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1 DESCRIPTION

BusinessProcessReengineeringinvolveschangesinstructuresandinprocesseswithinthebusiness
environment.Theentiretechnological,human,andorganizationaldimensionsmaybechangedinBPR.
InformationTechnologyplaysamajorroleinBusinessProcessReengineeringasitprovidesoffice
automation,itallowsthebusinesstobeconductedindifferentlocations,providesflexibilityin
manufacturing,permitsquickerdeliverytocustomersandsupportsrapidandpaperlesstransactions.In
generalitallowsanefficientandeffectivechangeinthemannerinwhichworkisperformed.

WhatistheBusinessProcessReengineering
Theglobalizationoftheeconomyandtheliberalizationofthetrademarketshaveformulatednew
conditionsinthemarketplacewhicharecharacterizedbyinstabilityandintensivecompetitioninthe
businessenvironment.Competitioniscontinuouslyincreasingwithrespecttoprice,qualityandselection,
serviceandpromptnessofdelivery.Removalofbarriers,internationalcooperation,technological
innovationscausecompetitiontointensify.Allthesechangesimposetheneedfororganizational
transformation,wheretheentireprocesses,organizationclimateandorganizationstructurearechanged.
HammerandChampyprovidethefollowingdefinitions:

Reengineeringisthefundamentalrethinkingandradicalredesignofbusinessprocessestoachieve
dramaticimprovementsincriticalcontemporarymeasuresofperformancesuchascost,quality,serviceand
speed.

Processisastructured,measuredsetofactivitiesdesignedtoproduceaspecifiedoutputforaparticular
customerormarket.Itimpliesastrongemphasisonhowworkisdonewithinanorganization."(Davenport
1993).

Eachprocessiscomposedofrelatedstepsoractivitiesthatusepeople,information,andotherresourcesto
createvalueforcustomersasitisillustratedinthefollowingexample.

Anexampleofabusinessprocess:Creditcardapprovalinabank.

Anapplicantsubmitsanapplication.Theapplicationisreviewedfirsttomakesurethattheformhasbeen
completedproperly.Ifnot,itisreturnedforcompletion.Thecompleteformgoesthroughaverificationof
information.Thisisdonebyorderingareportfromacreditcompanyandcallingreferences.Oncethe
informationisverified,anevaluationisdone.Then,adecision(yesorno)ismade.Ifthedecisionis
negative,anappropriaterejectionletteriscomposed.Ifthedecisionispositive,anaccountisopened,and
acardisissuedandmailedtothecustomer.Theprocess,whichmaytakeafewweeksduetoworkloadand
waitingtimefortheverifications,isusuallydonebyseveralindividuals.

PROCESSESARECHARACTERIZEDBY3ELEMENTS
Businessprocessesarecharacterizedbythreeelements:
theinputs,(datasuchcustomerinquiriesormaterials),the
processingofthedataormaterials(whichusuallygo 2.Processing CEO

throughseveralstagesandmaynecessarystopsthatturns
outtobetimeandmoneyconsuming),andtheoutcome SALES FINANCE PRODUCTION

(thedeliveryoftheexpectedresult).Theproblematicpart
oftheprocessisprocessing.Businessprocess
reengineeringmainlyintervenesintheprocessingpart,
whichisreengineeredinordertobecomelesstimeand CustomerInquiry DeliveryofResults

moneyconsuming.
1.Trigger 3.results

Figure1.Thecomponentsofabusinessprocess
Theterm"BusinessProcessReengineering"has,overthepastcoupleofyear,gained
Increasingcirculation.Asaresult,manyfindthemselvesfacedwiththeprospectof
havingtolearn,plan,implementandsuccessfullyconductarealBusinessProcess
Reengineeringendeavor,whateverthatmightentailwithintheirownbusiness
organization.HammerandChampy(1993)definebusinessprocessreengineering(BPR)
as:

"thefundamentalrethinkingandradicalredesignofthebusinessprocessestoachieve
dramaticimprovementsincritical,contemporarymeasuresofperformance,suchascost,
quality,serviceandspeed".

