Business Process Re-engineering is a task that has many positive and negative repercussions. Even though the process looks simple and easy to implement, there are many advantages and disadvantages in BPR process. When you are planning to implement a BPR project in your company, it is always best to analyze the advantages and the disadvantages of the project beforehand in order to avoid the confusion which can occur at the implementation stage. Analyzed below are a few main advantages and disadvantages in BPR project implementation in any organization.
Advantages of BPR
– Opportunity to change – The Business Process Re-engineering process involves changing the business structure, business procedures, input methods, and resource methods necessarily. These changes are happening based on the output requirement of the BPR project. This is a second chance given to the organization to restructure their tasks in order to drive the organization towards the specified goals.
– Survive in a dynamic business environment – With the increase of globalization and improving technologies, the modern business environment is changing rapidly. Business Process Re-engineering (BPR) project is an opportunity for any organization to change its operating methods to survive in the changing business environment.
– Identify Strengths, Weaknesses, Opportunities, and Threats – when implementing a Business Process Re-engineering project, any organization would analyze the current aspects and the capabilities of the business. This is helpful in measuring the output expectations after the BPR project. This gives the organization to recognize its strengths, weaknesses, opportunities, and threats and plan accordingly to take advantage of Strengths and Opportunities and to eliminate or minimize Weaknesses and Threats.
-Cost Reduction – The main goal of the Business Process Re-engineering process is to obtain a better outcome. This has a major concern in cost-effectiveness. The BPR process is a point where the organization can identify the possibilities of cost reduction without harming the business process or the quality of the final outcome. – Change the organizational culture – Business Process re-engineering is the best opportunity for any organization to restructure the organizational hierarchy and to create an employee-friendly organizational structure with an open communication flow. This concept is popular in the current business world. This is considered more effective in employee satisfaction as well as the growth of the business in the competitive market.
Disadvantages of BPR
Business Process Re-engineering (BPR) is a project initiated with the aim of achieving a better future position. However, the process has a few disadvantages that we cannot ignore.
-Cost – The BPR process requires extra financial and human effort from the starting point until the end of the process. This effort can be very costly to the organization. Apart from that, it is consuming a time that can be used for routine production. The financial impact of this cost can make a huge impact on the organization’s financial statements.
– Risk – Change is always a risky step to take. When implementing a Business Process Re-engineering project, the organization should consider the risk they are facing by changing the current procedure. The risk of implementing a new method can make an adverse impact on the organization. This can be strong enough even to collapse the organization. The organization should have a proper change management team to mitigate the risk of the process change and to encourage the organization to survive the BPR project and achieve expected goals.
When implementing a BPR project, it is necessary for any organization to analyze these advantages and disadvantages in BPR project prior to initiating the project. This can be done by analyzing the organizational behavior and available resources. This will lead any organization to identify its current situation and drive the project accordingly. Identifying the advantages and disadvantages in BPR will help the organization to drive the BPR activities to achieve a productive outcome.