Business Process Reengineering

Describe individu completelyy of the four kinds of organisational flip that end be promoted with in pissation technology. What is assembly line exploit reengineering? What steps atomic number 18 inevitable to even up it effective? How does it differ from craft per figance solicitude? exempt with font. In an ecesis, there argon study(ip) risks and uncertainties in establishments reading that direct to be addressed by the counsel. Determining when recent systems and problem sustain fores abide scram the greatest impact is shootd in these ch whollyenges.This whitethorn be the reasons why organisational counter win over and sort outment is becoming a coarse scenario to talk rough involving wariness, brass instruments, crinkle, and leadership. With the fast-changing environment, patronage conditions bring consequences in way some(prenominal) in inner and outer fixingss. That is why in near cases, well-nigh of the managerial activities revolve a pproximately decision making. Knowledge plays a major role in governing bodyal tuition.Organizational trades argon also unremarkably described, including steering and employee training requirements, recruiting military campaigns, kinds in subscriber line butt againstes and replaces in authority, twist or management practices. Information technology shadowful promote various degrees of institutional revision, ranging from incremental to far-reaching. There be actually four instances of organizational throw enabled by randomness technology automation, rationalization, reengineering, and image displacement reactions. pic This figure shows the four degrees of organizational multifariousness.Automation is the easiest and the just about common form of change. Being the close common form of IT-enabled change, the development of computer to speed up the actualizeance of h overaged uping tasks is an physical exercise of automation. This involves assisting e mployees perform their tasks more expeditiously and effectively. AUTOMATION Automation is the use of comptroller systems and information technologies to condense the deficiency for human body of work in the return of goods and gains. In the scope of industrialization, automation is a step beyond mechanization.Although automation speeds up performance of tasks, it does non guarantee a actually(prenominal) risque effectualness in backing success. It is just the said(prenominal) as restate the old manual counselling of dis lodges but in a high-speed port. However, this compositors case of change, although common, is slow moving, thus producing slow returns. Organizations using automation arrive the same products and services as before but changes the way the organization constituents. practice session of automation in line of products atomic number 18 calculating paychecks and paysheet registers, change checkout and inventory system employed by more superma rkets. nd giving bank tellers instant access to guests deposit records. rationalization rationalisation of procedures causes the organization to examine its standard operating procedures, eliminate those no prolonged pauperizationed, and make the organization more efficient. It is the streamlining of exist operating procedures, eliminating self-ex final causeatory bottlenecks so that automation makes operating procedures more efficient. Rationalization follows quickly from automation. both(prenominal) types of change cause some disruption, but its usually manageable and relatively true by the sight.BUSINESS solve REENGINEERING A more powerful type of organizational change is business operation reengineering, in which business mental transites argon croupvassd, alter and planed. Using information technology, organizations can rethink and streamline their business bear upones to better speed, service and quality. line of business reengineering reorganizes work flo ws, combining steps to hack on toss off and eliminating repetitive, paper intensive tasks. It is usually often more pushy than rationalization of procedures, requiring a vernal vision of how the assist is to be organized. cable process reengineering in simpler words is Radical redesign of processes to improve cost, quality, and service, to maximize the benefits of technology. exhibit reengineering have been used by many companies to deal with a full pattern of problem. For example, the EMI Records Group was having difficulty filling orders for its most popular CDs. Retailers and transcription stars were rebellingit took the gild as often eras as 20 days to lay aside a big order for a hit CD, and accordingly to the highest degree 20% of the order would be missing. Small, incremental improvements would non have been adequate, so the conjunction reengineered its entire istribution process with salient effects on on-time economy and order fill rates. In business proces s reengineering, the organization can develop the business vision and process target bea. It can set the processes to be redesigned ( philia and highest payback) and witness and measure the performance of subsisting processes. It can also identify the opportunities for applying information technology and build a prototype of the naked process. mental image swag It is about changing the very temper of the business and the structure of the organization itself, whole new products or services that didnt even exist before.In different words, paradigm shifts deals with major disruption and extreme change. look-a comparable is a have intercourse mental model of how a complex system working or functions. In other words, a paradigm shift involves re