Business Process Reengineering in Practice: Successful Cases

Business Process Re-engineering (BPR)

According to AbdEllatif, Farhan, and Shehata (2017), one of the most important method to make company perform better is using Business Process Re-engineering (BPR). BPR used to redesign the whole business processes so that the particular company can have improvement in the business. For example, improve product quality, improve service quality, and others. Mostly, BPR will start from zero which means company need to set new vision and mission for the particular company. This vision and mission need to be able to reach their customer needs at the same time employee also will get some benefits from it.

Through a successful BPR, the company can reduce company costs and gain more customers.

Based on Warren, Crosslin and MacArthur (1995), there are eight steps use when redesign the business. First step is BPR should be seek by the and identified by the high-level of CFS. Next step is operational system should be analyzed. Third business processes need to be measured based on performance features.

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Continue by advance models of business processes are build. Fifth is the existing and proposed model of business processes need management. After that, the performance of the business can used to predict when the BPR is running. From the result of prediction, it can show the whole performance of the company in the future after apply the new changes. The last step of BPR company must make decision on either the company need to find out the problem or come out with a specific alternative with results shown in the performance of new changes.

According to Enríquez, Troyano and Romero-Moreno (2018), task-centred and proactive approach, information and knowledge, and transparency and self-service are the advantage of Business Process RE-engineering. The first task-centred and proactive, user can only focus in one task provided that other tasks have own deadline. Besides, users can directly communicate using internet when they faced problems. Next advantage, information and knowledge.

The main purpose of using BPR is to make sure that the business can become successful. So, the information can get when running the BPR is very useful. Third advantage, transparency and self-service. The new business process implemented need to be known by each person so that they can make adjustment based on the new business vision and mission. The employees can always use internet to refer their tasks. But there also some limitation when using BPR. According to Kwahk and Kim (1999), this method is hard to gain casual values from every people. It does not think over the cause and effect relationships if there is a time delay. Besides that, human aspect had been ignored (Chen & Liu, 2007), (Maruster & Beast, 2009). On top of that, BPR is not suitable for the small company. Because it will cost a lot of expenses from the time the company decided to use BPR to redesign the business. Not only cost will increase the risk need to be bear by the company also very big. The success of failure of the company only rely on the risk analysis phase (Musa, Othman & Al-Rahimi, 2014). Following are the examples of companies that successful used Business Process Re-engineering.

First is Ford

Ford is the second biggest manufacturer in the world that provide cars and trucks. Since Ford started the business, this company had use "human engineering" (Tandon, Goyal, Sharma, & Abhilash, 2016). But due to the advance of technology, Ford made a lot of changes. For example, the buyer can straightly go to make their order through online instead of sending their purchasing order form to the administration. This online service provides the company's employees can directly confirm the order of the customer when the product is a finish goods. With the online database introduce in Ford, there is a reduce of 75% of workforce in account payable department (Martin, 2014). From redesign the business process, Ford gain more customer satisfaction, with more customer satisfaction the revenue of the company will also increase.

The second example of company that use BPR is Taco Bell

Taco Bell is a retail food service company before make changes of the business by using BPR. In 1989, Taco Bell redesigned the jobs from the layers of management to centralized commissaries (Chong, Chen & Chen, 2001). The name of the project is called K-minus. The ingredients will be prepared outside of the restaurant, then the prepared ingredient will be served to the customers in the restaurant. By doing this, it helps the company had a better-quality control, reduce the chances of injuries in kitchen, and customer will have better service (Nepal, 2017).

U.S. telecommunications company (TELECO) also used BPR to redesigned the business. But it is failed. According to Sarker and Lee (1999), the reasons that TELECO had failed are do not know the detail of functional areas and computer-based BPR, do not have much communication, metaphors of company used are not good.