Impact of Business Process Re-Engineering and Improvements

In the new world that is fast changing with rapid advances made in science and technology and shrinking borders, the academicians have had to discard the old theories of Management and rewrite the rules all over again.

Bet it the marketing principles, human resource management or business processes, every topic needs to be redefined and rewritten in the light of the changes in the external world. The basis of the Organizational philosophy as well as business has changed.

Profit maximization and Total quality management have been replaced with new theories involving business process improvement, Competitive collaboration and building Profit streams on long term basis based on brand and business expansion.

Four decades ago, Organizations and people had no option but to adapt to computerization. The fear that the computers would replace the manpower took some time to be replaced with the new understanding that computers help automate and enable faster working, thus aiding productivity.

With improvement of technology, we found computers being used to manage and direct some of the processes mainly in manufacturing, inventory planning and accounting systems.

In the current phase we have the ERP systems that encompass interactive, seamlessly integrated Enterprise resource planning systems that become the backbone on which the entire business runs and the Organizations manage the business operations.

ERP systems involve detailed processes for each of the functions and departments including procurement, production planning, production control, inventory planning, management and control, supply chain management, logistics as well as detailed accounting and financial management as well as human resource managements. All of these functions are inter-related and integrated. The systems define, manage and control the operational processes making standardization possible besides enabling the Organizations to manage greater volumes with lesser dependence upon people.

Business process improvement is not only about using systems and technology, but it embraces people and business practices too. Business processes engage the Organization in every phase of customer transaction making it possible for the Organization to tune in to and understand customer expectations. The fact that Japanese have made huge inroads into the US market amidst the presence of automobile giants in the US is because of their flexibility and alertness in being able to sense, plan, develop and provide improved designs and improved technology at faster pace than the American auto giants.

Be it the use of five speed automatic transmission or the intake valve timing based in engine rpm technology, the Japanese have set the benchmark in bringing adapting the new automotive technologies and delivering the same to the markets faster than the US companies. This is a result of the Organizational processes and functioning that the Japanese Organizations work with encompassing all functions and processes.

Business Process Engineering and Improvements change the way that the Organizations look at their man power. Those who have embraced the new thinking consider their human resources as one of the key elements or factors that is central to building their core competence. Thus Organizations have begun to train, groom and empower their employees and design systems and programs to motivate, trust and grow their employees along with the Organization bringing together and marrying their individual goals with the Organizational goals.

Organizations today do not look at employee problems, but they search and identify problems in the process and not the person. Job profile and content is designed on the overall fitment and enhancement of the total process of which the individual role is a sub component.

The process measurement precedes the individual performance measurement. Organizations have recognized the need to spend or make investments into providing technical and non technical or soft skills to train its human resources besides working towards removing barriers and enhancing the work capability as well as the internal environment which helps them groom a team that is capable of taking the Organization to the next level.

The other important factor that one notices is that all of the Companies have begun to focus on and train their human resource to be sensitive to and oriented towards the customer and not at the bottom line. Every executive in the modern Organization knows only one critical factor that he has got to focus on which is - “The Customer”. The rest will follow.