Business Process Re Engineering Consulting

The successful company means, successful on both financial and direction levels. Business Re engineering process plays significant task in today's business world. Let's try what's business process Re engineering or better known, as BPR is, well BPR means seeing outgrowths postulated in your company from origin level and changing them from basic degree.

We are well aware of world's growing economic system, people feel that every country has increased production to decrease of cost of product but I challenge anybody to pursue this policy to compete with China, that person definitely going to suffer. China actually has carried out BPR along with related technology like ERP, provide chain Management.

This is the process of Planning for all resources like all sections including finance, product, HR, sales etc. ERP means group effort of all environments bound together with mutual s/w applied by companies like SAP, Oracle, and People Soft etc. Astonishingly failure rate in case of ERP software program is 80 % and main reason being process not being studied before leading off on the physical process. Supply Chain Management is process preparation whole chain of management, ranging from providers provider to clients client. Successfully planned Supply chain results in smooth flowing of production from raw material form till it gives its net deliverance form. It also holds open wastage and handling cost, as one orders and fabrication granting to exact requirement of the companies.

Basic principles of BPR are as follows: First principle is altering process from basic level, most of the peoples feel that improving or altering being outgrowths is s/w BPR but this is a very improper sensing. First principle hence tells that you must change the process entirely and not keeping anything from the premature process. Second rule states that Business Process must be planned in such a way sequence of processes is optimal. Companies are inferring to change the process according to well designed software package instead of changing software package according to existing process, resulting in failure of whole organization. Third rule is regarding outgrowth as part of company, Instead of planning an individual outgrowth, without considering how it corresponds into the organization.

Hence Studying, Planning and changing the process in well projected way will result in splendid consequences. It will profit companies at the top to stay at number one. It will also help companies which are going to sink because of poorly designed processes and also the companies which neglected because of bad processes.

Model Affects Business Process Improvement

While many believe that the process should drive the technology because you only want to spend your limited technology budget on the most efficient process possible, an interesting change is occurring in the information technology (IT) environment with the increasing use of the Software-as-a-Service model.

The SaaS model is the next generation of software implementation models. Over the last decade, companies moved from the traditional software model (where the company provided the infrastructure to host the application, customized the solution to the company's specific requirements, provided the necessary IT support, and dealt with major upgrades every three to five years) to the Application Service Provider, or ASP, model (where the vendor hosted a software application on their hardware and leased out a unique instance to a company, which allowed a certain degree of customization).

The ASP model did not require companies to purchase on-site hardware, and provided the opportunity for a less expensive and quicker software implementation. In moving to the ASP model, companies hoped to reduce the total cost of ownership for a technology implementation.

Today, the SaaS model is rapidly growing and quickly defining the way companies implement software applications. You can think of SaaS as the next generation ASP, with a key difference being that all customers reside on the same instance. In this model, the vendor has responsibility for increases in capacity and scalability. They continually perform research and development, thus enabling them to provide more frequent enhancements to customers without the need for major upgrades. SaaS sales increased from 2010 to 2011 by 21% and estimates indicate that sales will more than double by 2015.

While companies enjoy reducing their technology investment, they do not necessarily want to use the same exact product that their neighbor uses. The SaaS model though depends on application standardization to keep costs down, which means limited or no customization. So, how do companies balance the financial benefit of the SaaS model with the need for unique business processes since companies differentiate themselves from competitors by their business processes, among other things?

A company has to identify what truly differentiates the business from the competition. What are the core competencies of your company? Accept that not all business processes are created equal and focus resources on building (or improving) business processes around your differentiators. For example:

  • If research and development sets your company apart, focus on processes like idea generation, market research, and product development.
  • If service delivery differentiates you, focus on processes like order processing, order fulfillment, and customer support.
  • If retaining employees is critical, focus on employee-centric processes like recognition and succession planning.

Take advantage of the lower cost offered by the SaaS model for non-core business processes, but keep improving the business processes that differentiate you from your competition.