In this unit we are going to speak about Business Process Reengineering and its relationship with Information Technologies Business Process

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2 In this unit we are going to speak about Business Process Reengineering and its relationship with Information Technologies Business Process Reengineering (BPR) is a business management strategy aimed to help organizations rethink how they do work through the study and modification of business processes in order to better support the organization s mission and reduce costs. It is aimed to improve performance, benefits, quality and level service of the business and reduce costs. 2

3 Information technology (IT) has historically played an important role in the BPR concept. It is considered by some as a major enabler for new forms of working and collaborating within an organization and across organizational borders. Having an adequate IT infrastructure is key for the success of BPR processes, but it is not the only thing that is needed. To carry out a successful Business Project Reengineering project: All the organization must be involved in the reengineering process The teams of employees that compose the BPR teams has to be carefully selected, as they must have a good knowledge of the organization, be motivated and have credibility and leadership within the company working force An in-depth business needs analysis must be carried out BPR involves changes in processes, technologies and people behavior and culture, so an effective change management has to be executed to facilitate the insertion of newly designed processes and structures into working practice and to deal effectively with resistance in the company An ongoing continuous improvement must be achieved 3

4 BPR makes use of all information technology resources. It makes use of software like Distributed databases software management, which provides information about products, clients, projects wherever we are. AutoCAD/CAM software that helps us to redesign products and improve how they are manufactured. Electronic Data Interchange Software: that simplifies the relationship with clients and suppliers and reduces transaction costs. Total Quality management software that helps the company to improve its processes. 4

5 It also takes advantage of hardware devices and systems as, for example: Telecommunication networks: that extend the reach of the company and facilitate the flow of huge amounts of information. Wireless communication devices: That allow for instant communication, improving the information flow within the companies and the relationship with partners and clients. Mobile computers: That allow for a more flexible workforce. 5

6 Business Process Reengineering relies heavily in more complex systems based in Information Technologies as, for example, systems for: Enterprise Resource Planning: That supervise and control all aspects of the business and record data about them, providing managers the data they need to make accurate decisions Customer Resource Management: That track the interaction wit customers, improve the relationship with them and extract trends about consumer behavior that can be used to improve business. Supply Chain Management: That allow for the coordination of different companies in complex supply chains, providing information about raw material an finished goods flow between companies. Automatic identification and tracking: That help companies track all their inventory and the transport of materials and goods. Decision Support System: That, using the data provided by the former systems, process it to provide managers with timely information about the business and the market and present it in a way that eases its interpretation. Expert systems: That help managers take decisions making recommendations based on data and previous experience 6

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