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What is process
redesign?
Business Process Redesign is "the
analysis and design of workflows and processes
within and between organizations" (Davenport
& Short 1990). More simply, Process
redesign is the rethinking of paths and ways
that work is completed and services are
delivered. Process redesign is used to
reinvent the way that a business operates,
making the organization more cost effective,
efficient, and stakeholder oriented.
Why
redesign?
There are many reasons that organizations
consider the need for process redesign.
Companies consider process redesign in
both proactive and reactive
scenarios.
The reactive companies may look to
process redesign because:
- They are
running on antiquated technologies,
- have
experienced an increase or decrease in number of
employees,
- have
seen changing business demographics,
- have
organizational financial limitations,
- know
they are not efficient,
- or wish
to increase shareholder profitability
The
proactive companies:
- Recognize future technologies, and are
willing to take risks to become leaders,
- Increased shared decision-making,
- Wish to
be considered as the leaders in their
industries.
Is Process redesigning
the same as
automation?
Automation is a portion of process
redesign, but it is not as inclusive as process
redesign. Many companies exist that will
simply copy an organizational workflow through
the use of software. Though the software
may assist in the automation, it is not
typically the only solution that should be
implemented.
Information systems alone will not
transform entrenched work practices.
Leading companies increasingly focus on
empowering employees as knowledge workers rather
than automating clerical processes.
Automation of clerical processes is not always
effective simply because the original processes
are typically outdated division of labor
concepts. Process redesign encourages the
use of knowledge empowered users that will allow
organizations to quickly adapt and redesign
processes as the business and the environment
changes. In effect, the workflow itself
becomes a repository of information that will
allow employees to make better and more
efficient decisions.
What benefits can be
realized?
The goal of the
company must first be clearly defined before a
process redesign project takes place. Some
goals the companies typically focus on
include:
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- Improved
Customer Satisfaction
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- Simplify
cross-organizational
collaboration
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- Enhance
flexibility and
responsiveness
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- Increase
employee ownership
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- Reaction
to Structural business
change
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- Improve
quality and accuracy
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- Develop
platform for growth and
expansion
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How is it
done?
There are many
classes/schools/methodologies that are
universally accepted in a process redesign
project. The best way to control your
costs is to supplement your staff with
organizations that have expertise in process
redesign, rather than having an expert on the
company payroll.
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