sentiment the nature of the business and the organization. It is a complete re-conception of how the systems should function. For example, higher information is changeing a major paradigm shift in the online delivery of education. Classes argon now offered done with(predicate) with(predicate) the earnings so that students dont even go to classrooms. Many tried-and-true teaching methodologies be cosmos radically altered to accommodate this shift in how education is offered.Paradigm shift is a radical re-conceptualization of the nature of the business and the nature of the organization. decision making which business process to get right is half the challenge to the management. It is utter that 70 percent of time chopinematic reengineering lawsuits fail. But still organizations change. The reason is because the rewards be high. Paradigm shift involves great risks, but great returns too. The Internet is causation all kinds of industries and businesses to alter their products, their services, and their processes in radical ways.Entire organizations are being created to time lag the paradigm shifts complicated in e-commerce. Look at the automobile industriousness as an example of this type of chan ge Traditional dealerships are being break off by auto malls and online buying opportunities. BUSINESS PROCESS REENGINEERING In nowadayss ever-changing valet de chambre, the plainly thing that doesnt change is change itself. In a world increasingly driven by the trinity Cs Customer, Competition and Change, companies are on the lookout for new solutions for their business problems.Recently, some of the more successful business corporations in the world search to have hit upon an incredible solution BUSINESS PROCESS REENGINEERING (BPR). Business work Reengineering (BPR) involves the entirety re intellection and radical redesign of business processes to reach out dramatic improvements in critical contemporary measures of performance such as cost, quality, service and speed. A reengineered organization is process oriented, where 1) procedurees are identified and named, 2) Everyone is alert of the processes they are involved in, 3) fulfil measurement, i. e. onitoring and control, is performed BPR advocates that green lights go back to the basics and reexamine their very roots. It doesnt believe in small improvements. quite it aims at total reinvention. As for results BPR is clearly not for companies who want a 10% improvement. It is for the ones that rent a ten-fold increase. BPR focuses on processes and not on tasks, jobs or mint. It endeavors to redesign the strategicalal and take account added processes that transcend organizational boundaries. According to many in the BPR knit stitch reengineering should focus on processes and not be limited to thinking about the organizations.After all the organization is only as effective as its processes. Processes are currently invisible and unnamed because people think about the one-on-one departments more often than the process with which all of them are involved. So companies that are currently used to talking in terms of departments such as marketing and manufacturing must switch to giving nam es to the processes that they do such that they express the beginning and end states. These names should imply all the work that gets through with(p) between the start and finish. For example, order fulfillment can be called order to payment process. Steps to an effective BPR are as follows . pay off for reengineering Planning and Preparation are full of life factors for any occupation or event to be successful, and reengineering is no exception. Before attempting reengineering, the question Is BPR incumbent? should be asked. There should be a significant carry for the process to be reengineered. Preparation application begins with the development of executive consensus on the enormousness of reengineering and the impinging between breakthrough business goals and reengineering projects. A mandate for change is produced and a span-functional team is established with a game plan for the process of reengineering.While forming the cross functional team, steps should be ta ken to ensure that the organization continues to function in the absence of several key players. As exemplary BPR projects involve cross-functional cooperation and significant changes to the status quo, the preparation for organizational changes is difficult to sway without strategic direction from the top. The impact of the environmental changes that serve as the pulse for the reengineering effort must also be considered in establishing guidelines for the reengineering project.Another authoritative factor to be considered while establishing the strategic goals for the reengineering effort, is to make it your first priority to view the expectations of your customers and where your alert process falls short of meeting those requirements. Having identified the customer driven objectives, the mission or vision statement is formulated. The vision is what a accompany believes it wants to achieve when it is done, and a well- delimitate vision will father a companys resolve through the stress of the reengineering process. 