Business Process Re-Engineering
What is a business process? Business process refers to a set of smaller functions, collectively fulfilling a major objective. These functions are stringed together in a sequential pattern towards achieving the main objective. Each of these functions can again be broken down into smaller activities, which are again linked together in a systematic manner to complete the function.
Business processes are not static, even though the main objective of the business remains static. The main objective of any business is to make profits. There is no limit on how much profit. But the business enterprise is not the sole determinant of these profits. The market decides what price it would be willing to pay for the business' products. This is because there is competition in the market. However, the business enterprise can periodically review the business process systems so that the existing processes can be improved so that profits also increase.
For example, technological changes may make some of the activities superfluous. At times, it may make more economic sense to offload some of the functions or consolidate some of the activities and functions. There can be many such reasons for business process review. For reviewing the business processes, the services of a business process analyst are availed. The analyst starts by studying the existing business process systems. Analyst is also aware of various new business process methods that have been developed, and tested in other businesses. An example of this is the usage of cross-functional teams. These teams are comprised of personnel from different departments, or personnel involved in different functions that make up business process sequence. However, these personnel have something to offer in other functions as well. In other words, they need not be confined under one function of the business process.
By incorporating such contemporary methods and other changes the analyst develops a new business process design. This development of business process design, and its implementation is business process re-engineering. The ultimate goal of such re-engineering is to improve the efficiency within the organization and reduce costs. Business process design, business process testing, business process engineering, business process mapping, and business process systems are all examples of Business Process Re-Engineering.