Business Cases Warranting BPI Implementation

Business Process Improvement program is very helpful to Organizations to transition and change their internal business operations with an aim to meet up with the new business requirements or to increase the business operations effectiveness. Simply put, any BPI Program should deliver concrete results in terms of improving the existing business operations and the impact should be visible and measurable.

BPI programs are quite exhaustive, time consuming and can involve quite a bit of investments in project costs as well as in the new process implementations too. Therefore it becomes imperative that the Management should concentrate and choose the right objectives keeping in line with their business priorities as well as by identifying those critical business areas where the BPI Program can make a high impact to their business.

A BPI model can be quite exhaustive attempting changes in all areas of operations and run over several months. Besides costs, the program demands the time of the existing resources and thereby impact the current operations as well. Therefore a careful selection of the business critical processes with specified timelines and measurement can lead to success.

In case of the Management having to select the business critical processes for BPI implementation, there can be several approaches that may be adopted for selection and finalization.

In many Organizations, newly developing business scenarios at Organizational level or at Business Unit level will call for implementing the changes through BPI Program. World over we see mergers and acquisitions taking place everywhere. Joint ventures too are the order of the day. Whenever two organizations come together and merge, it becomes imperative for the Organization to merge the two distinct business operations and evolve one standardized and efficient model of business operations that will address the new Organizational needs, taking into account the products, the markets as well as the customers of both the Organizations involved in the merger.

When HP and Compaq merged together several years back, they had complementary product lines but totally different business processes followed by the two Organizations. Apart from having to build a singular corporate culture across both Organizations spanning international markets and multiple manufacturing locations across continent as well as sales operations in all most all countries, the greater need that existed was to merge both the business lines and quickly establish common business processes to drive the newly created business units. Two Organizations working with two sets of supply chains, two teams and parallel processes meant duplication of effort and resources as well as expenses. The need of the hour was to economize and quickly gain efficiencies resulting out of the mergers while focusing on improving the market share as well as customer satisfaction too.

The Organization identified areas and chose to initiate BPI programs at regional level spanning regions like Americas, EMEA & Asia Pacific regions. Business process mergers led to savings on infrastructure, manpower resources and supply chain network and the new common process addressed the ‘Blue’ & ‘Red’ Product lines together with their specific market and customer requirements. The benefits that accrued out of the merger and the BPI implementation enabled the Organization to achieve its objective that was envisaged while merging the two businesses.

Other than M&A, change of business models or acquisition of new businesses or entry of Organizations into new markets too warrant implementation of BPI to build new Organizational processes and gain competitive advantage quickly.

Multi Nationals thronged to set up operations in China when the country opened its doors to global trade. Companies like DHL, FedEx and other Supply chain companies rushed to make their presence felt in the Chinese market. Faced with a huge geographical territory, it was impossible for these companies to establish their operations at all cities in a short time. Therefore they chose to engage and join in partnership with several local companies and partners that gave them the foot print across the entire length and breadth of the country. In the next stage, was the challenge to streamline and introduce standardized processes and gain efficiencies in the network. In such situations Organizations use BPI as a tool to keep improving and stabilize their business operations, while continuing to implement global processes and drive efficiencies through economies of scale.


❮   Previous  Article Next  Article   ❯


Authorship/Referencing - About the Author(s)

MSG team comprises experienced faculty and professionals who develop the content for the portal. We collectively refer to our team as - “MSG Experts”. To Know more, click on About Us. The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to ManagementStudyGuide.com and the content page url.