2.Map and psychoanalyze As-Is Process Before the reengineering team can proceed to redesign the process, they should scan the existing process. Although some BPR proponents argue against analyzing the current endeavor, saying that it inhibits the creative process, that strength not always hold true. It varies from case to case. While some organizations which are in dire straits might attempt a new process design while totally ignoring the existing processes, most organizations need to map out the existing processes first, analyze and improve on it to design new processes.The important aspect of BPR is that the improvement should provide dramatic results. Many people do not understand the value of an As-Is analysis and rather cull to guide a giganticr chunk of their valuable time on figure the To-Be model directly. The main objective of this chassis is to identify disconnects (anything that prevents the process from achieving in de mand(p) results and in particular information transfer between organizations or people) and value adding processes. This is initiated by first creation and documentation of Activity and Process models making use of the various modeling methods available.Then, the nitty-gritty of time that each legal action takes and the cost that each activity requires in terms of resources is mensural through simulation and activity establish costing (ABC). All the rump needful having been completed, the processes that need to be reengineered are identified. 3. Design To-Be process The objective of this phase is to produce one or more alternatives to the current situation, which fulfill the strategic goals of the enterprise. The first step in this phase is benchmarking.The peer organizations need not be competitors or even from the same industry. Innovative practices can be adopted from anywhere, no matter what their source. Having identified the potential improvements to the existing process es, the development of the To-Be models is done using the various modeling methods available, bearing in intellect the principles of process design. Then, similar to the As-Is model, we perform simulation and ABC to analyze factors like the time and cost involved. It should be noted that this activity is an iterative process and cannot be done overnight.The several To-Be models that are finally arrived at are validated. By performing Trade off Analysis the dress hat viable To-Be scenarios are selected for execution. 4. Implement Reengineered Process- The implementation stage is where reengineering efforts meet the most vindication and hence it is by far the most difficult one. When so much time and effort is spent on analyzing the current processes, redesigning them and planning the migration, it would thus be prudent to run a culture change programme simultaneously with all the planning and preparation.This would enable the organization to undergo a much more facile transiti on. But whatever whitethorn be the juncture in time that the culture change program may be initiated, it should be rooted in our minds that winning the black Maria and minds of every(prenominal)one involved in the BPR effort is most vital for the success of the effort. erst this has been done, the nigh step is to develop a transition plan from the As-Is to the redesigned process. This plan must align the organizational structure, information systems, and the business policies and procedures with the redesigned processes. 5.Improve Process Continously- A very vital part in the success of every reengineering effort lies in improving the reengineered process unvaryingly. The first step in this activity is monitoring. deuce things have to be monitored the progress of put through and the results. The progress of action is mensurable by seeing how much more informed the people feel, how much more commitment the management shows and how well the change teams are accepted in the bro ader perspective of the organization. This can be achieved by conducting office surveys and trenchant fireside chats with those initially not directly involved with the change.Communication is create end-to-end the organization, ongoing measurement is initiated, team reviewing of performance against clearly defined targets is done and a feedback loop is set up wherein the process is remapped, reanalyzed and redesigned. thereby unbroken improvement of performance is ensured through a performance bring in system and application of problem solving skills. An intense customer focus, fantabulous process design and a strong and motivated leadership are vital ingredients to the recipe for the success of any business corporation.Reengineering is the key that every organization should possess to attain these prerequisites to success. BPR doesnt offer a miracle mend on a platter. Nor does it provide a painless quick fix. Rather it advocates arduous hard work and instigates the people involved to not only to change what they do but targets at altering their basic way of thinking itself. BUSINESS PROCESS MANAGEMENT Business process management ( metronome marking) is a systematic approach to improving an organizations business processes. beats per minute activities seek to make business processes more effective, more efficient, and more capable of adapting to an ever-changing environment. bpm is a subset of infrastructure management, the administrative area of fear dealing with keep and optimisation of an organizations equipment and core operations. bpm Vs. BPR If BPM is a system software, then BPR is a method. BPR re-evaluates the processes used by the enterprise from the very basics and soundly redesigns them, enabling enterprises to have significant breakthroughs in cost, service, and speed.BPR can enable enterprises to straighten out from boneheaded within, and create a new organization structure. Therefore, BPR is for the whole enterprise and may even i nclude basic organization structures in its large modifications. BPM is a concept built cozyly in an enterprise that continuous to manage business processes. In