AnexampleofBPRapplication.

Atypicalproblemwithprocessesinverticalorganizationalstructureisthatcustomers
mustspeakwithvariousstaffmembersfordifferentinquiries.Forexample,ifabank

customer

entersinto

the
bank
LOANS

ACCOUNTS

ATMCARDS

determine

dtoapply

foraloan,
applyfor

an
ATM

card
and

Figure2.Threeinquiriesthreewaitingqueues

open
a
savings

LOANSAPPLICATION

account,mostprobablymustvisitthree PROCESS
differentdesksinordertobeserviced,as
illustratedinfigure2.WhenBPRisapplied
toanorganization NEWACCOUNTSPROCESS

Theimplementationof"OneStopShopping"
asamajorcustomerserviceinnovation,
ATMPROCESS
requirestheclosecoordinationwithateam
ofstaffassignedtoaprocesspoweredbyIT FUNCTIONALTEAMS

forexchanginginformationanddocuments
R
inordertoservicethecustomer'srequest.For
instanceacustomerapplyingforaloan Figure3.OneStopServiceforallthree
"triggers"ateamofstaffassignedtoservice inquiries
aloanapplication.The

thecustomercommunicateswithonlyoneperson,called"casemanager",forallthree
inquiries,showninfigure3.

managercompletesanapplicationforaloaninelectronicform,whichinturnissubmitted
throughthenetworktothenextteammember,thecreditcontroldirector,whoexamines
thecreditstatusofthecustomer.Ifthecreditstatusisnotsatisfactorytherejectionofthe
loanisapprovedbythecreditmanagerandarejectionformisfilledanditisreturnedto
thecasemanager.Thecasemanagerexplainstothecustomerthereasonthathis
applicationwasrejected.

Ontheotherhand,ifthecreditstatusofthecustomerissatisfactory,theapplicationis
submittedelectronicallytothenextteammember,whocalculatesinterestratesand
paymenttables.Theapplicationisthensubmittedtothecreditmanagerforapproval
usingadigitalsignature.Theapprovaloftheapplicationalongwiththepaymenttableis
deliveredtothecustomerbythecasemanager.
Mostimportantly,whiletheloanapplicationteamwasprocessingtheloanapplication,
thecasemanager"triggered"theaccountteamtoopenasavingsaccountandtheATM
teamtosupplythecustomerwithanATMcard.Thecustomerleavesthebankhavinga
responseforhisloanapplication,anewsavingsaccountandanATMcard,Andallthese
withouthavingtomovearoundthedesksforsignaturesanddocuments.Allthe
customer'srequestsweresatisfiedatthesametimeinparallelmotion.

Thedifferencebetweentheverticalorganization(figure2)andthecrossfunctional
organization(figure3)liesinthewaybusinessesareorganizedinternally.Thevertical
organizationisorganizedbasedonfunctionalunits(e.g.thesales,theaccounting
department).Incrossfunctionalorganizationalunitsthemainorganizationalunitisthe
process.Since"doingbusiness"ismainlyrunningprocesses,itwouldbeverylogicalto
organizecompaniesbasedonprocesses.Forinstance,theorderingprocesscrosses
differentdepartments.Thesalesdepartmentforordertaking,theaccountingdepartment
forcreditcontrolandinvoicing,thelogisticsdepartmentforinventorycontroland
distribution,andtheproductiondepartmentforproducingtheorder.

Aneverydaybusinesscustomerconversation...

Assumingacustomercallsthecompanytoaskwhyhisorderhasnotyetarrivedtoits
premises.

"Letmetransferyoutotheaccountingdepartmenttocheckiftheorderwasinvoiced"
respondsthetelephoneoperator.

Thecustomermustexplainhisproblemtotheaccountingdepartmentagain."Wehad
invoicedyourorder,butIdon'tnowifalreadyshippedtoyou.Youneedtocallthe
logisticsdepartment,unfortunatelyIcouldnottransferyousincetheyarelocatedin
anothercity".

