This article discusses the differences between BPR vs BPM in terms of business process improvement.
So, if you’re looking to finish your business process, this article is for you.
Business Process Re-engineering, often known as BPRE, is a business management technique that
involves undertaking a business process reconstruction for the purpose of improving the product or
service quality while simultaneously minimizing long-term expenditure.
Whereas BPM, or Business Process Management, is the strategic planning of the management and
maintenance of the workflow in order to improve the efficiency of the existing business processes
and the overall organization with a long-term string of procedures that acts as the backbone for
all business processes.
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What is Business Process Re-engineering (BPR)?
The definition of Business Process Re-engineering (BPR) : a systematic, disciplined strategy
to lower organizational costs and unnecessary business processes by analyzing existing human and
automated workflows.
Processes can pile up over time in huge firms — and even smaller or medium-sized ones — and become
legacy snarls that are deeply embedded in how things are done. BPR is a tried-and-true methodology
that enables businesses to untangle the Gordian Knots that are preventing true cost reduction and
improvement.
Advantages of BPR
- Flexibility: The only thing that is constant is change, and companies are no
exception to this rule since they are frequently confronted with the need for transformation.
Changes may become necessary for a variety of reasons, including new rules, technology
advancements, market needs, or the introduction of new ways of working.
- Productivity Is Being Increased: Company Process Reengineering (BPR) is a
technique that focuses on the automation of a large number of repetitive aspects that
occur in a typical business workflow. Business process improvements are primarily
comprised of the elimination of process bottlenecks, the use of parallel processing, and
the complete elimination of duplicate stages and steps.
- Risks Have Been Reduced: It provides enterprises with the option to function more
efficiently, allowing them to save money on their operating costs. Business Process
Reengineering is also responsible for the development of better-designed, implemented,
and monitored processes, which has the potential to lower operational risks such as
fraud.
- Transparency Is Increased: Organizations are required to adhere to a set of
industry regulations in order to continue to operate. Business process reengineering
ensures that firms maintain transparency and are able to implement regulatory
requirements without difficulty, hence preventing delays in compliance and the resulting
fines and penalties.
- Employee Satisfaction Is Important: Business process reengineering reduces the
amount of red tape in firms, allowing people to devote their whole attention to their
jobs. This process automation reduces a great deal of repetitive work, which, in turn,
makes access to information more convenient, resulting in higher productivity and a happy
staff overall.
Disadvantages of BPR
- A Scarcity of Knowledge: For the personnel to get the necessary knowledge in the
industry, they must be properly trained or retouched with extensive business process
reengineering programs. Only via appropriate training, mentoring, and knowledge transfer
will the business be able to observe the correct process execution.
- Implementation Process: Irregularities throughout the implementation process as
well as choosing the wrong course. Processes in the Workplace Reengineering cannot be
carried out in order to get a competitive edge in a short period of time. For observable
progress to be made, the complete procedure must be followed step by step.
- Team Formation That Is Not Appropriate: The well-defined team must be on the
lookout for any new upgrades to various process reengineering approaches that may have
been released in the meanwhile. Not only is it important to have the relevant expertise,
but it is also important to have the right team members included in the operation and
management.
- Misallocation Of Available Resources: Because a lack of critical resources can
entirely derail the bridge that connects the organization and the reengineering process,
getting this right is the very first step to take. If there is a necessity, you must
ensure that the appropriate resources are readily available when needed.
- Incorrect Allocation Of Resources: Analysis that was flawed, as well as a lack of
support from team members. The process milestones should always be well-researched and
developed in advance of the start of the process. In order for the method to be successful,
you must guarantee that all of the necessary data and information is available to the
entire team.
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What is Business Process Management (BPM)?
Business Process Management refers to the study, identification, modification, and monitoring of
business processes in order to guarantee that they function smoothly and may be improved over
time. It is a crucial element of the access and uses puzzle because no or poor processes severely
diminish your capacity to get at and exploit information.
