Business Process Reengineering
Vicro Communications: A Failed BPR Case
1 Vicro Communications (a pseudonym is used in order to mask the identity of the organization) sought to reengineer its basic business processes with the aid of data-centric enterprise software. Vicro management wanted to rely on the software to improve the performance of its business processes. It was hoped that the software would increase information sharing, process efficiency, standardization of IT platforms, and data mining/warehousing capabilities. Unfortunately for Vicro, the reengineering effort failed miserably even after investing hundreds of millions of dollars (US$) in software implementation. As a result, performance was not improved and the software is currently being phased out. BACKGROUND Vicro Communications is an international provider of products and services that help companies communicate through print and digital technologies. As a leading supplier of document formatted information, print outsourcing and data based marketing, Vicro designs, manufactures and delivers business communication products, services and solutions to customers. Vicro operates in complementary marketplaces: Forms, Print Management and Related Products which includes Label Systems and Integrated Business Solutions including personalized direct marketing, statement printing and database management. With more than a century of service, Vicro owns and operates over 100 manufacturing and distribution/ warehousing facilities worldwide. With approximately 14,000 employees serving 47 countries, it provides leading edge, high-tech solutions that enable companies to adapt to the dynamics of change. Vicro is a large company with approximately USD 2.45 billion in 1999 and USD 2.26 billion in 2000 revenue. Vicro provides consulting, project management, reengineering and distribution of high volume, customized communications to its clients. It delivers personalized, easy-to-read documents intended to facilitate a positive impression on an
1 Vicro Communications (a pseudonym is used in order to mask the identity of the organization) sought to reengineer its basic business processes with the aid of data-centric enterprise software. Vicro management wanted to rely on the software to improve the performance of its business processes. It was hoped that the software would increase information sharing, process efficiency, standardization of IT platforms, and data mining/warehousing capabilities. Unfortunately for Vicro, the reengineering effort failed miserably even after investing hundreds of millions of dollars (US$) in software implementation. As a result, performance was not improved and the software is currently being phased out. BACKGROUND Vicro Communications is an international provider of products and services that help companies communicate through print and digital technologies. As a leading supplier of document formatted information, print outsourcing and data based marketing, Vicro designs, manufactures and delivers business communication products, services and solutions to customers. Vicro operates in complementary marketplaces: Forms, Print Management and Related Products which includes Label Systems and Integrated Business Solutions including personalized direct marketing, statement printing and database management. With more than a century of service, Vicro owns and operates over 100 manufacturing and distribution/ warehousing facilities worldwide. With approximately 14,000 employees serving 47 countries, it provides leading edge, high-tech solutions that enable companies to adapt to the dynamics of change. Vicro is a large company with approximately USD 2.45 billion in 1999 and USD 2.26 billion in 2000 revenue. Vicro provides consulting, project management, reengineering and distribution of high volume, customized communications to its clients. It delivers personalized, easy-to-read documents intended to facilitate a positive impression on an