processes to achieve dramatic improvement. Here, the business objectives of the enterprise such as profits, customer– satisfaction through optimal cost, quality, deliveries etc. are achieved transformation of the business processes which may, or may not, require the use of IT.
The concept of BPR when merges with the concept of IT, the business re-engineering emerges, which is the rethinking of Business Processes to improve speed, quality and output of materials or services. In other words, business re-engineering is the method of development of business processes according to changing requirements
Many companies are trying to optimize their business activity with the proper utilization of the Information Technology. But it is not guaranteed that with the use of IT only optimizes the business activities. There might be redundant procedures in the organizational business. If such redundant procedures prevail in the business activity the use of IT does not improve performance as
expected. Thus the business process re-engineering is the radical restructuring of the organizational business process without effecting overall target with possible reduction of the redundant procedures. Thus if an organization rethink and radically redesign their business process before applying the computing power, they can potentially obtain very large payoffs from their investment in Information Technology.
Steps involve in effective re-engineering are:
• Development of broader strategic vision the senior management for the redesign of the business process
• Measuring and understanding the performance of existing process as baseline
• Using tools of IT for the work flow management and parallel documentation
• The IT facilities should able to support the changes recommended