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Here are some key differences between BPO and BPR: But the difference is in the depth of change. BPR aims at changing the way a process works while BPI is tweaking an existing process to optimize it. Business process reengineering involves completely changing the process for an overall different result, which is the opposite of incremental business process improvement. BPI vs BPRīoth BPR and BPI essentially aim to improve the system. It is typically driven by rapid growth (the need for scalability), mergers and acquisitions (integration of operations), pre/post IPO (transformation to an operating company) or restructuring to improve organizational effectiveness and operational efficiency. Business process re-engineering necessarily means replacing the existing system.īusiness process re-engineering or BPR is a technique of change management to clean-up the fat layers by introducing radical changes in operational strategy which should, in turn, result in competitive advantages. Thus, Business Process Reengineering is a radical approach to the current business process. It takes into consideration the input and the desired output and comes up with an efficient process to achieve the aim. You go first for customer value propositions. What is Business Process Reengineering (BPR)?īPR is a strategy based on aspiration which aims to redesign the process almost from scratch. BPI is the way you improve current as-is state, where you have problems and issues (look for failure demands, wastes and eliminate them) – so you got to your to-be state. What is Business Process Improvement (BPI)?īusiness Process improvement is a continual process that aims at attaining efficiency through continual improvement by reiterating the processes. Failure to do so is likely to result in higher costs, lower revenues, less motivated employees and fewer satisfied customers. To become and remain successful and competitive, businesses must continuously improve their processes.
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