BPM is best described as a business practice that includes approaches and processes. It is not a
technology, though there are some on the market that does, because of what they allow:
identifying and adjusting existing processes to fit with a desired, presumably better, the future
state of affairs. It’s all about formalizing and institutionalizing more efficient work processes.
To gain a better understanding of Business Process Management, it is necessary to be aware of its
advantages and disadvantages.
Advantages of BPM
- Problem-Solving Made Straightforward: Because work processes are well-distributed
to the appropriate personnel for the job, the operation framework is simplified in BPM
environments. When there are issues that need to be resolved or improved, business
process management (BPM) is implemented. BPM enables employees to tackle difficulties in
their own sectors with greater concentration and resources thanks to the use of business
process management.
- Risks Have Been Reduced: This one has a strong connection to the problem-solving
attribute of business process management. Employees who are strategically positioned help
to reduce organizational risks and pitfalls to the extent that concentration is
maintained and resources are effectively handled. Companies are better equipped to make
better judgments when faced with a predicted situation since the risks have been
lowered.
- Measurability: As previously said, one of the primary goals of BPM is to increase
visibility. When applied early in the process, the discipline is able to demonstrate
tangible and quantifiable results. When statistical data is well-presented and evaluated,
it can assist companies in determining what is working and what is not working.
- Excellence In The Eyes Of Both Customers And Employees: A customer-focused
approach, as well as personnel development, are achieved through BPM. Customers benefit
from improved customer service, information technology support, and the ability to
specify their choices for the products or services they desire, among other benefits.
It is taken into consideration what they require.
Disadvantages of BPM
- Funds Were Mismanaged: When the BPM framework is applied appropriately, the benefits
of the framework will be enjoyed to the fullest extent. Compliance with the methodology will
result in significant financial and other resources being lost, which is the last thing you
want to happen to your company.
- Innovators Are Limited: The use of contemporary technology and human resources should
be maximized when it comes to business process management, as previously discussed. Companies
that use BPM, however, have been said to be less adept at responding to new technology or
fashion trends than their competitors. Process management, it is argued, serves as an
impediment to new ideas.
- General Lack of Interaction: Almost everything revolves around communication. The
separation of workflows and processes in business process management (BPM) has raised
concerns among some firms that this may lead to poor communication between personnel working
in different sectors of expertise.
- Cost Ineffective: It is not inexpensive, even though BPM is reasonably priced. You’ll
still have to shell out a lot of cash to complete the project. It is possible to recoup your
investment in a short period of time, or even experience a significant increase in your
return on investment. Your company will face major difficulties if this is not the case.
The inability to distribute information effectively can also result in insufficient
analysis.
Although BPM has its drawbacks, many firms and organizations continue to use it in spite of
these downsides. In contrast, despite the fact that it offers numerous advantages, some
people are skeptical of its effectiveness. BPM can cause a business to lose money by resulting
in the loss of clients, sales, intellectual property, and other resources if it is not handled
properly.
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Similarities Between BPR And BPM
- Several business processes are similar across them, such as comprehending the existing
procedures, identification, evaluation, and analysis, among others.
- The primary objectives of Business Process Re-engineering and Business Process Management
are to increase the speed and quality of business processes.
- Both methods are aimed at lowering costs while also ensuring that the organization’s
workflow is carried out smoothly.
BPR vs BPM in Tabular Form
Business Process Re-engineering (BPR) |
Business Process Management (BPM) |
Rebuilds a process flow using a novel approach. |
Monitors and maintains the current state of affairs. |
Identifies and eliminates any duplicate processes. |
Any process in the business flow is not rejected. |
A more strategic, cross-functional approach. |
A disciplined managerial approach. |
By planning the future state process, it improves operational efficiency.