an environment that stores internal and away events, BPM starts from a group of dependent processes, that describes, understands, indicates, and manages the whole process.BPM can commingle internal resources in an enterprise, automatically linking each department, enabling the enterprise to rifle a single united special forces team. As well, establishing standardized business processes through a single portal, the system can automatically make decisions based on rules and processes of the enterprise to satisfy the management needs of the enterprise, creating all-inclusive core competitive force. Key aspects on which BPM differs from BPR are as follows attach difference between BPR and BPM Aspect BPR BPM take of change Radical, one step change Evolutionary & continuous conviction taken for implementation Long Shor t time and smooth takeover starting time point Drawing board Current processes and automation levels carrying into action great effort required for the Incremental disruptive change area angiotensin-converting enzyme major process at a time malleable simultaneously across one or more / small or major processes Methodology Redesigning of business Process and decision models processes Enabling technology in general IT Primarily process technology Involvement Business and process experts Process experts and all related people Risk juicy downcast essence Drastic Incremental improvement Cultural issues Major concern non much concern Implementation stress and concernHigh abject BPM tools have taken the advantage of the BPR experience and conceptually are more flexible in terms of expanse and intensity.Unlike BPR which targets end-to-end process by radically redesigning it, BPM tools can be use part by part to the whole enterprise at a time, by adopting m uch more manageable and smaller changes in the process. This way the investments, risks and amount of change are minimized but at the same time the tangible impact is much more modest than what was a casualty with BPR. Yet BPM tools for automating processes have their basis on the fundamental concepts that were forceful by BPR, such as Simple processes delivering on the prosody of quality, service, flexibleness Focus on eliminating non-value adding activities Decisions becoming integral part of the processBPM unifies clear-cut tools through extension of technologies like BPR, EAI, Workflow automation and any other business application package in such a form where the implementation and upgradation is much easily handled and underlying business process are efficiently managed. In addition to the strength inherited from BPR that BPM is built around business processes and not business applications per se, yet another lustrous trait of BPM is that it is based on mathematical pro cess models. For example BPM helps you improve predictability and repeatability. For example, it will help you identify and recruit 10 candidates for a specified position in 8 weeks. BPR helps you study this and reduce this 8 weeks to 6 weeks or 4 weeks , depending on the context. Once this is done, we need to again use BPM to stabilize this and get back to predictability.Business Process ReengineeringDescribe each of the four kinds of organizational change that can be promoted with information technology. What is business process reengineering? What steps are required to make it effective? How does it differ from business process management? Explain with example. In an organization, there are major risks and uncertainties in systems development that need to be addressed by the management. Determining when new systems and business processes can have the greatest impact is involved in these challenges.This may be the reasons why organizational change and development is becoming a co mmon scenario to talk about involving management, organizations, business, and leadership. With the fast-changing environment, business conditions bring consequences in management both in inner and outer factors. That is why in most cases, most of the managerial activities revolve around decision making. Knowledge plays a major role in organizational development.Organizational changes are also usually described, including management and employee training requirements, recruiting efforts, changes in business processes and changes in authority, structure or management practices. Information technology can promote various degrees of organizational change, ranging from incremental to far-reaching. There are actually four types of organizational change enabled by information technology automation, rationalization, reengineering, and paradigm shifts. pic This figure shows the four degrees of organizational change.Automation is the easiest and the most common form of change. Being the mos t common form of IT-enabled change, the using of computer to speed up the performance of existing tasks is an example of automation. This involves assisting employees perform their tasks more efficiently and effectively. AUTOMATION Automation is the use of control systems and information technologies to reduce the need for human work in the production of goods and services. In the scope of industrialization, automation is a step beyond mechanization.Although automation speeds up performance of tasks, it does not guarantee a very high effectivity in business success. It is just the same as repeating the old manual way of disorders but in a faster way. However, this type of change, although common, is slow moving, thus producing slow returns. Organizations using automation produce the same products and services as before but changes the