Business process reengineering concepts comes from management theories and introduce in 18th century. The purpose of business process reengineering is to make the business in best condition. The companies use the reengineering process to make the business in best position and to achieve the company goals. Business process reengineering means not only change but structural change. What kind of structural change in the organization, managing system, employee responsibilities, reward system, and information technology. Many organizations want to change the management of the organization but they not identified which part of work is to be changed. But the business process reengineering (BPR) is the concept of management and that has been formed by practical experience. BPR is not only impact inside the organization but also the external supplier and customer as well. BPR is help to increase the organization financial report and customer satisfaction and also find out the way how to create the high productivity with the short amount. The key driver of the BPR is cost reduction, high speed, and quality.
Information technology is a technology which use to store, determine and process the data which use in the specific organizations to examine the data and processed the data. And through the information we improve our knowledge and know how to do the work. The information system develops a strategic approach to change the process. Information technology is the component of the BPR and promotes the companies process.
Role of Information System in Business Process Reengineering
Business process reengineering shows the power of the information system and information technology to the decision making because through the information system and information technology the BPR reach the effective position. So the BPR success is based on information system and information technology. The role of information system in the organization is to make the effective strategy according to the business requirement. No other systems change the business such as the information system because the information system put right system on right place. The information is the key of an organization the IS measure the process and performance of an organization. The good information makes the better position of an organization. By using the customer strategy the IS gets the information out of the organization how the product of the company is running through the market and implement the IS to reduce the time to market. The information system has must be able to vision the information technology in the organization future. BPR is not adopting the new system but also create those system they effect the whole organization. Firstly focus on the business process not on information and then apply the IT tools on those processes. To adopting these steps the IS expert provide the understanding of the information and technology in the business processes. The IS professional have play an important role in the business process reengineering. The IS/IT are the key of business process reengineering. When the IS and IT department are work effectively then the BPR make the better company position.
The relationship between IS/IT in the business process reengineering is to change the process and identifying, evaluating, and implementing the business strategies. If the business is in dog situation the role of BPR is to remove the barrier. The BPR has overcome on these barrier through IS/IT because if the IS system is working bad than the business goes to downwards so the IS system is effective than the business in good position. How we can make the IS/IT system better? The delivery system of the company is based on the IS system so when the company collect the information form there customer what they want and than the company makes the strategy according to the customer requirement. So the company does all the process under the IS system we can say these are all the component of the IS system. IS system are supporting to regenerate the business process and also analyze the existing assets. A large number of manager are adopt the business process reengineering under the IS/IT system to getting the competitive advantages and also provide effective service to their customers. The IS/IT is the most critical factors of the business process reengineering. These systems are cross the different stages and than identifying the problem and how the previous system works with the project and also collect the information for the reengineering process.