Business Process Management and Reengineering

Introduction

Currently, businesses are subject to market dynamics such as quick and unexpected modifications, varying preferences of clients, anticipating first-rate merchandise, as well as existing competition. Companies assume various forms in a bid to retain their position in the international market and remain active. Different companies must decide to be unsuccessful or carry out vital adjustments in a range of phases comprising their mode of operation. The latter can be termed as Business Process Reengineering (BPR) through which businesses encounter essential modifications to acquire remarkable advancement in the significant success issue. In this regard, BPR must involve extensive innovation as well as risky alterations (Singh 2012).

On the other hand, Business Process Management (BPM) entails concepts, methods, and systems to maintain the plan, administration, configuration, performance, and scrutiny of business progressions. The foundation of BPM is a clear illustration of business operations with their actions and the implementation limitations. This paper distinguishes between Business Process Management (BPM) and Business Process Reengineering (BPR).

Business processes

A careful analysis of business processes provides an overall understanding of the concepts and technologies in Business Process Management as well as Business Process Reengineering (Iqbal 2012).

Design and analysis

The surveys on the business processes together with their organisational and technical environment are conducted and based on these surveys, viz. the processes are identified, reviewed, validated, and represented in a business model. An excellent design decreases the complications in the existence of the practice. The goal of this step is “to ensure that a correct and efficient design is achieved” (Iqbal 2012, p.546). It captures the enterprise processes at an advanced stage. Here, enough details are gathered to understand how the process works conceptually. Much concentration goes to ensuring that the high-level details are correct without concentrating on its implementation. It introduces capricious combinations from the theoretical design.

Supervising

The individual practices are monitored so that the knowledge position can be seen effortlessly, and figures on the performance of the operations are offered. The extent of monitoring depends on the information that the business wishes to evaluate and analyse the process. The monitoring can be real-time, ad-hoc, or near real-time (Iqbal 2012). Progression monitoring is imperative in providing precise information regarding the instant position of business operations.

Evaluation and optimisation

This phase uses the information available in the evaluation and improving business process models with their respective implementation. The evaluation of execution logs is done using process mining and business activity monitoring techniques (Iqbal 2012). It also involves the identification of the bottlenecks together with potential cost-saving opportunities and any other improvements and after that applying the enhancements to the design of the business process.

Business Process Management

Business Process Management (BPM) is the science and art that provides governance for a process-oriented organisation with a goal of quickness and operational performance. It includes the statement of the goals of one’s intentions and the procedure to be followed in achieving the stipulated goals (Ostadi, Aghdasi & Alibabaei 2011). It supports the success and competence of business by being determined with elasticity, novelty, and incorporation of current expertise.

BPM has received unparalleled interest from both the Business Administration and Computer Science communities, which are characterised by differing educational backgrounds and technical interests where improved operations of the firms is a concern with the Business Administration community. The reduction in the cost of production, having a high level of customer satisfaction, and introducing new products and services at a much lower price are critical aspects from Business Administration point of view of BPM. On the other hand, the interests of the software community include the provision of robust and scalable software systems where the business process plays a significant role in designing reliable and flexible information systems (Altinkemer, Ozcelik & OZdemir 2011).

The importance of BPM is the understanding of the company’s operations and its relationships. Identification of activities in conjunction with their relationships as well as representing them by use of business process model enables the stakeholders to communicate efficiently and effectively about these processes. Also, by using business process models as an ordinary communication object, business process models can be analysed where potentials for improving the whole process can be developed. A different crucial functional objective of business process management is elasticity or capacity to change whereby subjects of change are diverse from the organisational environment to software layer without necessarily changing the overall business process (Altinkemer, Ozcelik & OZdemir 2011).

One of the significant challenges in the execution of any change is the resistance from people who feel that emerging technologies may replace them once they are deployed. Another problem is based on the security of software systems that are relied upon in the implementation of BPM (Abdi, Zarei, Vaisya & Parvin 2011). The elasticity of the platform chosen in the implementation of the BPM is a different challenge.