Thecustomercallsthelogisticsdepartmentandexplainsthesituationagain.Thelogistics
managerresponds"thatalthoughtheordershouldhavebeendistributedtoyou,Ihaven't
yetreceivedtheorderfromthemintheproductiondepartment"."Pleaseholdona
minute,Iwilltrytotalktothemtofindoutwhathappened".Theinventorymanagertried
tohelpoutthesituation,sincehefeltthatthecustomerwasgettingaggravatedfromthe
othersideofthephone.Afterawhilehesaid"SirIamsorry,itisthefinishdepartment's
fault.Somebodyhadforgottenyourorderinthefinishstorage.Iwillhaveitsendoutto
youassoonaspossible."Afterthisodysseythecustomerwasseriouslyconsidering
whetherhewouldplaceanotherorder.

Throughouttheconversationthereisanemphasisondepartmentfunctions.Each
employeeissatisfiedwiththefactthat"IhavedonemyjobbutIdonotknowwhatthe
othersdid".(seeboldcharactersintheconversation".Nobodywouldliketotaketotal
responsibility.Whilethissituationseemsawkward,itisthemostusualcaseinmost
organizations.Mostofthetimesitisuptothegoodwillofsomeemployees,likethe
logisticsmanager,forthecustomertoreceivesometypeofservice.
UsingBPRthecompanywillbeorganizedbasedonprocesses.Thecompanywill
organizeanorderprocessingteam,brakingthedepartmentalbarriers.Theteamwouldbe
composedofacasemanagertorespondtothecustomersrequests,andemployeesfrom
theaccountingdepartment,thelogisticsdepartmentandtheproductiondepartment.The
processmustbedesignedtotraceanorderstepbyastepelectronicallyandprovidean
answerbacktothecustomerquickly.THECUSTOMERMUSTSPEAKWITHONE
PERSON,thecasemanager.Allinternalcontrolsaretheresponsibilityoftheorder
processingteam.

BPRfocusesonteambuildingoperationsaroundprocessesandbuildingacompany
mentalitytopersonnel.Theobjectiveofthetechniqueistobuildcustomeroriented
effectiveorganizations.Thecustomerdoesnotcareiftheaccountingdepartmentworks
adequately,hewantstoseehisorderprocessedasitshouldbe.

Ifthemanagementofthecompanyoverheardthisconversation,theywouldbe
desperatelyseekforasolutiontotheproblem.Mostfrequentlytheywouldchangearound
theorganizationalchartandwouldreplacepeopleinthecompanyhierarchyorwould
modifytherolesandresponsibilitiesofsomeemployees.Businessescontinuouslyare
overcomingsomemajororminorchangesinthewaytheyoperatewithouthavingthe
desiredoutcome.Theireffortiscrashedonthedepartmentalbarriersandtheemployee
mentalitytoprotecttheirpersonalorfunctionalinterests.

HowcanBPRbeappliedtoanorganization?

WhenBritishTelecomhadannouncedtheirBusinessPlan,allcompetitorswereeagerto
findoutwhowouldbethenewCEOoftheorganization.Tothesurpriseofallthenew
CEOitwasthecustomer.Thecompanyhaddecidedtotransformalltheoperationsof
theorganizationthewaycustomerswantedthemtooperate.Themostimportantactionin
applyingBPRisthecompany'sstrategicgoaltoprovidecustomerorientedservices.BPR
isatechniqueusedtoimplementthistypeoforganizationalstructure.

