In our childhood, we all have our dreams with regards to our preferred profession like doctor, engineer, pilot, banker, actor, and so on but as we grow older we have to amend or change our dreams as well as goals according to situations in the same way companies also have goals and visions which needs to be reviewed or changed according to circumstances and that is where business process reengineering come into play. Business process reengineering in simple words refers to that process by which a company looks to change its way of doing work or business process to improve not only the operational efficiency of the company but also improve the customer service of the company. In order to have a better understanding of this concept, one should look at the advantages and disadvantages of business process reengineering –
Advantages of Business Process Reengineering
Improvement in Business Performance
The first and foremost advantage of business process reengineering is that it helps in improvement in the overall business performance because when something is not working then no matter how efficiently and effectively employees are working it will not be visible in the bottom line of the company because of wrong direction and business process reengineering makes it possible to improve business performance by giving the right direction to the efforts of employees of the company. In simple words, if ship crew members are trying hard to sail their boat but against the wind direction then they will not be able to do anything but if the direction of the boat is changed then it will sail smoothly which is what business process reengineering does to the business of the company.
Motivation in Company
Human beings get bored easily and employees are no different and that is the reason why when the company decides to do business process reengineering all employees of the company will be motivated and there will be positive vibes within the company resulting in an increase in efficiency and effectiveness in the working of the company.
Eliminates Inefficiency
Business process reengineering helps in identification as well as the elimination of various inefficiency which were hampering the working of departments as well as the company because there are many examples where inefficiency working style and workers keep doing the same thing for years and company do not have any knowledge but due to business process reengineering since whole systems and process goes for a change it automatically leads to elimination of inefficiency.
Disadvantages of Business Process Reengineering
No Guarantee of Success
The biggest disadvantage of implementing business process reengineering is that it is not a sure shot success formula because it is not necessary that even after doing business process reengineering company will be successful as there are many other factors at play apart from business process reengineering which impacts the overall performance of the company.
Expensive
It is an expensive way of doing things because business process reengineering involves making drastic changes both at the strategic level as well as the operational level in the company. In simple words, not all companies can afford to do business process reengineering due to expenses being involved in business process reengineering.
Long Term Process
Another drawback of business process reengineering is that the result of the whole process are not visible overnight rather it a long term process and it takes time which again not many companies can afford as not all companies have patience and deep pockets to endure the long time which it takes to show improvement in the business and overall performance of the company.
As one can see from the above pros and cons of business process reengineering that this is not an easy task and requires a lot of planning as well as a willingness on the part of company management as well as people working in the company and that is the reason why any company thinking of implementing business process reengineering into the company should carefully read above points and then only should take any decision.