Business Process Reengineering

Reengineering denotes a process of casting aside old ways of operations and beginning again. Business Process Reengineering (BPR) thus entails shifting back to the starting point and coming up with a more advanced method of operation. In a bid to better the quality, cost, as well as another functional basis of the contemporary business, a business must embrace vital rethinking and thorough restructuring in business operation. The central concept is to carry out a comprehensive modification of the old methods of operations. BPR aims to ensure noteworthy advancement in quality, cost, and the entire means of operation to enable the business to acquire an utmost benefit in the aspects of contemporary business setting like clients, competition, and modification. BPR comprises of four major distinctive definitions like dramatic, thorough, redesign, and practices (Abdi, Zarei, Vaisya & Parvin 2011). BPR necessitates contemplation on the significance of the work that individuals are involved in and the manner of carrying it out. This vital modification in business functions seeks to boost the overall performance rather than just partial advancement.

In the 1990s, more than half of the Fortune 500 companies declared to have embarked on reengineering attempts or had arrangements set to commence reengineering. BPR works to aid businesses in reorganising their undertakings thoroughly by concentrating on the organisational plan of the operations of the company. A business operation is a laydown of reasonably interrelated chores carried out in a bid to realise a determined business result (Altinkemer, Ozcelik & OZdemir 2011). Reengineering stands out as a holistic concentration on business goals, and the way operations are connected could promote the full-scale reconstruction of operations instead of reiterative optimisation of sub-operations. Some of the other definitions that could be employed in place of BPR include Business Process Redesign, Business Process Change Management (BPCM), and Business Transformation (BT).

Differences

Business Process Reengineering pursues a comprehensive reformation, whereas Business Process Management entails a continuous upgrading of sub-processes. Unlike Business Process Reengineering that aims at end-to-end operations by thoroughly restructuring them, Business Process Management focuses on upgrading section by section of a business by taking up much more controllable and slighter reforms in the business operation. In this regard, the outlay, risks, and level of change are minimal, but on a different perspective, the tangible result is more proper as compared to Business Process Reengineering. Taking Business Process Management to be a coordination software, then Business Process Reengineering becomes a method. BPR allows businesses to restructure from deep inside and build a new business structure (Altinkemer, Ozcelik & OZdemir 2011). BPR re-assesses the operations employed by companies from their very fundamentals and radically restructures them, allowing companies to attain noteworthy advances in quality, cost, and services. Therefore, BPR caries more risks as compared to BPM.

Summary

Businesses are subjects for increasing marketplace dynamics. It can be quick and unanticipated alterations, varying preferences of clients, quality of merchandise and present competition. Businesses take up various forms intending to retain their position in the worldwide market and stay active. Businesses can decide to be unproductive or carry out vital adjustments in a range of phases encompassing their style of operation. A careful analysis of business processes gives an overall comprehension of the concepts and expertise in Business Process Management as well as Business Process Reengineering. Different from Business Process Reengineering that aims at entire operations by comprehensively restructuring them, Business Process Management focuses on improving section by section of a business by taking up much more convenient and slighter reforms in the business functions. Therefore, the outlay, risks, and intensity of change are minimal, but on a different viewpoint, the real result is more proper for BPM as compared to Business Process Reengineering.

Reference List

Abdi, N, Zarei, B, Vaisya, J & Parvin, B 2011, ‘Innovation Models and Business Process Redesign’, International Business & Management, vol. 3 no. 2, pp. 147-152.

Altinkemer, K, Ozcelik, Y & OZdemir, Z 2011, ‘Productivity and Performance Effects of Business Process Reengineering: A Firm-Level Analysis’, Journal of Management Information Systems, vol. 27 no. 4, pp. 129-162.

Iqbal, J 2012, ‘Towards a conceptual framework for implementation of business process reengineering (BPR) initiative’, Interdisciplinary Journal of Contemporary Research in Business, vol. 3 no. 11, pp. 523-550.

Ostadi, B, Aghdasi, M & Alibabaei, A 2011, ‘An examination of the influences of desired organisational capabilities in the preparation stage of business process re-engineering projects’, International Journal of Production Research, vol. 49 no. 17, pp. 5333-5354.

Singh, P 2012, ‘Management of Business Processes Can Help an Organisation Achieve Competitive Advantage’, International Management Review, vol. 8 no. 2, pp. 19-26.