The Impact of BPR on Organizational Performance

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The Impact of Business Process Reengineering (BPR) on Organizational Performance:

The Impact of Business Process Reengineering (BPR) on Organizational Performance Andrew Edelbach CIS 6108 – Narrated PowerPoint April 10 2013

What is BPR:

What is BPR Business process reengineering (BPR) is the redesign of processes, typically using information technology (IT), in order to gain significant improvements in key areas of performance such as service, quality, cost, and speed . ( Altinkemer , Ozcelik , & Ozdemir , 2011)

Costs of a BPR Project:

Costs of a BPR Project P urchasing new equipment H iring talented new personnel Training existing employees Hiring consulting firms ( Altinkemer , Ozcelik , & Ozdemir , 2011)

Costs of a BPR Project:

Costs of a BPR Project Organizations implementing BPR projects may have to increase their training budgets by 30% to 50% ( Altinkemer , Ozcelik , & Ozdemir , 2011)

Problems That May Affect Performance:

P roblems T hat M ay Affect P erformance C ommunications barriers between functional areas L ack of communication between CIOs, CEOs, BPR teams, and other personnel Resistance from employees ( Altinkemer , Ozcelik , & Ozdemir , 2011)

Problems That May Effect Performance:

Problems That May Effect Performance Managements reluctance to commit resources while expecting quick results Failure to address employee habits during implementation ( Altinkemer , Ozcelik , & Ozdemir , 2011)

PowerPoint Presentation:

Organizations can achieve more production from their IT investment if IT investments are coordinated with organizational redesign ( Albadvi , Keramati , & Razmi , 2007)

Impact of BPR involving IT Projects:

Impact of BPR involving IT Projects Return on Assets drops significantly during the project initiation year Enterprise-wide BPR projects are associated with more negative returns during project initiation ( Altinkemer , Ozcelik , & Ozdemir , 2011)

Catch 22:

Catch 22 Competitive advantages gained from the successful implementation of IT are difficult to sustain and that any financial advantage is short-lived because competitors will eventually adopt comparable technologies ( Altinkemer , Ozcelik , & Ozdemir , 2011 )

BPR Success:

BPR Success CIGNA corp. saves $100m by improving customer service Ford increased speed of payments and improved company relations with long-term suppliers ( Altinkemer , Ozcelik , & Ozdemir , 2011)

PowerPoint Presentation:

“For some employees in the organization, BPR stands for: Blood Pressure Raiser. For others it means: Blood Pressure Reliever.” - Unknown

References:

References Abdi , N., Zarei , B., Vaisya , J., & Parvin , B. (2011). Innovation models and business process redesign. International Business & Management, 3 (2), 147-152 . Albadvi , A., Keramati , A., & Razmi , J. (2007, June 15). Assessing the impact of information technology on firm performance considering the role of intervening variables: Organizational infrastructures and business process reengineering. International Journal of Production Research, 45 (12), 2697-2734. Altinkemer , K., Ozcelik , Y., & Ozdemir , Z. D. (2011, Spring). Productivity and performance effects of business process reengineering: A firm-level analysis. Journal of Management Information Systems, 27 (4), 129-162.

References :

References Grover , V., & Kettinger , W. J. (1997, Summer). Special section: The impacts of business process change on organizational performance. Journal of Management Information Systems, 14 (1), 9-12 . Kock , N. (2007). Systems analysis & design fundamentals: A business process redesign approach. Thousand Oaks, CA: Sage Publications, Inc. Ringim , K. J., Razalli , M. R., & Hasnan , N. (2011, July). Effect of business process reengineering factors on organizational performance of Nigerian banks: Information Technology capability as the moderating factor. International Journal of Business and Social Science, 2 (13), 199-201.

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