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Recommended: Critique business process reengineering

Reengineering Business:
1. Description
In this ever-changing world, the three Cs: Change, Customer, and Competition are the drivers behind business, thus, many established companies are constantly finding ways to solve their business problems (Hammer & Champy, as cited in Muthu, Whitman & Cheraghi, 1999, para. 2). Business Process Reengineering (BPR) is the solution to these business problems, and according to Tumay (as cited inVuksic & Spremic, 2005, p. 2) BPR has become one of the most popular subjects in organizational management in creating new ways of doing business.
2. What is BPR?
Finding new ways to redesign IT systems, organize tasks and people to ensure that processes support goals realization of organization is the purpose of BPR (Sherwood-Smith, as cited in Chen, 2001).
Hammer and Champy (as cited in Zigiaris, 2000, p. 3) defines reengineering as the basic rethinking and drastic redesign of business processes to achieve substantial improvements in cost, quality, service, and speed. According to Davenport (as cited in Zigiaris, 2000), process is a structured, measured set of activities designed to produce a specified output for a particular customer or market. It emphasis on the way work is done within an organization.

Going back to the fundamentals and reexamine the roots is the belief of BPR. BPR targets a total reinvention rather than minor improvement. BPR is for companies that need a ten-fold increase, not for companies that aim for a 10% improvement (Muthu, Whitman & Cheraghi, 1999). According to Hammer and Champy (as cited in Muthu, Whitman & Cheraghi, 1999), “process” is important in BPR. The main focus of BPR is processes, not tasks, jobs or people.
Information Technology (IT) plays a vital role in B...

... middle of paper ...

...005).
CRP includes advanced planning and scheduling (APS), e-business solutions such as customer relationship management (CRM), and supply chain management (SCM) (Rashid, Hossain & Patrick, 2002).
Phase 4: Inter-enterprise Integration (XRP)
In 2000s, business are interconnected to each other, thus, inter-enterprise integration is necessary to create global information systems. The scope of ERP systems expanded to include the customers, suppliers and trading partners into the system. Extended Resource Planning (XRP) were developed to comprise the entire value chain of the enterprises and beyond the enterprise.
XRP is used for intelligent decision-support that helps in inventory reduction, setting pricing strategy, improving cycle times and increasing customer satisfaction throughout the supply chain management and selling chain management (Vuksic & Spremic, 2005).

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