What Is Business Process Reengineering?
Business Process Reengineering (BPR) is the practice of changing an organization’s core functions to improve efficiency, reduce costs, and increase product quality. It begins with an in-depth analysis of workflows to identify areas that need major change. BPR specialists then help companies transition to more standardized and effective processes.
It is important to distinguish BPR from business process improvement. While improvement focuses on updating existing workflows, Business Process Reengineering makes fundamental changes across the entire business system. This often involves redesigning processes to align with new goals and strategies.
The idea of BPR was first introduced by Michael Hammer. He encouraged business leaders to reassess and redesign their processes before focusing on cost reduction or customer service improvements. When planning a change of this scale, many organizations ask: Should we do BPR before or during ERP implementation?
ERP Implementation or Business Process Reengineering: What Comes First?
Doing BPR first ensures processes are fully optimized before configuring ERP software. This approach helps align ERP functionality with real business needs and avoids unnecessary customizations. It also provides process documentation that improves ERP training and adoption.
However, ERP implementation itself often requires reviewing and adjusting workflows. While not the same as BPR, it can achieve some process improvements in a cost-effective way.
In many cases, performing BPR and ERP implementation together is the most effective. ERP systems include industry best practices that may highlight process improvements not considered during a stand-alone BPR exercise. ERP consultants can also bring additional industry expertise to strengthen the reengineering effort.
Top 5 Benefits of Business Process Reengineering
BPR is a major initiative, but the payoff can be significant. Here are five benefits of reengineering business processes:
1. Clarity of Purpose
Most organizations cannot clearly describe their processes from end to end. A BPR project starts with documenting workflows, which reduces risk and ensures improvements are aligned with real needs.
2. Simplified Operations
Reengineering cuts out redundant processes that slow down work. The result is streamlined operations where employees understand their responsibilities and customers receive better service.
3. Increased Efficiency
By removing duplication and tweaking workflows, businesses can speed up processes and boost productivity.
4. Better Results and Products
More efficient processes allow teams to focus on customer relationships and quality. Improved communication between teams leads to faster information flow and greater resilience to market changes.
5. Maximized ROI
All of these benefits contribute to maximizing the return on investment from process improvement.
Conclusion: Aligning ERP and BPR
The software you choose should support your business for the next five to ten years. Unfortunately, many organizations jump into ERP selection without documenting or redesigning their processes first. This slows down employees and reduces competitiveness.
Business Process Reengineering, when aligned with ERP implementation, gives businesses a strong foundation for long-term growth.
At BHC, Our ERP consulting team can help you plan and improve your processes before ERP selection. Contact us below for a free consultation.
