PR Business Model
BPR develops all its products based on the following business model. The key components of this business model are innovation, organisation and achievement.
The Three Levels of Process Activities are:
1.Business process improvement
2.Business process reengineering
3.Business process architecture
The most basic process activity is Business Process Improvement and the most complex is Business Process Architecture. As you increase the scope of process activity the investment, the risk and the time requirement also increase.
Business process improvement
This is equivalent to re-decorating a house. The starting and finishing points of the process are usually within a single department. The effort supports the business department’s business plan and annual objectives. The results affect the performance of that department.
When the project is finished, the nature of the business, and the organisational structure and boundaries remain unchanged. The department’s employees have to modify their routine and new skills are often needed to make the new process improvements work.
Business process reengineering
Reengineering results in companies being re-modelled: Projects can be expensive in scope. The starting point and finishing point of a targeted process are usually in different departments, making it cross-functional. Areas involved are those which have an impact on, or are impacted by, the process being reengineered.
A reengineering effort supports the company’s Business Plan. The focus is to achieve benefits in support of mid-term targets which are three to four years in the future. The results of a successful project contribute to corporate performance and should be tracked to the bottom line within a year of implementation.
Business process architecture
It is comparable to getting an old building or constructing a new one. You start with a clean sheet of paper, with the objective being to achieve an overall change. Experts are needed, the investment and the risk are substantial, the project can take years to complete and there are no guarantees of achieving the desired returns. This type of effort is unlimited in scope. The focus is on the entire business.
Example: The re-architecturing of General Electric (GE) is frequently cited in the literature as one of the classic examples of a successful, complete overhaul of a large corporation. An architecture effort is a platform for innovation because there are few restrictions in determining what could be possible. Regan James’ Crunch Time, How to Reengineer your Organisation
An overview of Business Process Redesign (BPR)
“Reengineering is the radical redesign of business processes for dramatic improvement” – Hammer, M., Beyond Reengineering, NY: Harper Business, 1996, p.xii