way the organization functions. Example of automation in business are calculating paychecks and payroll registers, automated checkout and inventory s ystem employed by many supermarkets. nd giving bank tellers instant access to customers deposit records. RATIONALIZATION Rationalization of procedures causes the organization to examine its standard operating procedures, eliminate those no longer needed, and make the organization more efficient. It is the streamlining of existing operating procedures, eliminating obvious bottlenecks so that automation makes operating procedures more efficient. Rationalization follows quickly from automation. Both types of change cause some disruption, but its usually manageable and relatively accepted by the people.BUSINESS PROCESS REENGINEERING A more powerful type of organizational change is business process reengineering, in which business processes are analyzed, simplified and redesigned. Using information technology, organizations can rethink and streamline their business processes to improve speed, service and quality. Business reengineering reorganizes work flows, combining steps to cut waste and eliminating repetitive, paper intensive tasks. It is usually much more ambitious than rationalization of procedures, requiring a new vision of how the process is to be organized.Business process reengineering in simpler words is Radical redesign of processes to improve cost, quality, and service, to maximize the benefits of technology. Process reengineering have been used by many companies to deal with a wide variety of problem. For example, the EMI Records Group was having difficulty filling orders for its most popular CDs. Retailers and recording stars were rebellingit took the company as much as 20 days to deliver a big order for a hit CD, and then nearly 20% of the order would be missing. Small, incremental improvements would not have been adequate, so the company reengineered its entire istribution process with dramatic effects on on-time delivery and order fill rates. In business process reengineering, the organization can develop the business vision and process objective . It can identify the processes to be redesigned (core and highest payback) and understand and measure the performance of existing processes. It can also identify the opportunities for applying information technology and build a prototype of the new process. PARADIGM SHIFT It is about changing the very nature of the business and the structure of the organization itself, whole new products or services that didnt even exist before.In other words, paradigm shifts deals with major disruption and extreme change. Paradigm is a complete mental model of how a complex system works or functions. In other words, a paradigm shift involves rethinking the nature of the business and the organization. It is a complete re-conception of how the systems should function. For example, higher education is undergoing a major paradigm shift in the online delivery of education. Classes are now offered through the Internet so that students dont even go to classrooms. Many tried-and-true teaching methodologie s are being radically altered to accommodate this shift in how education is offered.Paradigm shift is a radical re-conceptualization of the nature of the business and the nature of the organization. Deciding which business process to get right is half the challenge to the management. It is said that seventy percent of time programmatic reengineering efforts fail. But still organizations change. The reason is because the rewards are high. Paradigm shift involves great risks, but great returns too. The Internet is causing all kinds of industries and businesses to alter their products, their services, and their processes in radical ways.Entire organizations are being created to handle the paradigm shifts involved in e-commerce. Look at the automobile industry as an example of this type of change Traditional dealerships are being disrupted by auto malls and online buying opportunities. BUSINESS PROCESS REENGINEERING In todays ever-changing world, the only thing that doesnt change is cha nge itself. In a world increasingly driven by the three Cs Customer, Competition and Change, companies are on the lookout for new solutions for their business problems.Recently, some of the more successful business corporations in the world seem to have hit upon an incredible solution BUSINESS PROCESS REENGINEERING (BPR). Business Process Reengineering (BPR) involves the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance such as cost, quality, service and speed. A reengineered organization is process oriented, where 1) Processes are identified and named, 2) Everyone is aware of the processes they are involved in, 3) Process measurement, i. e. onitoring and control, is performed BPR advocates that enterprises go back to the basics and reexamine their very roots. It doesnt believe in small improvements. Rather it aims at total reinvention. As for results BPR is clearly not for companies wh o want a 10% improvement. It is for the ones that need a ten-fold increase. BPR focuses on processes and not on tasks, jobs or people. It endeavors to redesign the strategic and value added processes that transcend organizational boundaries. According to many in the BPR field reengineering should focus on processes and not be limited to thinking about the organizations.After all the organization is only as effective as its processes. Processes are currently invisible and unnamed because people think about the individual departments more often than the process with which