Havingthemanagementcommitmentforchange,anotherveryimportantfactorfor
implementingBPR,istheenablingroleofInformationTechnology.Thewaythat
businessesareorganizedarounddepartmentsisverylogicalsince,forinstance,there
werephysicalbarriersinthecommunicationoftheaccountingdepartmentwith
productiondepartment.(Thewarehousecouldbeinanotherlocationintheanotherpartof
thecity).Soitwasn'tpossibleforacrossfunctionalteamtocommunicateefficiently.In
the90swhentelecommunicationtechnologieswerebecomingabundantandlowcosting
BPRwasbecomingaworldwideapplicablemanagingtechniqueforbusinessupgrade,
enabledbythetechnology.Employeescaneasilyoperateasateamusing
intranets/extarnets,workflowandgroupwareapplications,eliminatingdistances.Wecan
worktogethereventhoughwearelocatedindifferentplaces.

Empoweringpeople

ProvidingInformation.

ProvidingTools.
ProvidingTraining.

EliminatingUnproductiveUsesofTime.

EliminatingUneccesaryPaper.
EliminatingUnnecessaryVariationsintheProceduresandSystems.

MinimizingtheBurdenofRecordKeeping,
TheBPRcharacteristicsoutcomesincludethefollowing:

Severaljobsarecombinedintoone.
Decisionmakingbecomespartofthejobofemployees(employeeempowerment).

Stepsintheprocessesareperformedinnaturalorder,andseveraljobsgetdone
simultaneously.

Processeshavemultipleversions.Thisenablestheeconomiesofscalethatresultfrom
massproduction,yetallowscustomizationofproductsandservices.

Workisperformedwhereitmakesthemostsense.
Controlsandchecksandothernonvalueaddedworkareminimized.

Reconciliationisminimizedbycuttingbackthenumberofexternalcontactpointsandby
creatingbusinessalliances.

Asinglepointofcontactisprovidedtocustomers.

Ahybridcentralized/decentralizedoperationisused.

BPRisachievingdramaticperformanceimprovementsthroughradicalchangein
organizationalprocesses,rearchitectingofbusinessandmanagementprocesses.It
involvestheredrawingoforganizationalboundaries,thereconsiderationofjobs,tasks,
andskills.Thisoccurswiththecreationandtheuseofmodels.Whetherthosebephysical
models,mathematical,computerorstructuralmodels,engineersbuildandanalyzemodels
topredicttheperformanceofdesignsortounderstandthebehaviorofdevices.More
specifically,BPRisdefinedastheuseofscientificmethods,modelsandtoolstobring
abouttheradicalrestructuringofanenterprisethatresultinsignificantimprovementsin
performance.

Redesign,retoolingandreorchestratingformthekeycomponentsofBPRthatare
essentialforanorganizationtofocusontheoutcomethatitneedstoachieve.The
outcomepursuedshouldbeanambitiousoutcome(asforinstance,area24hourdelivery
toanycustomeranywhereintheworld,approvalofmortgageloanswithin60minutesof
application,orabilitytohaveonlineaccesstoapatient'smedicalrecordsnomatter
wheretheyareinanymajorcityintheworld).Thesetypesofvisionarygoalsrequire
rethinkingthewaymostorganizationsdobusiness,carefulredesign.Theywill
additionallyneedverysophisticatedsupportinginformationsystemsandatransformation
fromatraditionalorganizationalstructuretoanetworktypeorganization.

Inresuming,thewholeprocessofBPRinordertoachievetheabovementionedexpected
resultsisbasedonkeystepsprincipleswhichincluderedesign,retool,andreorchestrate.
Eachstepprincipleembodiestheactionsandresourcesaspresentedinthetablebelow.

BUSINESSPROCESSRE-ENGINEERINGBPR
8
REDESIGN
RETOOL
REORCHESTRATE

Simplify

Networks
synchronize

Standardize

intranets
processes

Empowering

extranets
IT

Employeeship

WorkFlow
humanresources

Groupware

Measurements

The3Rsofreengineering

Creatingthenewenterpriseinvolvesconsiderablechangeinvirtuallyeverythingtodo
withpeople'sworkinglives.Ratherthanfixingtheold,wesetouttocreatethenew.
Thereisafundamentaltransformationoccurringinbusinessintermsofitsstructure,
processes,people,andtechnology.Thetablefollowingpresentsthechangesinthatoccur
inthebusinessunderBPR.

