What is a good response to this post? Business Process Reengineering (BPR) is the fundamental transformation of business processes to bring about dramatic performance improvement in areas of critical measurements such as cost, quality, service, and speed. A classic example of successful BPR is Ford Motor Company's reengineering of its accounts payable process. Ford's accounts payable function during the 1980s was labor-intensive and inefficient, employing some 500 workers. The company reengineered this process by implementing an invoice-less system where purchasing orders were put in an online database accessible to both the suppliers and the receiving department. At delivery, the receiving department would compare the goods with the purchase order on the system. When they matched, the system would authorize payment automatically, eliminating manual matching and the associated errors. This reengineering led to a reduction of 75% in the accounts payable personnel, with substantial cost savings and improved efficiency. A BPR failure example, on the other hand, is Kodak's inability to remain relevant in the digital photography revolution. Kodak reengineered its new product development process by introducing computer-aided design and manufacturing technologies in an effort to reduce time-to-market for new products. Despite these intra-organizational improvements, Kodak failed to make the shift from film-based to digital photography, thereby losing significant market share and eventual bankruptcy. This instance points out that while intra-organizational process improvements are crucial, it is also necessary to synchronize reengineering efforts with evolving market scenarios and customer needs to achieve success.
What is a good response to this post?
Business Process Reengineering (BPR) is the fundamental transformation of business processes to bring about dramatic performance improvement in areas of critical measurements such as cost, quality, service, and speed. A classic example of successful BPR is Ford Motor Company's reengineering of its accounts payable process.
Ford's accounts payable function during the 1980s was labor-intensive and inefficient, employing some 500 workers. The company reengineered this process by implementing an invoice-less system where purchasing orders were put in an online database accessible to both the suppliers and the receiving department. At delivery, the receiving department would compare the goods with the purchase order on the system. When they matched, the system would authorize payment automatically, eliminating manual matching and the associated errors. This reengineering led to a reduction of 75% in the accounts payable personnel, with substantial cost savings and improved efficiency.
A BPR failure example, on the other hand, is Kodak's inability to remain relevant in the digital photography revolution. Kodak reengineered its new product development process by introducing computer-aided design and manufacturing technologies in an effort to reduce time-to-market for new products. Despite these intra-organizational improvements, Kodak failed to make the shift from film-based to digital photography, thereby losing significant market share and eventual bankruptcy. This instance points out that while intra-organizational process improvements are crucial, it is also necessary to synchronize reengineering efforts with evolving market scenarios and customer needs to achieve success.
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