Cases are heard where companies have to lay off employees, yet suffer from losses. Their profit percentage and revenue keeps decreasing even though they introduce newest technological innovations. However, even after taking cost effective measures, the revenue of the company is not rising. What is significant in this case is whether the measures taken by the companies are correct or not. There are different ways to think about earning profits. Instead of worrying about the production line by reducing the number of employees, companies can look into other ways such as customer preference and redesigning manufacturing process. In this article, we will discuss about business process reengineering, which is one of the strategy tools that helps in process optimization.
Business Process Reengineering - Origin
Former MIT professor, Michael Hammer, published an article in 1990 where he described business process reengineering (BPR). This management approach became popular in course of time.
According to Hammer, BPR is the fundamental redesign and rethinking of the process of business in order to attain considerable improvements in contemporary performance measures like, quality, cost, speed and quality.
After Hammer’s article was published, Tom Peters and Peter Drucker supported transformation of business as a technique for attaining large scale improvements across many performance measures. Large scale companies soon started selling this new strategy of management to their clients. By the middle of 1990s, all corporate managers were talking about business process reengineering.