A business process review (BPR) is a powerful way to prepare for an upcoming ERP project, giving you the insights and provisions needed to extract maximum value from newly onboarded software. It can also be used as an annual test to assess current systems and processes, ensuring that your operations are running as efficiently as they can be.
In either case, what exactly does a BPR entail? And how do you conduct one?
Here, we’re taking an in-depth look at BPRs, setting out why we believe they’re an invaluable part of effective business management.
A Business Process Review (BPR) is a thorough analysis of a company’s workflows, systems, and operations with the goal of identifying areas for improvement and optimising business processes. The BPR process involves evaluating each step of a process and identifying any inefficiencies or bottlenecks.
A BPR is typically carried out when a company wants to improve its efficiency, reduce costs, or make significant changes to its operations. BPRs can also be conducted when a company is undergoing a major transformation, such as implementing a new technology system or restructuring its business model.
As mentioned in our introduction, there are two main types of BPRs: one you might undertake annually to assess current systems and processes, and another that you will undertake with your software vendor prior to implementing a new system.
In both cases, the BPR process often involves working closely with employees and stakeholders to gather insights and feedback and to ensure that the new processes and systems are aligned with the company’s overall goals and objectives. By working with employees and stakeholders, the BPR process can help drive cultural change within a company and build momentum for ongoing process improvement.
The importance, value and benefits associated with a BPR will differ depending on the context in which such an evaluation is taking place.
For instance, if you’re carrying out a BPR ahead of a new ERP implementation, you will likely have different goals and KPIs than if the review was simply part of an annual business evaluation.
With that said, some common reasons why a BPR is important for businesses include:
Naturally, the parameters of your business process review will hinge on why you’re conducting it. It may also be the case that you’re carrying out a BPR in conjunction with a third-party software vendor, in which case, the following guidance may not apply.
However, let’s take a look at the common stages which make up a typical BPR.
Having a clear understanding of what you hope to achieve through a business process review will ultimately drive the assessment forward and give you the results you’re looking for. Remember, there are several reasons why a company may wish to perform a BPR, so going into the process with total clarity will afford better and more relevant results.
While you may already be clear on the reasons why you need a BPR, answering the following can help to pin down your objective and ensure the project stays on the right track:
Working with senior stakeholders and department heads, create a roadmap of current processes. You’re looking to include every step within a given project or workflow, from point A to point B.
This is effectively when the BPR starts to come together, and you may already begin identifying areas for improvement based on this initial road-mapping project alone. Document as many processes as you can so that their efficacy can be assessed.
Now that you have a detailed roadmap of every process within your business, you’re in a position to scrutinise workflows for bottlenecks, pain points and areas where technology such as automation could improve efficiency and productivity. This is when you may need to call on the expertise of external parties, who can bring effective solutions to the table.
Armed with notes and considerations from the consultation phase, it’s time to draw up a plan of action for how you plan to “re-engineer” existing processes. This is where you’ll need to include added detail to quantify the changes you plan to make, particularly if this includes seeking buy-in from senior stakeholders on any technological changes the new processes may require.
If new software is required, it’s vital that this doesn’t blindside the rest of the BPR project. It’s all too easy to assume that new technology will provide the silver-bullet solution your business needs to combat its operational hiccoughs, but often, new technology will only provide a sticking-plaster resolution if problems aren’t properly assessed and evaluated.
In summary, a business process review is a powerful tool for identifying opportunities to optimise business processes, and ERP systems can help bring these benefits to life. By leveraging ERP software, companies can increase efficiency, improve decision-making, and gain a competitive advantage in their industry.
We hope this guide offers some food for thought on how to improve and assess your own operational processes. If you need expert help in developing a future-proof business strategy, Intact is here for you. Get in touch today for a free software demo and consultation.