BUSINESS PROCESS REENGINEERING (BPR)

How Business Process Reengineering (BPR) Liberate Or Exploit Workers?

How Business Process Reengineering (BPR) Liberate Or Exploit Workers?

Introduction

Business process reengineering (BPR) consists of radically transforming organisational processes through the optimal use of information technologies (IT) to achieve major improvements in quality, performance, and productivity. A fairly new organisational approach based on information technologies (Hammer and Champy 1993, 6-9), BPR's explosive dissemination really began in 1993 with the publication of the book by Michael Hammer and James Champy entitled Reengineering the Corporation: A Manifesto for Business Revolution. However, empirical research has shown that 88 percent of large firms in North America were already implementing BPR in 1993, at an average rate of four projects per firm (Willmott 1995, 89-98). In 1994, the members of the Society for Information Management identified BPR as a major concern for organisations, on a level with customer orientation, development of organisational culture, and strategic alignment of information technologies. A survey by Deloitte & Touche found that nearly 75 percent of 400 large North American firms were planning to increase the number of BPR projects in 1995 and 1996 (Maglitta 1995, 80-81).

BPR is known to produce highly positive results for firms, including significant reductions in costs, errors, and times, increased customer satisfaction, and better overall organisational efficiency and effectiveness (). Michael Hammer and Champy (1993, pp.63) stated that although 70 percent of firms did not achieve all their BPR objectives, most achieved a large part of what they wanted to do. These figures match the findings of Bergeron and Falardeau (1994, p.14) in surveys performed respectively on samples of 134 and 50 Canadian firms. The respondent firms reported success rates of 70 percent, in line with Hammer's assessment.

Origins of BPR

Business process reengineering originated in the 1950s as large firms began to explore the potential impact of computers on the efficiency and effectiveness of their business processes. Many approaches, methods, and techniques have since appeared and constitute the foundations of BPR as it is presently known. Davenport (1993, p.16) notes six areas which influenced the emergence of BPR: the total quality approach, industrial engineering, the systems approach, the socio-technical approach, the diffusion of innovations, and the use of information systems for competitive advantage. (Willmott 1995, 89-98)

The concept of reengineering traces its origins back to management theories developed as early as the nineteenth century. The purpose of reengineering is to "make all your processes the best-in-class." Frederick Taylor suggested in the 1880's that managers could discover the best processes for performing work and reengineer them to optimize productivity. BPR echoes the classical belief that there is one best way to conduct tasks. In Taylor's time, technology did not allow large companies to design processes in a cross- functional or cross-departmental manner. Specialization was the state-of-the-art method to improve efficiency given the technology of the time. (Lloyd 1994, 8)

In the early 1900's, Henri Fayol originated the concept of reengineering: "To conduct the undertaking toward its objectives by seeking to derive optimum advantage from all available ...