A Framework of Value Based Business Process Reengineering

Abstract

The objective of this paper is to construct a framework of value based Business Process Reengineering (BPR). This approach performs the BPR by analyzing the value created by the business process, which is measured by the ratio of the customer value to the required cost of the process for the purpose of effectiveness evaluation of the BPR. The proposed framework to perform the BPR are: (1) Screening the critical processes that need reengineering; (2) Evaluating the value of each critical process from the viewpoint of the customer value; (3) Collecting various market information as the inputs for redesigning new process; (4) Adopting the quality function deployment technique to develop valuable potential new processes; (5) Performing feasibility analysis to identify feasible new processes; (6) Testing each feasible new process, selecting the suitable new process, and evaluating the effectiveness of the new process; (7) Implementing the new business process and continuously improving the process. The value based BPR approach will provide the enterprise with a better chance to successfully achieve the goals of the BPR by knowing where and how to effectively enhance more customer satisfaction and business performance with reasonable costs.