ChangesintheWorldofWork

FromConventional ToBPR
ofemployees
FunctionaldepartmentsSimpletasks
(divisionoflabor) CompensationforskillandtimespentPay
raisesbasedonpromotionsandseniority
Controlledpeople(bymanagement)Training
AdvancementbasedonabilityProtective Lowpayplushighperformancerelated
organizationalcultureManagerssupervise bonuses
andcontrolHierarchicalorganizational
structureExecutivesasscorekeepers Advancementbasedonperformance
SeparationofdutiesandfunctionsLinear Productiveorganizationalstructure
andsequentialprocessesMassproduction ManagerscoachandadviseHorizontal
(flat)structureExecutivesasleadersCross
ProcessTeamsEmpoweredemployees functionalteams
MultidimensionalworkEducationof
employeesCompensationforresults ParallelprocessMasscustomization

SOURCE:BasedonHammerandChampy,1993.

Inresuming,thewholeprocessofBPRinordertoachievetheabovementionedexpected
resultisbasedonkeystepprincipleswhichincluderedesigning,retoolingand
reorchestrating.Eachprincipleembodiestheactionsandresourcesaspresentedinthe
tablebelow.

ObjectivesofBPR

WhenapplyingtheBPRmanagementtechniquetoabusinessorganizationthe
implementationteameffortisfocusedonthefollowingobjectives:

Customerfocus.Customerserviceorientedprocessesaimingtoeliminatecustomer
complaints.
Speed.Dramaticcompressionofthetimeittakestocompleteataskforkeybusinessprocesses.
Forinstance,ifprocessbeforeBPRhadanaveragecycletime5hours,afterBPRtheaverage
cycletimeshouldbecutdowntohalfanhour.

Compression.Cuttingmajortasksofcostandcapital,throughoutthevaluechain.Organizing
theprocessesacompanydevelopstransparencythroughouttheoperationallevelreducingcost.
Forinstancethedecisiontobuyalargeamountofrawmaterialat50%discountisconnectedto
elevencrosscheckingsintheorganizationalstructurefromcashflow,inventory,toproduction
planningandmarketing.Thesecheckingsbecomeeasilyimplementedwithinthecross
functionalteams,optimizingthedecisionmakingandcuttingoperationalcost.

Flexibility.Adaptiveprocessesandstructurestochangingconditionsandcompetition.Being
closertothecustomerthecompanycandeveloptheawarenessmechanismstorapidlyspotthe
weakpointsandadapttonewrequirementsofthemarket.

Quality.Obsessionwiththesuperiorserviceandvaluetothecustomers.Thelevelofqualityis
alwaysthesamecontrolledandmonitoredbytheprocesses,anddoesnotdependmainlyonthe
person,whoservicingthecustomer.

Innovation.Leadershipthroughimaginativechangeprovidingtoorganizationcompetitive
advantage.

Productivity.Improvedrasticallyeffectivenessandefficiency.

InordertoachievetheabovementionedadjectivesthefollowingBPRprojectmethodologyis
proposed.

MethodologyofaBPRprojectimplementation/alternativetechniques

BPRisworldwideapplicabletechniqueofbusinessrestructuringfocusingonbusiness
processes,providingvastimprovementsinashortperiodoftime.Thetechniqueimplements
organizationalchangebasedontheclosecoordinationofamethodologyforrapidchange,
employeeempowermentandtrainingandsupportbyinformationtechnology.Inorderto
implementBPRtoanenterprisethefollowingskeyactionsneedtotakeplace:

Selectionofthestrategic(addedvalue)processesforredesign.
Simplifynewprocessesminimizestepsoptimizeefficiency.(modeling).

