Information Technology Reference
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22.2.3 Business Process Reengineering (BPR) Methodology
An overview of a seven-step methodology is as follows:
1. Develop the context for undertaking the BPR and in particular reen-
gineer the enterprise's business processes. Then identify the reason
behind redesigning the process to represent the value perceived by
the customer.
2. Select the business processes for the reengineering effort.
3. Map the selected processes.
4. Analyze the process maps to discover opportunities for
reengineering.
5. Redesign the selected processes for increased performance.
6. Implement the reengineered processes.
7. Measure the implementation of the reengineered processes.
Outsourcing is distancing the company from noncore but criti-
cal functions; as against this, reengineering is exclusively about
the core.
The BPR effort within an enterprise is not a one-time exercise but an ongo-
ing one. One could also have multiple BPR projects in operation simulta-
neously in different areas within the enterprise. The BPR effort involves
business visioning, identifying the value gaps, and hence, selection of the
corresponding business processes for the BPR effort. The reengineering of
the business processes might open newer opportunities and challenges,
which in turn triggers another cycle of business visioning followed by BPR
of the concerned business processes.
The competitive gap can be defined as the gap between the customer's
minimum acceptance value (MAV) and the customer value delivered by the
enterprise. Companies that consistently surpass MAVs are destined to thrive,
those that only meet the MAVs will survive, and those that fall short of the
MAVs may fail. Customers will take their business to the company that can
deliver the most value for their money. Hence, the MAVs have to be charted
in detail. MAV is dependent on several factors, such as
• The customer's prior general and particular experience base with an
industry, product, and/or service
• What competition is doing in the concerned industry, product, or
service
• What effect technological limitations have on setting the upper limit
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