Business Process Re-engineering

Business process re-engineering

2020-10

Which of the following statements is/are CORRECT regarding Business Process Re-engineering (BPR) and Business Process Improvement (BPI)?

  1. The level of change in BPI is incremental while that in BPR is radical.
  2. Risks associated with BPI are always higher than the risks associated with BPR.
  3. BPI aims to make an improved version of the business process while BPR attempts to create a brand-new business process.
  4. Compared to BPR, BPI can be completed in a shorter time period.
  5. BPR takes a top-down approach while BPI is a bottom-up approach.

Answer:

(a) The level of change in BPI is incremental while that in BPR is radial., (c) BPI aims to make an improved version of the business process while BPR attempts to create a brand-new business process., (d) Compared to BPR, BPI can be completed in a shorter time period., (e) BPR takes a top-down approach while BPI is a bottom-up approach.

Explanatioin

  • Statement (a): BPI involves small, ongoing, incremental changes to existing processes, while BPR involves radical, fundamental redesigns of processes. Therefore, this statement is correct.
  • Statement (b): BPR has a much higher risk of failure and disruption due to its radical nature and large scale compared to the lower risk associated with BPI's incremental changes. Therefore, this statement is incorrect.
  • Statement (c): BPI focuses on improving an existing process, while BPR aims to create an entirely new process from scratch to achieve dramatic performance improvements. Therefore, this statement is correct.
  • Statement (d): BPI projects are typically shorter in duration and less complex than BPR projects, which can take a long time to implement due to their extensive scope. Therefore, this statement is correct.
  • Statement (e): BPR is typically a top-down initiative, driven by senior management, while BPI often involves a bottom-up approach, with input from employees who work directly with the processes being improved. Therefore, this statement is correct.

    • References

    Business Improvement Business Process Re-engineering
    Level of Change Incremental Radical
    Process Change Improved new vession of process Brand-new process
    Startind Point Existing Process Clean Slate(fresh start)
    Frequency of Change On-time or continuous Periodic one-time change
    Time Required Short Long
    Typical Scope Narrow, within function Broad, across functional
    Horizon Past and present Future
    Participantion Bottom-up Top-down
    Pathto Execution Cultural Cultural, Structural
    Primary Enabler Statistical control Information Technology
    Risk Moderate High

    SOURCE: Howard Smith and Peter Fingar, Business Process Management: The Third Wave (Tampa, FL: Meghan-Kiffer Press, 2003), p. 118. @2020 e-Learning Centre, UCSC

    TABLE 2.1 Comparing business process reengineering with continuous improvement

    Business Process Reengineering Continuous Improvemen
    Strong action taken to solve serious problem Routine action taken to make minor improvements
    Top-down change driven by senior executives Bottom-up change driven by workers
    Broad in scope; cuts across departments Narrow in scope; focuses on tasks in a given area
    Goal is to achieve a major breakthrough Goal is continuous, gradual improvements
    Often led by resources from outside the company Usually led by workers close to the business
    Information systems are integral to the solution Information systems provide data to guide the improvement team

    SOURCE: Ralph M. Stair and George W. Reynolds, Principles of Information Systems: Information Systems in Organizations, p. 54

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