The basic goal of BPR is to recreate a procedure. |
Any business procedures in an organizational workflow are not redesigned
or recreated by BPM. |
Individually examines the procedures. The goal is to find a better
method that produces better results. |
Has a consistent strategy for managing a group of business processes
at the same time. |
Any collaboration is purely coincidental. |
Aligns and collaborates more efficiently on HR and IT resources. |
From the very beginning of development, there are changes. |
Reiterates standard practices and procedures while heavily relying on
various automation solutions. |
Analyzes and views an operation from a variety of perspectives. |
In this method, no new operational view is adopted. |
Higher expenses in comparison, as it focuses on lowering the long-term
expenditure rate. |
Lesser expenses. |
BPR strategies cut across organizational lines. |
No new amendments occur in an organization’s culture via Business
Process Management. |
Importance of Business Process Management
- Business Process Management (BPM) is the backbone of the business workflow. Business
process management allows you to run a more efficient and smoother workflow while also
disciplinarily controlling and analyzing all of your business strategies, both automated
and non-automated.
- Business Process Management (BPM) is a broad business technique. As a result, it shares
the organization’s concerns about optimizing business processes, orchestrating systems,
monitoring complicated systems, and other issues.
- BPM strategy only works with the process flow that has been written out, and it operates
under the constraints of the management strategies that have been established. As a
result, automation has a significant impact on Business Process Management.
- Business Process Automation (BPA) is an improved, digitized, and automated version of
traditional business process management (BPM). BPM has since been merged with a variety
of new technologies in order to satisfy the demands of today’s businesses.
- Business Process Automation, also known as Digital Process Automation
(DPA), is a digital transformation of the traditional business method management (BPM)
process that focuses on increasing the customer experience rather than on automating it.
Importance of Business Process Re-engineering
- The use of automation is a compelling technology when a definite piece of a task is
involved. However, one of the most difficult challenges a manager will face is deciding
to focus on eliminating duplicate operations rather than automating those activities.
- Some managers continue to use an excessive number of automation technologies and
approaches in the name of business process management, resulting in the waste of time and
other resources on the wrong issues.
- The majority of the procedures that are automated in the firm workflow begin to provide
unfavourable results as a result of this circumstance.
- Concern yourself with how to manage a routine activity rather than reviewing and
eliminating the duplicate and time-consuming activities that clog up your day. It is
vital to contribute to the rebuilding or abolition of that inessential process in its
entirety.
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Conclusion
The idea behind Business Process Management (BPM) is to improve the efficiency with which
existing business processes are managed, whereas Business Process Re-engineering (BPR) aims to
improve performance by implementing entirely new processes aimed at reducing the costs associated
with the day-to-day operations of the business while simultaneously improving quality and speed.
In general, business performance is heavily influenced by technological advancements and the
surrounding environment. BPR is required when a specific technology becomes obsolete; for
example, changes in IT architecture may necessitate the implementation of BPR.
The goal of BPM is to address customer issues and increase their satisfaction by analyzing their
needs and areas of dissatisfaction and then implementing the necessary strategies to ensure
improvement in product quality. In contrast, the goal of BPR is to analyze business processes
from the beginning and eliminate practices that are barriers to the growth of a company.
About Author
Abhishek Srivastava
-Senior IT Professional , CBAP Certified
Abhishek Srivastava is a seasoned IT professional with diverse experience in Banking, Insurance, Utility and Education domains.
Managing large accounts, Program management & Business Analysis has been his forte, having done so for customers like ICICI Bank,
NTPC & many other International customers.
In the past, he has been associated with companies like Mastek and 3i Infotech Ltd (erstwhile ICICI Infotech Ltd). An NIT (Erstwhile REC)
/ IIM Kozhikode graduate, now as an entrepreneur, he is pursuing his dream of creating an organization for providing quality training
in the fields of Project Management and Business Analysis. His other areas of interest are Business Analysis consulting and mentorship.
Over the years, he has mentored and guided more than 1000 professionals