Organizeateamofemployeesforeachprocessandassignaroleforprocesscoordinator.
Organizetheworkflowdocumenttransferandcontrol.
Assignresponsibilitiesandrolesforeachprocess.
AutomateprocessesusingIT(Intranets,Extranets,WorkflowManagement)
Traintheprocessteamtoefficientlymanageandoperatethenewprocess
Introducetheredesignedprocessintothebusinessorganizationalstructure
Managementapproach,BPRdoesproposedramaticchanges.Themajordifferences
betweenprocessinnovationthroughBPRandincrementalimprovementthroughTQM
arementionedonthetablethatfollows.

ExpectedResults/Benefits

Theexpectedresultsforacompanythatimplementsbusinessprocessreengineeringare
thefollowing:

Reallocationofjobsandprocessessoastobecombinedintofewer,tobeexecutedin
naturalorder,simultaneouslyandbytheleastpossiblenumberofemployees.

Reorganizationofthecompany'sstructure(downsizing)andemployeeempowerment.

Jobsandprocessesbecomeflexiblesoastobeexecutedaccordingtotheneedsofeach
case,company'sandcustomer'sneed's(hybridcentralized/decentralizedoperations)

Characteristicsoffirmsandserviceproviders

Severalsurveysandbenchmarkingfindingsrevealtheessentialroleofconsultantsinthe
BPRprocess.Consultants'helpandguidancemaybeextremelybeneficialinallstagesof
theBPRprocedure.Thisisduetothefactthatconsultantshavethefollowingattributes:

Theyareobjectiveandimmunetointernalpolitics.
Theyhavefollowedtheprocessbefore.

Theybringinformationandbestpracticesfromothercompanies.

Theyaregoodcommunicationpathsbetweenfrontlineworkersandcustomers,andthe
leadersofthecompanyororganization.

Consultants,besidestheirbeneficialqualities,canalsounintentionallycreatebarriersby:
havingthesolutionbeingviewedas"theirs"andnot"yours",andtakingtoostrongalead
roleanddisengagingtheorganization.

TheconsultantsmayplaydifferentrolesintheBPRprocedure,andthisisamatterforthe
companytodecidealwaystakingintoaccounttheorganizationsneedsandthespecific
BPRapproachchosen.Theroleofconsultantmaybe:

astrongfacilitatorandexperiencedpractitionerwhobringsamethodologywiththem.
ateammember;canbeanobjectiveandunbiasedcontributortothesolution;

asubjectmatterexpertwithknowledgeofperformancelevelsandbestpracticesof
similarorganizationsandprocesses;abletoperformspecifictasksfortheteam.

2 APPLICATION

Wherethetechniquehasbeingapplied
ManypublicandprivatesectororganizationsandSMEsWordwidehadundergonemajor
reengineeringefforts.Thetechniquewasappliedfirsttomultinationalcooperations,such
asIBM,AT&T,SONY,GENERALELECTRIC,WALLMART,HEWLLET
PACKARD,DEC,KRAFTFOODShavingasaresultmajordownsizingintheir
organizationalstructures.

Later,thebankingsectorbegantoreengineerwithagreatdegreeofsuccesssuchas
CITIBANK,NORTHWESTERNBANK,BANKOFAMERICAandothers.Major
utilitycompaniesusedreengineeringasatechniquetoimproveservicelikeOTE,ELTA.
BPRisalsobeingusedtochangetheorganizationalstructureofpublicservices.Firstthe
governmentcabinetofEgyptreengineereditsprocessesalongwithmanyMunicipalsin
Europe.ThepublichealthsectorisundergoingamajorreengineeringinEuropeusing
theCORBAmethodology.

Asthetechniquewasbecomingwellknowntothebusinesssectorsmallerenterprises
wereusingthetechniquefororganizationalupgrade.TodaymostSMEsareinvestigating
thereengineeringtechniqueandalotofthemareapplyingreengineering,sincethe
techniqueisapplicableandaffordabletoalmostallSMEs.Thisisprovedbythe
increasingdemandforBPRconsultantsinGreeceandworldwide.