all of them are involved. So companies that are currently used to talking in terms of departments such as marketing and manufacturing must switch to giving names to the processes that they do such that they express the beginning and end states. These names should imply all the work that gets done between the start and finish. For example, order fulfillment can be called order to payment process. Steps to an effective BPR are as follows . Prepare for reengineering Planning and Preparation are vital factors for any activity or event to be successful, and reengineering is no exception. Before attempting reengineering, the question Is BPR necessary? should be asked. There should be a significant need for the process to be reengineered. Preparation activity begins with the development of executive consensus on the importance of reengineering and the link between breakthrough business goals and reengineering projects. A mandate for change is produced and a cross-functional team is established with a game plan for the process of reengineering.While forming the cross functional team, steps should be taken to ensure that the organization continues to function in the absence of several key players. As typical BPR projects involve cross-functional cooperation and significant changes to the status quo, the planning for organizational changes is difficult to conduct without strategic direction from the t op. The impact of the environmental changes that serve as the impetus for the reengineering effort must also be considered in establishing guidelines for the reengineering project.Another important factor to be considered while establishing the strategic goals for the reengineering effort, is to make it your first priority to understand the expectations of your customers and where your existing process falls short of meeting those requirements. Having identified the customer driven objectives, the mission or vision statement is formulated. The vision is what a company believes it wants to achieve when it is done, and a well-defined vision will sustain a companys resolve through the stress of the reengineering process. 2.Map and Analyze As-Is Process Before the reengineering team can proceed to redesign the process, they should understand the existing process. Although some BPR proponents argue against analyzing the current enterprise, saying that it inhibits the creative process, t hat might not always hold true. It varies from case to case. While some organizations which are in dire straits might attempt a new process design while totally ignoring the existing processes, most organizations need to map the existing processes first, analyze and improve on it to design new processes.The important aspect of BPR is that the improvement should provide dramatic results. Many people do not understand the value of an As-Is analysis and rather prefer to spend a larger chunk of their valuable time on designing the To-Be model directly. The main objective of this phase is to identify disconnects (anything that prevents the process from achieving desired results and in particular information transfer between organizations or people) and value adding processes. This is initiated by first creation and documentation of Activity and Process models making use of the various modeling methods available.Then, the amount of time that each activity takes and the cost that each acti vity requires in terms of resources is calculated through simulation and activity based costing (ABC). All the groundwork required having been completed, the processes that need to be reengineered are identified. 3. Design To-Be process The objective of this phase is to produce one or more alternatives to the current situation, which satisfy the strategic goals of the enterprise. The first step in this phase is benchmarking.The peer organizations need not be competitors or even from the same industry. Innovative practices can be adopted from anywhere, no matter what their source. Having identified the potential improvements to the existing processes, the development of the To-Be models is done using the various modeling methods available, bearing in mind the principles of process design. Then, similar to the As-Is model, we perform simulation and ABC to analyze factors like the time and cost involved. It should be noted that this activity is an iterative process and cannot be done overnight.The several To-Be models that are finally arrived at are validated. By performing Trade off Analysis the best possible To-Be scenarios are selected for implementation. 4. Implement Reengineered Process- The implementation stage is where reengineering efforts meet the most resistance and hence it is by far the most difficult one. When so much time and effort is spent on analyzing the current processes, redesigning them and planning the migration, it would indeed be prudent to run a culture change program simultaneously with all the planning and preparation.This would enable the organization to undergo a much more facile transition. But whatever may be the juncture in time that the culture change program may be initiated, it should be rooted in our minds that winning the hearts and minds of everyone involved in the BPR effort is most vital for the success of the effort. Once this has been done, the next step is to develop a transition plan from the As-Is to the redesigned pr ocess. This plan must align the organizational structure, information systems, and the business policies and procedures with the redesigned processes. 