Business Process Re-engineering involves the radical redesign of core business processes to achieve dramatic improvements in productivity, cycle times and quality.
Steps of business process re-engineering (BPR)
To keep business process reengineering fair, transparent, and efficient, stakeholders need to get a better understanding of the key steps involved in it. Although the process can differ from one organization to another, these steps listed below succinctly summarize the process:
Below are the 5 Business Process Re-engineering Steps:
1. Map the current state of your business processes
Gather data from all resources–both software tools and stakeholders. Understand how the process is performing currently.
2. Analyze them and find any process gaps or disconnects
Identify all the errors and delays that hold up a free flow of the process. Make sure if all details are available in the respective steps for the stakeholders to make quick decisions.
3. Look for improvement opportunities and validate them
Check if all the steps are absolutely necessary. If a step is there to solely inform the person, remove the step, and add an automated email trigger.
4. Design a cutting-edge future-state process map
Create a new process that solves all the problems you have identified. Don’t be afraid to design a totally new process that is sure to work well. Designate KPIs for every step of the process.
5. Implement future state changes and be mindful of dependencies
Inform every stakeholder of the new process. Only proceed after everyone is on board and educated about how the new process works. Constantly monitor the KPIs.
The redefined customer-contact process enabled the company to achieve new goals.
- Reorganized the teams and saved cost and cycle time
- Accelerated the information flow, minimized errors, and prevented reworks
- Improved the quality of service calls and enhanced customer satisfaction
- Defined clear ownership of processes within the now-restructured team
- Allowed the team to evaluate their performance based on instant feedback
Benefits of business process re-engineering
Here are some of the benefits of reengineering business processes:
Reduces cost
One of the major aims of business reengineering is reducing cost and wastage. Through reengineering, companies can identify materials, production processes, and equipment contributing to waste in the company. Similarly, reengineering helps identify redundant roles among staff, which companies can merge or remove. As a result, reengineering saves costs by reducing expenses and limiting waste.
Increases efficiency
When companies undergo business reengineering, they optimize their processes to function better. This includes automation, system integration, and upgrades. As a result, companies usually become significantly more efficient. Eliminating wastage and time-wasting processes allows the company to get more done with the same time and resources, leading to an increase in overall productivity.
Improves product quality
Reengineering aims to help companies satisfy customer needs more effectively. As a result, most reengineering processes focus on improving product quality or service delivery. For example, a company may transition to a more environmentally friendly material, making the product more agreeable to potential buyers. Additionally, improvement in production processes usually allows employees to focus more on the quality of products.
Builds brand image
When a company dedicates itself to constant improvement, it shows good corporate ethics and concern for customers. This can help build the company’s brand image and increase customer loyalty. Business reengineering also means the company can deliver products and services with higher quality, leading to a better brand image.
Encourages innovation
While reengineering business processes, employees analyze various organizational structures and brainstorm ways to improve them. Such efforts can lead to innovations that change the nature of work in the industry. Through such innovations, companies can increase their capacity and develop more sophisticated products.
Fasttrack adoption of new technology
Transitioning to new technology from old ones can be a strenuous process for most organizations. Business reengineering offers a great motivation for companies to adopt new technologies speedily. This usually leads to better service delivery for customers and can also help organizations improve their productivity.
Conclusion
The pace of progress that manufacturers are making towards smart manufacturing is dependent on a variety of factors – agility in deploying industrial security solutions, speed to reskill workers, level of investment, willingness for technological change, etc.
From its origins in manufacturing, YGL NERVO has evolved to become critical to almost every aspect of running a business.
- YGL NERVO software is the central nervous system of an enterprise, interconnecting supply chain, commerce, inventory, warehousing, fulfillment, analytics and finance.
- Initially focused on manufacturing, YGL NERVO has added additional functions to address nearly every aspect of business include Smart Warehouse, RPA and integration to industrial machine.
- YGL NERVO is an essential tool for Enterprise to become more efficient, flexible and innovative to combat the steady encroachment of e-commerce and a volatile consumer landscape characterized by a dramatic increase in the number of available distribution channels and rapidly changing consumer preferences.
- YGL NERVO is experiencing renewed activity, as the nervous system software providers and enterprises move IT functions to the cloud, which offers lower cost, the ability to innovate, to develop new functions and launch new offerings rapidly.
YGL NERVO can expertly deploy, monitor and troubleshoot a new ERP system that centralises operations at your enterprise.
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