Mostofthetimesreengineeringisappliedasa"must"wheninnovativeITtoolsare
introducedtoSMEs.ToolssuchasSAP,BAANandvariousERPsystemsthatpromote
thehorizontalorganizationalstructurearethevehiclesforreengineeringthe
organizationalstructureinordertoadapttothehorizontaloperationalsubsystemsofthe
tools.Forthefirsttimewecansay"thatITdoesnotonlysupportmanagement,IT
changestheorganizationalstructure".Today120businessesfromsmalltomediumsizein
GreeceandthousandsinEuropehaveinstalledsuchtypesofITsystemsreengineering
alsotheirorganizationalstructure.

Typesoffirms/organizationsthatBPRcanbeapplied

BRPcouldbyimplementedtoallfirms(manufacturingfirms,retailers,services,etc.)and
publicorganizationsthatsatisfythefollowingcriteria:
MinimumNumberofemployees:20(atleast4inmanagementpositions).

Strongmanagementcommitmenttonewwaysofworkingandinnovation.
WellformedITinfrastructure(requirementsarepresentedinparagraph2.4).

BusinessProcessReengineeringcouldbeappliedtocompaniesthatconfrontproblems
suchasthefollowing:
Highoperationalcosts

Lowqualityofferedtocustomers
Highlevelof''bottleneck"processesatpickseasons
Poorperformanceofmiddlelevelmanagers

Inappropriatedistributionofresourcesandjobsinordertoachievemaximum
performance,etc.

DurationandimplementationcostofBPR

Duration

TheBPRtechnique,ingeneral,isnotatimeconsumingprocess.Thedurationofeach
BPRprojectvariesfrom6to10months.Thisvariationrelatestothekindofbusiness
andtheextendtowhichBPRisgoingtobeimplemented.Moreover,itdependsonthe
techniquesandmethodologythateachconsultingcompany(thatusuallyparticipatesin
theprocedure)isusing.Forinstance,BPRHELLAS,usingtheREengineering
MethodologyOrientedtowardsRapidAdaptation(REMORA)proposesthefollowing
timeschedule:
MONTHS

BPRPROJECTSTAGES
1
2
3
4
5

Preparation&coordinationforBPR
Businessmodeling&measurements

Managementofchange&controls
Technicaldesignofthesolution

Personneladjustment&training
Realization&transferofchanges

ImplementationCost
TheimplementationofaBPRprojectconsistsoftwostages:
Theprocessmanagementandredesignstudyandconsultingstage.

TheimplementationoftheredesignedprocessusingITtoolsincludingemployeetraining
andintroductionofthenewprocessestothecompanyorganizationalstructure.

ThecostofaBPRforprojectsappliedtoSMEsforselectiveprocessesvariesdepending
onthecomplexityofthebusinessenvironmentandthenumberofprocessesfor
reengineeringIngeneral,thefollowingcostisapplicableforeachstage.

Stage
Description
CostinEuro
1
Theprocessmanagementandredesignstudyandconsulting.
From4000to7000
2
TheimplementationoftheredesignedprocessusingITtools

includingemployeetrainingandintroductionofthenew
From5000to9000

processestothecompanyorganizationalstructure

Total

From9000to16000

Conditionsforimplementation(infrastructuresrequiredetc.)
Infrastructurerequirements:

Anoperatingtransactionalandaccountingcomputerizedsysteminclosingthecommercial
partofthetransactions.
Anetworkthatconnectsallkeypersonnel.
WorkstationswithWindowsNTorWindows1995systemorlatestversion.
Anexchangeserver(MSoutlook,orMSbackofficeorLotusNotes)

EuropeanOrganizationsSupportingtheImplementationofBPR
TheimportanceandtheneedforBusinessProcessReengineeringinthesmalland
mediumenterprisesandtobiggercompaniesaswell,isgreat.TheEuropeanCommission
hasacknowledgedthissituationandpromotesBPRandsupportstheeffortsofSMEsto
proceedtoreengineering.UndertheESPRITandthelatestISTprogrammes,thereisa
numberofprojectssuchastheCOBRA(URLwww.imsgrp,com),andROCHADE(URL
www.gsm.ch/rochade).