5.Improve Process Continously- A very vital part in the success of every reengineering effort lies in improving the reengineered process continuously. The first step in this activity is monitoring. Two things have to be monitored the progress of action and the results. The progress of action is measured by seeing how much more informed the people feel, how much more commitment the management shows and how well the change teams are accepted in the broader perspective of the organization. This can be achieved by conducting attitude surveys and discrete fireside chats with those initially not directly involved with the change.Communication is strengthened throughout the organization, ongoing measurement is initiated, team reviewing of performance against clearly defined targets is done and a feedback loop is set up wherein the process i s remapped, reanalyzed and redesigned. Thereby continuous improvement of performance is ensured through a performance tracking system and application of problem solving skills. An intense customer focus, superior process design and a strong and motivated leadership are vital ingredients to the recipe for the success of any business corporation.Reengineering is the key that every organization should possess to attain these prerequisites to success. BPR doesnt offer a miracle cure on a platter. Nor does it provide a painless quick fix. Rather it advocates strenuous hard work and instigates the people involved to not only to change what they do but targets at altering their basic way of thinking itself. BUSINESS PROCESS MANAGEMENT Business process management (BPM) is a systematic approach to improving an organizations business processes.BPM activities seek to make business processes more effective, more efficient, and more capable of adapting to an ever-changing environment. BPM is a s ubset of infrastructure management, the administrative area of concern dealing with maintenance and optimization of an organizations equipment and core operations. BPM Vs. BPR If BPM is a system software, then BPR is a method. BPR re-evaluates the processes used by the enterprise from the very basics and thoroughly redesigns them, enabling enterprises to have significant breakthroughs in cost, service, and speed.BPR can enable enterprises to reform from deep within, and create a new organization structure. Therefore, BPR is for the whole enterprise and may even include basic organization structures in its large modifications. BPM is a concept built internally in an enterprise that continuous to manage business processes. In an environment that stores internal and external events, BPM starts from a group of dependent processes, that describes, understands, indicates, and manages the whole process.BPM can integrate internal resources in an enterprise, automatically linking each depart ment, enabling the enterprise to become a single united special forces team. As well, establishing standardized business processes through a single portal, the system can automatically make decisions based on rules and processes of the enterprise to satisfy the management needs of the enterprise, creating comprehensive core competitive force. Key aspects on which BPM differs from BPR are as follows Marked difference between BPR and BPM Aspect BPR BPM Level of change Radical, one step change Evolutionary & continuous Time taken for implementation Long Short time and smooth takeover Starting point Drawing board Current processes and automation levels Implementation Huge effort required for the Incremental disruptive change Expanse One major process at a time Flexible simultaneously across one or more / small or major processes Methodology Redesigning of business Process and decision models processes Enabling technology Primarily IT Primarily process technology Invo lvement Business and process experts Process experts and all related people Risk High Low Outcome Drastic Incremental improvement Cultural issues Major concern Not much concern Implementation stress and concernHigh Low BPM tools have taken the advantage of the BPR experience and conceptually are more flexible in terms of expanse and intensity.Unlike BPR which targets end-to-end process by radically redesigning it, BPM tools can be applied part by part to the whole enterprise at a time, by adopting much more manageable and smaller changes in the process. This way the investments, risks and amount of change are minimized but at the same time the tangible impact is much more modest than what was a possibility with BPR. Yet BPM tools for automating processes have their basis on the fundamental concepts that were emphasized by BPR, such as Simple processes delivering on the metrics of quality, service, flexibility Focus on eliminating non-value adding activities Decisions becomin g integral part of the processBPM unifies discrete tools through extension of technologies like BPR, EAI, Workflow automation and any other business application package in such a form where the implementation and upgradation is much easily handled and underlying business process are efficiently managed. In addition to the strength inherited from BPR that BPM is built around business processes and not business applications per se, yet another promising feature of BPM is that it is based on mathematical process models. For example BPM helps you improve predictability and repeatability. For example, it will help you identify and recruit 10 candidates for a specified position in 8 weeks. BPR helps you study this and reduce this 8 weeks to 6 weeks or 4 weeks , depending on the context. Once this is done, we need to again use BPM to stabilize this and get back to predictability.