Assess Business Strategy
Like many other approaches, BPR claims to align organisation change (and IT development) with business strategy. This is important because BPR concentrates of improving processes which are of primary strategic importance. The assumption is that strategy is already determined, and that it is externally focussed, dealing with customers, products, suppliers and markets. BPR is quite distinct from strategic planning.
Select Processes
Here we choose those processes on which we will concentrate our reengineering effort. This choice involves a number of steps.
Identify Major Processes
A process as "a structured,measured set of activities designed to produce a specified output for a particular customer or market, process is "an interrelated series of activities that convert business inputs into business outputs (by changing the state of relevant business entities)".
Determine Process Boundaries
This is easy to say and hard to do. Some processes, such as product manufacture, are fairly obvious, though there may be doubt whether to include activities such as materials procurement within this process. Sometimes the boundaries between processes which follow one another (eg marketing and sales, delivery and installation) are hard to agree. Processes which involve more than one company can also cause boundary problems.
Assess Strategic Relevance
Usually reengineering will concentrate on a small number of processes. This may seem suboptimal, but provided the processes chosen are complete (not parts of processes) and the reengineering is thorough, a flow-on effect will probably mean that unsatisfactory neighbouring processes will soon become candidates for redesign. So we should begin with those processes which are most critical to the organisation's strategy. At UTS, for instance, the major strategy might be to obtain more money from industry. Processes directly contributing